Trader Talk with Bob Pisani

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  • capitol_building_dark_skies_200.jpg

    Another market debacle, and with good reason: the apparent failure of the deficit committee means another 12 months of uncertainty over deficit reduction and the direction of tax policy. That is a clear negative.

  • U.S. futures and European stocks are just off their lows for the day on more tail risk in Europe and the failure of the U.S. debt-reduction committee to come to an agreement.

  • I am out of the office today, Friday, on assignment but I will return on Monday with new posts on the market. See you then.

  • Another midday drop out of nowhere, this time during the lunch hour, when the Dow dropped 140 points in a few minutes.

  • Occupy Wall Street Protests

    France's Sarkozy wants the European Central Bank to get a banking license, the back door way to turn on the spending spigot; Germany's Merkel is opposed.

  • european_union_cracked_200.jpg

    Banks weaker late day as Fitch is out with a report on U.S. bank exposure to Europe.

  • A number of refiners are weak today. In the long run, it may be good news for consumers. Crude oil transporter Enbridge announced it was going to buy Conoco's 50 percent stake in a pipeline that ran from Freeport, Texas, to Cushing, Okla., for $1.15 billion and reverse the flow of oil.

  • Ireland and European Union

    October Consumer Price Index fell 0.1 percent, a little lighter than expected, core CPI up 0.1 percent, in-line with expectations. Headline inflation now up 3.5 percent year over year (2.1 percent ex-food and energy), but the big worry: crude over $100. Headline CPI will not be so tame if that continues.

  • Another lackluster equities trading session on light volume. The issues: 1) Traders do not believe that movement on the political front in Italy and Greece will not translate into fiscal and structural changes in those countries any time soon.

  • The tug of war continues: Europe stinks vs. stronger U.S. economic data.

  • Bob Pisani is off today.

  • Austrian Central Bank Governor Ewald Nowotny said that if there was a more serious downturn in the European economy, then it would be time to "rethink and to act maybe in a more decisive way."

  • Stocks rose modestly today (Thursday) on hopes for a new government in Italy — yes, a new government in Italy. They need one because the country is mired in slow growth and too much debt. Sound familiar?

  • Italy has two problems: the cost of funding is too high and there is no growth. What kind of yields on average can Italy afford to pay? And what about the political mess in Italy?

  • European Central Bank

    Euro zone weakness is impacting the global economy: European Union lowers growth forecasts.

  • Berlusconi announcing his resignation has raised even more questions: it's not clear when he is leaving, or what path Italy will be taking.

  • The yield on Italian 10-year debt skyrocketed overnight, going from roughly 6.7 percent yesterday to 7.3 percent. And that is with the ECB buying Italian bonds — in fact there has been active speculation that they are almost the only buyer of those bonds. This has effectively torpedoed the EFSF.

  • Piazza Venezia, Rome, Italy

    Technocratic governments are usually transitional governments run by technical experts. In theory, they are not politicians, which is part of their appeal: they can institute changes because, well, they're not politicians.

  • The EFSF finally got an auction through Monday, but nobody is cheering. To begin with, the initial auction of 5 billion euros that was supposed to happen last week was cancelled. Today's auction of just 3 billion euros clearly indicates lack of demand.

  • We need a credible plan to ring-fence Italy and Spain. If we get that, markets will move up and stocks will start to trade on fundamentals.

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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