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| | | | | | STOCKS GET SLAMMED AFTER BIG ECB DISAPPOINTMENT: Here's What You Need To Know Sam Ro | Dec. 8, 2011, 4:00 PM | 1,573 | Advertisement
 Day four of Europe's hell week came with some volatility as investors moved on Mario Draghi's every last word. First, the scoreboard: Dow: -198.7 pts, -1.6%
S&P 500: -26.7 pts, -2.1%
NASDAQ: -52.8 pts, -2.0% And now, the top stories: - The European Central Bank (ECB) cut rates by 25 basis points to 1.00% this morning. ECB President Mario Draghi said the bank would extend the maturities of its refinancing operations to three years and also ease collateral requirements. Markets spiked instantly on those words. But, they quickly turned after Draghi said he made no commitment to do more bond buying. For some commentary, read: FACE THE FACTS: There's Only One Solution To The Eurozone Crisis That Can Work Right Now >
- The European Banking Authority released the results of the EU bank stress tests. In total, banks will be forced to raise €114.7 billion, or around $153.8 billion.
- Also this morning, the Bank of England held rates at 0.5% and kept its asset purchase program limited at £275 billion or $430 billion. No surprises here.
- Initial jobless claims fell to 381k, beating the estimate of 395k. However, this good news was dominated by headlines coming out of the ECB.
- The fear trade was back on with the 10-yr Treasury yield falling below 2%. As usual with bad news out of Europe, the U.S. financial sector led stocks lower. Morgan Stanley fell 8.4%. Citigroup sank 7.0%. Goldman Sachs, JPMorgan Chase, and Bank of America each fell around 5%. Here are 15 Stocks That Tons Of People Are Shorting Right Now >
- The energy sector also fell in today's sell-off. However, there was some resilience in stocks exposed to shale gas. Goldman Sachs analysts published a bullish note on the energy niche and put Halliburton and Helmerich & Payne on its Americas Conviction Buy List.
- Ford's board of directors reinstated the company's quarterly dividend after halting it back in 2006. Investors can now expect a 5 cent quarterly cash divided, which translates to a 2% yield.
- Tesla shares tanked following a downgrade by Morgan Stanley. The firm slashed its price target from $70 to $44 citing less than stellar electric vehicle adoption. The stock closed down 9.7%.
- In a research note to clients, Citigroup analyst Richard Gardner said the next Apple iPad would be launching February. Shares climbed 0.4% today, closing at $390.66.
- Don't Miss: The 15 Best Housing Markets For The Next Five Years >
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