Daily Investment Interpretations

Thursday, June 21, 2012

2012-6-21: (Thursday Night): The markets plunged today: The Dow craters 252 points; Stock sell-off intensifies on fear of bank downgrades. The NASDAQ Composite free-fell 71.36 points (-2.44%) to end at 2,859.09. The Dow dove 250.82 points (-1.96%) to close at 12,573.57; the S&P 500 dwindled 30.18 points (2.23%) to settle at 1,325.51. Oil ended the day at 78.53: Oil ends under $80, lowest since October; gold logged off at 1567: Gold futures fall sharply after data, Fed. The VIX added 3.03 to 20.28.
    "Wall Street's declines deepen as data detail struggling U.S., European, China economy."
A stock sell-off gained steam Thursday, with the Dow sinking more than 200 points, as investor confidence was shattered by signs that the global economy may be hitting a rough patch. More"  
    Today's sell-off was dictated by worrisome headlines picked up by computers. 

    Marketwatch says: 
    Spanish banks may need up to $78 billion: auditors  "Stress tests by auditors find that the Iberian nation's banking sector will need between $64 billion and $78 billion in a worst-case scenario."
    Spain's borrowing costs rise at bond auction.  
    Euro to fall to $1.15: Barclays 
    Lack of leadership at G-20  "How can Barack Obama possibly convince Angela Merkel that she's on the wrong path by focusing on fiscal rectitude, asks Darrell Delamaide.
    U.S. mortgage rates ease: Freddie Mac  
    Fed policy, Europe fears keep mortgage rates low  "It seems to defy supply-and-demand logic: If there’s more demand in the housing market, wouldn’t the cost of borrowing be on the rise?"
    200,000 borrowers want foreclosure review  
    Sales of U.S. existing homes fall 1.5% in May  
    Recession is not inevitable  "But there's little to cheer about in today’s headlines about the global economy, writes Rex Nutting. (First Take)"
    Gold on verge of spectacular moves
    Philly Fed factory gauge plunges in June
    Moody's reportedly to downgrade U.K. banks  
    First-time jobless claims all but flat last week
    U.S. manufacturing PMI at 11-mo. low.  
    June euro-zone PMI stays at 35-month low.  
    China manufacturing weakens further: HSBC.  
    What, good news? Leading indicators rise.   

    State of the Markets articles include:   
    Technical Talk: Hard To Be a Pure Chartist Here  
    The Freak-out Fakeout
  "Most everyone I talked to yesterday was sitting on the edge of their seats at 12:30pm and 2:15pm eastern time. For anybody who has been in or around this game for any length of time knows that "Fed days" tend to be wild days. And with the stock market (SPY, DIA, QQQ) having been on a joyride to the upside over the past two weeks (the DJIA had put on 725 points since June 4th), no one could be blamed for feeling a little skittish going into the all important Fed announcement. On Wednesday, even the news out of Europe was secondary. The headline exclaiming ... Read More »"
    Existing Home Sales Down May; Prices Up

    Leading Economic Index Rises in May
    Philly Fed Index Plunges in June
    Bloomberg Consumer Comfort Index Pulls Back 
    Markit's Flash U.S. PMI Shows Expansion Weakening  
    Weekly Jobless Claims Continue Recent Rise  
    Eurozone Preliminary PMI's Remain Weak Overall  
    HSBC Flash PMI for China Pulls Back in June  
    For real-time updates throughout the trading day, try State of the Markets Twitterfeed.

    Market futures are up ¼ % tonight.