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Market Recap: Banks Rally Back, Fed Outlook Worsens

Posted on November 2, 2011 at 4:48pm by Becket Adams
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Markets closed up on Wall Street today:

Dow +1.53 percent
S&P +1.61 percent
Nasdaq +1.27 percent
Oil +0.17 percent
Gold +1.45 percent.

On the commodities front:

Oil (NYSE:USO) climbed slightly to $92.35 a barrel.
Gold (NYSE:GLD) climbing to $1,736.60 an ounce
Silver (NYSE:SLV) climbed 4.37 percent to settle at $34.16.

Today’s markets were up because:

1) Greece: Though Greece’s referendum on austerity measures still has the potential to seriously screw up the euro-zone’s plan to combat the region’s ongoing debt crisis, an integral part of which is a 50 percent writedown on Greek debt meant to help the nation avoid default, the picture isn’t so grim as it seemed yesterday.

Several high profile meetings are taking place in Cannes today, where global leaders are gathered for a G-20 summit scheduled to begin tomorrow. Though all eyes are still on Greece, the appearance of a united front tackling the issue before there even is an issue has investors skittish, but not yet running for the hills.

Greek Prime Minister George Papandreou, though it was his call for the referendum that created the mess, feels assured that his people will ultimately see the necessity of the austerity measures and the bailout, allowing everything to go forward as planned.

2) Fed: Late in the day, Federal Reserve officials announced their lowered outlook for U.S. economic growth in 2012, forecasting that unemployment will average between 8.5 percent and 8.7 percent by the final three months of next year.

While Fed Chairman Ben Bernanke announced no new policies, he left the door open for more easing down the line, saying that the Fed is “prepared to take further action” to sustain the economic recovery.

3) Banks: After two days of sharp declines, markets were in the mood to rally today, with banks reaping the rewards.

Bank of America (NYSE:BAC) started the day higher and held onto a 5 percent gain throughout, while JPMorgan (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), and Morgan Stanley (NYSE:MS) all tacked on about 3 percent.

It’s fair to say Bank of America gained an extra boost from an announcement yesterday that it would not be charging debit-card users $5 per month after all. Of course, that means the bank will have to make up the billions of dollars in revenue it will lose because of new debit-card regulations some other way, but that wasn’t enough to spoil it for investors.

[Editor's note: the above is a cross post that originally appeared on Wall St. Cheat Sheet]

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Comments (9)

TemayElbor
Posted on November 3, 2011 at 5:11am
THE WINDOWS OF HEAVEN ARE CLOSED—because we are all “robbers” in the eyes of God.

“Will a man rob God? Yet ye have robbed me. But ye say, Wherein have we robbed thee? In tithes and offerings. YE ARE CURSED WITH A CURSE : FOR YE HAVE ROBBED ME, EVEN THIS WHOLE NATION. Bring ye all the tithes into the storehouse that there maybe meat in mine house, and prove me now herewith, saith the Lord of Hosts, IF I WILL NOT OPEN YOU THE WINDOWS OF HEAVEN, AND POUR YOU OUT A BLESSING, THAT THERE SHALL NOT BE ROOM ENOUGH TO RECEIVE IT ” (Malachi 3:8-10)

BLESSED IS THE CHURCH WHICH MEMBERS ARE FAITHFUL TITHERS….AND BLESSED ARE THE MEMBERS THEMSELVES. AMEN.
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scoter
Posted on November 3, 2011 at 12:02am
http://www.helpfireobama.com Please give $20.12 http://www.helpfireobama.com Please give $20.12
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Eblaze44
Posted on November 2, 2011 at 11:12pm
Unemployment always goes down the last three months of any year because of Christmas (excuse me, holiday) hiring of temporary part time workers with minimum pay and benefits. they are let go the first of the year. The employment rate will only get better if the rest of the world goes bust and Americans really are put to the test to work or starve as the government and the Federal Reserve goes belly up. People will work for food. the banks and credit card companies can put credit scores to zero – but when no one can pay their credit – they won’t be going to jail – the banks and credit card companies – and the Federal Government will just have to suck wind and print millions of dollars in valueless federal reserve notes.

Hope the Greeks held onto their Greek drachmas. Some countries were smart not to indulge in the Euro and kept their own coinage.
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progressiveslayer
Posted on November 2, 2011 at 7:34pm
Helicopter Ben just keep printing your funny money fiat currency and before you know it it’ll be worthless,the fed is more dangerous to the republic than any terrorist.
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- vennoye
  Posted on November 2, 2011 at 10:48pm
  You’re right. Guess we better check the air in our wheelbarrow tire.
  Report Post »
lukerw
Posted on November 2, 2011 at 7:31pm
Between Insurance Derivatives against Failure… and the Federal Reserve acting to “support” the Dollar in Foreign Banks… the failings of the EU will suck the US dry!
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N-TIME-WATCHER
Posted on November 2, 2011 at 7:30pm
It’s made of steel, I assure you-IT WILL SINK! The back of the Titantic is lifting out of the water, the day of reconing is upon us!
God’s judgement will be poured out on this Country. Seek God with all your heart while there is still blood on the Mercy Seat. That’s tough words but IT IS THE TRUTH!
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- carbonyes
  Posted on November 2, 2011 at 8:34pm
  Talked to my pastor, who stated that the problem with the economy is sin. Never were truer words ever spoken. Also true for the country as a whole, our culture, educational system, the whole nine yards. It has been said, if God gives our country a pass, which he hasn’t, then God owes Sodom and Gomorrha and apology. He doesn’t and will not have to. The avarice, greed, treachery, lies, deception accompanied by homosexuality, promiscuity, abortion, gay marriage, gay adoption and all the other sickening, aberrant lifestyles that permeate all levels of our society and culture, have planted deep seeds of decay and cancer that send the stench of a million rotting carcasses to the nostrils of God that the strongest of incenses can not assuage. Judgment has only begun! The only thing that could stall the invoking of His divine wrath would be the repentance of this nation and it’s people as spoken of in II Chronicles 7:14.
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- GeoffTN
  Posted on November 3, 2011 at 12:01am
  Americans (and Canadians) of every color and denomination are all gathering at Ford Field, home of the Detroit Lions, for a 24-hour long worship-and-prayer fast starting at 6:00PM on 11-11-11; 70,000 people from across the nations are expected at this “no cost, just sacrifice,” event to plea that God show us mercy. Maybe, just maybe, God will give us a little more time. Maybe not, but we who know Him need to be on our faces sorting out what we need to prepare for. True JUSTICE is coming – to the bankers, to the racists, to the systems, but it will be dressed in deep, terrifying judgements for anyone who believes in the present structures as their hope. We are all in this together, but the Kingdom of God will be the one answer. http://www.thecall.com
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