For much of the day, the apprehension about earnings was at least partially offset by positive developments in the eurozone, where finance ministers reached an agreement on supporting Spain's troubled banks. But there are still many questions about the deal will work and skepticism about whether it's enough.
"The Euro group has agreed to give Spain €30 billion, because you never know when €30billion might not come in handy," noted Paul Donovan, global economist at UBS. "The route for the cash matters. Does Spain end up with the debt on its balance sheet, or is cash passed straight to the banks (retrospectively - initially the money is a government liability)?"
"The news from Spain is going to get worse," said Adrian Day, president of Adrian Day Asset Management. "The deficit will obviously get wider; the governments have said that they aren't going to meet the targets. It strikes me that the market is probably saying bad news is good and the worse Spain gets the more the ECB
"We've had 20 plus summit meetings in Europe," said Brett Bartman, senior vice president at RBC Wealth Management. "When there is good news out of them or when they solve some problem, the market heads higher." All three major U.S. averages rallied at the open Tuesday. "I don't make too much of it... until this is really worked on, this is only a temporary bounce.
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