BNY is charging interest on large deposits - The bank cannot safely invest anywhere with a short maturity and get a positive return. So it's passing along regulatory/deposit insurance charges to its customers.
Today's move down is a macro- and ETF-inspired move. The reason I suggest this is twofold:
1. the outperformance of the Russell 2000; and
2. the volume in ETFs, which are running between 180% and 260% -- including the XLF, SPY, eminis -- more than the average daily volume over the last month.
CLX remains an interesting long, as Icahn will likely make some move before Aug. 18 (at the very least nominating a new slate of directors).
This from Miller Tabak's Peter Boockvar:
Trichet is specifically saying that they were in the market today buying the debt of Ireland and Portugal. Earlier he emphasized that their bond-buying program is still alive just as many thought it was dead as the EFSF will be taking over that function when its officially newly reconstituted. This is helping the euro bounce off its lows and the S&P futures are doing the same.
Run, don't walk, to read Knowledge@Wharton's latest on the winners and losers of the recent debt ceiling program.
