Thu, 10/6/2011 4:30 PM – Stocks Up Sharply Again Today, Europe Worries Ease

The S&P 500 gained another 1.8% today, closing at the high for the day. Bonds and the dollar were down and gold was up.

Tomorrow is the monthly jobs report and won’t spoil the party unless it is unexpectedly bad, which is a pretty high hurdle.

In Europe, leaders continue to say that they will recapitalize any banks needing help. Since that is the main worry in contagion from the mess in Greece, that is what investors want to hear. It will take weeks to see what specifically the leaders will come up with and can agree on. Since much of the recapitalization will be by national governments rather than the Eurozone that helps except in the cases of Italy and Spain.

In addition to the EFSF the International Monetary Fund (IMF) also announced that it was looking at helping in the recapitalization of banks. That would be big.

That leaves the problems of our slowing economy and whether interest rates will continue to rise for Spain and Italy. Still, the week has been very constructive so far.

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