While fear is driving down the markets, hope of a coordinated central bank monetary easing effort swings the markets back up. Ultimately creating daily whipsaw movement in volatility. The Eurozone meets this Wednesday and talks of another round of LTRO are already circulating. The FED meets the same week as the Greek elections this month, but many are saying that there just aren’t anymore bullets left for the FED. Putting eyes now on China to take the place of the FED in the global easing effort.
D&D wouldn’t be surprised to see 1250 on the S&P before the current wave of selling ends. Investor George Soros today declared that the Eurozone has a 3-month window to fix the current crisis.
In todays markets we have times of high correlation where stocks all move together. This also happens a lot within sectors due to ETFs that hold a basket of stocks. Today saw downgrades of Huntington Bancshares (HBAN) and Regions Financial (RF) and both companies fell today in share price. As a result you also saw shares of Sun Trust (STI) fall on the day, however not being downgraded.
In M&A activity San Francisco based Salesforce.com (CRM) is buying Buddy Media for $689 million to help boost their presence in the social-media marketing space. THis deal helps to highlight that the New York startup scene (where Buddy Media is located) is reemerging back onto the national and global scene. This is Salesforce.com’s biggest acquisition to date.
Today the S&P (SPX) closed UNCH or flat. The Nasdaq (COMP) gained 12 points thanks to Apple (AAPL). The Dow (INDU) fell 17 points.
Oil gained $1.07 to close at $84.30 a barrel.
Gold lost 70 cents to close at $1,621.40 an ounce.
Later this week look for D&D’s thoughts on the Fiscal Cliff approaching along with some equity picks for the back half of 2012.