Bulls Drop A Monster Bomb On The Bears: Here's What You Need To Know
Joe Weisenthal | Dec. 1, 2010, 4:00 PM |
But first, the scoreboard:
Dow: +246 S&P 500: +25.29 NASDAQ: +51
And now, the top stories:
The day started yesterday after 8:00 PM ET, when China kicked of GLOBAL PMI DAY that perfectly encapsulated the situation in China right now: Strong growth, but some worrisome signs of inflation. Nonetheless, after several days of selling, the mood was generally more bullish to start Wednesday trading.
Europe, meanwhile, got a much-needed relief from the huge run on the continent. Some very tepid comments from Jean-Claude Trichet regarding bond purchases by the ECB, and how it might be a possibility, brought spreads and yields in for the first time in days. As for PMIs in Europe it was a mixed bag. The interior and the UK are growing briskly. Spain? Not so much.
The bullish "risk on" move really picked up in the US around 6:00 AM ET. There wasn't too much to it. The euro was rallying, the dollar was sinking, and that was that.
Then we got a flurry of economic data. At 7:30, Challenger, Gray & Christmas reported an uptick in November layoffs, though that's somewhat to be expected, since there's a seasonal component to this. The really good news came at 8:15, when ADP reported private sector jobs growth that was far ahead of expectations, and augured very well for Friday's big jobs report from the government.
Finally, the "main event" of the day, the ISM, came at 10:00 and it was good, but... not really as hot as some might have hoped, given the other good news of late and the strong regional Fed announcements. (Later, at 2:00 PM ET, we got the desert of the day, the Beige Book, which was fine, though nothing anyone cared about).
What didn't move markets that much was the 12:00 Fed release about who did what borrowing from the government during the crisis. It will make for some interest research, but nothing market moving.
A big loser: Uber-hot momentum stock Netflix was down over 3%, perhaps on ongoing fears about cable company throttling data.
Also in the morning we got the Deficit Commission panel report. Some interesting stuff in there. Nothing market moving. Click here to learn more on that >
