When Senate majority leader Mitch McConnell announced on Tuesday that negotiations over a $2 trillion national bailout were "on the five-yard line," minority leader Chuck Schumer one-upped him, quipping that negotiations were on the two-yard line as he met and wrangled over details with Treasury Secretary Steven Mnuchin.
Presumptuously a bi-partisan effort, the back-and-forth between the administration and Senate leaders managed to lift spirts in lower Manhattan, sending stocks to record one-day gains as hope for financial relief appeared to be within reach.
The 2,113.01-point, 11.37 percent gain on the Dow Industrials was not only the greatest one-day point rise in market history, it was also the fourth-best percentage rise, following a 12.34 percent advance on October 30, 1929, when the market was just entering the Great Depression. At the time, the Industrial Average stood at 258.47, with its gain of 28.40 points.
Whether that comparison is fair or apocryphal remains to be seen, though it's a well-known fact that the greatest stock market gains occur during bear markets. Of the top seven one-day percentage gains, four were during the Great Depression, the other two occurring in the Great Financial Crisis, on October 13 and 28 of 2008. It would indeed be wise for market participants to pay heed to Tuesday's inclusion in this suspicious list.
The NASDAQ's 557.19-point rip was the second-most ever, following a 672.43-point advance on March 13, 2020, less than two-weeks ago. The 8.12 percent increase tied for seventh all-time with a similar percentage gain on April 18, 2001. At that time, the NASDAQ was well into the throes of the dot-com bust. The tech-laden index was then trading just above 2000, when a month prior it had reached all-time highs, breaking above 5000.
The story was the same for the S&P 500, which recorded the eighth-best percentage gain. The seven higher percentage gains were all made either during the Great Depression (five of them), while two happened in October, 2008. The S&P's 209.93-point rise stands second only to the 230.38-point advance on March 13 of this year.
While the Senate dithered over details, bulls were greatly relieved as they took it to the bears throughout the session. Led by Chevron (CVX) with a 22.74% increase, some of the top performers on the Dow Jones Industrial Average included American Express (AXP, +21.88%), beleaguered Boeing (BA, +20.89%), McDonald's (MCD, +18.13%), Goldman Sachs (GS, +13.80%), and 3M (MMM, +12.60%).
The outpouring of money and joy didn't stop at the corner of Wall Street and Broadway. The money flows extended into gold and silver, the two precious metals having recently been pounded below sensible levels. With one of its best one-day performances ever, gold advanced by some $84.80, finishing up at $1636.00 the ounce after a close at $1551.20 on Monday.
Silver rose from a close of 13.27 on Monday to end trading in New York at 14.36, a gain of 8.21 percent.
Oil was stable to higher, with WTI crude advancing from $23.36 per barrel to $24.01 on the day.
Generally, bonds sold off, led by treasuries with durations between one and 10 years. Yield on the 10-year note advanced eight basis points, from 0.76% to 0.84%. The largest gain of yield was found on the five-year note, which rose from 0.38% to 0.52%. The curve is still relatively flat, with yields in a narrow band of 138 basis points. The one, two, and three month bills all stand at 0.01%, with the 30-year bond checking in at 1.39%
While the Senate never did get to a cloture vote on Tuesday, the deal was eventually struck just before 1:00 am ET on Wednesday, when White House legislative affairs director Eric Ueland exited Senate Majority Leader Mitch McConnell’s office saying, according to CNN. “We have a deal.”
The full Senate is poised to vote on the package midday Wednesday. The House is expected to approve the bill by unanimous consent, sending it to the White House for President Trump's signature. The president is reportedly eager to sign the bill, sending money to individuals, families and businesses affected by events surrounding the coronavirus outbreak.
It is expected to advance direct payments of $1200 per citizen ($2400 for married couples) earning less than $75,000 a year. It is the largest stimulus bill ever made into law. With markets prepared to open shortly, futures are less-than-enthusiastic, as all of the major indices indicate a lower opening though Asian markets were up sharply overnight and European indices are mixed.
At the Close, Tuesday, March 24, 2020:
Dow Jones Industrial Average: 20,704.91, +2,113.01 (+11.37%)
NASDAQ: 7,417.86, +557.19 (+8.12%)
S&P 500: 2,447.33, +209.93 (+9.38%)
NYSE: 9,658.32, +880.94 (+10.04%)
Showing posts with label Mitch McConnell. Show all posts
Showing posts with label Mitch McConnell. Show all posts
Wednesday, March 25, 2020
Tuesday, March 24, 2020
Stocks, Bond Yields Tumble, Gold, Silver Sold Out at Most Dealers as Legislators Work on Stimulus Package
Stocks took another beating in the US on Monday, with the Dow Jones Industrial Average closing at its lowest level since the coronavirus crisis began in mid February. The close at 18,591.93 was lower than the previous low, but also lower than the intraday low (18,917.46, March 18). Intraday, the Dow was down nearly 1000 points from Friday's close (19,173.98), falling to 18,213.65.
The other indices fall in line for the most part, except the NASDAQ which was above the unchanged line most of the session and finished with a fractional loss. Being more speculative than the more stoic Dow, S&P and NYSE Composite, the NASDAQ is still experiencing some buying activity, though much of that is reserved for grocers and tech stocks.
Once again, the Fed stepped up to the plate prior to the market open, making an emergency statement about an hour prior to the opening bell U.S. to announce that Treasury and mortgage-backed securities (MBS) purchases would be expanded as much as needed. As with last Monday's pre-opening salvo by the Fed, traders were not swayed, sending the major indices into the red right off the bat.
As the trading wore on, there was some relief from the selling midday, as Senate majority leader, Mitch McConnell, and minority leader, Chuck Schumer, hinted that they were close to a deal on the $1.5 trillion relief package that would include a payment of up to $1200 (plus $500 per child) for most Americans making less than $75,000 a year.
When the measure failed to reach cloture on a 47-47 tie, stocks quickly reversed course and headed to the lows of the day. Any bill coming out of the Senate for a COVID-19 stimulus bill will need at least 60 votes to pass. The two parties are far from reaching compromise, especially after House Democrats released their $2.5 trillion plan that was much more generous. The Democrat bill calls for monthly payments of $2000 to nearly all Americans and $1000 per child under 18. It also provides provisions to shelter people who cannot make rent, mortgage, credit card, car leases or loans, or student loan payments, calling for forbearance without penalty for as long as the crisis is deemed a national emergency, plus 120 to 180 days after that.
In what would be essentially a debt jubilee, Democrats' are offering much more to individuals and families than are the Republicans. Their plan has many flaws, however, in that one could, conceivably, buy a new car, rent a swanky apartment, pay for neither and have use of them for up to a year, possibly longer. The bill would make whole all creditors harmed by the measure, presumably at some later date. It's a complete boondoggle that would crush the economy rather than help it.
Legislators will be back at it on Tuesday, looking for a bill that will satisfy both their constituents and their major campaign funders (corporations, banks).
Bonds were bid nearly across the board, with the one-month bill plummeting to 0.01 and the 30-year bond losing 22 basis points on the day, closing out with a yield of 1.33%. Yield on the 10-year note also crumbled, falling form 0.92% to 0.76%.
Precious metals were bid higher. Spot gold ended the day at $1551.20. Silver finished at $13.27 the ounce at the close of trading in New York. However, both were up significantly overnight. Silver adding 97 cents to $14.24, while gold was up $96 to $1647.20, as both metals, quoted in futures contracts, are actually selling far above those prices for physical. Buyers are paying up to 100% premiums on silver and $300-600 more for an ounce of gold and having to wait as much as a month for delivery as major metals dealers are simply overwhelmed with buyers and generally out of stock.
Oil closed at $23.36 per barrel. Gas prices in the USA have been seen as low as 99 cents at one Kentucky outlet. Most states are seeing the price at the pump under $2.00 per gallon and falling.
With trading set to resume in the US in a matter of hours, futures are looking absolutely dashing, suggesting that this Turnaround Tuesday could be one for the record books. Then again, futures have often been optimistic, only to see waves of selling throughout the open trading session.
At the Close, Monday, March 23, 2020:
Dow Jones Industrial Average: 18,591.93, -582.07 (-3.04%)
NASDAQ: 6,860.67, -18.85 (-0.27%)
S&P 500: 2,237.40, -67.52 (-2.93%)
NYSE: 8,777.38, -355.78 (-3.90%)
The other indices fall in line for the most part, except the NASDAQ which was above the unchanged line most of the session and finished with a fractional loss. Being more speculative than the more stoic Dow, S&P and NYSE Composite, the NASDAQ is still experiencing some buying activity, though much of that is reserved for grocers and tech stocks.
Once again, the Fed stepped up to the plate prior to the market open, making an emergency statement about an hour prior to the opening bell U.S. to announce that Treasury and mortgage-backed securities (MBS) purchases would be expanded as much as needed. As with last Monday's pre-opening salvo by the Fed, traders were not swayed, sending the major indices into the red right off the bat.
As the trading wore on, there was some relief from the selling midday, as Senate majority leader, Mitch McConnell, and minority leader, Chuck Schumer, hinted that they were close to a deal on the $1.5 trillion relief package that would include a payment of up to $1200 (plus $500 per child) for most Americans making less than $75,000 a year.
When the measure failed to reach cloture on a 47-47 tie, stocks quickly reversed course and headed to the lows of the day. Any bill coming out of the Senate for a COVID-19 stimulus bill will need at least 60 votes to pass. The two parties are far from reaching compromise, especially after House Democrats released their $2.5 trillion plan that was much more generous. The Democrat bill calls for monthly payments of $2000 to nearly all Americans and $1000 per child under 18. It also provides provisions to shelter people who cannot make rent, mortgage, credit card, car leases or loans, or student loan payments, calling for forbearance without penalty for as long as the crisis is deemed a national emergency, plus 120 to 180 days after that.
In what would be essentially a debt jubilee, Democrats' are offering much more to individuals and families than are the Republicans. Their plan has many flaws, however, in that one could, conceivably, buy a new car, rent a swanky apartment, pay for neither and have use of them for up to a year, possibly longer. The bill would make whole all creditors harmed by the measure, presumably at some later date. It's a complete boondoggle that would crush the economy rather than help it.
Legislators will be back at it on Tuesday, looking for a bill that will satisfy both their constituents and their major campaign funders (corporations, banks).
Bonds were bid nearly across the board, with the one-month bill plummeting to 0.01 and the 30-year bond losing 22 basis points on the day, closing out with a yield of 1.33%. Yield on the 10-year note also crumbled, falling form 0.92% to 0.76%.
Precious metals were bid higher. Spot gold ended the day at $1551.20. Silver finished at $13.27 the ounce at the close of trading in New York. However, both were up significantly overnight. Silver adding 97 cents to $14.24, while gold was up $96 to $1647.20, as both metals, quoted in futures contracts, are actually selling far above those prices for physical. Buyers are paying up to 100% premiums on silver and $300-600 more for an ounce of gold and having to wait as much as a month for delivery as major metals dealers are simply overwhelmed with buyers and generally out of stock.
Oil closed at $23.36 per barrel. Gas prices in the USA have been seen as low as 99 cents at one Kentucky outlet. Most states are seeing the price at the pump under $2.00 per gallon and falling.
With trading set to resume in the US in a matter of hours, futures are looking absolutely dashing, suggesting that this Turnaround Tuesday could be one for the record books. Then again, futures have often been optimistic, only to see waves of selling throughout the open trading session.
At the Close, Monday, March 23, 2020:
Dow Jones Industrial Average: 18,591.93, -582.07 (-3.04%)
NASDAQ: 6,860.67, -18.85 (-0.27%)
S&P 500: 2,237.40, -67.52 (-2.93%)
NYSE: 8,777.38, -355.78 (-3.90%)
Wednesday, September 6, 2017
Stocks Bounce, but Fail to Erase Previous Losses; Congressional Republicans in Shock
Stocks rebounded from Tuesday's drubbing, but not nearly enough to erase the damage done, a classic dead cat bounce.
News was heavy, most of it coming out of Washington, where President Donald Trump reportedly reached agreement with congressional democrats on not only a debt ceiling increase but funding for hurricane Harvey victims and at least the outline of a continuing resolution. The proposed legislative deal would fund the government through December 15, upsetting - only in Washington - Republicans, who hoped for a longer debate on all of the issues.
Obviously, Trump has determined that with friends like his fellow Republicans in congress, he doesn't need enemies, thus making compromises with Democrats. It's actually - for a fellow who's supposedly not a politician - pretty smart politics. Republicans, included Senate majority leader, Mitch McConnell and House leader, Paul Ryan, were reportedly angered over the development.
Wall Street was immediately impressed, though stocks tailed off noticeably into the close.
Trump also tamped down recent bellicosity toward North Korea, hoping that China would do more to keep leader Kim Jong-un on a short leash.
Federal Reserve vice-chairman, Stanley Fischer announced that he would retire from his position on October 13, a surprise leaving open one of the most prestigious seats in Washington and a puzzler for Fed watchers. Fischer cited personal reasons for his decision, but speculation is that the departure has more to do with health than money, but suspect that Janet Yellen will be out at the culmination of her term in February.
Hurricane Irma continued to barrel towards Florida, the Fed's beige book revealed that members thought the economy was showing signs of improvement, though the continuing bemoaning over a lack of inflation was prominent.
While stocks improved modestly, the effect was greater on fixed income and precious metals. Gold and silver halted their recent advances and bond yields rose, with the 10-year note increasing to 2.11%
Overall, nothing was settled, except that Washington might actually avoid the drama that usually surrounds debt ceiling and budget debates, which is actually quite a positive development.
Trump making deals? Who knew?
At the Close, 9/6/17:
Dow: 21,807.64, +54.33 (+0.25%)
NASDAQ: 6,393.31, +17.74 (+0.28%)
S&P 500: 2,465.54, +7.69 (+0.31%)
NYSE Composite: 11,872.92, +45.77 (+0.39%)
News was heavy, most of it coming out of Washington, where President Donald Trump reportedly reached agreement with congressional democrats on not only a debt ceiling increase but funding for hurricane Harvey victims and at least the outline of a continuing resolution. The proposed legislative deal would fund the government through December 15, upsetting - only in Washington - Republicans, who hoped for a longer debate on all of the issues.
Obviously, Trump has determined that with friends like his fellow Republicans in congress, he doesn't need enemies, thus making compromises with Democrats. It's actually - for a fellow who's supposedly not a politician - pretty smart politics. Republicans, included Senate majority leader, Mitch McConnell and House leader, Paul Ryan, were reportedly angered over the development.
Wall Street was immediately impressed, though stocks tailed off noticeably into the close.
Trump also tamped down recent bellicosity toward North Korea, hoping that China would do more to keep leader Kim Jong-un on a short leash.
Federal Reserve vice-chairman, Stanley Fischer announced that he would retire from his position on October 13, a surprise leaving open one of the most prestigious seats in Washington and a puzzler for Fed watchers. Fischer cited personal reasons for his decision, but speculation is that the departure has more to do with health than money, but suspect that Janet Yellen will be out at the culmination of her term in February.
Hurricane Irma continued to barrel towards Florida, the Fed's beige book revealed that members thought the economy was showing signs of improvement, though the continuing bemoaning over a lack of inflation was prominent.
While stocks improved modestly, the effect was greater on fixed income and precious metals. Gold and silver halted their recent advances and bond yields rose, with the 10-year note increasing to 2.11%
Overall, nothing was settled, except that Washington might actually avoid the drama that usually surrounds debt ceiling and budget debates, which is actually quite a positive development.
Trump making deals? Who knew?
At the Close, 9/6/17:
Dow: 21,807.64, +54.33 (+0.25%)
NASDAQ: 6,393.31, +17.74 (+0.28%)
S&P 500: 2,465.54, +7.69 (+0.31%)
NYSE Composite: 11,872.92, +45.77 (+0.39%)
Thursday, December 27, 2012
Market Drops, Rallies on Fiscal Cliff Fears, Hopes
OK, now, this is getting interesting.
Stocks sold off severely in the early going, as Wall Street seems to be getting a little bit tired of waiting for the politicians to come to some kind of deal - any kind of deal - on the fiscal cliff issues.
Taking center stage today were Senate majority leader, Harry Reid, and minority leader, Mitch McConnell.
Reid made some noises about the House not even being in session, and, late in the day, McConnell made comments about how the Republicans have been waiting months for the Democrats to meet with them, without success.
During the session, stocks were hit hard to the downside, with the Dow off by as many as 150 points, but, about 2:30 pm ET, when news broke that John Boehner was calling the House back into session on Sunday, stocks miraculously starting gaining ground, with all of the major indices eventually reaching positive territory before giving back a bit to close slightly negative, though the NYSE Composite ended with a gain of four points.
There was other news that may have caught the attention of traders, particularly, the Conference Board's Consumer Confidence reading, which registered a disappointing 65.1, after last month's overly optimistic 73.7 was revised down to 71.5.
The number caught everyone off guard and triggered the initial sell-off.
As for negotiations on the fiscal cliff, there aren't any. Both sides have resorted to name-calling and jawboning precisely at a time both sides should be reaching compromise.
Having the House in session on Sunday, December 30, is a hopeful sign that there is some progress behind the scenes, even though nobody's reporting any.
The saga continues...
Dow 13,096.31, -18.28 (0.14%)
NASDAQ 2,985.91, -4.25 (0.14%)
S&P 500 1,418.09, -1.74 (0.12%)
NYSE Composite 8,399.84, -4.36 (0.05%)
NASDAQ Volume 1,314,243,625
NYSE Volume 2,816,814,750
Combined NYSE & NASDAQ Advance - Decline: 2473-3032
Combined NYSE & NASDAQ New highs - New lows: 74-61
WTI crude oil: 90.87, -0.11
Gold: 1,663.70, +3.00
Silver: 30.24, +0.205
Stocks sold off severely in the early going, as Wall Street seems to be getting a little bit tired of waiting for the politicians to come to some kind of deal - any kind of deal - on the fiscal cliff issues.
Taking center stage today were Senate majority leader, Harry Reid, and minority leader, Mitch McConnell.
Reid made some noises about the House not even being in session, and, late in the day, McConnell made comments about how the Republicans have been waiting months for the Democrats to meet with them, without success.
During the session, stocks were hit hard to the downside, with the Dow off by as many as 150 points, but, about 2:30 pm ET, when news broke that John Boehner was calling the House back into session on Sunday, stocks miraculously starting gaining ground, with all of the major indices eventually reaching positive territory before giving back a bit to close slightly negative, though the NYSE Composite ended with a gain of four points.
There was other news that may have caught the attention of traders, particularly, the Conference Board's Consumer Confidence reading, which registered a disappointing 65.1, after last month's overly optimistic 73.7 was revised down to 71.5.
The number caught everyone off guard and triggered the initial sell-off.
As for negotiations on the fiscal cliff, there aren't any. Both sides have resorted to name-calling and jawboning precisely at a time both sides should be reaching compromise.
Having the House in session on Sunday, December 30, is a hopeful sign that there is some progress behind the scenes, even though nobody's reporting any.
The saga continues...
Dow 13,096.31, -18.28 (0.14%)
NASDAQ 2,985.91, -4.25 (0.14%)
S&P 500 1,418.09, -1.74 (0.12%)
NYSE Composite 8,399.84, -4.36 (0.05%)
NASDAQ Volume 1,314,243,625
NYSE Volume 2,816,814,750
Combined NYSE & NASDAQ Advance - Decline: 2473-3032
Combined NYSE & NASDAQ New highs - New lows: 74-61
WTI crude oil: 90.87, -0.11
Gold: 1,663.70, +3.00
Silver: 30.24, +0.205
Tuesday, November 27, 2012
Washington Gets Back to Work (Kinda); Stocks Slump Despite (Kinda) Positive Data
Tuesday began with a flurry of good news.
First, over in Bizzarro-world(aka Europe), EU ministers were glad-handing and slapping each other's backs for another successful bailout of Greece (really, is this the third, fourth or fifth? Who's counting?), then, at 8:30 am ET, durable goods orders came in better than expected.
At 9:00 am ET, the September Case-Shiller Housing Index showed another in a series of positive gains for housing. Better yet, consumer confidence hit a four-and-a-half-year high, reported at 10:00 am ET.
So, why were the markets in such a sour mood, why did they end lower, and why were they not even lower than where they finished?
Ah, grasshopper, so many questions...
First, that somewhat refreshing zero print on durables was, in fact, pretty ugly, once one ventured to peek under the hood. As Zero Hedge reports, a continued collapse in durable goods new orders virtually guarantees that we're already in a recession, fiscal cliff or not (more on that canard later).
The Case-Shiller data, which showed the average price of a home purchase up by 3.6% nationally, has to be faded a little, only because housing is not stocks, and, even though home-buying is a relevant statistic, it matters little in the broader scheme of things, especially when the banks are keeping massive numbers of homes off the market in what's known as "foreclosure stuffing." Those in the know, really, really do know.
As far as the consumer confidence number, well, anybody who allows themselves to be branded a consumer for purposes of a survey can't be all that bright, after all.
In the case of the nth installment of the Greek bailout, there were scant details, the IMF hasn't signed off on it yet, the "deal" has to be approved by each member (17) country, so, the Euro sold off, anathema to US markets.
And then, about 2:30 pm ET, US lawmakers (that's a joke, son) emerged from talks over the fiscal cliff (that's not a pun, son) and did what everyone thought they'd do, since their track record is so plain and clear on this point: point fingers at the other side for not playing fairly.
Senate majority leader Harry Reid: "...little progress with Republicans..."
Senate minority leader Mitch McConnell: "...some difficulty turning off the campaign..."
Is it any surprise to anybody that working out a deal in DC was going to be a difficult, if not impossible, issue? After all, this whole "fiscal cliff" miasma started more than a year ago when the two sides failed to reach conciliatory postures on increasing the debt limit, and that puny increase of roughly $1.2 trillion is about to run out.
So, with no deal even remotely being discussed, the Titans of Wall Street started selling in earnest and continued selling into the close. They will probably still be selling when the opening bell rings on Wednesday and maybe even beyond that, because depending on Washington politicians to reach a concord on any matter of even insignificant importance is like getting cats and frogs to behave well together. It's just not going to happen.
Further, indispensable reading from the Wall Street Journal comes in the form of an editorial by Chris Cox and Bill Archer - respectively, former chairman of the House Republican Policy Committee and the Securities and Exchange Commission and former chairman of the House Ways & Means Committee - explaining why the fiscal cliff of $600 billion is merely a puff of smoke compared to the conflagration that is the real unfunded liabilities of Medicare and Social Security, refreshingly written in language even a protesting Wal-Mart worker could comprehend.
The saga continues to unfold tomorrow. Oh, by the way, so many people did their holiday shopping on Thanksgiving, Black Friday, Small Business Saturday and online on Cyber Monday this year, and, considering that since Turkey Day was so early this year that there's an extra week in the holiday shopping season, retail sales are going to be very slow for the one, two, three, four next weeks, until the last Saturday before Christmas (the 25th is a Tuesday), so, Happy Holidays! Free houses, Greek bailouts, durable goods and fiscal cliff-diving for everyone... including consumers!
Dow 12,878.13, -89.24 (0.69%)
Nasdaq 2,967.79, -8.99 (0.30%)
S&P 500 1,398.94, -7.35 (0.52%)
10-Yr Bond 1.65% -0.02
NYSE Volume 3,294,930,000
Nasdaq Volume 1,762,521,750
Combined NYSE & NASDAQ Advance - Decline: 2462-3041
Combined NYSE & NASDAQ New highs - New lows: 154-40
WTI crude oil: 87.18, -0.56
Gold: 1,742.30, -7.30
Silver: 33.98, -0.156
First, over in Bizzarro-world(aka Europe), EU ministers were glad-handing and slapping each other's backs for another successful bailout of Greece (really, is this the third, fourth or fifth? Who's counting?), then, at 8:30 am ET, durable goods orders came in better than expected.
At 9:00 am ET, the September Case-Shiller Housing Index showed another in a series of positive gains for housing. Better yet, consumer confidence hit a four-and-a-half-year high, reported at 10:00 am ET.
So, why were the markets in such a sour mood, why did they end lower, and why were they not even lower than where they finished?
Ah, grasshopper, so many questions...
First, that somewhat refreshing zero print on durables was, in fact, pretty ugly, once one ventured to peek under the hood. As Zero Hedge reports, a continued collapse in durable goods new orders virtually guarantees that we're already in a recession, fiscal cliff or not (more on that canard later).
The Case-Shiller data, which showed the average price of a home purchase up by 3.6% nationally, has to be faded a little, only because housing is not stocks, and, even though home-buying is a relevant statistic, it matters little in the broader scheme of things, especially when the banks are keeping massive numbers of homes off the market in what's known as "foreclosure stuffing." Those in the know, really, really do know.
As far as the consumer confidence number, well, anybody who allows themselves to be branded a consumer for purposes of a survey can't be all that bright, after all.
In the case of the nth installment of the Greek bailout, there were scant details, the IMF hasn't signed off on it yet, the "deal" has to be approved by each member (17) country, so, the Euro sold off, anathema to US markets.
And then, about 2:30 pm ET, US lawmakers (that's a joke, son) emerged from talks over the fiscal cliff (that's not a pun, son) and did what everyone thought they'd do, since their track record is so plain and clear on this point: point fingers at the other side for not playing fairly.
Senate majority leader Harry Reid: "...little progress with Republicans..."
Senate minority leader Mitch McConnell: "...some difficulty turning off the campaign..."
Is it any surprise to anybody that working out a deal in DC was going to be a difficult, if not impossible, issue? After all, this whole "fiscal cliff" miasma started more than a year ago when the two sides failed to reach conciliatory postures on increasing the debt limit, and that puny increase of roughly $1.2 trillion is about to run out.
So, with no deal even remotely being discussed, the Titans of Wall Street started selling in earnest and continued selling into the close. They will probably still be selling when the opening bell rings on Wednesday and maybe even beyond that, because depending on Washington politicians to reach a concord on any matter of even insignificant importance is like getting cats and frogs to behave well together. It's just not going to happen.
Further, indispensable reading from the Wall Street Journal comes in the form of an editorial by Chris Cox and Bill Archer - respectively, former chairman of the House Republican Policy Committee and the Securities and Exchange Commission and former chairman of the House Ways & Means Committee - explaining why the fiscal cliff of $600 billion is merely a puff of smoke compared to the conflagration that is the real unfunded liabilities of Medicare and Social Security, refreshingly written in language even a protesting Wal-Mart worker could comprehend.
The saga continues to unfold tomorrow. Oh, by the way, so many people did their holiday shopping on Thanksgiving, Black Friday, Small Business Saturday and online on Cyber Monday this year, and, considering that since Turkey Day was so early this year that there's an extra week in the holiday shopping season, retail sales are going to be very slow for the one, two, three, four next weeks, until the last Saturday before Christmas (the 25th is a Tuesday), so, Happy Holidays! Free houses, Greek bailouts, durable goods and fiscal cliff-diving for everyone... including consumers!
Dow 12,878.13, -89.24 (0.69%)
Nasdaq 2,967.79, -8.99 (0.30%)
S&P 500 1,398.94, -7.35 (0.52%)
10-Yr Bond 1.65% -0.02
NYSE Volume 3,294,930,000
Nasdaq Volume 1,762,521,750
Combined NYSE & NASDAQ Advance - Decline: 2462-3041
Combined NYSE & NASDAQ New highs - New lows: 154-40
WTI crude oil: 87.18, -0.56
Gold: 1,742.30, -7.30
Silver: 33.98, -0.156
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