Friday was another wild day for the markets.
US stock futures rose in pre-market trading after European and
Asian markets stabilized overnight, with China firming after its
central bank made a 400 billion yuan injection into the nation's
banking system. This brought down China's overnight repurchasing
rate substantially following yesterday's enormous spike.
Market participants remained frazzled by the recent heavy declines
(INDEXSP:.INX) fell sharply, spurred on by rumors of liquidity
problems within the US Treasury market. The benchmark 10-year US
Treasury yield spiked again, breaking through 2.5%, which drove
another decline in bonds -- as well as interest-rate-sensitive
sectors like housing and utilities -- early on.
Then, in the early afternoon, the equity markets rallied hard on
headlines indicating that the Fed may delay tapering if worsening
financial conditions hurt the economy. Interestingly enough, that
didn't do much to slow the carnage in bonds, suggesting that many
folks aren't buying that story.
Following that bounce, the S&P 500 managed to say in the green
to finish up 0.3% for the day.
In stock news,
) took a beating following yesterday's disappointing earnings
report, as investors looked past the company doubling its dividend
and increasing its share repurchase program by $12 billion. On the
conference call, the company pointed to economic weakness in Europe
as well as currency headwind as obstacles. This weighed on big-cap
tech stocks like
), and most notably, key Oracle rival
Monday's Financial Outlook
To kick off next week, we'll see the Chicago Fed National Activity
Index and the Dallas Fed Manufacturing Survey numbers at8:30 a.m.
ET and 10:30 a.m. ET respectively. Dallas Fed President Richard
Fisher will be giving a speech on monetary policy in London at1:00
p.m. ET .
Elsewhere, traders will likely be paying close attention to action
in overseas markets, notably China, given worries over a cash