Recapping the day's news and newsmakers through the lens of CNBC.
Three days, three 100 point gains. This is the nice part of volatility, and accordingly, optimists are saying that this is one of those correctional buying opportunities you should jump at. Others say that taper concerns should be set aside for now. But don't get your hopes up too much; volatility will persist through the second half of the year. The Dow has already seen triple-digit moves in 15 of 19 trading days so far this month—the most since October 2011—and not all of them positive, either.
"I think we've had an astonishing first five months of the year where even a donkey on a surfboard was making money. And the correction has been astonishingly fast. And I think that the sentiment indicators had a vague value and clearly when so many of the indicators had been bad for three or four weeks or months you say, 'O.K., this is one of the indicators where things aren't too bad.' So I think that anyone who's actually dumping the market now is probably in the last phase of the dumping. You should be looking to see what to go out and buy."—Jonathan Compton, managing director of Bedlam Asset Management
In a Sentimental Mood
U.S. consumer sentiment was up in late June, way up, and close to the six-year high set in May, beating economists' predictions. Wealthier folks upped their spending and were more optimistic about their incomes, while lower-income families had a less rosy outlook.
The key is disposable income, and given that, there's good reason for pessimism. Salaries are stagnant and prices aren't getting cheaper. Naysayers note that the Chicago PMI index of economic activity missed its target for June, coming in at 51.6, down from 58.7 in May. So more mixed news as the quarter ends.
"For the last six months we've been asking customers 'how do you feel about the economy and to what extent are gas prices affecting your feeling about the economy?' We've been looking at an economic pessimism rate of 55 to 60 percent. That gets worse when prices go up. It gets less pessimistic when prices go down."—John Eichberger of the National Association of Convenience Stores