What's Driving The Market, And How To Play Stocks Moving On News

It took Germany's central bank less than a day to knock a reported proposal by the ECB to set interest rates caps on Spanish and Italian bond yields. Bloomberg reports Bundesbank Widens Euro Rift With Criticism of ECB Bond Plan. Germany’s Bundesbank stepped up its criticism of the European Central Bank’s plan to embark on potentially “unlimited” government bond purchases, widening a rift over how to tackle the sovereign debt crisis.

By Markos Kaminis (Wall St. Greek): Stocks look unsure today, with the SPDR S&P 500 (SPY) off fractionally mid-morning. There's little catalyst to drive the broader market with conviction today.

By Markos Kaminis (Wall St. Greek): The movement of European shares since late December and Greek shares over the last three weeks seems to indicate an expectation that the region will find a way out of its tangled mess of credit and economic issues.

Gary Townsend submits:This morning: After fair value adjustment, equity futures are lower this morning, after a disappointing November employment report. Notwithstanding the past two day’s advances, markets remain in correction.

The Mole submits: US stocks slipped Friday, halting the longest streak of weekly gains since April, derailed by US macro economic numbers.

By Markos Kaminis (Wall St. Greek): With the Greek elections, the second of the sort, due this weekend, bond investors have been leading the PIIGS to slaughter this week. Rising bond yields in Spain forced the pivotal European nation to seek assistance last weekend, which in turn drew a downgrade by Moody's this morning.

By Markos Kaminis (Wall St. Greek): There's no debating which factor drove stocks generally Thursday.

By Markos Kaminis (Wall St. Greek): Very little on the preset market schedule seemed to actually impact stocks today, save perhaps President Obama’s jobs address. Rather, the day’s global trading was hinged on European unraveling and a terrorism threat to the U.S.