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发帖数: 1972 | 1 STOCKS EXPLODE HIGHER AND EVERYONE THINKS EUROPE IS FIXED AGAIN: Here's What
You Need To Know
Read more: http://www.businessinsider.com/closing-bell-27-2011-10#ixzz1c18ofItz
First, the scoreboard:
Dow: +339.4 pts, +2.9%
S&P 500: +42.6 pts, +3.4%
NASDAQ: +88.0 pts, +3.3%
And now, the top stories:
In case you missed it, here's a rundown of yesterday's EU summit because it
's important. Leaders have agreed to 50% writedowns on Greek debt held by
private bond holders, a leveraged EFSF that would have $1.4 trillion in
firepower, and a minimum 9% core capital ratio for euro area banks. Banks
will need an extra $147 billion to recapitalize. French President Nicolas
Sarkozy also said the EU would reach out to China's Hu Jintao.
The news out of the summit has been getting mixed reviews by analysts. But
based on today's monster market rally, overall sentiment seems to be
extremely positive.
But this doesn't mean all of Europe's problems are fixed. There's the
whole issue of actually implementing any of these proposals. Among other
issues still hanging out there is whether the Greek writedown constitutes a
credit event triggering CDS. We also note that the spread between Italian
and German bonds remain incredibly high, which is worrisome.
We got some economic data today. The first reading on Q3 GDP came in line
at 2.5%. The personal consumption expenditures component of GDP jumped 2.4%
, which was well ahead of the expectation for 1.9%. Initial jobless claims
declined modestly to 402k, which was in line with estimates.
Pending home sales missed estimates by a wide margin, falling 4.6%. But
markets seemed to have ruled this as a one-off as homebuilder stocks rallied.
Banks all over the world won big in today's bull rally. French banks went
bonkers. In the U.S., Morgan Stanley was the big winner today, soaring 17%.
Goldman Sachs, Bank of America, and Citigroup all book gains of over 9%.
However, one financial firm showed significant weakness today. The stock
of MF Global extended its precipitous decline, falling 16%, after Fitch
downgraded the firm's bonds to junk status. Everyone's now wondering who
will buy out the firm.
Notable earnings announcements today included Proctor & Gamble and Exxon-
Mobil. Both are in the Dow Jones Industrial Average. Both announced
earnings in line with expectations and both were laggards today.
Read more: http://www.businessinsider.com/closing-bell-27-2011-10#ixzz1c19J4WFc |
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