U.S. averages unexpectedly jumped out of the starting gate climbing steadily and the SP500 blew past the much talked about 2040 line in the sand. I mentioned over a week ago that the real resistance for the Spooz starts at 2053 and it remains to be seen if that 'gold ring' can be snatched and move on to even higher levels.
Crude oil prices have been volatile, but overall declining which will eventually drag the markets lower. Meanwhile, the U.S. dollar in a burst of bullishness, climbs as ECB hints at more stimulus.
Here is the current market situation from CNN Money
North and South American markets are sharply higher today with shares in U.S. leading the region. The S&P 500 is up 1.67% while Brazil's Bovespa is up 1.46% and Mexico's IPC is up 1.24%.
CHICAGO (Reuters) - Caterpillar Inc posted lower quarterly profits and cut its outlook, weakened by slower Chinese economic growth and Brazil's recession, but shares rallied on relief that the report was largely consistent with last monthâ€™s warning and restructuring announcement. "The results were in line with the pre-announcement and not worse," said Longbow Research analyst Eli Lustgarten, commenting on the jump in shares, up 4.3 percent in midday trade.
WASHINGTON (Reuters) - U.S. home resales rebounded strongly in September and new applications for unemployment benefits hovered around 42-year lows last week, pointing at solid domestic fundamentals even as the global economy falters.
(Reuters) - Valeant Pharmaceuticals Inc's share slumped for the second straight day on Wednesday, a day after influential shortseller Citron Research said the Canadian drugmaker used specialty pharmacies to create "phantom sales".
(Reuters) - McDonald's Corp reported its first rise in quarterly global same-restaurant sales in more than a year and said the trend would continue in the current quarter as Chief Executive Steve Easterbrook's turnaround plan begins to takes hold.
DETROIT (Reuters) - General Motors Co plans to add a second shift at its Detroit-Hamtramck plant, responding to forecast demand for the four models the plant makes and anticipating production of Cadillac's new flagship sedan, the company said on Thursday.
It had been a while since we had any major news involving the ongoing devastation in the global mining sector courtesy of China, where as we previously reported more than half of the local commodity companies can't cover their interest expense and are thus caught in a deflationary race to the bottom even as the government has no choice but to bail them all out.
Indeed, complacency seemed ready to set back in, with Glencore stock recently rising as high as its recent equity offering price of 125p. And then today we noticed that not only is Glencore's CDS back above 700 bps, the widest it has been in three weeks, but that another mining company has fallen into the market's crosshairs, this time Belgium-based (with Zurich HQ) Nyrstar NV, Europe's largest refined-zinc producer, whose stock crashed the most since its initial public offering in 2007, while it bonds tumbled to a yield of 19%, suggesting a default may be imminent.
The official version is that this plunge happened after the company said "its mining business is being challenged by the rout in metals."
According to Bloomberg, "Investment in the company's Port Pirie smelting operations in Australia will cost A$563 million ($405 million), about 10 percent more than previously forecast, it said in a statement Thursday. Nyrstar shares slumped as much as 27 percent, the most since at least October 2007, to the lowest in six years."
"Clearly, the business has underperformed for some time," Nyrstar CEO Bill Scotting said, referring to mining. &quo ...
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