Morning Stock Market Report: Gold rising and Google surprises the market

Google is back in the game so to speak by producing quarterly numbers worthy of a $66  move after hours of $595. Last quarter the move was down about 10% after earnings. They must have learned quickly from that drop. These tickers will interesting to watch for potential sympathy plays: $ZAGG $SYNA $MOBI $ADBE $ARMH $SIMG $VZ $GLUU $NVDA $MOTR

 

Be mindful that it is an options expiration Friday so pinnage could be a problem. 

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 As expected, S&P chimed in with its take on the debt ceiling. It sure seems to want a $4 trillion deficit redux.. not some mini $1 trillion deal. The S&P position threatens that a $4 trillion enchilada is needed and anything less will still result in a debt downgrade. A loss of triple A would send a lot of investors fleeing to other triple A in Germany and Canada. All of this is kooky and difficult to fathom. The strangeness would be further enhanced as the UK and France are still AAA.

 

The US CDS has widened to 56 basis points indicating the market is sniffing higher default potential. This is not sky high, but is worth monitoring. A sudden move higher will jerk stocks lower. For now stocks appear range bound. Stronger earnings and stronger guidance is opposed by US debt worries and continued problems in Europe.

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But for all the debt problems we have, this is still worse: AP VIDEO: #Indonesia #volcano erupts, sending panicked residents fleeing down its slopes:  

I know some of you keep reading me for amusement and some have stopped opening the email because of my ongoing talk of fiat paper dollar doom. Here’s a well known character who sees the same situation developing. Ambrose Evans-Pritchard on Return of the Gold Standard as world order unravels  

 

Gold has paused after a nice run. $1600 soon.

 DRAM prices down another 7% in July. Tech is pretty much playing dead: http://bit.ly/rcVsaa

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Geiger Counters Sell Out in Post-Fukushima Japan . Reasonable purchase, not an over reaction. This way they can chronicle the levels of radiation that will eventually lead to their demise. sad.

The realtors will tell you all is fine in most cases, just list it at any price. Spelling Home Brings Mere $85 Million  

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