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Dow Up As Investors Shrug Off Grim News

This is Mary Thompson, I am filling in for Bob Pisani today at the NYSE.

Another day, another 300 plus point swing in the Dow. The good news today, the action so far has been pretty much to the upside. Investors shrugging off the lowest ever reading on consumer confidence and the 20th straight monthly decline in home prices, as measured by the Case-Schiller Index.

Why the apparent good mood? Overnight the yen pulled back, the Asian markets rallied and the European markets closed broadly higher as well. Still, traders aren't counting their winnings yet, as the final hour of trading continues to provide the days excitement with wild swings and reversals. We will see if today is any different. Traders noting that many mutual funds close out their year on October 31st, so today is the last day they can get a trade executed and cleared for the year, so that might provide some fireworks close to 4:00 p.m. EST.

The chatter today is focused on this big short squeeze overseas. Shares of Volkswagen jumping over 30 percent as shorts rushed to cover their positions after rival automaker Porsche moved to increase its holding it the maker of the Beetle. Shares of European banks are under pressure on concerns about their exposure to this trade, as were shares of Morgan Stanley and Goldman Sachs. Morgan said it has no exposure to Volkswagen and people inside Goldman Sachs told CNBC's David Faber the firm has no significant losses tied to VW.

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