Stocks bounced around as investors reacted to every comment or rumor about how Europe may deal with its debt crisis. The continent’s leaders are scheduled to begin a six-day “marathon meeting” Saturday to try and make further progress. Meanwhile, earnings season kicked into full gear with most companies meeting or exceeding expectations.
- Tuesday – Stocks jumped after a rumor leaked in the UK’s Guardian newspaper said Europe was poised to create a $2 trillion Euro bailout fund.
- Thursday – Libyan leader Muammar Qaddafi is killed in Sirte, marking an end to a tumultuous 42-year era.
- Friday – Stocks end the week higher on more European optimism—talk of a $1.3 trillion rescue fund emerges.
- Friday – President Obama also reiterated plans that U.S. troops will make a full withdrawal from Iraq by year end.
Not much happened this week, so it was telling that the market rallied anyway. There is some expectation that the upcoming “marathon meeting” in Europe will produce a viable solution, so a lack of progress could disappoint the market. In the meantime, long term investors should feel happy about continued earnings growth by most US corporations.