Greek Vote Barely Passes, Stocks Tumble

By Minyanville Staff  NOV 08, 2012 3:21 PM

Today's financial recap and tomorrow's financial outlook.


Early in the morning, stock futures were higher after Greece successfully passed an austerity bill that will hopefully allow it to receive the next tranche of aid from the EU, totaling 31 billion euros. Unfortunately, the ruling Greek coalition continues to lose supporters within its own Parliament, as eight MPs left their respective parties after the vote and 16 voters from the DIMARS party abstained from the vote. Greece will hold a budget vote next week.

The European Central Bank (ECB) and Bank of England (BOE) made their monthly rate decisions. The ECB kept rates unchanged, as was expected, and only reiterated its stance that it was up to governments to activate the OMT bond purchases, not the ECB. The BOE neglected to expand its bond purchase program, stating that it questioned the efficacy of QQE purchases.

The 30-year Treasury bond auction saw increased demand from overseas buyers, more than 50% higher than normal. The auction priced at 2.820%, 3 basis points lower than the 2.850% yield shortly before the auction. Foreign buyers were likely purchasing protection from the arrival of the fiscal cliff or continued weakness out of Europe.

Pre-market, Kohl's (NYSE:KSS) beat earnings at $0.91 compared to $0.87 estimates and reported in-line earnings at $4.49 billion. Earnings guidance for the coming quarter was raised to $2.00-$2.08, beating the $2.16 estimate. Post-market, Groupon (NASDAQ:GRPN) reported in-line earnings at breakeven and missed earnings at $568.6 million against estimates of $591.0 million.

Tomorrow's Financial Outlook

Tomorrow in the US, the first estimate of the University of Michigan's Confidence Statement and the import price index will be released. Economists are expecting the consumer confidence poll to rise to 83.0 from last month's 82.6. Note that last week, the Conference Board's Consumer Confidence poll rose to 72.2 from 68.4 the month prior.

Globally, China will release a slew of economic data. The reports include the consumer price index, producer price index, industrial production, and retail sales.

In earnings, J.C. Penney (NYSE:JCP) will report pre-market.

Twitter: @Minyanville

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.