Skip to comments.STOCKS FALL AFTER FREAK BLIZZARD OF NEWS: Here's What You Need To Know
Posted on 07/12/2011 1:25:28 PM PDT by blam
STOCKS FALL AFTER FREAK BLIZZARD OF NEWS: Here's What You Need To Know
Jul. 12, 2011, 4:00 PM
But first, the scoreboard:
S&P 500: -5.91
And now, the top stories:
* The easiest place to begin is yesterday, when stocks got smashed on all kinds bad news from Italy, to the debt ceiling talks breaking down, to ongoing reverberations from Friday's jobs report miss.
* All that continued today. Asia had a rough night. The Hang Seng fell 3%. Other markets fell hard as well. But the party really got started when Italy opened, and the FTSE MIB instantly did a mini-crash for the second straight day. At one point it was down about 4.5%, before ultimately recovering when some big, mysterious bidder (almost certainly the ECB) came into the bond market, to push yields back down.
* Pretty much every market followed Italy's lead. First they all got clubbed. Then as Italy came back, US equities, the rest of Europe, etc. came back. By the time the US markets officially opened, most of the action was over.
* There was one bit of economic news: The trade deficit for May came in wider than expected. Nobody cared. In fact, it's good news, as we explained here.
* Following the start of trading, pretty much the only thing that happened was an endless volley of debt ceiling headlines, none of them encouraging. The two sides seem far apart, and are digging in. Obama dropped the Social Security card, hinting that after August 2, checks might not go out. Late in the day, McConnel floated this weird "escape hatch"/compromise idea, but nobody thinks it really has any hope. That's a big mess.
(Excerpt) Read more at businessinsider.com ...
Hussein fiddled as stocks crashed.
Oh, he's not fiddling. There's news this afternoon of the possibility of QE3 (or is it 4?)!
The only reason the stock market continues to rise is the newly-printed money from the Fed which miraculously always finds its way into the hands of Wall Street first (before it loses its value).
All these other supposed reasons for stocks rising and falling are Barbra Streisand.
See post #7. It's QE3.
The market is hard enough to understand! I do see it going up on rumors of another Easement (ie. inflation for most of us)...however, this is only good for the markets, not for individuals (except of course for those invested in certain markets - you know the little guys that the Pres. says he is trying to protect).
Overall, I have a hard time understanding that the market continues to sustain when Europe is collapsing, our economy continues its downward trend and higher debt, our government is abstaining, and our politicians have no idea what to do!
Can someone tell me why the markets continue to NOT drop by about 5000 points here in the US?