Last night China announced a modest devaluation of the yuan, exporting deflation and making Chinese goods more competitive in the global race to cut prices. The U.S. reported that wholesale inventories grew rapidly in June, adding yet another pointer to recession. Oil fell back into the $43/bbl. range. Dr. Copper fell 3%.
But in important news, Google announced a corporate reorganization, adding a holding company and a new layer of management. This was worth $24 billion in market cap, apparently. Which had a huge positive effect on the stock indexes, given Google’s already enormous market cap. This for a company supported by primarily by advertising spending.
Aren’t bubbles fun?
Edit: Oil later made it into the $42 area.