Dow +207.53 (+1.67%)
Nasdaq +40.86 (+1.74%)
S&P 500 +22.74 (+1.68%)
News That Moved the Market
Markets Rally On Upbeat News From MBIA. Markets had a strong day, with all major sectors finishing higher. After Wednesday's late sell off, despite the Fed cutting 50 basis points, it was important for the markets to bounce back. Arguably the biggest catalyst for the up move was news from bond insurer MBIA (MBI, +6.7%) which reassured investors that it had enough capital to keep its AAA rating and said it would not go bankrupt. MBIA also announced it lost $2.3 billion last quarter, but investors were more worried about the company's future than its past performance.
Google Misses Targets. Google (GOOG, +2.1% day; -7.9% A.H.) fell after posting a 17% increase in profits and a 51% jump in revenue. The figures were short of analysts' estimates. The company's share of the Internet search market rose to 56.3% from 50.8% at the end of last year.
Mixed Economic News. The Department of Labor reported jobless claims increased to 375,000, much higher than expected. The news created fears that tomorrow's Jobs Report would disappoint, but the data was only for one week, and does not carry too much weight. The Department of Commerce announced December personal income increased 0.5%, while spending rose 0.2%. Both figures were basically in-line with estimates. Employment costs increased 0.8%, which was in-line with forecasts.
January Barometer. The S&P 500 finished down 6.1% in January, a bad sign for things to come. The so-call "January Barometer" says the first month of the year determines the performance for the whole year. Though it sounds odd, it has been correct 80% of the time since 1950.
Notable Earnings (Full List Here):
Chevron (NYSE:CVX) Before Open
Exxon (NYSE:XOM) Before Open
Motor Vehicle Sales
8:30 AM: Monthly Jobs Report
8:30 AM: ISM Mfg Index
10:00 AM: Consumer Sentiment
10:00 AM: Construction Spending