Daily Investment Interpretations

October 13, 2011

2011-10-13: (Thursday Night): The equity markets ended mixed today: Dow, S&P chased down, .
The NASDAQ Composite gained 15.51 points (0.6%) to close at 2,620.24. The Dow slipped 40.72 points (-0.35%) to 11,478.13; the S&P 500 closed up 3.59 points (-0.03%) to settle at 1,203.66. Oil inched down to 84.45; gold slipped slightly to 1,670. The VIX eased down 1.96 points to 30.89
    Market volume was no greater than it was yesterday.
    A pause by bulls to catch their breath seems timely.
    State of the Markets articles include: Getting To The Point. In this early-morning article, David Manning suggests that the Eurozone leaders  "are finally getting to the crux of the problem. In short, the powers-that-be look to be coming to grips with the idea that there WILL be defaults on sovereign debt and they will start in Greece. As such, leaders are no longer trying to figure out ways to keep Greece from defaulting and are instead busying themselves with the issue of how best to avert a banking crisis." He concludes:
    "Bringing this full circle, I'm of the opinion that there are three keys to the market right now. First, it would appear that the EU leaders are indeed finally getting to the point. Second, it looks like the markets are giving the EU the benefit of any and all doubt at this time due to the third key - that the U.S. economy does not appear to be crashing and burning the way it did in 2008. Therefore, stock prices are currently being adjusted upward to reflect the improved outlook.
    "But with the market now back at the top end of the range, it remains unclear how much more upside adjustment is warranted. Stay tuned.
    A Handy Guide To Eurozone Rescue Efforts  
    Kyle Bass's Big (Very Big) Bet 
    Deal In Slovakia To Allow Passage on Friday  
    New EU Bank Stress Tests Would Produce 66 Failures 
    Weekly Jobless Claims Fall 1,000 But Still Above 400K  
    Bloomberg Consumer Comfort Index Pulls Back  
    Slovakia Votes Yes (finally) on EFSF Expansion  
    Google Blows Away Estimates with Q3 Earnings  

    Irwin Kellner echoes Paul Krugman's warnings about deflation being more probable than inflation, and about the misplaced concerns about inflation and deficits versus the real dangers of a faltering economy and deflation: The inflation balloon is rapidly losing air.
    S&P cuts Spain's long-term sovereign credit rating  
    'D' is for deflation  
    Kevin Marder: The market looks tired.
    Stock market futures are neutral tonight.