The violence being committed against the shorts continued unabated today. It was almost painful.But first, the scoreboard:
S&P 500: +7.88
And now, the top stories of the day:
- Things got started very dramatically last night for the precious metal bulls, who saw big selling in gold and silver, a continuation of a trend that started on Friday when Bernanke took to the lectern. It appeared as though we’d likely get some follow-through strength in the dollar, more Treasury selling, and more equity buying. But it was not so simple.
- Equities in Asia ended lower across the board. Hong Kong was hit particularly hard. Japan was the best of the bunch.
- Europe basically followed the trend, though not on any huge news. What news there is is not sovereign-debt related, but rather out of France where strikes continue to cripple the economy. The CAC-40 was the big loser.
- In the US things were flat-to-up in the early going, with all eyes on Citigroup earnings in the morning and Apple earnings after the bell. For a look at what investors are really expecting with Apple, see here.
- Citigroup earnings were fine. Credit losses continued to decline — much with JPM — and perhaps surprisingly the company really had nothing to say about foreclosure/mortgage-putback-gate. They were almost eerily quiet on the subject.
- On the macro front we had a few notable reports: Homebuilder sentiment beat expectations, while capacity utilization and industrial production both came in weak. The capacity utilization numbers hit stocks, but they came back pretty quickly.
- And the rally continued throughout the day. Notable strength was seen in financials in part due to Citi’s earnings, but then also later on due Bank of America’s announcement that it would begin foreclosing again. Of course, Bank of America still has the putback issue to deal with. The XLF financial ETF ended up over 2.2%, far outpacing the market.