Stocks are ready to bust out of the gate with a huge rally this morning after European leaders announced a new plan to recapitalize troubled banks directly, and appoint a single bank supervisor to oversee Europe’s banks. And what’s more, private investors are expected to be held equal to the bailout fund if Spain ends up restructuring its debt — initially, European leaders had given the fund seniority, a serious impediment to getting private investors to bet on European bonds. The Journal and Guardian have more on the details of the plan.
The Euro jumped 1.8% against the dollar to nearly $1.27, Nymex crude oil jumped 5.2% to $81.69 and stocks soared around the world.
The Euro Stoxx 50 was up 4% and France’s CAC 40 rose 3.8%.
Dow futures were up 202 points; S&P 500 futures rose 25.6 points. NYSE has invoked Rule 48 to smooth trading at the open.
Research on Motion (RIMM) plunged 13% on a weak earnings report.
Nike (NKE) dropped 10% on disappointing earnings.
KB Home (KBH) jumped 6.3% as the company said orders are on the upswing.
Constellation Brands (STZ) soared 19% on strong earnings and expectations it will profit from a deal between Inbev (BUD) and Modelo.
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