Morning Links…

Bank investors are giddy this morning after Bank of America ‘beat’ earnings estimates. The headline sounds much better than reality though. Much of BofA’s ‘earnings’ were the result of one-time items, which if excluded, puts the bank’s earnings at a $0.10/share, on expectations of $0.15/share. Much more on this below.

US equities continue to melt up, with the S&P 500 closing trading yesterday at 1308.04. Futures are pointing to further gains today. An important thing to watch is the 10-year treasury yield, which remains sub-2%. If equity markets are really headed for a breakout to the upside, we would need to see yields drift higher, as that would suggest investors are comfortable taking more risk.

European shares are moving higher today, with France’s CAC40 up 1.5%, and the German DAX up by 0.6%. US stocks have been following the EUR/USD lead, as both are showing recent strength. EUR/USD is now $1.2900, as the dollar is off by 0.3% today vs. the Euro.

Precious metals prices are steady this morning, after bouncing hard off of recent bottoms. WTI crude oil is moving higher by nearly 1%, at $101.50/bbl. Best of luck out there, and on with the links…

  • Jobless claims at 352K, lowest since April ’08. (Reuters, Calculated Risk)
  • Bank of America beats earnings, machines send stock higher. (Zero Hedge, Bloomberg)
  • Ebay beats estimates, boosted by strong Paypal numbers. (FT)
  • Outlook for gold and silver in 2012. (Pragmatic Capitalism)
  • Morgan Stanley reports loss of 15 cents/share. (WSJ, Bloomberg)
  • Debt ceiling issue a reason to own gold? (The Big Picture)
  • Which banks tapped the LTRO? (FT Alphaville)
  • Bernanke’s housing-market meddling tarnishes trust. (Bloomberg)
  • PPI: What commodities are rising and falling? (The Aleph Blog)
  • Political dance kills Keystone Pipeline, and potential jobs. (Oil Price)
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