Daily Investment Interpretations

Friday, June 22, 2012

2012-6-22: (Friday Night): The markets plunged today: Markets recover some; stocks, euro, Treasury yields rise; U.S. stocks in recovery mode. The NASDAQ Composite recouped 33.33 points (1.17%) to end at 2,892.42. The Dow regained 67.21 points (0.53%) to close at 12,640.78; the S&P 500 added 9.51 points (0.72%) to settle at 1,335.02. Oil rose to 80.15: Oil ends higher, but loses more than 5% in week; gold logged off at 1573: Gold edges higher but ends week off nearly 4%. The VIX dropped 1.97 to 18.11.
"U.S. stocks recoup a portion of the hefty losses from the previous session as investors cheered news the ECB would ease collateral for banks."
U.S. stocks bounced back Friday, one day after fears of slow growth and bank downgrades sent them spiraling downward. More"
Today probably marked a readjustment after yesterday's panic selling..

Marketwatch says:
Moody's cuts ratings on 15 banks
Banks shrug off Moody's. "Investors take the ratings agency’s long-awaited downgrades in the financial sector in stride, bidding the shares of the biggest banks higher."
Nigam Arora writes Upside to bank downgrade "On Thursday, Moody's downgraded 15 banks in a long anticipated move. Here's why the move could be positive for J.P. Morgan, Bank of America and Morgan Stanley, writes Nigam Arora (Trading Deck)."
'U.S. stocks aren’t cheap' "There’s nothing wrong with a little market optimism, but this just isn’t the time for it, asset manager Jeremy Grantham says."
Grantham: 'Bonds are disgusting'
Dividend-paying stocks that are worth paying for
Michael Gayed on: 'Dividendsanity' and the negative narrative
In 'foothills' of higher rates "Find out why a leading voice in the bond-fund world is bracing for a long season of tighter policy to come."
Mark Hulbert observes that the Dreaded Death Cross is looming. He then concludes that since 1990, the "Death Cross" has lost its sting.
Impending recession? Bump in road? See the charts
Howard Gold advises the "power elite" to Dump Greece, save Italy and Spain.
Selling in Spanish stocks yielding opportunities. "Investors may not be ready to rush back in just yet, but several analysts say the selloff in Spanish stocks has gone too far."
European Central Bank easing collateral rules.
Spain to seek bailout aid Monday.
Europe: important week ahead.

State of the Markets articles include:
A Call To Arms
"When you are wrong, you are wrong, so you might as well admit it. Although the stock market had failed to freak out as expected both in front of and then after Wednesday's much anticipated FOMC announcement, it did deliver the goods on Thursday. So, while the title of yesterday's meandering morning missive was certainly appropriate for the time period in question, the words "Freakout Fakeout" certainly looked silly by the time Thursday's closing bell rang as the stock market (SPY, DIA, QQQ, MDY, IWM) had been walloped for losses of 2% or more across the board. Prior to Thursday's thrashing, the stock market had ... Read More »"
Goldman Sachs Makes The Call - Part II "Jan Hatzius, the respected Chief Economist at Goldman Sachs was on CNBC Friday talking about the economy and the Fed, but not about "the call" the firm made Thursday... ... Read More »"
Fed's Lacker Explains Dissenting Vote at FOMC Meeting
German IFO Business Sentiment Index Update
Goldman Sachs Makes The Call. Thanks
Moody's Makes Good On Threat To Downgrade Biggest Banks

For real-time updates throughout the trading day, try State of the Markets Twitterfeed.

Thus ends another week.