Photo: Wikimedia Commons
This was easily among the biggest 24 hours in a long time, and… markets totally snoozed.But first, the scoreboard:
S&P 500: +3.6
And now, the top stories:
- Well obviously the day began yesterday with the massive election result for the GOP. No need to rehash it much. The party of Lincoln romped the Democrats, though they didn’t get the Senate. But this was all basically expected, outside of a couple of surprises, and markets didn’t react a whole heckofa lot. For a guide to the likely budget cuts the GOP will pursue, see here.
- The overnight scene in Asia was quiet. The Nikkei was closed. The Shanghai Composite was down a bit.
- Things got moving a bit more in Europe, courtesy of ongoing sovereign debt fears, especially in Ireland, where yields blew out to above 7.4%. A possible cause was a court ruling that paved the way for early elections. Protester occupation of the Finance Ministry didn’t help matters none.
- In the early going we got a slew of economic data, most of it pretty good. The ADP jobs number was clearly better than expected. The ISM Services Index at 10:00 was also strong. Factory orders did well. So far, all of the October numbers have come in way better than expected, and confirm ongoing growth, even if not at the pace folks would really like.
- Of course, the huge news was today’s QEII announcement. You can see the full details here, but the gist is that the Fed will buy $600 billion worth of Treasuries (slightly more than expectations), and buy at the shorter end of the curve, which caused the 30-year bond to collapse.
- Other moves: Oil continues to lok strong, gold fell, and the dollar moved a bit higher.