Trader Talk with Bob Pisani

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  • And today's rally: muddling through may be good enough for today, but sustainability is an issue.

  • The statement out of Europe says the leaders will be working toward "a new fiscal compact and strengthened economic policy coordination," but the failure of the U.K. to sign on means that any treaty will likely be outside the EU. It will essentially be a multilateral agreement. It's not clear whether the institutions set up to service the EU — or the euro zone — will be able to service this new agreement.

  • The markets midday drop: the fading of hope. After the ECB's Mario Draghi squelched talk of an expanded bond buying program, traders have now turned their attention to the EU Summit meeting. Here's the problem: many feel they know what is going to happen, and it still doesn't go far enough.

  • Mario Draghi

    Draghi's ECB moves markets up, then down. S&P futures initially moved up, then down, as ECB head Mario Draghi said he was "surprised" by the reaction to his now-famous comment that "other elements might follow" if there was a new fiscal treaty. He said this was not necessarily a signal that he would be initiating more bond purchases.

  • Traders scratching their heads over the late day story from the Nikkei news agency asserting that the Group of 20 nations is considering putting together a $600 billion lending facility at the IMF for the euro zone — a story denied by the IMF, according to our Steve Liesman.

  • It's all coming down to the ECB. While a political solution to the euro zone problems await, it is the ECB that is keeping everything afloat. That's why tomorrow's (Thursday's) ECB meeting is so important.

  • There are early reports that the ECB may loosen collateral requirements for loans. Remember, the ECB provides loans to sovereign countries. They give out money and take collateral (sovereign bonds) in return. But there has been continuing pressure on the credit of sovereign countries.

  • green_red_arrows_140.jpg

    On Closing Bell this week, we're taking a closer look at volatility: why has it become so important? How is it traded? What does volatility say about the stock market and where it is going? But let's start with the basics...

  • American Airlines aircrafts.

    AMR is in the Russell 1000, a basket of the 1,000 largest stocks in the U.S. All the stocks in the Russell 1000 are governed by one single stock trading rule.

  • AAA_rating_cracked_200.jpg

    Another nightmare: Standard & Poor's says the European Financial Stability Facility rating may be cut, placing long-term rating on negative watch.

  • My bet is that there will certainly not be additional money forthcoming, but the IMF already has several billion euros of money not committed.

  • now_hiring_classified.jpg

    U.S. futures were little changed after nonfarm payrolls were about in line with expectations at 123,000, but the headline unemployment rate of 8.6 percent, well below expectations of 9 percent, and October nonfarm payrolls were revised upward.

  • French President Nicholas Sarkozy

    Sarkozy calls France's 35-hour working week, with retirement at ago 60, a "grave mistake." He says French welfare can't be kept as it is.

  • Europe: The patient is on the table. Martin Wolff, in an editorial in the Financial Times this morning, said that euro zone officials who insisted on treaty changes that would take two years to enact before they would act decisively were akin to doctors who were treating a critically ill patient by working out an exercise program to ensure he didn't have another heart attack. It's an apt analogy.

  • Merkel said that she will call for "limited treaty changes" to allow for tighter fiscal oversight of eurozone countries. She's said that she wants "limited contract changes only for euro members..." What does that mean?

  • A triple whammy this morning: China, coordinated central bank action, and better than expected ADP report.

  • The idea being floated is that rather than begin the long process of changing the treaties to create an enforcement mechanism, member states should initiate bilateral agreements that could be quickly implemented under an EU procedure known as "Enhanced Cooperation."

  • Bob Pisani is on vacation. He will return Wednesday, November 30.

  • What's up with the CBOE Volatility Index (VIX)? China slowdown, euro-zone decay, S&P down nearly 8 percent in 6 trading days...but the VIX remains stuck around 33, unchanged from more than a week ago.

  • Europe is now facing a serious crisis. The bond market is closing to euro zone sovereign countries — and those that are open are charging exorbitant rates. And yet, Germany still seems to be focused on academic issues around treaty changes.

About Trader Talk

  • Direct from the floor of the NYSE, Trader Talk with Bob Pisani provides a dynamic look at the reasons for the day’s actions on Wall Street. If you want to go beyond the latest numbers— Bob will tell you why the market does what it does and what it means for the next day’s trading.

 

  • Bob Pisani

    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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