Market Recap: Speculation Leaves Markets Unsure Where to Land
- Posted on December 6, 2011 at 4:41pm by
Becket Adams
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Markets closed mixed on Wall Street today:
- Dow +0.43 percent
- S&P +0.11 percent
- Nasdaq -0.23 percent
- Oil 0.00 percent
- Gold -0.14 percent
On the commodities front:
- Oil (NYSE:USO) remained flat at $100.99 a barrel
- Gold (NYSE:GLD) fell to $1,732.00 an ounce
- Silver (NYSE:SLV) climbed 1.57 percent to settle at $32.88
(Related: Geithner: Fed Will Not Contribute to IMF-Led Bailout)
Today’s markets were mixed because:
1) Bazooka: Stocks rallied through most of the day on an unconfirmed report that European leaders are working on a plan to combine various rescue funds into a so-called big “bazooka.”
European officials are working on a last-minute proposal to combine the resources of the existing bailout fund with those of the new one to debut next year, reports the Financial Times. The newspaper also said the funds could be supported in some way by the International Monetary Fund. Countries like Germany might be more willing to support such measures if they are successful in creating a tighter fiscal union that holds sovereign governments accountable to a higher authority on budgetary matters.
2) Standard & Poor’s: A rumor emerged in the last hours of trading yesterday that Standard & Poor’s would soon be putting all of the euro zone on watch for a credit downgrade. The news interrupted a market rally that had the major indices up more than 1.5 percent. The rumor was confirmed later in the evening, when the credit rating agency said it had placed 15 of the 17 euro nations — including Germany, France, and four other AAA-rated countries — on review for a possible downgrade. Though stocks rallied on the Financial Times report, the “bazooka effect” was ultimately tempered by concern that the downgrade of a euro-zone country would lead to the European Financial Stability Facility being downgraded, which would cause the rescue fund’s interest costs to rise, and therefore inhibit its ability to support the struggling sovereigns.
3) Stocks: The conglomerates sector was the best performer today, buoyed by 3M, which announced it expected 2012 sales to grow 2 percent to 6 percent year-over-year in 2012, with EPS rising to $6.25 to $6.50. Shares were up 1.48 percent to $82.13 at close. Darden Restaurants wasn’t quite so lucky — the stock plunged 11 percent after the company, which operates Red Lobster and Olive Garden, issued a gloomy outlook for the quarter and fiscal year.
[Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet.]
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Thevoice
Posted on December 6, 2011 at 7:15pmO don’t give it a second thought….Big Ben and his pack of Goldman geniuses will figure out a way to electronically shear up the IMF with 1‘s and 0’S ..with your money better know as our nations debt to the fed .and then when Europe burns through that with their “progressive socialism”….They will do it all over again ….Socialism never has worked never will..But the asses better known as the power to be will make their own reality. But we all know the truth …IT’S BROKE WERE BROKE …Let failure take place ….
Report Post »Bonnieblue2A
Posted on December 6, 2011 at 5:52pmIt looks like Darden is reaping the seeds it sowed regarding not allowing the American flag to be displayed at Olive Garden and in joining up with Michelle Obama’s food police campaign.
Ok, so if the IMF does bail out the EU does that mean the EU cranks out more bonds? And, if the EU cranks out more bonds then is The FED, under fmr. Goldman-Sachs guy Geithner buying up EU bonds just as did Jon Corzine with MF global? (the first guy Obama/Biden called to advise economic policy) Are the US taxpayers screwed either way?
Report Post »Bonnieblue2A
Posted on December 6, 2011 at 5:52pmShould have read: If the IMF does NOT bail out the EU.
Report Post »Snowleopard {gallery of cat folks}
Posted on December 6, 2011 at 5:40pmThe final warning growls of the economic armagheddon are being heard loud and clear about the world; time to decide this much, are we going to let Mr Obama drag us down with the EU and the rest or do we prepare for what is coming and have a little time to do so?
Report Post »Mikev5
Posted on December 6, 2011 at 6:01pmI will be in joy land when the EU crashes and burns they were the ones putting presser on the American economy why some think the EU is a good partner to the USA is beyond me the EU’s intention has been and will continue to be to steal Americas top dog spot they have trying to undermine the dollar and the USA for years
Report Post »Mikev5
Posted on December 6, 2011 at 6:03pmI see the EU crash as Americas starting gun pop they crash we go go go.
Report Post »truthseekerusa
Posted on December 6, 2011 at 8:34pmIf Obama is reelected, we are going to crash and burn just like Socialist Europe. Smart investors are putting their money into foods with a long shelf life as it is a matter of time before the whole economy collapses as planned by Obama and Soros.
Report Post »tempokeeper
Posted on December 7, 2011 at 11:42amNo matter who is elected, there will be a collapse of some sort. Check out debtwall.org – Marc Nuttle (former advisor to Reagan) has put together the best information I can find concerning the issues that we face and how to prepare appropriately. There are some good YouTube videos as well. Share it with everyone you know
Blessings
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