STOCKS SURGE AHEAD OF HUGE WEEKEND FOR EUROPE: Here's What You Need To Know

TBI ^ | 10-21-2011 | Sam Ro

[blam]

STOCKS SURGE AHEAD OF HUGE WEEKEND FOR EUROPE: Here's What You Need To Know

Sam Ro
Oct. 21, 2011, 3:59 PM

Stocks rally for the fourth week in a row ahead of this weekend's EU leaders' summit.

First, the scoreboard:

Dow: +268 pts, +2.3%
S&P 500: +23 pts, +1.9%
NASDAQ: +39 pts, 1.5%

And now, the top stories:

* Jitters returned to the global markets overnight on rumors that Germany and France had reached an impasse on eurozone debt crisis solution talks. Then a German official came out and said the concerns over disagreements were exaggerated. U.S. futures spiked, setting the markets up for a strong open.

* Meanwhile, European Council President Herman Van Rompuy announced that the second EU summit will indeed take place on the evening of Wednesday, October 26. This is when everyone expects to hear about the "comprehensive and ambitious" solution, which EU leaders have been hyping up. The original summit is still scheduled for Sunday.

* As expected, EU finance ministers approved the next bailout loan tranche to Greece. Meanwhile, the FT reported yet another rumor during late in the trading day. This time, according to a report they obtained, leaders could demand a 60% haircut on Greek sovereign debt held by private investors. However, this didn't shake today's bullish market move.

* The U.S. dollar plunged against the yen to a post-World War II low. Some speculated that this was part of a risk-on trade as confidence returned in Europe. dived against the yen today. Regardless, the monster move in the currency pair was probably devastating for anyone on the wrong side of the trade.

* One of the leaders in the Dow Jones Industrial Average was McDonald's, which announced better-than-expected earnings of $1.45 per share.

(snip)

[blam]

[Perdogg]

I thought we were just told that stocks were going to crash...by the same site.

[familyop]

So there’s the great stock market crash we’ve been warned about, and China is a vacant land of smoking ruins (as seen on TV for over four years). Sure.

The truth is that our US debt-to-GDP is around 100%, and the dollar of the near future is virtually worthless. The USA will begin to build a large manufacturing base again in the years to come due to the balancing of currencies ahead. Can’t hold that off forever, although some political and social events will clear the way. We’re in a depression caused by political correctness. Social-social doesn’t drive an economy. Production of real wealth (useful things) does.

[Longbow1969]

I thought we were just told that stocks were going to crash...by the same site.

They make it up as they go along - just like Zerohedge and everyone else! Still makes for interesting reading.

[familyop]

"This time, according to a report they obtained, leaders could demand a 60% haircut on Greek sovereign debt held by private investors. However, this didn't shake today's bullish market move."

Looks like an amputation that might have stopped gangrene for the time being--the EU repudiating, so Greece doesn't have to.

[UB355]

If he knew it he would not be publishing these non sensical columns

[blam]

Now Everyone's Talking About A 60% Haircut On Greek Debt