This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Papandreou Changes His Mind: Dave's Daily

Stocks in this article: JEF C KBE ARO XRT IEV HYG MUB



Clearly, Germany has more skin in the eurozone fix than any other nation. Merkel likely had an unpleasant and direct conversation with Papandreou convincing him his referendum gambit was a mistake. While she wins the argument, the German people no doubt will lose the most given their obligations. The IMF is also rumored to be making some contributions to the EU, and that my fellow citizens, would involve American taxpayers.

Making things more euro-centric Thursday the ECB surprisingly cut interest rates from 1.50% to 1.25% citing poor economic conditions. Eurozone inflation is running hot at the moment but new ECB head Mario Draghi (sounding Bernanke-like) stated this was "transitory". The G-20 summit is underway and who knows what if anything will come of it.

Back in the U.S. jobless claims were better than expected at 397K vs consensus at 400K with prior claims revised higher once again at 406K vs 402K. This has been the consistent trend with revisions always moving previous data higher but making for a better headline now. Factory Orders were higher at .3% vs .1% previously. Productivity data was also better at 3.1% vs previous -.1% but Unit Labor Costs were -2.4% vs 2.8% previously which is good for the employer vs the worker. ISM non-Mfg data was a little worse at 52.9 vs 53 previous.

News of Papandreou's reversal helped markets rally overseas and in the U.S. on this and economic data. Stocks in the U.S. are poised with a good unemployment report Friday to reverse the week's large losses. No folks, you can't make this stuff up really!

Gold and silver prices zoomed higher once again as easy global monetary policies are assumed to be inflationary no matter what authorities would have you believe. The dollar was weaker once again on news of another "fix" while commodity prices (base metals, energy, grains and so forth) overall were higher. Bond prices once again declined slightly with the stock rally.

The stock market rally was led by some euro zone relief for financials (XLF) but which remain negative overall. Also leading the averages higher were tech (XLK) and frankly most other sectors including retail (XRT). Let's remember, correlations have never been this high from sector to sector.

Volume was strong on Thursday and breadth per the WSJ was quite positive.

You can follow our pithy comments on twitter and join the conversation with me on facebook.

Continue to U.S. Sector, Stocks & Bond ETFs

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs