The whopping US rally that wasn't
If Wall Street hadn't been closed for Sandy, the market would have jumped on a bevy of positive developments.
First, the big reinsurers in Europe -- the ones that, in many cases, backstop our insurers -- all traded up as Sandy looked as though it would be manageable. This means, first, that they have the reserves and, second, that they can raise rates.
I'm also amazed at how well Deutsche Bank (DB) is doing. The investment-banking business is looking terrific, and the trading side of the ledger has been extraordinary, with only two down days this year. I always knew Deutsche was a great bank, but now it is truly ascendant.
At the same time, UBS (UBS) announced big cuts to its fixed-income desk. The bank is exiting the business, which means the long-awaited consolidation and shrinkage of the business are upon us. Analysts on the Deutsche Bank call were ecstatic about the move. U.S. international banks would be jumping, too.
Over in oil, BP (BP) not only released a terrific quarter last night but also boosted its dividend. This is the same BP that has had to fire-sale properties endlessly because of the Macondo disaster. It looks like the company's earnings power, despite its divestitures, remains more than intact.
Finally, there's the Italian bond market. Last year at this time, we saw Italian 10-year bonds trading at 7%. That move caused a major sell-off in the U.S. market -- the S&P 500 ($INX) lost 400 points on the day that the 7% line was crossed.
Now Italy is raising 10-year money below 5%. And it is real demand, in part because Italy is turning into a success story.
Any one of these might have, at one point, triggered a rally in the U.S. But all of these? Who knows how high the market would have climbed.
Just our luck.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in stocks mentioned.
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Cramer, you are a complete moron ! You might want to think about all of the peple suffering because of this storm instead of making moronic comments.
The only reason the stock market rally is over is because the unending greed and corruption of wall street and our government can't get enough of the tax payers money. PERIOD !!!
This is killing any chance the working class has of saving ANYTHING for retirement !
I sure hope the American people wake up and kick Barrack, Barry or whatever the anti American imposter's name is and his corrupt bottom feeding administration out of the "Peoples White House".
Time to clean the slate and start with honest workig tax paying Americans who actually do give a crap about what happens to the country.
Classic....Lost o/e celebrates,when his Mom brings home Twinkies....
Although I do too, when Miss Lilly buys me some.
Someone, gas @the pump has been dropping drastically, but we had a slight increase this A.M.
Oil per barrel has been down, but there has been a slight glut of gas or fuel. Last fill $3.23...per
We bought hamburger @ $1.88 on a "Wild Wednesday" sale this A.M. (makes good chili)
Otherwise the past 2-3 weeks ground beef (chk steak) @ 2.79-2.89(sale)....I kinda think it's all about smart shopping; We don't clip coupons, but we do wait for deals...ANYONE CAN.
I am all in favor of "cutting a lot of fat and spending" out of the Budget..And eliminating Depts.
But FEMA was never on "MY LIST."
Who the hell,is that stupid.....??
The States have "never had" the Resources to take care of Major Disasters.
Mitt Romney on the wake of the devastation of the East Coast.......Here is a statement he made today in Florida.....about coming together after Sandy.....
DLH....I'm a little perplexed..?? What does your comment mean; "About Dire Straits and 7 hours,"
Directed towards EmptyChair..??
Actually the rally was over about 3 weeks ago. It has been slowly selling off so as not to cause a panic and have alot of investors jerk their money out.
It will improve or get worse after Nov. 6th..
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