Daily Investment Interpretations

November 23, 2011

2011-11-23: (Wednesday Night): The markets plunged today: U.S. stocks sharply lower on Europe fears, Hope Is Lost As Stocks Hit For a Sixth Consecutive Day. The NASDAQ Composite descended 61.2 points (-2.43%) to close at 2,460.08. The Dow gave up 236.17 points (-2.05%) to 11,257.55; the S&P 500 discarded 26.25 points (-2.21%) to settle at 1,161.79. Oil gained slightly further to 95.66 Fear premium in oil is starting to wane; gold advanced to 1,689. The VIX rose 2.01 points to 33.98.
    Among the Marketwatch headlines that moved today's markets are:
    Crisis comes to Germany  
    Austrians' self-help fuels contagion  
    EU seeks budget oversight, euro bonds  
    Weighing odds of a euro-zone collapse (video)  
    Consumer sentiment highest since June  
    Prospect of euro collapse and your portfolio (video)
    U.S. incomes outpace spending in October   

    Jobless claims rise                  
    Europe stocks drop on German auction, China data        
    Durable-goods orders fall 0.7% in October  
    In another of his excellent articles, Why everyone is wrong about defense, Brett Arends tells about the stunning level of U. S. military budgets (higher as a percentage of GDP than at any time except during the WWII years:1943, 1944, and 1945. He explains that the threatened military budget cuts would lead to a 16% rise over the next ten years rather than the projected 23% increase. I believe that our military budget is currently larger than the sum total of all the other countries in the world combined.
    And Mark Hulbert reminds us that this is the Second anniversary of Greek debt crisis.  

    State of the Markets' articles include:
    Technical Talk: As the Cookie Crumbles  
    China's Flash PMI Dives Below 50; Signals Manufacturing Slowdown  
    Eurozone Preliminary PMI's Confirm Economic Contraction 
    German Bond Auction Not Well Received  
    Fed To Force 6 U.S. Banks to Undergo 'Global Market Shock' Stress Test   
    Weekly Jobless Claims Up 2K For Week Ending 11/18 
    Orders for Durable Goods Fall In October; Ex-Transport Component Up  
    Personal Income and Spending Report Mixed in October  
    Confidence Killers  
    Fitch Warns On France's Triple-A Credit Rating  
    The Not-So Done Deal With The Dexia Bailout  
    Bloomberg Consumer Comfort Index Still Weak  
    University of Michigan Sentiment Rises in October