Photo: wikimedia commons
It certainly felt like today should have been a down day. But the stock market will surprise you!But first, the scoreboard:
S&P 500: +6
And now, the top stories:
- After yesterday’s selloff, things got off to a very ugly start overseas. The Nikkei dove 2% right off the bat in the very early going. The Asian markets all generally drifted lower.
- And then at first it seemed as though the rout would continue into Europe, as a slew of fresh Ireland headlines hit the market. In addition to fears over Anglo Irish Bank, bond spreads blew out in Greece and Portugal. For a guide to the Anglo Irish crisis see here >
- But by the time the US markets came to open, things were already settling down. Ireland appears to be making progress on the Anglo Irish front, which helped the euro rally, which in turn helped the US market rally.
- The big “news” came in the afternoon. The Fed Beige Book said what everyone already knew, that growth was decelerating (despite the negative sounding headlines the market took it to be non-news). Obama’s speech has been telegraphed for days, and so there really wasn’t much of a reaction to the combination of stimulus measures and tax cuts. And consumer credit showed revolving credit shrank, but it was actually a little better than expected… so again, not a huge market mover. And thus the market gained.
- On the corporate news, BP released its much-awaited internal investigation that put blame on others, like Transocean and Halliburton. Google announced a radical change to its main search bar, so that results will appear automatically.