Daily Investment Interpretations
November 3, 2011
(Thursday Night): U.
S. stock market indices soared today on a rate cut by Mario Draghi, the new
chief of the European Central Bank, ECB
delivers surprise rate cut in Draghi’s debut, and indications that
the Greek referendum won't be held after all: Greek
referendum in doubt, Stocks
Soar as Greek Referendum Unlikely. NASDAQ Composite regained
points to close at 2,697.97. The Dow rocketed
the S&P 500 surged 23.25 points
to settle at 1,261.15. Oil rose to 94.14; gold advanced to 1,765.
The VIX dropped 2.24
points to 30.50.
I said last night at bedtime: "Market futures are down more than 1 % tonight. Things look dour." And they did, but that was before (1) the rest of Mr. Papandeou's government rebelled against him in the matter of a referendum: Greek Finance Minister Says No Referendum; Papandreou Backs Off Vote Pledge, Party Members Revolt Against Papandreou; Referendum, PM's Future In Question, BBC Says Greek Prime Minister Papandreou To Resign, and (2) the new head of the ECB revealed his position on the role of the ECB: namely, that unlike his predecessor, Jean-Claude Trichet, whose priorities were limited to the sole ECB mandate of reducing inflation, Dr. Draghi is concerned about the survival of the Eurozone: Draghi: the new sheriff in Frankfurt. (Unlike the U. S. Federal Reserve, which is tasked with holding down both unemployment and inflation, the ECB has the sole mandate of minimizing inflation.) Most important of all, this sends an upbeat message regarding what we can expect for the future.
Mr. Market keeps his head up Kevin Marder notes that the markets held up well under yesterday's onslaught, and that they look as though they want to go up.
2008's hazards are still with us (video) This says that although banks are better-capitalized than they were in 2008, they're still in the crosshairs for a super-Lehman-Brothers moment if Greece outright (100%) defaults.
Rex Nutting reminds us that Full employment is 12 years away.
Big profits, zero taxes for large U.S. companies
State of the Markets contributions for today include:
Technical Talk: Three Quick Takeaways From the Charts This article, by David Moenning, expresses his frustration over the headline-driven high-frequency trading that drives the markets willy-nilly aimless, like tail-less kites. He explains elsewhere that you have to have a supercomputer, a technical staff of Ivy-League Ph. D. "quants", and an address near the New York Stock Exchange to play the high-frequency trading game.
Market Mover: AP Reports Greek Referendum Has Been Scrapped
Weekly Jobless Claims Fall 9,000; Fall Below 400K
Worker Productivity Rises; Unit Labor Costs Show No Inflation
In Surprise Move ECB Cuts Interest Rates
Bloomberg Consumer Comfort Index Falls Again
ISM Non-Manufacturing Index Pulls Back in October
Factory Orders Improve in September
Retail Sales Disappoint in October
For some reason, U. S. market futures aren't available, but overseas stocks are up tonight.