How about a nice 1.1% down day to come back from summer vacation?
But first, the final scoreboard:
S&P 500: -12.6
And now, the top stories:
- The week actually got off to a pretty good start, as Monday the major markets around the world were up on no news.
- Where things really started breaking down was in Europe, after a slew of negative headlines. First, you had WSJ slamming the Euro stress tests again, though arguably there wasn’t much new in that, since everyone new the stress tests didn’t take much regarding sovereign debt into account. But combined with ongoing Irish banking fears, and more trouble in Greece (PIMCO says the country may already be insolvent), and you had a good stew for slamming the markets.
- The euro dove in early going, as all the major “Risk Off” plays did well. The yen soared to a 15-year high. Gold jumped to an all-time high around $1258, and of course stocks got whacked. After last week’s rally, when it looked as though US equities might be gathering some momentum, it’s a disappointment.
- The US newsflow was actually pretty quiet. There were no big macro releases today, and for the rest of the week, the econ news will be light. HP suing Oracle over the hiring of Mark Hurd was actually the big corporate news of the week.