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4 big up days in a row!But first, the scoreboard:
S&P 500: +19.50
And now, the top stories:
- The big story of the day was, without question, the big coordinated central bank intervention that was announced at 9:00 AM ET. The Fed, BOJ, BOE, ECB, opened the spigot for dollar funding for parched, liquidity constrained banks. Futures, which had been barely higher at that point, went on a big surge.
- Prior to that, the big news of the morning, came right around 3:00 AM, when UBS said that a rogue trader had cost it $2 billion. The stock plunged some 10% on the news, though it didn’t have much of a ripple effect, despite the frailty of the European banking system. Some will note that the last time there was a big rogue trader story–Kerveil at SocGen–the Fed eased liquidity that day, too. Click here to see history’s great rogue traders >
- To some extent, the big rally and big liquidity move overshadowed the bad news of the day, which was all the negative economic news, most of which came out at 8:30. Initial claims and Empire State Manufacturing were both ugly. Also, CPI was hotter than expected, which means Bernanke has even less room to manoeuvre than he might have. That wasn’t it for weak econ data, either. At 10:00, the Philly Fed Index missed again, posting a grim -17. Click here to see ugly details from the Philly Fed Survey >
- And really, that was kind of it in terms of news today. Stocks rallied from the liquidity move until the end, and now we’re looking at 4 straight days of gains, totaling 6% from Monday’s low.
- Despite the rally, nothing is even close to being resolved in Europe, though there was a lot of talk about “Euro-TARP” today. Read more on that here >
- In addition to the big market rally, there was (unsurprisingly) a big euro rally, and gold got really crushed, which is a tad ironic given all the money printing going on. As for corporate news, it was mostly quiet. Netflix got crushed after reducing subscriber guidance, and Yahoo rallied on bailout hopes. RIMM earnings are also on the way.
- For more interesting reading, check out Bill Ackman’s big bullish case on the Hong Kong Dollar >
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