Bullish headlines. Wednesday morning, the Empire Manufacturing Survey was far stronger than expected. The Financial Times headline is, "Global Boom in Resource Spending." The WSJ headline is "Shopping Spree Fuels Surge." Former Fed Governor Lyle Gramley said GDP will rise by more than 3 percent this quarter and will grow at that pace or better in 2011. JP Morgan, Morgan Stanley and Pimco all have made similar pronouncements recently.
Meanwhile, Europe is weak ahead of the EU meeting tomorrow as German Chancellor Merkel makes it clear her opposition to widening the bailout and Moody's has thereatened to downgrade Spain's debt
Banking results "will be up 10-20% next year," according to Goldman Sachs. They did lower estimates for Morgan Stanley's Q4 to $0.35 from $0.55 due to "muted" fixed income trading.
1) Blast of frigid air for IPOs. They're pushing the last IPOs of the year out the door, and three of the four priced overnight were priced below the filing range. (Learn more: China IPO Frenzy Stirs Bubble Talk)