More disappointment for stocks and exhilaration for gold bugs.But first, the scoreboard:
S&P 500: +0
And now the top stories:
- While global markets were mixed, the Dow opened up over 2% on several bullish developments. First the Libyan Rebels had taken Tripoli. Second there was speculation that Bernanke would announce further quantitative easing at his upcoming Jackson Hole speech. Finally the market looked ripe after four weeks of declines.
- Unfortunately the rally faded. On the Libya front, investors were disappointed to learn that Qaddafi had vanished. Meanwhile the weekend plunge for crude futures was moderated by news that Libyan production won’t come online soon. On the Fed front, SocGen warned that QE3 is unlikely.
- Gold traded at $1,899.40 today before settling at a record $1,891.90. Wells Fargo is one of several big firms to insist that the massive rise is not a bubble.
- Bank of America got slaughtered again down 12% from the open around 6% from Friday’s close. One trigger was news that BoA would not raise capital by selling its stake in China Construction Bank, and another was that the NY AG would continue to protest the bank’s mortgage settlement. Goldman Sachs also tanked on news that Lloyd Blankfein had hired a high-profile lawyer, presumably to defend against a coming lawsuit.
- While Obama declared in Libya, a shock poll showed the president tied with Romney, Perry and Paul. Also everyone was talking about Harvey Golub’s takedown of Obama and Buffett’s tax philosophy. Here’s 14 reasons why the U.S. will never have a balanced budget again >