The Most Worrisome Aspects Of Today's Huge Rally

hand over mouth upset worry

Photo: HidingInABunker via Flickr

Despite all kinds of talk about the end of the Euro and whatnot, stocks staged a pretty serious rally today, with the S&P up nearly 3%.But there were a few aspects underneath it all.

  • First, going back to Europe, while mostly it was bullish, there was a pretty solid jump in Portuguese yields, with the 10-year blasting to a record high 13.454%.
  • In the US, yields on the 10-year barely edged higher, ticking up to 2.00% from 1.97%, which is not emblematic of a big shift in bullishness.
  • Furthermore, investors were very discriminating. Recent tech dogs, like Groupon and LinkedIn both fell hard — no animal spirits found here.
  • And Bank of America continues to fail to impress. Thanks to a last-minute spike, it ended higher by 1.5%, underperforming the market. It’s also given up a fair amount of that after hours.

Bottom line: Good day over all, hardly indicative though of some full-throated turnabout.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

markets moneygame-us