Markets closed up on Wall Street: DJI 0.36% SP500 0.22% Nasdaq 0.3% Gold 0.27% Oil 1.66%.
Markets had a relatively muted and lightly choppy day (except for one phenomenon we’ll cover below). On the commodities front, Oil (NYSE:USO) selling resumed. Gold (NYSE:GLD) decided it wasn’t ready to go further with $1,500, and Silver (NYSE:SLV) miraculously ended close to the starting line. Is this the Key Reason Behind Silver’s Parabolic Rise?
Fresh Off the Press: Wall St. Cheat Sheet’s newest Feature Trades of the Month>>
Today’s markets were up because:
1) LinkedIn shot the moon. Ah, how history repeats. If you thought you’d never see another momo tech stock with a P/E ratio above 1000, today LinkedIn (NYSE:LNKD) proved you wrong. (Don’t Miss: “LinkedIn Now has a Price-Earnings Ratio Making Pets.com Blush“) That’s right. The social media craze has officially gone mainstream with the largest IPO since Google (NASDAQ:GOOG) … and at these valuations it’s going to end ugly (like the dotcom bust) unless you think this time is different. The good news is the social media bubble is probably just getting started.
2) Citigroup is throwing money at Vikram Pandit. Bailout? Over. Crisis? Over. That means it’s time for the captain of a welfare recipient to open his mouth and receive the cash-o-la. Citigroup (NYSE:C) CEO Pandit is going from a $1 a year salary to a retention package worth $23.2 million. Moral hazard? A new niche for CEOs? Maybe it’s merely a stepping stone to the IMF throne.
3) Existing Housing sales sucked. Existing housing sales dropped 12.9% year-over-year, and the National Association of Realtors is blaming lending policies on their woes. If you think government should exist to help real estate brokers turn shelter into a casino game, you’ll love the NAR’s new campaign to eliminate “hurdles” to sales commissions.
Bonus: Results are in. Here’s Your Cheat Sheet to this Quarter’s Dow 30 Earnings.
Now that you’re in the know, enjoy the continuing battle between the Dallas Mavericks and Oklahoma City Thunder!