Market +0.74%. Sold off for about an hour after Bernanke Senate testimony (Link), then rallied rest of the day.
Bernanke: there is a risk of a more serious financial blowup [Europe]. inflation risk reasonably low now. modest risk of deflation. QE1 most effective, QE2 "hard to judge"
Intel call: consumer Western Europe/North America not growing as fast as they expected, China/EM moderating, Enterprise in-line. Q4 seasonal on lower than seasonal Q3. Intel CFO: Europe is soft. 2nd half expectations lower for Europe. Windows 8 part of the reason for Q3 guide-down
Goldman Sachs: “During the second quarter, market conditions deteriorated and activity levels for both corporate and investing clients were lower given continued instability in Europe and concerns about global growth,” said Lloyd C. Blankfein.
Goldman VaR $92 million vs. $95 million last quarter and $101 million last year
Goldman Sachs call: "client psychology suffered" "outlook further clouded … by weaker economic data""challenging macro environment may lead to lower trading volumes""conservatively manage [their] risk profile""environment like this.. tend to be very cautious… preserve cash… preserve capital" their VaR lowest since Q3 2006 nothing they see that says solution coming in the short-term
-Ex-Lone Pine analyst raises money for his hedge-fund Link