Market Recap: Dow Breaks 12,000 in Rally Fueled by Central Banks
- Posted on November 30, 2011 at 5:11pm by
Becket Adams
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Markets closed up on Wall Street today:
- Dow +4.23 percent
- S&P +4.33 percent
- Nasdaq +4.17 percent
- Oil +0.60 percent
- Gold +1.83 percent
On the commodities front:
- Oil (NYSE:USO) climbed to $100.39 a barrel
- Gold (NYSE:GLD) up to $1,750.40 an ounce
- Silver (NYSE:SLV) rose 2.94 percent to settle at $32.89
(Related: Pent-up Demand and Record Low Interest Rates Give Pending Home Sales a Boost)
Today’s markets were up because:
1) Central Banks: Stocks staged a huge rally today after the Federal Reserve and five of the world’s major central banks issued a joint statement saying that they would take coordinated steps to prevent a global liquidity crunch as the euro zone fights to end the debt crisis.
The Federal Reserve said it would work with the European Central Bank (ECB), as well as the central banks of Britain, Canada, Japan, and Switzerland, to boost liquidity and support the global economy.
2) Jobs: The private sector added 206,000 jobs in November for the biggest gain since December 2010, according to the ADP National Employment Report.
Figures reported Wednesday far surpassed economists’ expectations for a gain of 130,000 jobs, prompting them to raise their forecasts for Friday’s more comprehensive report from the U.S. Department of Labor, which includes both public and private sector employment.
3) Banks: Bank stocks rallied on news of the central banks’ plans as investors ignored Standard & Poor’s downgrade of big bank stocks that came Tuesday evening. Goldman Sachs, Morgan Stanley, Citigroup, JPMorgan, and Wells Fargo all shot up more than 7 percent in trading today, while Bank of America, which hit a 52-week low on Tuesday, moved up 7.30 percent by closing bell.
[Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet.]
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Comments (70)
Mojoron
Posted on November 30, 2011 at 8:44pmSo we find out today that the FED has printed over $7 trillion dollars and used most of it to help out European banks. So how does that work? It caused our stock market to increase 500+ points? Come on. How f’en stupid are investors? This reminds me of the tech-boooom-booom of the 90‘s when NASDAQ went through the roof over companies that weren’t making money except for “future” profits with P/E ratios that exceeded a logarithmic graph. This **** totally scares me. Now I’m believing that there is no relationship between reality and the stock market. I’m ready to put everything in gold.
Report Post »The-Monk
Posted on November 30, 2011 at 9:11pm@Mojoron
Report Post »What’s with the hammer and sickle on the US Flag? Not very patriotic.
mwhaley
Posted on November 30, 2011 at 9:48pmI do not pay attention to the stock market at all any more. The past 4 years the market has not made a bit of sense.
Report Post »C-Delta Conductor
Posted on November 30, 2011 at 10:20pm@ The-Monk:
Are you seriously gonna pull the “patriotic” card… compared to its original intent this country is far into the territory of marxism/socialism. I find Mojoron’s political symbolism very appropriate.
The trouble is too many people have no understanding of what makes America great, and go around stupidly pledging allegiance to a piece of dyed silk. My allegiance is to the principles of Freedom and Liberty, and a Government with Enumerated powers that can ONLY use Force to Protect us from foreign and domestic Force, not a flag, not a national identity. My allegiance is to American goodness, once that’s gone, the flag is meaningless.
Report Post »V-MAN MACE
Posted on December 1, 2011 at 8:41amMaybe this is the 80 billion Beck is looking for that went bye-bye from the Federal Reserve…
Report Post »Mateytwo Barreett
Posted on November 30, 2011 at 8:44pmTime for a little holifday hysteria! No plausible reason for an advance, let alone this. I seem to remember someone warning the market would be volatile for a while- then shoot up- just before the collapse. Grab your ankles, this ain’t gonna be pretty!
Report Post »Tretka
Posted on November 30, 2011 at 8:13pmHELLLLOOOOO? This is bad, very bad. Very,very,very bad. Ubber bad. Just bad. We were just sold to Europe. The US Federal bank printed money and handed it out. We took junk in return…hello? This was a quiet flash point…someone on this site said they would not believe the “market” is back until it goes above 13,000. Are you okay and may I tell you this is all a lie, they are devaluing the dollar-so who cares about the darn market. What the heck is wrong with people. Personally, I felt the next nail.
Report Post »simply one voice
Posted on November 30, 2011 at 9:41pmTRETKA – It’s just Obama up to dirty tricks to buy him some votes. The hell with America, in his mind, “I just want to look cool.”
Report Post »His_Way
Posted on December 1, 2011 at 2:19pmI do beleive all the many recent sex scandals and diversions were just to throw sand in our eyes – distraction from the great scandel of our time.
Report Post »A Conservatarian
Posted on November 30, 2011 at 7:55pmYaaaaY! They promised more US taxdollars and enslavement for all YAAAAAY!!!! Lets go gamble in the market place YAAAAAY!!!! : | And you people want to vote for anyone besides Ron Paul for what reason? Oooooo big bad Iran is gonna beat us! stfu. Ooooo Israel can’t win a warrrr without us! stfu. Oooooooo wee neeeed to have our fake republican telling us what to dooooo! stfu. Stop being sissies and nannies; you are not your brothers or sisters keepers; the united states is not the keeper of the rest of the world as the central banks would have it.
Report Post »iwrk2live
Posted on November 30, 2011 at 7:53pmSell, Sell, Sell
Report Post »Tretka
Posted on November 30, 2011 at 8:14pmAmen Brother (or sister)! Hunker down!
Report Post »The-Monk
Posted on November 30, 2011 at 9:31pmWhile you are sell, sell, selling; Wall Street is short, short, shorting.
Report Post »The-Monk
Posted on November 30, 2011 at 9:32pmSorry, I forgot to ask if you know the difference between selling and short selling?
Report Post »LibertarianRight
Posted on December 1, 2011 at 2:27amWhen the dollar becomes completely worthless, shorting is going to look REALLY stupid. The bubble that is being created will be absolutely disastrous, because it will be paired with a rapid decline of the dollar. The economy will be left in utter ruins, and the only real haven will be gold and physical assets.
Report Post »chicago76
Posted on November 30, 2011 at 7:39pmChristmas temp hires.
Report Post »chicago76
Posted on November 30, 2011 at 7:38pmMore printing of money we and they do not have and laundering through banks. In this case they reduce the cost of borrowing our money, money we do not have,(ain’t it nice to have a printing press) and then turn our money by way of monetary magic into Euros that they can use to support their bankrupt economies. Wallah. Bernanke should be in prison. How many of their buddies will peal off a commission from this? How many will receive bonuses? By the time the Greeks get the money it will be 50% of the borrowed amount.
Report Post »garyM
Posted on November 30, 2011 at 7:33pmThe people who have invested in the European market are selling off and buying Wall Street stocks, just like they did this, when things get shaky here with the dollar, they‘ll sell off those stocks and move to the Japanese stock market or somewhere else and then we’ll have another meltdown like we did in 08. I guess that will be W’s fault too!
Report Post »simply one voice
Posted on November 30, 2011 at 7:30pmWait till the all the hoarding Rats go down this sucker “Cheese” hole again created by our traitor president, Obama, and all of the cards come tumbling down erasing everyones investment instead of US Gold Eagles, thats when the tears will flow.
Folks – America is broke. Accept the fact we cannot hold Europe up with paper money. This is Germany’s business but now ours instead. Thank you Mr. President and all the corrupted on both sides of the isles in Congress and the Senate – Traitors/
Report Post »morristhewise
Posted on November 30, 2011 at 7:25pmExecutives at European banks are partying after getting the good news that their vaults will be full of more American dollars. Retirees are also in a party mood seeing that their pension funds are worth more. Only the poor remain depressed, they can only hope the party mood trickles down to them.
Report Post »opnsrcsurvival
Posted on November 30, 2011 at 7:11pmSo I mortgaged my house and put all that money into the market tonight, if it hit 12k today then I wager (wink) that we will see 14k by christmas. I diversified into european banks, greek shipping companies and some tech group called Solyndria or some such name…my broker even took me out for a steak!
http://www.opensourcesurvival.com financial posts up now…..
Report Post »deerjerkydave
Posted on November 30, 2011 at 7:02pmWhy do I feel like a massive bubble is about to burst?
Report Post »Ookspay
Posted on November 30, 2011 at 7:14pmBecause you know that if you pay your nieghbors bills for him, it doesn’t mean that he is financially sound.
My son love’s blowing bubbles with chewing gum, the bigger they get, the bigger the grin, but they always pop.
It will be pretty hard not to bail out California and other bankrupt states. These are not bailouts, they are simply stalling tactics.
Man I love Venison Jerky…
Report Post »A Doctors Labor Is Not My Right
Posted on November 30, 2011 at 8:12pm@Ookspay,
“It will be pretty hard not to bail out California and other bankrupt states.”
You need to let all of these states fall. Preserve your own state’s rights.
Report Post »Ookspay
Posted on November 30, 2011 at 8:26pmDoctor, I agree with you 100%. 50 laboratories of democracy and innovation. Let California FAIL. However, I stand by my point. States will say, “You bailed out Italy why not us”. Even though they both have the same structural problems; out of control entitlement spending, insane environmental regulations, etc. The precednt has been sent, don’t judge the problem, just send cash!
Report Post »A Doctors Labor Is Not My Right
Posted on November 30, 2011 at 9:39pm@Ookspay,
“States will say, “You bailed out Italy why not us”.”
The only way out of this mess is to transition out of a fiat money system. Whether those in government want to obey our Constitution, we need to find a way to go to a commodity system – screw them, if they won’t obey the rule of law.
See here.
“What is Constitutional Money?” with Edwin Vieira — Ron Paul Money Lecture Series, Pt 2/3
Report Post »http://www.youtube.com/watch?v=k6gMkKmQSW4
bolec slodkie
Posted on November 30, 2011 at 6:29pmThis is Bush’s fault. The market went up over the weekend because of the 401(k) and IRA contributions came in for the people who have a weekly or biweekly pay cycle. The big jump today was because it is the end of month payday. Tomorrow won‘t be such a big jump because the federal employees who get paid tomorrow don’t contribute that much.
It‘s Bush’s fault because the first tax break was to give a larger retirement account tax break.
Report Post »Tretka
Posted on November 30, 2011 at 8:07pmBolec Slodkie-excuse me, are you serious? or is this humor?
Report Post »TheVoice1
Posted on November 30, 2011 at 8:58pmNo doubt a democrat… its Bush’s fault… its Bush’s fault… Obama’s spending twice what Bush did and in only 2 1/2 years and printing money like a rabid forger…. we know… it‘s Bush’s fault…. lol take you head out of the Bush and take a look at Obamy… just a quick glance demi-rat… then we we we all the way home, stick you head back up your behind and shout as hard as you can,” It‘s Bush’s fault” now make sure you strain real hard when you shout.. unbelievable
Stand Strong America
Report Post »Sam Brown
Posted on November 30, 2011 at 6:28pmEurope can‘t pay it’s debt so we loan them money, geez how smart we are LOL In the end we will all crash together under the debts of socialism.
Report Post »TRONINTHEMORNING
Posted on November 30, 2011 at 6:10pmThis means nothing; our fed is printing money and its basically temporary.*&^% is gonna hit, just watch.
And BROKER, you’re annoying. {:
Report Post »Tretka
Posted on November 30, 2011 at 8:17pmTronin-Bingo, bingo, bingo to you and a bulls eye! Thank you for getting it.
Report Post »MaxineH20Sux
Posted on November 30, 2011 at 6:04pmI am SO sick of the fed throwing OUR MONEY at EUROPES CRISIS!!!!! I am so sick of all of these buffoons! We have no one with any kind of brains running anything in this country. I really don’t know how much more I can literally take!!!!!!!
Report Post »A Doctors Labor Is Not My Right
Posted on November 30, 2011 at 6:25pmWe have someone who saw this housing crash coming seven years before it happened: Ron Paul.
He knows why economic crashes happen.
See here.
Ron Paul Calls the Housing Collapse in 2003
http://www.youtube.com/watch?v=9S3lXDOQ7ec
And here.
Smashing Myths and Restoring Sound Money | Thomas E. Woods, Jr.
Report Post »http://www.youtube.com/watch?v=HAzExlEsIKk
enough_liberal_BS
Posted on November 30, 2011 at 6:03pmCentral banks? Really? It looked to me like the market jumped the moment Bwarney Frank announced his retirement. “No more Bwarney? We might have a chance of survival now! Come on boys, let’s trade!”
Report Post »TRILO
Posted on November 30, 2011 at 6:02pmEurope is BROKE, the United States is BROKE, no amount of money printed out of thin air will solve the problem. All this is going to do is hose the American taxpayer once again.
Report Post »wewantchillywilly
Posted on November 30, 2011 at 5:59pmGold is up. therefore, our currency is still down.
nothing is better here. this is just further can kicking down that famous road. but there are a lot of cans they still gotta kick.
Report Post »A Doctors Labor Is Not My Right
Posted on November 30, 2011 at 6:27pmYou have it backwards. Gold is up BECAUSE our money is down.
Gold isn’t getting more expensive so much as our fiat paper is losing value.
Report Post »mandemsmom
Posted on December 2, 2011 at 1:34pmAnyone also notice that groceries and textiles and simple everyday goods are rising rapidly in price? Gold is one standard to measure our paper currency by, but for us moms, we are noticing the devaluation of the dollar in the every day items. Everyone is talking about gold- we really should be talking about food! After all, not many people riot when they cant afford gold, but I am pretty sure once people can’t keep food in their kids mouths because of inflation it will get really ugly really fast!
Report Post »Firebrand
Posted on November 30, 2011 at 5:57pmIn one move, the value of the dollar just went down by an average of 1.0315%. Essentially, if you had $10K in your savings account yesterday, you can only buy $9,896.85 of the same goods today. Thank you Fed!
Report Post »Firebrand
Posted on November 30, 2011 at 6:36pmIn addition. Something you could buy for $1500 yesterday, you would now have to pay $1515.47 for today.
Report Post »lylejk
Posted on November 30, 2011 at 5:52pmThe fall will be big. I saw somewhere that this is just a cushioning gesture. Europe, though the deal suppose to be through early next year, really only has 10 days to get their act together, and they are worse off then we (well, until now; lol). We bought a Trillion dollars worth of Euros; what happens when the Euro crashes? Don’t think Bernake is going to press enough to stabilize the dollar then. Hope my assessment is completely wrong, but we will know soon enough. :)
Report Post »nobull14
Posted on November 30, 2011 at 5:28pmI think it like the story of the pied piper leading the rats off the pier to drown . I do not believe one thing out of the thieves ?? ( a controlled fall !!! )
Report Post »chips1
Posted on November 30, 2011 at 5:37pmThe government thinks that if your going to fall, might as well go higher. Sort of like bungie jumping off a 200 foot bridge and a 250 foot cord.
Report Post »ltb
Posted on November 30, 2011 at 5:55pmnobull14, I agree with you. The price of gold keeps going up along with the DOW, which doesn’t make sense. Correct me if I’m wrong, but historically when the DOW has done well, the price of gold has gone down and vice versa. Something isn’t right.
Report Post »A Doctors Labor Is Not My Right
Posted on November 30, 2011 at 6:46pm@ltb,
“The price of gold keeps going up along with the DOW, which doesn’t make sense. Correct me if I’m wrong, but historically when the DOW has done well, the price of gold has gone down and vice versa. Something isn’t right.”
That’s because the stock market is largely based on fiat money. If the central banks don’t screw around with interest rates or the money supply, then fiat money CAN be used by businesses to guage profits and losses.
The problem is that it’s so easy to print fiat money (or write increasingly larger numbers on paper), and the incentive is so great for the printers to do so (they benefit from new money at our expense), that it makes a horrible currency. AND IN FACT, central banks love to control the money supply for these very reasons.
And when you print more money, its value goes down. This is why gold has historically been the money, and NOT paper.
So, what you see with the DOW going up, but gold also going up, is that as the value of fiat paper is going down relative to gold, and also more people are realizing this.
If you watch this video, you will understand.
See here.
Smashing Myths and Restoring Sound Money | Thomas E. Woods, Jr.
Report Post »http://www.youtube.com/watch?v=HAzExlEsIKk
His_Way
Posted on December 1, 2011 at 1:59pmSomething isn’t right is an understatement.
Report Post »There are always interesting and diverse perspectives to enjoy at —
http://www.marketoracle.co.uk — a few of them are right in the eye of the storm.
A Doctors Labor Is Not My Right
Posted on November 30, 2011 at 5:28pmAll that our Fed and other central banks are doing is keeping the bubble inflated. The markets MUST be cleared of malinvestments before a recovery can happen – and this is not a recovery that we’re seeing.
This stock market crash will be worse than the Great Depression. And that was caused by the same thing we’re seeing now: artificial credit expansion.
Please learn Austrian Economics, America!
See here.
Smashing Myths and Restoring Sound Money | Thomas E. Woods, Jr.
http://www.youtube.com/watch?v=HAzExlEsIKk
And here.
Why You’ve Never Heard of the Great Depression of 1920 | Thomas E. Woods, Jr.
Report Post »http://www.youtube.com/watch?v=czcU*****mnsprQI
(Remove the five asterisks in the above URL)
lukerw
Posted on November 30, 2011 at 5:44pmWe KNOW!
Report Post »Tretka
Posted on November 30, 2011 at 8:19pmOn this one I agree with you Doctor.
Report Post »broker0101
Posted on November 30, 2011 at 5:24pmIt is hilarious that Glenn Beck “predicted” the stock market collapse but is silent on its (almost doubling) recovery. Then again, he’s a Gold salesman. Hope you all loaded up on Gold at $1800/oz. Wait, you’re all broke, I forgot.
Report Post »wewantchillywilly
Posted on November 30, 2011 at 5:57pmI wish I listened to Glenn years ago when he advocated Gold. It’s almost doubled since I heard him talk about it. sounds like a good investment to me, but i forgot, you‘re the expert aren’t you?
and this little bank deal is basically killing the dollar. Gold was up today in response to that too. so it sounds like maybe i should have bought gold again.
moron.
Report Post »A Doctors Labor Is Not My Right
Posted on November 30, 2011 at 6:32pm@broker0101,
“It is hilarious that Glenn Beck “predicted” the stock market collapse but is silent on its (almost doubling) recovery. Then again, he’s a Gold salesman. Hope you all loaded up on Gold at $1800/oz.”
It‘s not a recovery because it’s not based on real value. Throwing money into the economy is what got us the Roaring Twenties Stock Market Bubble which crashed in 1929.
Please watch this video and let’s talk about it?
See here.
Smashing Myths and Restoring Sound Money | Thomas E. Woods, Jr.
Report Post »http://www.youtube.com/watch?v=HAzExlEsIKk
mmabri
Posted on November 30, 2011 at 6:57pm@broker0101 actually I listened to Glenn years ago and started buying gold at around $500 an once. I just sold some of my gold last week, and now I’m completely debt free. So thank you Glenn for your advise on buying gold.
Report Post »unsalvageable.org
Posted on November 30, 2011 at 5:23pmThat’s good news, but I don’t think it will last. When we get back to the November 2007 levels of 13,000+ and sustain them for a while I will celebrate…until then I continue to be very cautious.
Report Post »broker0101
Posted on November 30, 2011 at 5:29pmSounds like what you need is a good Financial Consultant. Unfortunately for you, I’m not accepting any new clients.
Report Post »bigpoppa40
Posted on November 30, 2011 at 5:30pmthats NOT good news. That is my/our tax dollars(which is the WORLD currency) The only people making money today are those in the know.. corrupt crooked !@##$!@#$%^&* this whole damn thing is a joke! until we have REAL dollar value we are sunk.. DUH! OIL went up today which can ONLY be bought with??? DOLLARS..
Report Post »