Photo: Associated Press
Ignore the red numbers next to the Dow and the S&P. When priced in the ONE TRUE CURRENCY — which is gold, duh! — stocks were actually up.First, the scoreboard (based on toilet paper worthless greenbacks):
S&P 500: -2.22
And now, the top stories:
- The day started with a very familiar refrain of dollar weakness. The BoJ hinted that it was done playing the currency debasement game (which could just be a move to fool speculators in the coming days) and naturally the yen surged to new highs against the dollar. Kyle Bass’ mortgage got even more expensive, as the yen has now erased its entire losses stemming from the intervention.
- And of course, where there’s dollar weakness, there are gains in gold, which at one point came with in a breath of $1370 — smashing records along the way.
- The European news was fairly quiet, however there was one really ugly housing number out of the UK, which indicates that yes, a double dip in housing is certainly possible, even with QE and all that stuff.
- Early on in the day gold took a violent reversal. It fell from over $1360 to under $1330 in the matter of a few hours. Compared to yesterday’s 4:00 PM spot close, gold is down 1.1%, which is why US futures were up when priced in gold. Silver — which has been hotter than gold — plunged even harder. Other commodities reversed course as well. Oil slipped. Copper futures fell 2.5%. Click here to see the managers who got hammered in the gold fall >
- On the macro news front the biggie was the initial jobless claims report, which came in just slightly better than expected. Later in the day we got August consumer credit, which came in slightly worse than expected.
- A slew of retail sales were relatively strong.
- Tomorrow we get the last jobs report before the election and the next Fed meeting. It means EVERYTHING.
- Late in the day, shares of Adobe spiked on some vague rumours about a possible bid from Microsoft.
- This evening Alcoa officially kicks off earnings season. Here’s a preview.