STOCKS RALLY AGAIN: Here's What You Need To Know

greece santorini

Photo: BluEyedA73 / Flickr

Greek confidence.First, the scoreboard:

Dow: 12,918.5, +81.1, +0.6%
S&P 500: 1,365.9, +13.2, +0.9%
NASDAQ: 2,970.4, +34.7, +1.1%

And now, the top stories:

  • It was all about Greece today.  The deadline for Greek creditors to say they would participate in the private sector involvement (PSI) deal came and went an hour before the close of the U.S. trading session.  Overnight and throughout the day, reports and rumours rolled out that increasing numbers of investors were on board with the PSI terms.  Right before the deadline passed, a report from Skai.gr said 90 per cent of investors would participate in the deal. 
  • This could be a gamechanger because if it’s above 90 per cent, then it might not be necessary to trigger the collective action clauses (CAC).  The worry has been that triggering the CACs would characterise a credit event and then ultimately trigger the credit default swaps (CDS) tied to the debt.  And who knows what triggering the CDS might do.  Some experts think it would be non-event.  Other think it could send us back to the Middle Ages.
  • The Bank of England and the European Central Bank each announced no change in their target interest rates.  No big surprise here.  There were no big surprises in their statements either.
  • We can’t ignore some news coming out of China, the world’s second largest economy.  Officials say that China plans to offer renminbi denominated loans to the Brazil, Russia, India, and South Africa. This would be a big step towards making the RNB more attractive as a reserve currency.
  • It’s still jobs week in America.  Initial jobless claims increased to 362k, which was a higher level than the 352k that economists were looking for.
  • The Federal Reserve’s Q4 2011 Flow of Funds Accounts report told us that household debt climbed 0.25, the first increase since Q2 2008.  Consumer credit climbed to $2.5 trillion, the highest level since Q1 2009.  So is the brief era of deleveraging over?
  • One of the big losers in today’s trade was McDonald’s, which reported a 7.5 per cent increase in global comparable store sales.  However, this fell short of the 7.7 per cent gain expected by analysts. “As previously communicated, while McDonald’s continues to deliver global top-line sales results, the current operating environment includes persistent economic uncertainty, austerity measures in Europe and commodity and labour cost pressures, particularly in the U.S.,” wrote the company in a statement.
  • In other fast food news, the Doritos Locos taco went on sale at Taco Bell today.  That’s a taco shell made out of nacho cheese flavored Doritos.  The word from YUM Brands is that this product has been a monster success in the test markets.
  • The big February BLS employment situation report will be released tomorrow morning.  For the first time ever, Business Insider has thrown its hat into the ring, offering readers an estimate for nonfarm payrolls.  Read all about it here >
  • Don’t Miss: The Top 10 Manufactured Products In America’s $2 Trillion Export Industry >

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