It was a holiday-shortened day with markets closing at 1 p.m. EST, but the rally in US stocks still had the voracity of a normal day. The S&P 500 opened strong and continued to rally throughout the day despite the fact that NYSE volume was at about half the normal amount. Much of this rally was due to the EUR/USD rally over the past two days from 1.2831 to 1.2983 at the end of the US session, backed by progress in Europe.
It was hard not to overthink the action in US stocks today because volume was light. Many European leaders had positive things to say about the impending EU budget deal, although Germany and the UK were not optimistic. When it came to a deal over Greece and its large debt burden, European leaders were more optimistic, but a solid plan has not been put forward yet. Eurozone finance ministers will meet on Monday to hopefully iron out a final deal.
Research In Motion
(NASDAQ:RIMM) soared after estimates on shipments for new devices supporting the BB10 software system were raised. RIM's stock had fallen 60% this year before finding support in late September. Since then, coupled with the launch of the new BB10 platform, the stock has rallied 80% to a closing price of $11.66.
Tomorrow's Financial Outlook
Monday will be a lighter day in economic data as earnings begin to slow down in the US. The Chicago Fed National Activity Index will be reported in the morning; there is no economist estimates for this figure as it is of little importance. The Dallas Fed manufacturing index will be reported later in the morning. Economist estimates call for a slight increase from 1.8 last month to 2.0. Any reading over 0 indicates increase.
Globally, the Bank of Japan will release the minutes from its October monetary policy meeting. At this meeting, the central bank decided to increase its asset purchase and credit programs.
The only earnings report will be Berry Plastics
No positions in stocks mentioned.
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