Stocks End Higher on G20 Lending Plan News....news is getting old...

Discussion in 'Wall St. News' started by S2007S, Dec 7, 2011.

  1. S2007S

    S2007S

    Same thing day in and day out, this market is moving because of these headlines out of Europe that seem to be pretty much rumors....its so obvious that europe is going to get a bailout and that nothing is going to fail, its obvious they are going to be able to take as many trillions as they need to keep all global countries from going into a recession. There is no such thing as a free market in the US or anywhere in the world, its all about bailouts and free fucking hand outs as failure continues to get rewarded...how anyone can think this is the fix that is needed is only fooling themselves. This is going to create world wide economical problems in the years to come. There is no quick fix as everything they are doing here and in Europe is only a quick patch job meaning these economic problems will never be fixed by the methods they are using...look at all the QE they pumped into the US system, all is did was inflate commodity and equity prices and make it look like there was GDP growth in the US when in reality there is no growth at all....what a joke!


    Stocks End Higher on G20 Lending Plan News
    CNBC.com | December 07, 2011 | 04:01 PM EST

    Stocks spiked in the final minutes of trading to end higher Wednesday following a report that the G20 is considering a $600 billion IMF lending program to euro zone and as investors largely shrugged off the latest announcement from the S&P saying it may downgrade the EU in addition to some large European banks.

    Investors were also closely waiting for the key EU summit at the end of the week.

    The Dow Jones Industrial Average jumped, led by JPMorgan [ JPM 34.00 +0.77 (+2.32%) ] and Travelers [ TRV 55.90 +0.96 (+1.75%) ], after finishing higher in the previous session.

    The S&P 500 gained to hover near a crucial 1,265 technical level and the Nasdaq also rebounded. All three major indexes are now in positive territory for the year.

    The CBOE Volatility Index, widely considered the best gauge of fear in the market, climbed above 28.

    Among key S&P sectors, financials rallied, while energy slipped.

    The G20 is considering a $600 billion IMF lending program facility for Europe to combat the ongoing euro zone debt crisis, according to the Nikkei. However, the market came off their highs after the IMF denied the report.

    Meanwhile, the S&P placed its triple-A credit rating on the EU and some of the largest rated European banks on creditwatch with negative implications. The news comes after the agency's recent warning to 15 of 17 euro zone countries that they could get downgraded.

    Earlier, the agency added it could also cut credit ratings for several U.S. regional banks, including US Bancorp [ USB 26.41 +0.20 (+0.76%) ], PNC Financial Services [ PNC 55.96 +0.99 (+1.80%) ], and BB&T [ BBT 23.88 +0.34 (+1.44%) ] in an ongoing move to apply new grading criteria announced last month.

    “This is still a headline-driven market and when confidence is shook, borrowers will continue to sit on the sidelines,” said Kevin Brungardt, chairman of RoundPoint Financial Group. “Europe is driving this market and if they are unable to contain the contagion, then that hampers our ability to diminish the unemployment rate and diminish our ability to grow.”

    Brungardt said he expect the economy to continue in a “slow crawling” pace and the housing market will start to see an influx by early 2013.

    Stocks opened lower following a statement from a German official that dashed investor hopes for a new boost to EU's bailout mechanism.

    Geithner is due to meet French President Nicolas Sarkozy before flying to the southern French port of Marseille for discussions with incoming Spanish Prime Minister Mariano Rajoy.

    Details of reform proposals to the European Union's treaty were due to be presented on Wednesday in a letter to European Council President Herman Van Rompuy, who will chair the meeting of 27 EU leaders due to start Thursday evening.