NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

When jobs fall, the stock market follows.

That was the message investors sent Wednesday, when they ignored a few flashes of positive news about the economy and instead homed in on troubling reports about jobs in the U.S. and Europe.

The Dow Jones industrial average fell as much as 87 points before ending the day down 10.75 points, at 13,268.57. It was an about-turn from the day before, when investors chose to focus on a couple of positive reports on U.S. manufacturing and sent the Dow up 66 points to its highest close in more than four years.

While the market's day-to-day fluctuations may be difficult to predict, some investors say they're certain that stocks will continue an overall climb for the rest of the year. As justification, they cite strong first-quarter earnings. More than 330 companies on the S&P 500 have reported first-quarter earnings so far, and 77 percent have beaten analysts' estimates, according to John Butters, senior earnings analyst at FactSet.

"The market has room to run," said Karyn Cavanaugh, market strategist with ING Investment Management in New York. "It doesn't always go up in a straight line."

The Standard & Poor's 500 fell 3.51 points to 1,402.31. The Nasdaq composite index was the outlier. It fell throughout the morning, then finished up 9.41 points at 3,059.85.

The NYSE DOW closed LOWER ▼ -10.75 points or ▼ -0.08% Wednesday, 2 May 2012
Symbol …........Last ......Change.....
Dow_Jones 13,268.57 ▼ -10.75 ▼ -0.08%
Nasdaq___ 3,059.85 ▲ 9.41 ▲ 0.31%
S&P_500__ 1,402.31 ▼ -3.51 ▼ -0.25%
30_Yr_Bond 3.114 ▼ -0.05 ▼ -1.49%

NYSE Volume 3,784,073,500
Nasdaq Volume 1,832,346,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 FTSE 100 ▲ 5758.11 ▼ -5412.00%
DAX_____ DAX ▲ 6710.77 ▼ -5042.00%
CAC_40__ CAC 40 ▲ 3226.33 ▲ 1353.00%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,504.80 ▲ 7.50 ▲ 0.17%
Shanghai_Comp 2,438.44 ▲ 42.12 ▲ 1.76%
Taiwan_Weight 7,676.81 ▲ 175.09 ▲ 2.33%
Nikkei_225____ 9,380.25 ▲ 29.30 ▲ 0.31%
Hang_Seng____ 21,309.08 ▲ 53.93 ▲ 1.02%
Strait_Times___ 3,006.14 ▲ 27.57 ▲ 0.93%
NZX 50 Index__ 3,614.97 ▲ 37.65 ▲ 1.05%

http://finance.yahoo.com/news/bad-news-jobs-spooks-markets-134227448.html

Bad news about jobs spooks markets

US stocks end mixed on discouraging signs about jobs in US, Europe

By Christina Rexrode, AP Business Writer

When jobs fall, the stock market follows.

That was the message investors sent Wednesday, when they ignored a few flashes of positive news about the economy and instead homed in on troubling reports about jobs in the U.S. and Europe.

The Dow Jones industrial average fell as much as 87 points before ending the day down 10.75 points, at 13,268.57. It was an about-turn from the day before, when investors chose to focus on a couple of positive reports on U.S. manufacturing and sent the Dow up 66 points to its highest close in more than four years.

While the market's day-to-day fluctuations may be difficult to predict, some investors say they're certain that stocks will continue an overall climb for the rest of the year. As justification, they cite strong first-quarter earnings. More than 330 companies on the S&P 500 have reported first-quarter earnings so far, and 77 percent have beaten analysts' estimates, according to John Butters, senior earnings analyst at FactSet.

"The market has room to run," said Karyn Cavanaugh, market strategist with ING Investment Management in New York. "It doesn't always go up in a straight line."

The Standard & Poor's 500 fell 3.51 points to 1,402.31. The Nasdaq composite index was the outlier. It fell throughout the morning, then finished up 9.41 points at 3,059.85.

A monthly report on private sector hiring was weighing heavily on the minds of investors, who see jobs as the key ingredient to an economic recovery.

Payroll processor ADP said that U.S. businesses added 119,000 jobs in April, far fewer than the 201,000 added in March. However, investors will probably wait until Friday, when the government releases its own data on April jobs, before drawing any firm conclusions about the month. The ADP number covers only private-sector hiring and can vary sharply from the government's number.

Another jobs report from Europe underscored the gravity of the continuing debt crisis there. The 17 countries that use the euro reported that unemployment rose to 10.9 percent in March, the highest since the euro launched in 1999.

Markets fell across most of Europe, including Germany and Greece.

There was also good news out of Europe, even if it didn't seem to sway investors. Standard & Poor's lifted Greece's credit rating out of default, noting how the company had recently secured a massive writedown on its debt to private investors. Germany also reported that the number of people seeking work in April slipped below 3 million, a psychologically important barrier that it hasn't broken in that month for two decades.

Todd Salamone, director of research for Schaeffer's Investment Research in Cincinnati, downplayed concerns about Europe. Investors have had a long time to digest any bad news and shouldn't be too shaken by daily developments, even if the headlines seem panicky, he said.

"U.S. stocks have become more resilient, especially to the European headlines," Salamone said. "Any negative news out of Europe is not a major surprise like it was early last year."

In U.S. stocks, one of the biggest losses came at Chesapeake Energy, which plunged 15 percent. The company had reported a first-quarter loss after the market closed Tuesday. It's also under fire for a massive pay package to CEO Aubrey McClendon and questions about his taking out big loans from companies that do business with Chesapeake. This week, the company stripped McClendon of his role as board chairman.

In an earnings call Wednesday, McClendon said he was "deeply sorry for all the distractions" but also said there was "a great deal of misinformation" circulating about himself and the company.

Ascena Retail Group shot up more than 10 percent after announcing it plans to buy rival Charming Shoppes. Ascena runs dressbarn, maurices and Justice, which are clothing chains for women and girls. The purchase will add Lane Bryant, Catherines and Fashion Bug to its portfolio.

Energizer Holdings, parent of the eponymous batteries, popped more than 9 percent after reporting higher revenue and earnings. The company said that sales of Schick razors helped results.

 

[bigdog]

Source: http://finance.yahoo.com

US stocks dip as weak retail sales, Europe blues overshadow hopes for labor market recovery

Wall Street gnawed on a muddle of economic data and corporate earnings news Thursday, then sent stock indexes lower for a second day.

Disappointing April sales results from big retailers set the bleak tone early on. Costco, Macy's and Target, among others, reported sales that were weaker than analysts had predicted. Colder weather and renewed concerns about the economy weighed on shoppers.

GM shares fell 2.4 percent after the automaker said its first-quarter profit declined, mainly because of weakness in Europe.

Fears of a global financial freeze-up caused by the European debt crisis have receded, but many now worry that Europe's recession will hurt sales by American exporters such as GM and Caterpillar. Caterpillar lost 1.9 percent.

European stocks closed mostly lower, giving up earlier gains, after signs that European Central Bank will not inject more cash into the region's fragile banking system.

Trading of U.S. stocks was uneven because investors were "balancing between a weak close for European stocks and trying to bet on what (the monthly jobs report) will look like," said Peter Tchir, who runs the hedge fund TF Market Advisors.

The labor market has been on traders' minds all week because the government's monthly jobs report is due out Friday. The final major indicator before that announcement was positive: The number of people applying for unemployment benefits fell last week by the most in three months.

The NYSE DOW closed LOWER ▼ -61.98 points or ▼ -0.47% Thursday, 3 May 2012
Symbol …........Last ......Change.....
Dow_Jones 13,206.59 ▼ -61.98 ▼ -0.47%
Nasdaq___ 3,024.30 ▼ -35.55 ▼ -1.16%
S&P_500__ 1,391.57 ▼ -10.74 ▼ -0.77%
30_Yr_Bond 3.112 ▼ 0.00 ▼ -0.06%

NYSE Volume 4,004,916,000
Nasdaq Volume 1,864,509,750

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,766.55 ▲ 8.44 ▲ 0.15%
DAX_____ 6,694.44 ▼ -16.33 ▼ -0.24%
CAC_40__ 3,223.36 ▼ -2.97 ▼ -0.09%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,494.50 ▼ -10.30 ▼ -0.23%
Shanghai_Comp 2,440.08 ▲ 1.64 ▲ 0.07%
Taiwan_Weight 7,659.53 ▼ -17.28 ▼ -0.23%
Nikkei_225____ 9,380.25 ▲ 29.30 ▲ 0.31%
Hang_Seng____ 21,249.53 ▲ 53.93 ▼ -0.28%
Strait_Times___ 3,000.94 ▼ -5.20 ▼ -0.17%
NZX 50 Index__ 3,576.70 ▼ -38.27 ▼ -1.06%

http://finance.yahoo.com/news/us-stocks-fall-conflicting-economic-201011431.html

US stocks fall after conflicting economic reports

US stocks dip as weak retail sales, Europe blues overshadow hopes for labor market recovery

By Daniel Wagner, AP Business Writer

Wall Street gnawed on a muddle of economic data and corporate earnings news Thursday, then sent stock indexes lower for a second day.

Disappointing April sales results from big retailers set the bleak tone early on. Costco, Macy's and Target, among others, reported sales that were weaker than analysts had predicted. Colder weather and renewed concerns about the economy weighed on shoppers.

GM shares fell 2.4 percent after the automaker said its first-quarter profit declined, mainly because of weakness in Europe.

Fears of a global financial freeze-up caused by the European debt crisis have receded, but many now worry that Europe's recession will hurt sales by American exporters such as GM and Caterpillar. Caterpillar lost 1.9 percent.

European stocks closed mostly lower, giving up earlier gains, after signs that European Central Bank will not inject more cash into the region's fragile banking system.

Trading of U.S. stocks was uneven because investors were "balancing between a weak close for European stocks and trying to bet on what (the monthly jobs report) will look like," said Peter Tchir, who runs the hedge fund TF Market Advisors.

The labor market has been on traders' minds all week because the government's monthly jobs report is due out Friday. The final major indicator before that announcement was positive: The number of people applying for unemployment benefits fell last week by the most in three months.

The conflicting economic indicators offered little direction for major U.S. stock indexes. They opened down, rose slightly in the first 15 minutes of trading then turned lower. Eight of the 10 industry groups in the Standard & Poor's 500 index fell. Two rose, but barely.

The Dow Jones industrial average fell 61.98 points, or 0.5 percent, to 13,206.59. The S&P 500 dropped 10.74, or 0.8 percent, to 1,391.57. The Nasdaq composite average slid 35.55, or 1.2 percent, to 3,024.30

The Carlyle Group, a big, politically-connected private equity firm, edged higher after an initial public offering that raised $671 million. The company had priced its stock below the expected range late Wednesday. Carlyle, trading on the Nasdaq under the ticker "CG," has about $147 billion in assets under management.

Other swinging stocks:

”” Green Mountain Coffee Roasters Inc. plunged 47.8 percent. The maker of single-cup coffee machines and cartridges said late Wednesday that its earnings for the fiscal year ending in September will be far below its previous forecast and analysts' estimates. Green Mountain shares have lost more than three-fourths of their value since September.

”” Cablevision Systems Corp. dropped 7.9 percent after its first-quarter revenue fell short of analysts' expectations and profit declined sharply.

”” Viacom Inc., owner of MTV and Paramount Pictures, rose 3.4 percent after saying its net income rose sharply as its TV networks brought in more revenue.

”” Orbitz Worldwide Inc. rose 4.4 percent after narrowing its first-quarter loss and beating analysts' estimates.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks plunge after US hiring slows in April; Worst week this year for S&P and Nasdaq

Stocks plunged Friday after the government reported that hiring slowed sharply last month. The report confirmed investors' fears that the U.S. economic recovery is faltering.

The losses in the market were widespread. The Dow Jones industrial average lost 168 points and the Nasdaq composite had its worst day since Nov. 9. Both the Nasdaq and the Standard & Poor's 500 index closed out their worst weeks of the year. The Dow had its second-worst.

The dollar and U.S. Treasury prices rose as investors dumped risky assets and moved money into lower-risk investments. Energy stocks were among the hardest hit after the price of oil fell sharply and settled below $100 a barrel for the first time since February. Only one of the 10 industry groups in the S&P 500 rose, utilities, which investors tend to buy when they're nervous about the economy.

"The jobs numbers were a disappointment," said Phil Orlando, chief equity strategist at Federated Investors. He noted that there were several factors distorting the month's figures including unusually warm weather in the first three months of the year and an early Easter.

It was the third straight daily loss for the Dow, but it seemed too early to declare that the stock market's overall trend was turning downward. The Dow is still up 6.7 percent this year, the S&P 500 8.9 percent.

That said, investors are on edge about Europe once again as France and Greece both hold elections over the weekend. In France the socialist candidate Francois Hollande has a chance to unseat the incumbent Nicolas Sarkozy, who has been at the forefront of fashioning Europe's efforts to prevent its share currency from collapsing.

Crude oil plunged $4 to $98.49 a barrel on worries that demand would drop because of a weakening world economy. It was the first time oil has dropped below $100 since February 13.

The NYSE DOW closed LOWER ▼ -168.32 points or ▼ -1.27% Friday, 4 May 2012
Symbol …........Last ......Change.....
Dow_Jones 13,038.27 ▼ -168.32 ▼ -1.27%
Nasdaq___ 2,956.34 ▼ -67.96 ▼ -2.25%
S&P_500__ 1,369.10 ▼ -22.47 ▼ -1.61%
30_Yr_Bond 3.071 ▼ -0.04 ▼ -1.32%

NYSE Volume 3,975,136,500
Nasdaq Volume 1,947,573,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,655.06 ▼ -111.49 ▼ -1.93%
DAX_____ 6,561.47 ▼ -132.97 ▼ -1.99%
CAC_40__ 3,161.97 ▼ -61.39 ▼ -1.90%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,459.40 ▼ -35.10 ▼ -0.78%
Shanghai_Comp 2,452.01 ▲ 11.93 ▲ 0.49%
Taiwan_Weight 7,700.95 ▲ 41.42 ▲ 0.54%
Nikkei_225____ 9,380.25 ▲ 29.30 ▲ 0.31%
Hang_Seng____ 21,086.00 ▲ 53.93 ▼ -0.77%
Strait_Times___ 2,990.59 ▼ -10.35 ▼ -0.34%
NZX 50 Index__ 3,549.78 ▼ -26.93 ▼ -0.75%

http://finance.yahoo.com/news/hiring-slowdown-sends-stock-market-211102539.html

Hiring slowdown sends the stock market reeling

Stocks plunge after US hiring slows in April; Worst week this year for S&P and Nasdaq

By Pallavi Gogoi, AP Business Writer

Stocks plunged Friday after the government reported that hiring slowed sharply last month. The report confirmed investors' fears that the U.S. economic recovery is faltering.

The losses in the market were widespread. The Dow Jones industrial average lost 168 points and the Nasdaq composite had its worst day since Nov. 9. Both the Nasdaq and the Standard & Poor's 500 index closed out their worst weeks of the year. The Dow had its second-worst.

The dollar and U.S. Treasury prices rose as investors dumped risky assets and moved money into lower-risk investments. Energy stocks were among the hardest hit after the price of oil fell sharply and settled below $100 a barrel for the first time since February. Only one of the 10 industry groups in the S&P 500 rose, utilities, which investors tend to buy when they're nervous about the economy.

"The jobs numbers were a disappointment," said Phil Orlando, chief equity strategist at Federated Investors. He noted that there were several factors distorting the month's figures including unusually warm weather in the first three months of the year and an early Easter.

It was the third straight daily loss for the Dow, but it seemed too early to declare that the stock market's overall trend was turning downward. The Dow is still up 6.7 percent this year, the S&P 500 8.9 percent.

That said, investors are on edge about Europe once again as France and Greece both hold elections over the weekend. In France the socialist candidate Francois Hollande has a chance to unseat the incumbent Nicolas Sarkozy, who has been at the forefront of fashioning Europe's efforts to prevent its share currency from collapsing.

Crude oil plunged $4 to $98.49 a barrel on worries that demand would drop because of a weakening world economy. It was the first time oil has dropped below $100 since February 13.

The late slump in the week was a stark contrast to Monday, when the Dow closed at its highest level more than four years, propelled by a report that showed a pickup in manufacturing. All that become a distant memory after a slew of poor economic reports were released in the rest of the week.

On Thursday major retailers including Costco and Macy's reported that April sales inched up less that 1 percent, the worst performance since 2009. Thursday also brought news that U.S. service companies expanded their business more slowly in April.

The Dow closed down 168.32 points, or 1.3 percent, at 13,038. All 30 companies that make up the index fell, led by Bank of America and Cisco.

The S&P 500 slipped 22.47 points, or 1.6 percent, to 1,369, while the Nasdaq index fell 67.96 points, or 2.2 percent, to 2,956.

For the week, the Dow fell 190 points, S&P fell 34, while Nasdaq declined 113 points.

The yield on the benchmark 10-year Treasury note dropped sharply to 1.88 percent from 1.92 percent late Thursday as demand increased for safe investments. The yield hasn't settled that low since early February.

The culprit for the distress in financial markets was a report from the Labor Department Friday showing that U.S. job growth slumped in April for a second straight month. The 115,000 jobs added were fewer than the 154,000 jobs created in March.

Job creation is the fuel for the nation's economic growth. When more people have jobs, they have more money to spend.

Orlando noted that the first few months of the year were marked by a number of abnormal conditions including an uncharacteristically warm January and February. That led to a spurt in hiring which usually occurs in spring.

Retail sales and hiring were also affected by an earlier Easter, which fell on April 8 this year, 16 days earlier than last year. That pushed some retail sales ahead to March, leaving April's numbers weaker than they might have been. Retailers also blamed a late Mother's Day for pushing some sales out of April and into May. Unusually warm weather in February and March also pulled forward some sales that would have normally occurred in April.

"The surge in hiring and spending that usually occurs in March through April, occurred earlier in the year this year," said Orlando. "We have to wait for economic numbers from May and June to get a better idea of the underlying strength of this economy."

After the price of oil fell, energy company stocks turned lower in response. Southwestern Energy Co. fell 7 percent and Marathon Oil Corp. fell 3 percent.

In other trading:

— Warnaco Group Inc. dropped over 6 percent after the clothing maker lowered its 2012 forecast and said that its first-quarter net income fell, hurt by the weak European economy.

— Aon Corp. fell almost 6 percent after the insurance broker reported first-quarter net income fell 3 percent due to higher costs and unfavorable currency exchange rates.

— LinkedIn Corp. rose 7 percent after announcing late Thursday that its first-quarter profit more than doubled, topping expectations. The social networking company also announced an acquisition.

— Tilly's Inc. climbed 8 percent in the clothing retailer's debut on the New York Stock Exchange. Tilly's sells surf-inspired and casual West Coast-styled clothing and accessories.

— Einstein Noah Restaurant Group Inc. soared 19 percent after the owner of bagel chain Noah's Bagels said it is considering strategic alternatives, including a possible sale of the company

5965

 

[bigdog]

Source: http://finance.yahoo.com

Stock markets recovered around the world following an early stumble caused by election results in France and Greece that appeared to jeopardize Europe's plans for fighting its debt crisis.

Greek voters over the weekend punished mainstream politicians who had backed cost-cutting plans demanded by the country's international lenders, leaving the country without clear leadership. In France President Nicolas Sarkozy was thrown out in favor of Socialist Francois Hollande, who pledged "to finish with austerity."

Investors on Monday worried that the shifting political landscape in Europe could undermine the region's long battle to keep its shared currency intact and restore the faith of global investors. European markets slumped early on, but closed higher after worries about the political changes dissipated and investors focused on Hollande's pledges to encourage economic growth.

Investors were also relieved after Spain announced a plan to present measures this week to support the country's ailing banks. Prime Minister Mariano Rajoy said he would not rule out lending or injecting public money into the country's financial system.

Stocks rose sharply in Spain, ending up 2.7 percent. France's main index gained 1.7 percent. The euro also recovered ground it lost against the dollar.

In the U.S., the Dow Jones industrial average fell as much as 68 points in early trading, but recouped its losses and even gained 10 points by the afternoon. The Dow finished the day down 29.74 points, or 0.2 percent, at 13,008.53.

The Standard & Poor's 500 also started the day lower but ended up 0.48 points at 1,369.58. The Nasdaq composite index rose 1.4 points to 2,957.76.

The NYSE DOW closed LOWER ▼ -29.74 points or ▼ -0.23% Monday, 7 May 2012
Symbol …........Last ......Change.....
Dow_Jones 13,008.53 ▼ -29.74 ▼ -0.23%
Nasdaq___ 2,957.76 ▲ 1.42 ▲ 0.05%
S&P_500__ 1,369.58 ▲ 0.48 ▲ 0.04%
30_Yr_Bond 3.067 ▼ 0.00 ▼ -0.13%

NYSE Volume 3,565,527,500
Nasdaq Volume 1,751,718,380

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,655.06 ▼ -111.49 ▼ -1.93%
DAX_____ 6,569.48 ▲ 8.01 ▲ 0.12%
CAC_40__ 3,214.22 ▲ 52.25 ▲ 1.65%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,459.40 ▼ -35.10 ▼ -0.78%
Shanghai_Comp 2,452.01 ▲ 11.93 ▲ 0.49%
Taiwan_Weight 7,700.95 ▲ 41.42 ▲ 0.54%
Nikkei_225____ 9,119.14 ▼ -261.11 ▼ -2.78%
Hang_Seng____ 20,536.65 ▲ 53.93 ▼ -2.61%
Strait_Times___ 2,924.95 ▼ -65.64 ▼ -2.19%
NZX 50 Index__ 3,540.13 ▼ -9.65 ▼ -0.27%

http://finance.yahoo.com/news/marke...05ODg0LTExZTEtYmI3ZS02Mzg1NDM4MjlkMDM-;_ylv=3

Markets recover from stumble over Europe elections

Markets stumble, then recover following expulsion of incumbents in French and Greek elections

By Pallavi Gogoi, AP Business Writer

NEW YORK (AP) -- Stock markets recovered around the world following an early stumble caused by election results in France and Greece that appeared to jeopardize Europe's plans for fighting its debt crisis.

Greek voters over the weekend punished mainstream politicians who had backed cost-cutting plans demanded by the country's international lenders, leaving the country without clear leadership. In France President Nicolas Sarkozy was thrown out in favor of Socialist Francois Hollande, who pledged "to finish with austerity."

Investors on Monday worried that the shifting political landscape in Europe could undermine the region's long battle to keep its shared currency intact and restore the faith of global investors. European markets slumped early on, but closed higher after worries about the political changes dissipated and investors focused on Hollande's pledges to encourage economic growth.

Investors were also relieved after Spain announced a plan to present measures this week to support the country's ailing banks. Prime Minister Mariano Rajoy said he would not rule out lending or injecting public money into the country's financial system.

Stocks rose sharply in Spain, ending up 2.7 percent. France's main index gained 1.7 percent. The euro also recovered ground it lost against the dollar.

In the U.S., the Dow Jones industrial average fell as much as 68 points in early trading, but recouped its losses and even gained 10 points by the afternoon. The Dow finished the day down 29.74 points, or 0.2 percent, at 13,008.53.

The Standard & Poor's 500 also started the day lower but ended up 0.48 points at 1,369.58. The Nasdaq composite index rose 1.4 points to 2,957.76.

The election results in Europe showed that voters were rejecting the extreme belt-tightening required by international bailouts and favored by Germany's leadership.

Investors are waiting hear the newly-elected leaders articulate their visions for how to deal with the euro zone's debt crisis, which is why there is a muted reaction from stock markets, according Kim Caughey-Forrest, equity research analyst at investment firm Fox Pitt Capital Group.

"There is no reason to cry until you get hurt," said Caughey-Forrest.

The verdict from European voters will likely force leaders there to go back to the table and come up with more acceptable solutions to the debt crisis that has plagued many nations. The deep cuts in government spending have already worsened the situation in many countries, leading them into deeper economic distress and increasing already high unemployment.

Many believe the austerity programs are necessary to keep bond investors from panicking about the possibility that more European nations will default or require bailouts.

However, a growing number of politicians, like France's Hollande, say the cuts have been too much, too fast. They say the region's economy can't return to growth unless governments stop tightening the fiscal noose and start spending again to create demand. Some economists also now believe that the cuts have to be accompanied by some government economic stimulus to promote growth.

"We are going to hear a more balanced prescription coming out of the European leadership," said Quincy Krosby, a market strategist at insurer Prudential Financial. "The elections were a strong message for pro-austerity leaders from the people."

Initially, traders also bought up ultra-safe Treasurys overnight when stock markets in Europe were falling. That pushed the yield on the 10-year note as low as 1.83 percent early Monday morning, a level it hadn't reached since early February. However, the yield rebounded to 1.88 percent in late trading, the same level it was at late Friday.

Earlier in Asia, Japan's Nikkei index plunged 2.8 percent to its lowest finish in three months. In addition to Europe's elections, it was also the first time for investors in Asia to react to a weak jobs report Friday in the U.S. Hong Kong's benchmark Hang Seng index slid 2.6 percent.

Among U.S. stocks that made big moves:

”” Disney rose 2 percent after its movie "The Avengers" pulled in $80.5 million in its domestic debut Friday, the second-best haul ever on opening day. The movie was made by Disney's Marvel Studios unit and is based on Marvel Comics heroes.

”” Cognizant Technology Solutions plunged 19 percent after the information technology services provider lowered its forecast for the full year on low demand, echoing the bleak outlook from other rivals due to uncertainty in the global economy.

”” Meat products maker Tyson Foods rose over 3 percent after reporting an increase in its second-quarter profit on higher beef and chicken prices.

”” Frontier Communications fell 7 percent after the regional telecommunications provider said it was losing residential and business customers. The company had bought rural landlines from Verizon Communications two years ago, which led to several quarters of growth last year.

 

[bigdog]

Source: http://finance.yahoo.com

Political uncertainty in debt-hobbled Europe spread to financial markets Tuesday and pushed stocks lower in Europe and the United States.

The Dow Jones industrial average was down almost 200 points at its low point for the day before recovering most of its loss to finish down 76. It was the average's fifth straight decline.

European indexes closed near their lowest levels in months, and the euro neared a five-month low against the dollar.

Prices plummeted for commodities like oil and copper that depend on the health of the world economy. The turmoil in Europe added to concerns about slower economic growth in China and weaker job creation in the U.S.

Trading throughout the markets is growing more volatile as Europe's debt crisis "accelerates to a point where it's not really controllable with the sorts of Band-Aids they've used," said Daniel Alpert, managing partner at the investment bank Westwood Capital Partners LLC.

Greek voters on Sunday rejected parties that had imposed the deep spending cuts demanded by Greece's bailout lenders. Cuts to pensions and social programs are deepening Greece's crushing recession.

On Tuesday, the left-wing politician struggling to form a new government declared that the country was no longer bound by its promises cut spending sharply in exchange for international bailout loans.

The politician, Alexis Tsipras, also demanded a moratorium on repaying the part of Greece's debt that is "onerous." The main stock index in Greece closed down 3.6 percent after a 7 percent decline the day before.

After a calm finish Monday, benchmark indexes in Germany and France plunged to near their lowest levels this year. Italy's was near its lowest since last November. The main stock index in Britain hit its lowest point this year.

Central banks have injected billions into Europe's financial system, providing temporary support for stock and commodity prices, Alpert said. "If that liquidity is supposed to prime the pump, and the pump doesn't take over, then you've got a problem," he said.

In the U.S., traders dumped risky assets and commodities, partly because of concern that a punishing recession in Europe would hurt economic demand. The price of oil continued its week-long slide. Copper and silver each lost more than 2 percent

The NYSE DOW closed LOWER ▼ -76.44 points or ▼ -0.59% Tuesday, 8 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,932.09 ▼ -76.44 ▼ -0.59%
Nasdaq___ 2,946.27 ▼ -11.49 ▼ -0.39%
S&P_500__ 1,363.72 ▼ -5.86 ▼ -0.43%
30_Yr_Bond 3.023 ▼ -0.04 ▼ -1.43%

NYSE Volume 4,261,573,000
Nasdaq Volume 2,185,715,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,554.55 ▼ -100.51 ▼ -1.78%
DAX_____ 6,444.74 ▼ -124.74 ▼ -1.90%
CAC_40__ 3,124.80 ▼ -89.42 ▼ -2.78%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,375.90 ▲ 14.30 ▲ 0.33%
Shanghai_Comp 2,448.88 ▼ -3.06 ▼ -0.12%
Taiwan_Weight 7,545.71 ▲ 7.63 ▲ 0.10%
Nikkei_225____ 9,181.65 ▲ 62.51 ▲ 0.69%
Hang_Seng____ 20,484.75 ▲ 53.93 ▼ -0.25%
Strait_Times___ 2,930.69 ▲ 5.74 ▲ 0.20%
NZX 50 Index__ 3,552.06 ▲ 11.93 ▲ 0.34%

http://finance.yahoo.com/news/turmo...05OTVhLTExZTEtYmYxZi1lMTM0ZjhmNjI3Mzk-;_ylv=3

Turmoil in Europe pushes stocks lower in US

Post-election turmoil in Europe drives down stocks and commodities; Dow ends down 76

By Daniel Wagner, AP Business Writer

Political uncertainty in debt-hobbled Europe spread to financial markets Tuesday and pushed stocks lower in Europe and the United States.

The Dow Jones industrial average was down almost 200 points at its low point for the day before recovering most of its loss to finish down 76. It was the average's fifth straight decline.

European indexes closed near their lowest levels in months, and the euro neared a five-month low against the dollar.

Prices plummeted for commodities like oil and copper that depend on the health of the world economy. The turmoil in Europe added to concerns about slower economic growth in China and weaker job creation in the U.S.

Trading throughout the markets is growing more volatile as Europe's debt crisis "accelerates to a point where it's not really controllable with the sorts of Band-Aids they've used," said Daniel Alpert, managing partner at the investment bank Westwood Capital Partners LLC.

Greek voters on Sunday rejected parties that had imposed the deep spending cuts demanded by Greece's bailout lenders. Cuts to pensions and social programs are deepening Greece's crushing recession.

On Tuesday, the left-wing politician struggling to form a new government declared that the country was no longer bound by its promises cut spending sharply in exchange for international bailout loans.

The politician, Alexis Tsipras, also demanded a moratorium on repaying the part of Greece's debt that is "onerous." The main stock index in Greece closed down 3.6 percent after a 7 percent decline the day before.

After a calm finish Monday, benchmark indexes in Germany and France plunged to near their lowest levels this year. Italy's was near its lowest since last November. The main stock index in Britain hit its lowest point this year.

Central banks have injected billions into Europe's financial system, providing temporary support for stock and commodity prices, Alpert said. "If that liquidity is supposed to prime the pump, and the pump doesn't take over, then you've got a problem," he said.

In the U.S., traders dumped risky assets and commodities, partly because of concern that a punishing recession in Europe would hurt economic demand. The price of oil continued its week-long slide. Copper and silver each lost more than 2 percent.

Gold fell $34.60 to a four-month low of $1,604.50. It dipped below $1,600 for the first time since early January. Gold often serves as a safe, stable investment to hold in turbulent times. But in periods of rapid selling, investors sometimes sell gold as a ready source of cash.

The stronger dollar contributed to the fall in commodity prices. Commodities are priced in dollars, so a stronger dollar makes them appear more expensive to traders who use other currencies.

Money flowed into safe investments such as U.S. Treasurys, pushing the yield on the 10-year Treasury note down to 1.85 percent from 1.88 percent late Monday.

A flurry of late-day buying helped the indexes recover from their earlier lows. The Dow closed down 76.44 points, or 0.6 percent, at 12,932.09. The Standard & Poor's 500 index fell 5.86 to 1,363.72. The Nasdaq composite index fell 11.49 to 2,946.27. The S&P had been down almost 22 points and the Nasdaq almost 58.

Markets have been buffeted for three years by shifting perceptions about the gravity of the European debt crisis. At times, many feared a messy string of government defaults would set off a global credit crunch.

Earlier this year, trading had turned relatively placid as policymakers rolled out a host of measures aimed at reassuring investors.

To shore up the region's shaky banks, the European Central Bank injected billions of euros into the financial system. Governments in Italy and Greece fell last year, replaced by technocrats whom international leaders trusted to navigate the crisis. Leaders of indebted nations agreed to tighten their budgets. They slashed pensions and government jobs, raised retirement ages and eliminated social programs.

The measures were aimed at soothing bond investors and preventing nations' borrowing costs from rising. By striking at voters' quality of life, they provoked angry political opposition to the plans.

Opponents of strict austerity say Europe will be unable to emerge from its recession unless governments spend more to boost demand in the economy.

On Sunday, in addition to the election in Greece, French voters elected a president who has spoken out against austerity and promised to cut France's debt load more slowly.

Uncertainty about Europe's path forward is injecting volatility into global markets. As fears about Europe and the U.S. economy reemerged in recent weeks, traders have returned to frenzied buying and selling that recalls last year's record-breaking market swings.

Among U.S. stocks making moves Tuesday:

”” Burger chain Wendy's fell 4.1 percent after it cut its forecast and said its first-quarter profit missed Wall Street analysts' expectations.

”” Watchmaker Fossil plunged 37.6 percent after saying weak sales in Europe caused its first-quarter revenue to fall far short of expectations. The company also lowered its 2012 earnings forecast.

”” Casino operator Wynn Resorts reported a disappointing drop in first-quarter earnings, sending its stock down 4.8 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks fall as traders fret about Europe again; commodities dip on fears about global growth

Fear of European debt is once again playing havoc with Wall Street.

Stocks pitched down Wednesday in the United States as borrowing rates climbed for Spain and Italy, a sign that investors are losing confidence in those countries' finances.

Spain's 10-year borrowing rate leapt to 6.06 percent from 5.70 percent early Tuesday. Many fear that Spain, strangled by high unemployment and a real estate collapse, could be the next nation to require financial rescue.

The Dow Jones industrial average was down as much as 184 points before recovering about half of the loss. Still, the average has fallen for six consecutive days, its longest losing streak since last summer.

The Dow soared 2,624 points, or 25 percent, from Oct. 3 through May 1 as European leaders appeared to get a handle on the debt crisis. Last fall, nations that use the euro agreed to enforce budget discipline across the region.

Since May 1, when the Dow closed at a four-year high, worries about Europe have resurfaced. In elections on Sunday, Greek and French voters ousted leaders who had imposed tough spending cuts to soothe investors.

In the six losing days that ended Wednesday, the Dow gave back 444 points ”” one-sixth of the points it gained during its eight-month rally. The Dow closed down 97.03 points, or 0.8 percent, at 12,835.06.

Greece, without a government since Sunday's elections, appears increasingly likely to exit the euro currency union or be forced out. The resulting uncertainty could cause turmoil throughout global markets.

The spring decline has become a motif on Wall Street. In 2010 and 2011, the Dow climbed in the first three months of the year, then flat-lined or lost ground as events overseas overshadowed modest economic growth in the U.S.

The market today is tame compared with last summer, when the Dow routinely swung by hundreds of points a day

The NYSE DOW closed LOWER ▼ -97.03 points or ▼ -0.75% Wednesday, 9 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,835.06 ▼ -97.03 ▼ -0.75%
Nasdaq___ 2,934.71 ▼ -11.56 ▼ -0.39%
S&P_500__ 1,354.58 ▼ -9.14 ▼ -0.67%
30_Yr_Bond 3.039 ▲ 0.02 ▲ 0.53%

NYSE Volume 4,288,529,000
Nasdaq Volume 2,076,905,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,530.05 ▼ -24.50 ▼ -0.44%
DAX_____ 6,475.31 ▲ 30.57 ▲ 0.47%
CAC_40__ 3,118.65 ▼ -6.15 ▼ -0.20%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,332.20 ▼ -43.70 ▼ -1.00%
Shanghai_Comp 2,408.59 ▼ -40.30 ▼ -1.65%
Taiwan_Weight 7,475.71 ▼ -70.00 ▼ -0.93%
Nikkei_225____ 9,045.06 ▼ -136.59 ▼ -1.49%
Hang_Seng____ 20,330.64 ▲ 53.93 ▼ -0.75%
Strait_Times___ 2,909.91 ▼ -22.07 ▼ -0.75%
NZX 50 Index__ 3,559.47 ▲ 7.41 ▲ 0.21%

http://www.google.com/hostednews/ap...ccb7iA?docId=71ae936c892b4765988faeaf3a24013d

US stocks fall as Europe doubts bubble to surface

Stocks fall as traders fret about Europe again; commodities dip on fears about global growth

By Daniel Wagner, AP Business Writer

Fear of European debt is once again playing havoc with Wall Street.

Stocks pitched down Wednesday in the United States as borrowing rates climbed for Spain and Italy, a sign that investors are losing confidence in those countries' finances.

Spain's 10-year borrowing rate leapt to 6.06 percent from 5.70 percent early Tuesday. Many fear that Spain, strangled by high unemployment and a real estate collapse, could be the next nation to require financial rescue.

The Dow Jones industrial average was down as much as 184 points before recovering about half of the loss. Still, the average has fallen for six consecutive days, its longest losing streak since last summer.

The Dow soared 2,624 points, or 25 percent, from Oct. 3 through May 1 as European leaders appeared to get a handle on the debt crisis. Last fall, nations that use the euro agreed to enforce budget discipline across the region.

Since May 1, when the Dow closed at a four-year high, worries about Europe have resurfaced. In elections on Sunday, Greek and French voters ousted leaders who had imposed tough spending cuts to soothe investors.

In the six losing days that ended Wednesday, the Dow gave back 444 points ”” one-sixth of the points it gained during its eight-month rally. The Dow closed down 97.03 points, or 0.8 percent, at 12,835.06.

Greece, without a government since Sunday's elections, appears increasingly likely to exit the euro currency union or be forced out. The resulting uncertainty could cause turmoil throughout global markets.

The spring decline has become a motif on Wall Street. In 2010 and 2011, the Dow climbed in the first three months of the year, then flat-lined or lost ground as events overseas overshadowed modest economic growth in the U.S.

The market today is tame compared with last summer, when the Dow routinely swung by hundreds of points a day.

But the atmosphere is starting to resemble last year's as traders sell anything deemed risky based on the latest headlines from Europe, said Peter Tchir, who trades a range of investments for his hedge fund TF Market Advisors.

"The concern in Spain is at such a high level that people trade the indexes or big futures contracts and are less discriminating about what risk they're taking on," he said.

On Wednesday, prices fell for commodities such as energy, copper and silver that are needed to sustain broad economic growth but are less valuable when the economy is weaker and demand wanes.

Benchmark crude oil, which sold for about $110 per barrel earlier this year, fell below $100 last week and kept sliding. It closed below $97 Wednesday on the New York Mercantile Exchange, continuing its longest decline since last July.

Commodity prices also were under pressure because the dollar rose against the euro, sending the euro down as low as $1.2910, its lowest point since Jan. 23. Commodities are traded in dollars, so a strong dollar makes them appear more expensive to investors who hold foreign currencies.

European stocks are having one of their worst weeks in months. London's FTSE 100 index is down 2.2 percent this week, its worst performance since December. Stocks in Athens are down 10.8 percent, the most since August.

Cash flowed into ultra-safe investments such as U.S. Treasurys, pushing the yield on the 10-year note as low as 1.80 percent, near a seven-month low. The yield finished the day at 1.84 percent as stocks moved off their earlier lows.

One reason that demand for Treasurys is increasing: As Europe deteriorates and hiring in the U.S. slows, traders believe that the Federal Reserve is more likely to engage in another round of bond-buying to juice the economy.

Bond-buying by the Fed lowers bond yields, pushing more cash into stocks and commodities. When traders expect the Fed to act, they buy bonds to take advantage of the extra demand that the Fed's buying will create.

Economic indicators and corporate earnings in the U.S. continue to signal recovery, albeit a choppy one. The government said after trading began that U.S. wholesale stockpiles grew in March at their slowest pace in four months, a sign demand is too weak for companies to ramp up production.

The Standard & Poor's 500 index and Nasdaq composite average both closed well above their lows for the day. The S&P fell 9.14 points, or 0.7 percent, to 1,354.58. The Nasdaq dropped 11.56, or 0.4 percent, to 2,934.71.

Tchir expects the market to grow more volatile as traders track deadlines for indebted European nations to repay bond investors or raise cash. For investors who benefited from the recent rally, he said, "I think it's time to take money off the table." There's too much of a disconnect between the Dow's recent four-year high and European markets that are scraping three-year lows, he said.

European stocks rose into the close, recovering some earlier losses. Indexes in France and London closed down less than 1 percent after steep losses earlier.

In corporate news:

”” Chiquita Brands plunged 28.9 percent after the banana purveyor reported first-quarter earnings that were far below the expectations of Wall Street analysts.

”” Macy's lost 3.8 percent after the department store chain made an earnings forecast that fell below Wall Street projections.

”” Walt Disney Co. rose 1.6 percent, the most of the 30 stocks in the Dow, after the whimsy-production conglomerate said its fiscal second-quarter earnings outpaced expectations.

 

[bigdog]

Source: http://finance.yahoo.com


The Dow Jones industrial average broke a six-day losing streak Thursday, notching a small gain after the government released better unemployment numbers.

The Dow rose 19.98 points to close at 12,855.04, after rising almost 100 points earlier in the day. The Standard & Poor's 500 index rose 3.41 points to close at 1,357.99.

Before Thursday, the Dow had fallen six days in a row, its longest losing streak since August.

Investors have worried that job growth is fading. They were encouraged by a Labor Department report that applications for unemployment benefits dropped 1,000 to 367,000 in the week ending May 5.

That pulled the four-week average, which economists watch more closely, down to 379,000 ”” closer to the 375,000 level, which suggests job growth is strong enough to reduce the unemployment rate.

Eight out of 10 industry groups in the S&P 500 rose, with only materials and technology stocks declining. Utilities were the biggest gainers, up 0.9 percent, followed by health care and consumer staples.

Tech stocks closed down 0.8 percent, and the Nasdaq composite index fell 1.07 points to 2,933.64. Networking gear maker Cisco Systems plunged 10.5 percent after warning that technology spending appears to be slowing and that its revenue would rise much less than analysts expected this quarter. Hardware maker Oracle fell 2.7 percent.

Stocks also benefited from news that Spain would take over Bankia SA, the country's fourth-largest bank, which has high exposure to bad property loans. The government hopes to convince investors that Spain won't need a bailout. The yield on Spain's 10-year debt fell 0.12 percentage points to 5.95 percent ”” meaning its borrowing costs fell slightly because of reduced worries about its debt.

Spain's IBEX 35 index jumped 3.4 percent.

The NYSE DOW closed HIGHER ▲ 19.98 points or ▲ 0.16% Thursday, 10 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,855.04 ▲ 19.98 ▲ 0.16%
Nasdaq___ 2,933.64 ▼ -1.07 ▼ -0.04%
S&P_500__ 1,357.99 ▲ 3.41 ▲ 0.25%
30_Yr_Bond 3.051 ▲ 0.01 ▲ 0.39%

NYSE Volume 3,736,279,250
Nasdaq Volume 2,020,612,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,543.95 ▲ 13.90 ▲ 0.25%
DAX_____ 6,518.00 ▲ 42.69 ▲ 0.66%
CAC_40__ 3,130.17 ▲ 11.52 ▲ 0.37%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,353.80 ▲ 21.60 ▲ 0.50%
Shanghai_Comp 2,410.23 ▲ 1.64 ▲ 0.07%
Taiwan_Weight 7,484.01 ▲ 8.30 ▲ 0.11%
Nikkei_225____ 9,009.65 ▼ -35.41 ▼ -0.39%
Hang_Seng____ 20,227.28 ▲ 53.93 ▼ -0.51%
Strait_Times___ 2,903.60 ▲ 2.69 ▲ 0.09%
NZX 50 Index__ 3,569.05 ▲ 9.58 ▲ 0.27%

http://finance.yahoo.com/news/dow-b...05YWUwLTExZTEtOWRlYy04OWE2ZWMzZDBlOTk-;_ylv=3

Dow breaks 6-day losing streak, barely

US stocks rise after unemployment claims report; tech stocks fall on Cisco warning

By Joshua Freed, AP Business Writer

The Dow Jones industrial average broke a six-day losing streak Thursday, notching a small gain after the government released better unemployment numbers.

The Dow rose 19.98 points to close at 12,855.04, after rising almost 100 points earlier in the day. The Standard & Poor's 500 index rose 3.41 points to close at 1,357.99.

Before Thursday, the Dow had fallen six days in a row, its longest losing streak since August.

Investors have worried that job growth is fading. They were encouraged by a Labor Department report that applications for unemployment benefits dropped 1,000 to 367,000 in the week ending May 5.

That pulled the four-week average, which economists watch more closely, down to 379,000 ”” closer to the 375,000 level, which suggests job growth is strong enough to reduce the unemployment rate.

Eight out of 10 industry groups in the S&P 500 rose, with only materials and technology stocks declining. Utilities were the biggest gainers, up 0.9 percent, followed by health care and consumer staples.

Tech stocks closed down 0.8 percent, and the Nasdaq composite index fell 1.07 points to 2,933.64. Networking gear maker Cisco Systems plunged 10.5 percent after warning that technology spending appears to be slowing and that its revenue would rise much less than analysts expected this quarter. Hardware maker Oracle fell 2.7 percent.

Stocks also benefited from news that Spain would take over Bankia SA, the country's fourth-largest bank, which has high exposure to bad property loans. The government hopes to convince investors that Spain won't need a bailout. The yield on Spain's 10-year debt fell 0.12 percentage points to 5.95 percent ”” meaning its borrowing costs fell slightly because of reduced worries about its debt.

Spain's IBEX 35 index jumped 3.4 percent.

"Europe's problems are by no means being solved. But the feeling that there is some support there probably helps sentiment a little bit," said Ed Hyland, a global investment specialist with J.P. Morgan Private Bank.

Other European stocks rose, too. Britain's FTSE 100 closed 0.3 percent higher, and Germany's DAX rose 0.7 percent.

Other U.S. stocks on the move:

”” Pfizer rose 1.7 percent after the drugmaker got preliminary approval for an arthritis drug.

”” Avon fell 3.3 percent after beauty products maker Coty Inc. raised its offer to buy Avon but also said it will withdraw the latest bid if it doesn't get a response by the close of business Monday. Some analysts have been saying Avon is worth more.

”” Kohl's fell 4.3 percent after price-cutting led to a 23 percent drop in its first-quarter profit.

Oil prices rose 8 cents to $96.89 per barrel.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks fade into the close; steep sell-off in investment bank stocks after JPMorgan's loss

JPMorgan's surprise $2 billion trading loss prompted a sell-off in financial stocks Friday, with smaller declines across the broader market as investors decided this was more of a problem for investment banks than for other industries.

Most of the 10 industries in the Standard & Poor's 500 index were flat or posted modest declines; financial stocks fell 1.1 percent.

For that, the other investment banks could thank JPMorgan, America's biggest bank. The stock plunged 9.3 percent, dragging other banks with big Wall Street operations down with it. Morgan Stanley fell 4.2 percent and Goldman Sachs fell 3.9 percent. Citigroup fell 4.2 percent.

Retail-focused banks fared better. Wells Fargo edged up 0.4 percent.

JPMorgan's blunder comes in the midst of a political battle over how closely to regulate banks, though JP Morgan's CEO Jamie Dimon said the trades would not have been affected by the so-called Volcker rule, expected to take effect this summer. Still, the $2 billion loss is sure to be used as ammunition by those pushing for tighter regulation of investment banks.

"It'll definitely have a political impact," said Randy Warren, chief investment officer for Warren Financial Service.

The Dow Jones industrial average fell 34.44 points to close at 12,920.60. It had waffled around with small gains and losses throughout most of the day before settling into the red in the afternoon.

The Standard & Poor's 500 index fell 4.60 points to close at 1,353.39. The Nasdaq composite index, which is heavily weighted with technology stocks, was up 0.18 points to 2,933.82.

The NYSE DOW closed LOWER ▼ -34.44 points or ▼ -0.27% Friday, 11 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,820.60 ▼ -34.44 ▼ -0.27%
Nasdaq___ 2,933.82 ▲ 0.18 ▲ 0.01%
S&P_500__ 1,353.39 ▼ -4.60 ▼ -0.34%
30_Yr_Bond 3.015 ▼ -0.04 ▼ -1.18%

NYSE Volume 3,869,074,000
Nasdaq Volume 1,742,127,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,575.52 ▲ 31.57 ▲ 0.57%
DAX_____ 6,579.93 ▲ 61.93 ▲ 0.95%
CAC_40__ 3,129.77 ▼ -0.40 ▼ -0.01%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,342.70 ▼ -11.10 ▼ -0.25%
Shanghai_Comp 2,394.98 ▼ -15.25 ▼ -0.63%
Taiwan_Weight 7,401.37 ▼ -82.64 ▼ -1.10%
Nikkei_225____ 8,953.31 ▼ -56.34 ▼ -0.63%
Hang_Seng____ 19,964.63 ▲ 53.93 ▼ -1.30%
Strait_Times___ 2,883.40 ▼ -20.20 ▼ -0.70%
NZX 50 Index__ 3,548.06 ▼ -20.99 ▼ -0.59%

http://finance.yahoo.com/news/stock...05YmFkLTExZTEtOGJiZC1iMmIwNDEzZGRjNDY-;_ylv=3

Stock market decline is muted, despite bank slump

Stocks fade into the close; steep sell-off in investment bank stocks after JPMorgan's loss

By Joshua Freed, AP Business Writer

JPMorgan's surprise $2 billion trading loss prompted a sell-off in financial stocks Friday, with smaller declines across the broader market as investors decided this was more of a problem for investment banks than for other industries.

Most of the 10 industries in the Standard & Poor's 500 index were flat or posted modest declines; financial stocks fell 1.1 percent.

For that, the other investment banks could thank JPMorgan, America's biggest bank. The stock plunged 9.3 percent, dragging other banks with big Wall Street operations down with it. Morgan Stanley fell 4.2 percent and Goldman Sachs fell 3.9 percent. Citigroup fell 4.2 percent.

Retail-focused banks fared better. Wells Fargo edged up 0.4 percent.

JPMorgan's blunder comes in the midst of a political battle over how closely to regulate banks, though JP Morgan's CEO Jamie Dimon said the trades would not have been affected by the so-called Volcker rule, expected to take effect this summer. Still, the $2 billion loss is sure to be used as ammunition by those pushing for tighter regulation of investment banks.

"It'll definitely have a political impact," said Randy Warren, chief investment officer for Warren Financial Service.

The Dow Jones industrial average fell 34.44 points to close at 12,920.60. It had waffled around with small gains and losses throughout most of the day before settling into the red in the afternoon.

The Standard & Poor's 500 index fell 4.60 points to close at 1,353.39. The Nasdaq composite index, which is heavily weighted with technology stocks, was up 0.18 points to 2,933.82.

Microsoft and Intel both rose 1.4 percent after Intel told analysts that it is on track to meet sales expectations. Tech investors were relieved to hear that one day after Cisco Systems prompted selling in tech shares by being pessimistic about sales. Semiconductor maker Nvidia jumped 6.4 percent after reporting revenue that was higher than analysts were expecting.

Some consumer discretionary stocks did well, with retailer Bed Bath & Beyond jumping 4.1 percent, one of the biggest gains in the S&P 500 index, and video streaming and DVD-by-mail company Netflix rose 6.9 percent.

Pharmacy benefits manger Express Scripts rose 1.4 percent after it reported prescription growth in its first quarter since splitting with drugstore chain Walgreen.

Verizon and AT&T each rose about 1.5 percent after Credit Suisse analyst Jonathan Chaplin raised his earnings estimates for this year and next. They're making phone upgrades more expensive for customers, which should help the phone companies' bottom lines, Chaplin wrote.

Also Friday, the Labor Department said that the producer price index, which measures price changes before they reach the consumer, dropped 0.2 percent last month. It was the first decline since December and the biggest drop since October. Declines were driven by gas and energy prices. That's good news for consumer spending.

Separately, a closely watched measure of consumer confidence from the University of Michigan released Friday morning was better than analysts had expected. The index was at its highest level since January 2008.

Oil prices fell 95 cents to $96.13 per barrel. Gold fell $11.50 to $1,584 per ounce.

In Europe, France's CAC 40 index recovered from a slump and closed with a minuscule loss. Other markets also rallied into the close. Britain's FTSE 100 ended up 0.6 percent and Germany's DAX rose 1 percent; both were lower earlier in the day. Borrowing costs for Germany and France fell, while costs for Italy and Spain rose as investors remain focused on Greece, where another general election is expected for next month following the failure of attempts to form a government.

6729

 

[bigdog]

Source: http://finance.yahoo.com

A political stalemate in Greece rattled financial markets worldwide on Monday, driving U.S. stocks lower.

The euro sank to a three-month low against the dollar and borrowing costs for Spain and Italy jumped as bond traders anticipated that financial stress could spread far beyond Greece. Investors dumped risky assets and plowed into the safety of the Treasury market, pushing yields to their lowest levels this year.

The Dow Jones industrial average dropped 125.25 points to close at 12,695.35. The Dow has lost more than half of its gains for the year in the past two weeks as worries resurface about Europe and the strength of the U.S. economy.

In Athens, talks between political parties to form a government dragged into a second week. The uncertainty has raised concerns that Greece could miss a debt payment and drop the euro currency. The worry is that if Greece leaves the currency union, bond traders may demand steeper borrowing rates from other troubled countries and push them deeper into debt.

The turmoil could easily spread to the U.S. through the banking system. "The large banks are globally connected," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott. "The concrete fear is that if Greece exits the euro, that would hurt European banks. They'll pull back lending to U.S. banks and then they'd be in worse shape."

In other trading, the Standard & Poor's 500 index dropped 15.04 points to 1,338.35. The Nasdaq composite sank 31.24 points to 2,902.58.

The losses swept across the market. All 10 of the industry groups within the S&P 500 fell.

The NYSE DOW closed LOWER ▼ -125.25 points or ▼ -0.98% Monday, 14 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,695.35 ▼ -125.25 ▼ -0.98%
Nasdaq___ 2,902.58 ▼ -31.24 ▼ -1.06%
S&P_500__ 1,338.35 ▼ -15.04 ▼ -1.11%
30_Yr_Bond 2.949 ▼ -0.07 ▼ -2.19%

NYSE Volume 3,580,409,000
Nasdaq Volume 1,681,413,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,465.52 ▼ -110.00 ▼ -1.97%
DAX_____ 6,451.97 ▼ -127.96 ▼ -1.94%
CAC_40__ 3,057.99 ▼ -71.78 ▼ -2.29%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,351.90 ▲ 9.20 ▲ 0.21%
Shanghai_Comp 2,380.73 ▼ -14.26 ▼ -0.60%
Taiwan_Weight 7,377.18 ▼ -24.19 ▼ -0.33%
Nikkei_225____ 8,973.84 ▲ 20.53 ▲ 0.23%
Hang_Seng____ 19,735.04 ▲ 53.93 ▼ -1.15%
Strait_Times___ 2,864.12 ▼ -19.28 ▼ -0.67%
NZX 50 Index__ 3,555.36 ▲ 7.29 ▲ 0.21%

http://finance.yahoo.com/news/stock...Rwc3RhaWQDBHBzdGNhdAMEcHQDc2VjdGlvbnM-;_ylv=3

Stocks, euro drop as deadlock continues in Greece

Stocks sink as Greek political paralysis drags into a second week, threatening euro exit

A political stalemate in Greece rattled financial markets worldwide on Monday, driving U.S. stocks lower.

The euro sank to a three-month low against the dollar and borrowing costs for Spain and Italy jumped as bond traders anticipated that financial stress could spread far beyond Greece. Investors dumped risky assets and plowed into the safety of the Treasury market, pushing yields to their lowest levels this year.

The Dow Jones industrial average dropped 125.25 points to close at 12,695.35. The Dow has lost more than half of its gains for the year in the past two weeks as worries resurface about Europe and the strength of the U.S. economy.

In Athens, talks between political parties to form a government dragged into a second week. The uncertainty has raised concerns that Greece could miss a debt payment and drop the euro currency. The worry is that if Greece leaves the currency union, bond traders may demand steeper borrowing rates from other troubled countries and push them deeper into debt.

The turmoil could easily spread to the U.S. through the banking system. "The large banks are globally connected," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott. "The concrete fear is that if Greece exits the euro, that would hurt European banks. They'll pull back lending to U.S. banks and then they'd be in worse shape."

In other trading, the Standard & Poor's 500 index dropped 15.04 points to 1,338.35. The Nasdaq composite sank 31.24 points to 2,902.58.

The losses swept across the market. All 10 of the industry groups within the S&P 500 fell.

JPMorgan Chase's $2 billion trading loss continued to hang over bank stocks. JPMorgan dropped 3 percent following news that the executive overseeing its trading strategy would step down. Morgan Stanley and Citigroup, two banks with large trading operations, sank more than 4 percent.

The loss to JPMorgan appears "manageable," said Matt Freund, a portfolio manager at USAA Investments. "But people are looking at other banks and wondering who's going to be next? What else could be lurking?"

Major markets in Europe plunged. France's CAC-40 and Germany's DAX lost 2 percent. Benchmark indexes fell nearly 3 percent in Italy and Spain.

Traders shifted money into the safest of government bonds, pushing Treasury prices up and their yields down. The yield on the 10-year note hit a low for the year, 1.77 percent.

Since hitting its high for the year on May 1, the Dow has been on a steady slide, closing lower on seven of the previous eight trading days. The Dow's 1.7 percent loss last week was its worst since Dec. 16.

Despite the broad market decline, some stocks posted gains:

”” Chesapeake Energy Corp. jumped 4 percent on reports that the investor Carl Icahn bought a stake in the natural gas company. Chesapeake's CEO said he'd welcome an investment by Icahn, who is known for shaking up companies.

”” Yahoo gained 2 percent. The company replaced its CEO, Scott Thompson. Yahoo reportedly pushed Thompson out for padding his resume.

”” Electronics retailer Best Buy Co. rose 1 percent after the company's founder, Richard Schulze, said he would step down as chairman. An investigation found that he knew the CEO was having a relationship with a female employee and didn't tell an audit committee


By Matthew Craft

 

[bigdog]

Source: http://finance.yahoo.com

Dow Jones industrial average continues two-week slide as Europe casts gloom over markets

Europe's latest political impasse cast a gloom over financial markets Tuesday. The euro plunged, and the Dow Jones industrial average extended a slide that has wiped out nearly 5 percent of its value in two weeks.

The biggest action of the day came shortly before U.S. markets opened, when a Greek party leader announced the talks to build a coalition government had failed. The euro and major European stock markets turned sharply lower and stayed there the rest of the day.

Newly elected political leaders in Greece disagree about whether to accept more international bailouts and continue with painful spending cuts. If Greece exits the euro currency, it could rattle financial markets around the world.

In the U.S., stocks opened mixed and then staged a weak, mid-morning rally after word that confidence among U.S. builders rose to a five-year high in May. Homebuilders gained: Hovnanian Enterprises surged 10 percent, Lennar Corp. 3 percent and PulteGroup Inc. 2 percent.

The Dow and other stock indexes meandered between gains and losses for much of the day, then turned decisively lower in the last hour of trading.

The Dow wound up with a loss of 63.35 points, or 0.5 percent, to close at 12,632. Losses by most of its components were offset by a big gain for JPMorgan Chase. The nation's biggest bank rose 1.3 percent, recovering some of the losses it has sustained since revealing a $2 billion trading loss last week.

The Dow has lost 647 points, or 4.9 percent, since May 1, when it hit a four-year high of 13,279.32. In that time it has fallen every day but one. The Dow is on track for its first monthly decline since September, when it fell 6 percent.

The Standard & Poor's 500 index finished down 7.69 points, or 0.6 percent, at 1,330.66. The Nasdaq composite index fell 8.82, or 0.3 percent, to 2,893.76.

The NYSE DOW closed LOWER ▼ -63.35 points or ▼ -0.50% Tuesday, 15 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,632.00 ▼ -63.35 ▼ -0.50%
Nasdaq___ 2,893.76 ▼ -8.82 ▼ -0.30%
S&P_500__ 1,330.66 ▼ -7.69 ▼ -0.57%
30_Yr_Bond 2.931 ▼ -0.02 ▼ -0.61%

NYSE Volume 4,075,811,500
Nasdaq Volume 1,824,148,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,437.62 ▼ -27.90 ▼ -0.51%
DAX_____ 6,401.06 ▼ -50.91 ▼ -0.79%
CAC_40__ 3,039.27 ▼ -18.72 ▼ -0.61%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,316.30 ▼ -35.60 ▼ -0.82%
Shanghai_Comp 2,374.84 ▼ -5.88 ▼ -0.25%
Taiwan_Weight 7,395.64 ▲ 18.46 ▲ 0.25%
Nikkei_225____ 8,900.74 ▼ -73.10 ▼ -0.81%
Hang_Seng____ 19,894.31 ▲ 53.93 ▲ 0.81%
Strait_Times___ 2,876.70 ▲ 12.58 ▲ 0.44%
NZX 50 Index__ 3,534.92 ▼ -20.44 ▼ -0.57%

http://finance.yahoo.com/news/dow-jones-average-continues-two-210731883.html

Dow Jones average continues a two-week slide

Dow Jones industrial average continues two-week slide as Europe casts gloom over markets

By Daniel Wagner, AP Business Writer

Europe's latest political impasse cast a gloom over financial markets Tuesday. The euro plunged, and the Dow Jones industrial average extended a slide that has wiped out nearly 5 percent of its value in two weeks.

The biggest action of the day came shortly before U.S. markets opened, when a Greek party leader announced the talks to build a coalition government had failed. The euro and major European stock markets turned sharply lower and stayed there the rest of the day.

Newly elected political leaders in Greece disagree about whether to accept more international bailouts and continue with painful spending cuts. If Greece exits the euro currency, it could rattle financial markets around the world.

In the U.S., stocks opened mixed and then staged a weak, mid-morning rally after word that confidence among U.S. builders rose to a five-year high in May. Homebuilders gained: Hovnanian Enterprises surged 10 percent, Lennar Corp. 3 percent and PulteGroup Inc. 2 percent.

The Dow and other stock indexes meandered between gains and losses for much of the day, then turned decisively lower in the last hour of trading.

The Dow wound up with a loss of 63.35 points, or 0.5 percent, to close at 12,632. Losses by most of its components were offset by a big gain for JPMorgan Chase. The nation's biggest bank rose 1.3 percent, recovering some of the losses it has sustained since revealing a $2 billion trading loss last week.

The Dow has lost 647 points, or 4.9 percent, since May 1, when it hit a four-year high of 13,279.32. In that time it has fallen every day but one. The Dow is on track for its first monthly decline since September, when it fell 6 percent.

The Standard & Poor's 500 index finished down 7.69 points, or 0.6 percent, at 1,330.66. The Nasdaq composite index fell 8.82, or 0.3 percent, to 2,893.76.

The euro fell as low as $1.2720, a four-month low against the dollar, after Greek socialist leader Evangelos Venizelos declared that attempts to form a governing coalition there had failed and new elections will be held next month.

Aside from fears about Europe, stocks are suffering because a string of weaker economic data has dimmed hopes for corporate profits in the current quarter ending June 30, said John Butters, senior earnings analyst at FactSet, a financial data provider.

For the first month of the quarter, as earnings came in strong and stocks rose, analysts' expectations for second-quarter earnings growth held steady at 6 percent, Butters said. In the two weeks since, as the U.S. economy appeared to soften and Europe's problems reemerged, he said, analysts cut their estimates for S&P 500 earnings growth to 5 percent.

Analysts expect earnings to decline this quarter for half of the 10 industry groups in the S&P 500, Butters said. He said many expect a strong rebound in the fourth quarter as demand returns in emerging markets like China and India.

Among other stocks making big moves:

”” Home Depot slumped 2.4 percent after the world's biggest home-improvement company forecast revenue that was below what Wall Street analysts were expecting.

”” TJX Cos., which owns the T.J. Maxx, Marshalls and HomeGoods store chains, shot up 6.9 percent, the most in the S&P 500 index. The discount retailer reported a 58 percent surge in first-quarter income and raised its full-year profit forecast.

”” Avon Products Inc. fell 9.7 percent, the most in the S&P 500 index, after perfume marketer Coty Inc. canceled its unsolicited, $10.7 billion bid for the cosmetics retailer.

”” Groupon rose 3.7 percent after the online daily discount site reported first-quarter revenue that exceeded analysts' expectations.

 

[bigdog]

Source: http://finance.yahoo.com

Worries about a messy Greek exit from euro extend market slump; euro is weakest since January

The unending turmoil in Greece spread fallout across the financial markets Wednesday. The Dow Jones industrial average fell for the ninth day out of 10, and gold, oil, and the euro all dropped to multi-month lows.

Greece called a new round of elections for June 17 after coalition talks to form a government fell apart. The president said depositors were pulling hundreds of millions of euros out of banks, weakening the country's strained financial system.

The main cause for investor worry was that Greece would pull out of the group of countries that use the euro, and that that would throw the global markets into chaos.

For U.S. stocks, it was a fairly quiet day, but another decline in a month that has been relentlessly downbeat. The Dow fell 33.45 points to 12,598.55, and the Standard & Poor's 500 index fell 5.86 points to 1,324.80.

The Dow has been on a nearly unbroken slide since May 1, when it closed at a four-year high. Since then, it has had just one up day, and that was a gain of only 20 points on May 10.

The average has lost 4.4 percent in May and is headed for its first losing month since September.

"We're in a period where there's little conviction to buy," said Richard Cripps, chief investment officer at brokerage Stifel Financial. "The road ahead is too uncertain because of European concerns and the presidential election later this year."

Elsewhere in the markets, it was an eventful day:

— The dollar continued its two-week climb against the euro. The dollar improved to $1.27 per euro, the strongest since January, as traders worried about a messy exit from the euro bloc by Greece.

The NYSE DOW closed LOWER ▼ -33.45 points or ▼ -0.26% Wednesday, 16 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,598.55 ▼ -33.45 ▼ -0.26%
Nasdaq___ 2,874.04 ▼ -19.72 ▼ -0.68%
S&P_500__ 1,324.80 ▼ -5.86 ▼ -0.44%
30_Yr_Bond 2.906 ▼ -0.03 ▼ -0.85%

NYSE Volume 4,254,615,000
Nasdaq Volume 1,930,387,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,405.25 ▼ -32.37 ▼ -0.60%
DAX_____ 6,384.26 ▼ -16.80 ▼ -0.26%
CAC_40__ 3,048.67 ▲ 9.40 ▲ 0.31%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,214.70 ▼ -101.60 ▼ -2.35%
Shanghai_Comp 2,346.19 ▼ -28.65 ▼ -1.21%
Taiwan_Weight 7,234.57 ▼ -161.07 ▼ -2.18%
Nikkei_225____ 8,801.17 ▼ -99.57 ▼ -1.12%
Hang_Seng____ 19,259.83 ▲ 53.93 ▼ -3.19%
Strait_Times___ 2,831.15 ▼ -45.55 ▼ -1.58%
NZX 50 Index__ 3,514.51 ▼ -20.41 ▼ -0.58%

http://finance.yahoo.com/news/greek-turmoil-spreads-pessimism-across-213138001.html

Greek turmoil spreads pessimism across markets

Worries about a messy Greek exit from euro extend market slump; euro is weakest since January

By Pallavi Gogoi, AP Business Writer

NEW YORK (AP) -- The unending turmoil in Greece spread fallout across the financial markets Wednesday. The Dow Jones industrial average fell for the ninth day out of 10, and gold, oil, and the euro all dropped to multi-month lows.

Greece called a new round of elections for June 17 after coalition talks to form a government fell apart. The president said depositors were pulling hundreds of millions of euros out of banks, weakening the country's strained financial system.

The main cause for investor worry was that Greece would pull out of the group of countries that use the euro, and that that would throw the global markets into chaos.

For U.S. stocks, it was a fairly quiet day, but another decline in a month that has been relentlessly downbeat. The Dow fell 33.45 points to 12,598.55, and the Standard & Poor's 500 index fell 5.86 points to 1,324.80.

The Dow has been on a nearly unbroken slide since May 1, when it closed at a four-year high. Since then, it has had just one up day, and that was a gain of only 20 points on May 10.

The average has lost 4.4 percent in May and is headed for its first losing month since September.

"We're in a period where there's little conviction to buy," said Richard Cripps, chief investment officer at brokerage Stifel Financial. "The road ahead is too uncertain because of European concerns and the presidential election later this year."

Elsewhere in the markets, it was an eventful day:

— The dollar continued its two-week climb against the euro. The dollar improved to $1.27 per euro, the strongest since January, as traders worried about a messy exit from the euro bloc by Greece.

The stronger dollar drove the Indian currency, the rupee, to an all-time low. The rupee sank to 54.44 against the dollar, surpassing the prior low of 54.39 on Dec. 15.

— The price of benchmark U.S. crude oil fell by $1.17 to finish at a seven-month low of $92.81 per barrel. It is down nearly 13 percent since the beginning of May.

The prices of commodities that are traded in dollars, like oil and gold, tend to fall when the dollar rises. A report also showed U.S. crude supplies at the highest level in 22 years.

— The price of gold fell $18.60 to $1,538, the lowest since December. Gold is approaching a 20 percent decline, the traditional definition of a bear market, from its peak of $1,907 in September.

Besides the stronger dollar, exaggerated optimism about gold's prospects was an important factor in the sharp decline, said Jon Nadler, senior analyst at Montreal-based Kitco Metals.

"Effectively, reality has caught up with the market," he said.

— As investors fled to safer U.S. government bonds, the yield on the benchmark 10-year Treasury note hit its lowest level this year, 1.76 percent.

The Nasdaq composite index fell 19.70 points to 2,874.04.

Worries about Europe also spread beyond Greece. Spain's prime minister warned that the country, which is trembling under a 24.4 percent unemployment rate, could be locked out of international markets due to problems in the EU.

One note of hope on the European debt crisis was sounded by Doug Cote, chief market strategist of ING Investment Management. He said Greek leaders would realize that tightening the country's budget would be better than the chaos that would follow if Greece abandoned its euro neighbors.

"Is there the possibility that Greece would choose Armageddon? Sure," he said. "But why they would choose to inflict more pain on the Greek people is beyond me."

There was positive news on the U.S. economy, but it wasn't enough to get investors excited. Construction of homes rose 2.6 percent from March, and U.S. factory production increased 0.6 percent in April, helped by a gain in auto production.

Target stock bucked the broader market and rose 24 cents after a strong earnings report. Target said revenue at stores opened at least a year rose 5.3 percent, the strongest performance in six years for that period.

Target's results may illustrate that Americans are beginning to spend cautiously as economic uncertainty persists. Though the job market is still shaky, the falling price of gas has given shoppers hope.

Among other stocks making big moves:

— JC Penney plunged 19.7 percent, the most in the S&P 500 index, after the retailer reported a bigger-than-expected first-quarter loss. Sales plummeted as shoppers are rejecting the retailer's new plan of getting rid of big sales throughout the year in favor of everyday low pricing.

— Abercrombie & Fitch fell 13 percent after reporting that its first-quarter net income shrank 88 percent because of higher costs and declining sales in established stores and in Europe.

— General Electric rose 3.2 percent, the most of the 30 stocks in the Dow, after the company said its finance unit will pay a special dividend of $4.5 billion to the parent company this year. It had suspended the payments in 2009 during a freeze in credit markets.

 

[StumpyPhantom]

+??? From above:


One note of hope on the European debt crisis was sounded by Doug Cote, chief market strategist of ING Investment Management. He said Greek leaders would realize that tightening the country's budget would be better than the chaos that would follow if Greece abandoned its euro neighbors.

"Is there the possibility that Greece would choose Armageddon? Sure," he said. "But why they would choose to inflict more pain on the Greek people is beyond me."

I love how intelligent these analysts are but they just don't get it. It doesn't matter what the Greek leaders realize or they don't. Greece is the mother of all democracies and the people will have their say. The Left is already out there on their anti-austerity platform.

Maybe this strategist thinks the Left is going to do a GIllard.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks fall sharply as investors fret over a Greek exit from the euro; S&P at 4-month low

The Dow Jones industrial average posted its 11th loss in 12 days after a pair of discouraging economic reports unnerved investors already worried about a possible exit from the euro by Greece.

The Dow lost 156.06 points to close at 12,442.49. It's now down 6 percent for the month so far and could be headed for its first losing month since September. The two-week slump represents a sharp turn downward since May 1, when the index closed at a four-year high.

The slide, which is largely due to escalating worries about a breakup of the European currency union, has stripped the Dow of much of this year's gains. As of the beginning of May it was up 8.7 percent for the year; now it's up just 1.8 percent.

"Europe is very much on investors' minds," said Brian Gendreau, market strategist at broker-dealer Cetera Financial Group. "It's been two years with multiple bailouts involving Ireland, Portugal and Greece and things don't seem to be getting better."

The dollar, Treasury prices and gold all rose as traders sought refuge in lower-risk assets. The yield on the 10-year Treasury note plunged to 1.70 percent, the lowest level of the year.

Caterpillar fell 4 percent, the most of the 30 stocks in the Dow, after reporting that global sales growth of construction and mining machinery slowed between February and April. Wal-Mart stock rose over 4 percent, the most in the Dow, after reporting a 10 percent jump in first-quarter income, beating Wall Street expectations.

Indexes opened lower on Wall Street following drops in European markets. The declines accelerated at mid-morning after the Federal Reserve Bank of Philadelphia said manufacturing slowed in the mid-Atlantic region for the first time in eight months. The report was far worse than analysts had been expecting.

In other trading, the Standard & Poor's 500 index fell 19.94 points to 1,304.86, its lowest close since Jan. 17. The Nasdaq composite fell 60.35 points to 2,813.69.

The NYSE DOW closed LOWER ▼ -156.06 points or ▼ -1.24% Thursday, 17 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,442.49 ▼ -156.06 ▼ -1.24%
Nasdaq___ 2,813.69 ▼ -60.35 ▼ -2.10%
S&P_500__ 1,304.86 ▼ -19.94 ▼ -1.51%
30_Yr_Bond 2.805 ▼ -0.10 ▼ -3.48%

NYSE Volume 4,664,281,000
Nasdaq Volume 2,032,853,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,338.38 ▼ -66.87 ▼ -1.24%
DAX_____ 6,308.96 ▼ -75.30 ▼ -1.18%
CAC_40__ 3,011.99 ▼ -36.68 ▼ -1.20%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,208.50 ▼ -6.20 ▼ -0.15%
Shanghai_Comp 2,378.89 ▲ 32.69 ▲ 1.39%
Taiwan_Weight 7,356.77 ▲ 122.20 ▲ 1.69%
Nikkei_225____ 8,876.59 ▲ 75.42 ▲ 0.86%
Hang_Seng____ 19,200.93 ▲ 53.93 ▼ -0.31%
Strait_Times___ 2,822.61 ▼ -8.54 ▼ -0.30%
NZX 50 Index__ 3,521.51 ▲ 7.00 ▲ 0.20%

http://finance.yahoo.com/news/stocks-slump-dow-posts-11th-211017650.html

Stocks slump; Dow posts 11th loss in 12 days

Stocks fall sharply as investors fret over a Greek exit from the euro; S&P at 4-month low

By Pallavi Gogoi, AP Business Writer

NEW YORK (AP) -- The Dow Jones industrial average posted its 11th loss in 12 days after a pair of discouraging economic reports unnerved investors already worried about a possible exit from the euro by Greece.

The Dow lost 156.06 points to close at 12,442.49. It's now down 6 percent for the month so far and could be headed for its first losing month since September. The two-week slump represents a sharp turn downward since May 1, when the index closed at a four-year high.

The slide, which is largely due to escalating worries about a breakup of the European currency union, has stripped the Dow of much of this year's gains. As of the beginning of May it was up 8.7 percent for the year; now it's up just 1.8 percent.

"Europe is very much on investors' minds," said Brian Gendreau, market strategist at broker-dealer Cetera Financial Group. "It's been two years with multiple bailouts involving Ireland, Portugal and Greece and things don't seem to be getting better."

The dollar, Treasury prices and gold all rose as traders sought refuge in lower-risk assets. The yield on the 10-year Treasury note plunged to 1.70 percent, the lowest level of the year.

Caterpillar fell 4 percent, the most of the 30 stocks in the Dow, after reporting that global sales growth of construction and mining machinery slowed between February and April. Wal-Mart stock rose over 4 percent, the most in the Dow, after reporting a 10 percent jump in first-quarter income, beating Wall Street expectations.

Indexes opened lower on Wall Street following drops in European markets. The declines accelerated at mid-morning after the Federal Reserve Bank of Philadelphia said manufacturing slowed in the mid-Atlantic region for the first time in eight months. The report was far worse than analysts had been expecting.

In other trading, the Standard & Poor's 500 index fell 19.94 points to 1,304.86, its lowest close since Jan. 17. The Nasdaq composite fell 60.35 points to 2,813.69.

The Conference Board said its measure of future U.S. economic growth fell in April after six months of increases. The drop came from fewer requests for building permits and a spike in applications for unemployment benefits.

These gloomy reports were a surprise and exacerbated investors' fears of turmoil in the global markets from developments in Europe where Greece seemed headed for an exit from the euro bloc.

Greece's caretaker Cabinet was sworn in Thursday and will hold power at least until next month's election. In the recently-held elections Greeks didn't given any party a majority, but they did give strong support to politicians who rejected the tough austerity measures that came with the country's financial bailout.

Without that rescue package, Greece will likely default and be forced to leave the 17-country euro zone, which would destabilize other countries that use the euro. German, French and Spanish stock markets all fell more than 1 percent.

The economic damage is already being felt by other members of the euro bloc.

Spain was forced to pay sharply higher interest rates to raise $3.18 billion in a debt auction Thursday. And shares of Bankia, which Spain nationalized last week, plunged 20 percent on a report from the newspaper El Mundo stating that depositors have withdrawn over $1 billion since last Wednesday.

Oil prices continued to trade lower, falling below $93 a barrel, extending a two-week sell-off, as traders worried about the potential impact on global growth from the European crisis. Crude oil has plummeted about 12 percent from $106 two weeks ago.

Energy companies fell. Chesapeake Energy declined over 3 percent, while WPX Energy fell over 4 percent.

The one bright spot for the markets was the excitement surrounding the initial public offering of Facebook. The uber-popular social media company set the price of its shares at $38 apiece late Thursday. The stock is expected to start trading at 11 am Friday. Facebook is set to raise $18.4 billion, becoming the second largest IPO ever after Visa.

Among other stocks making big moves:

”” Media General soared 33 percent after billionaire Warren Buffett's company Berkshire Hathaway agreed to buy 63 newspapers from the company for $142 million.

”” GameStop fell 11 percent after the world's largest video game retailer reported its first-quarter profit fell 9.8 percent, as fewer customers visited its stores and bought new games and systems.

”” Sears Holdings rose 3 percent after the beleaguered retailer turned a profit in the first quarter, benefiting from a gain on the sale of some stores.

 

[bigdog]

Source: http://finance.yahoo.com

Facebook fails to boost stocks, which fall on Europe worries; Dow off 6 percent so far in May

It's going to take more than Facebook's initial public offering to push the stock market higher.

Facebook shares rose 23 cents above their $38 offering price. It seemed like everything else fell.

The Dow Jones industrial average has been in a slump over the past two weeks as traders saw an escalating risk that Greece could leave the euro, causing more disruptions in markets. Remember the go-go days of May 1, 2012? The Dow was up 8.7 percent for the year. After Friday, it's up just 1.2 percent.

On Friday the Dow Jones industrial average dropped 73.11 points, to close at 12,369.38. It fell 3.5 percent for the week. The Dow has now declined on 12 of the last 13 trading days.

Nine of the 10 industry groups in the Standard & Poor's 500 index fell. Financials dropped the most, 1.1 percent.

First, Facebook.

Trading for the year's most eagerly awaited initial public offering was delayed about 30 minutes because of a glitch at Nasdaq. Nasdaq said the problem was with sending messages about whether trades had been executed. It was almost two-and-a-half hours before it said its trade messages were working normally.

The glitch sent shares of Nasdaq OMX Group Inc., parent company of the Nasdaq market, down 4.4 percent.

Facebook shares were priced at $38 and initially traded as high as $45. They closed at $38.23.

Europe was the bigger worry for investors. The Fitch ratings agency dropped Greece to the lowest possible grade for a country not in default Thursday. Fitch said Greece's departure from the euro "would be probable" if elections next month do not reverse political trends in Greece, which have brought in politicians opposed to the terms of Europe's bailout.

The NYSE DOW closed LOWER ▼ -73.11 points or ▼ -0.59% Friday, 18 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,369.38 ▼ -73.11 ▼ -0.59%
Nasdaq___ 2,778.79 ▼ -34.90 ▼ -1.24%
S&P_500__ 1,295.22 ▼ -9.64 ▼ -0.74%
30_Yr_Bond 2.789 ▼ -0.02 ▼ -0.57%

NYSE Volume 4,512,478,500
Nasdaq Volume 2,707,848,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,267.62 ▼ -70.76 ▼ -1.33%
DAX_____ 6,271.22 ▼ -37.74 ▼ -0.60%
CAC_40__ 3,008.00 ▼ -3.99 ▼ -0.13%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,098.80 ▼ -109.70 ▼ -2.61%
Shanghai_Comp 2,344.52 ▼ -34.37 ▼ -1.44%
Taiwan_Weight 7,151.19 ▼ -205.58 ▼ -2.79%
Nikkei_225____ 8,611.31 ▼ -265.28 ▼ -2.99%
Hang_Seng____ 18,951.85 ▲ 53.93 ▼ -1.30%
Strait_Times___ 2,779.10 ▼ -43.51 ▼ -1.54%
NZX 50 Index__ 3,501.44 ▼ -20.07 ▼ -0.57%

http://finance.yahoo.com/news/stock...1hMTJlLTExZTEtYWI4ZC1jMmI2NzQ0YmUzMzU-;_ylv=3

Stocks fall on Europe worries; Facebook debuts

Facebook fails to boost stocks, which fall on Europe worries; Dow off 6 percent so far in May

By Joshua Freed, AP Business Writer

It's going to take more than Facebook's initial public offering to push the stock market higher.

Facebook shares rose 23 cents above their $38 offering price. It seemed like everything else fell.

The Dow Jones industrial average has been in a slump over the past two weeks as traders saw an escalating risk that Greece could leave the euro, causing more disruptions in markets. Remember the go-go days of May 1, 2012? The Dow was up 8.7 percent for the year. After Friday, it's up just 1.2 percent.

On Friday the Dow Jones industrial average dropped 73.11 points, to close at 12,369.38. It fell 3.5 percent for the week. The Dow has now declined on 12 of the last 13 trading days.

Nine of the 10 industry groups in the Standard & Poor's 500 index fell. Financials dropped the most, 1.1 percent.

First, Facebook.

Trading for the year's most eagerly awaited initial public offering was delayed about 30 minutes because of a glitch at Nasdaq. Nasdaq said the problem was with sending messages about whether trades had been executed. It was almost two-and-a-half hours before it said its trade messages were working normally.

The glitch sent shares of Nasdaq OMX Group Inc., parent company of the Nasdaq market, down 4.4 percent.

Facebook shares were priced at $38 and initially traded as high as $45. They closed at $38.23.

Europe was the bigger worry for investors. The Fitch ratings agency dropped Greece to the lowest possible grade for a country not in default Thursday. Fitch said Greece's departure from the euro "would be probable" if elections next month do not reverse political trends in Greece, which have brought in politicians opposed to the terms of Europe's bailout.

Also, ratings agency Moody's downgraded 16 Spanish banks late Thursday, three days after downgrading Italy's, noting they are vulnerable to huge losses on government debt.

Representatives of the G-8 are meeting this weekend at Camp David, looking for assurances that leaders in Europe can contain damage if Greece leaves the euro.

"Despite all the attention on the Facebook IPO, I think there's still lots of underlying uncertainty surrounding this European debt situation," said Scott Wren, senior equity strategist for Wells Fargo Advisors in St. Louis. "This Greek situation isn't good. I think it's going to get worse before it gets better. Probably the same with Spain."

Borrowing costs for Italy rose slightly to 5.76 percent on Friday. The yield on Spain's 10-year bond fell slightly to 6.2 percent, a level that's still very high by historic standards.

European shares edged lower, following several days of big losses. Britain's FTSE 100 fell 0.1 percent, Germany's DAX lost 0.6 percent and France's CAC-40 fell 0.1 percent.

"The serious investors remain very concerned about the developments in Europe," said Jim Russell, regional investment director for US Bank Wealth Management in Cincinnati. "We think Facebook is a little bit of a sideshow. Great company. But maybe one that's valued on the high side of most people's tastes."

The Standard & Poor's 500 index fell 9.64 points to close at 1,295.22. The Nasdaq composite index fell 34.90 points, or 1.2 percent, to close at 2,778.79.

Hewlett-Packard fell 2.7 percent — the biggest decline among the Dow's 30 stocks — after it said it might eliminate up to 30,000 jobs because of dwindling demand for personal computers.

Gap fell 2.3 percent even though it issued higher guidance for the year.

There were bright spots. Salesforce.com jumped 8.8 percent after the maker of web-based business software reported better-than-expected earnings and raised its guidance for the year. Foot Locker rose 8.3 percent after its quarterly profit jumped 36 percent, sprinting past Wall Street predictions and setting a company record for quarterly earnings.

Yahoo rose 3.7 percent after Dow Jones' tech website AllThingsD.com reported that the web portal is close to a deal to sell a large part of its stake in China's Alibaba Group. Many investors view the Alibaba stake as Yahoo's most valuable asset.

Oil prices fell $1.08 to $91.48. Along with stocks, oil has dropped rapidly in recent days because slowing economies use less of it.

7526

 

[bigdog]

Source: http://finance.yahoo.com

Europe muddles on, but US stocks rise as investors choose to focus on China instead

Forget Facebook. This is still Apple's stock market.

Apple — the world's most valuable company — climbed nearly 6 percent on Monday, helping propel major U.S. stock indexes to gains after a week of losses. The Standard & Poor's 500, where Apple accounts for 4 percent of the index, enjoyed its best day in nearly five weeks. The Nasdaq composite index, where Apple accounts for an even heftier 12 percent, notched its biggest gain of the year.

And it was no thanks to Facebook. The social networking giant, on its second day as a public company, plunged 11 percent to $34.03, even as the rest of the market rallied.

It was tough to pin down any surefire reason for Facebook's stock decline. It did go public during the market's worst week of the year so far, and finished Friday just 23 cents above its opening price of $38. But that didn't explain Monday's decline.

"There must have been some sober second thoughts about this," said Brian Wieser, an analyst at Pivotal Research Group who was first to come out with a "Sell" rating on Facebook's stock on Friday. He sees the stock as too expensive considering the risks associated with Facebook's brief history and unproven advertising model. His fair price, or "target price," is $30.

Apple is also no stranger to fickle investors. Its stock soared 57 percent from the end of last year through April 9, climbing to more than $636 from $405 as iPhone sales seemed unstoppable. Then it fell for most of April and May, declining to about $530 on Friday, partly because investors are worried that phone companies will grow tired of subsidizing the expensive phones to sell to customers.

But Monday's gain of $30.90 to $561.28 — its second-biggest climb of the year so far — came after several analysts said they expect its iPhone business to continue to do well.

The benchmark Dow Jones industrial average rose 135.10 points, or 1.1 percent, to 12,504.48. The S&P 500 rose 20.77 points to 1,315.99, and the Nasdaq jumped 68.42 to 2,847.21.

That was welcome relief after a month that has been crippled by Greece, which failed to elect a new government two weeks ago and is teetering close to leaving the euro.

The NYSE DOW closed HIGHER ▲ 135.10 points or ▲ 1.09% Monday, 21 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,504.48 ▲ 135.10 ▲ 1.09%
Nasdaq___ 2,847.21 ▲ 68.42 ▲ 2.46%
S&P_500__ 1,315.99 ▲ 20.77 ▲ 1.60%
30_Yr_Bond 2.794 ▲ 0.01 ▲ 0.18%

NYSE Volume 3,790,762,750
Nasdaq Volume 1,875,500,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,304.48 ▼ -33.90 ▼ -0.64%
DAX_____ 6,331.04 ▲ 59.82 ▲ 0.95%
CAC_40__ 3,027.15 ▲ 19.15 ▲ 0.64%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,124.40 ▲ 25.60 ▲ 0.62%
Shanghai_Comp 2,348.30 ▲ 3.78 ▲ 0.16%
Taiwan_Weight 7,192.23 ▲ 41.04 ▲ 0.57%
Nikkei_225____ 8,633.89 ▲ 22.58 ▲ 0.26%
Hang_Seng____ 18,922.32 ▲ 53.93 ▼ -0.16%
Strait_Times___ 2,790.16 ▲ 11.06 ▲ 0.40%
NZX 50 Index__ 3,493.39 ▼ -8.05 ▼ -0.23%

http://finance.yahoo.com/news/market-breaks-losing-streak-chinas-200829898.html

Market breaks losing streak, with China's help

Europe muddles on, but US stocks rise as investors choose to focus on China instead

By Christina Rexrode, AP Business Writer

NEW YORK (AP) -- Forget Facebook. This is still Apple's stock market.

Apple — the world's most valuable company — climbed nearly 6 percent on Monday, helping propel major U.S. stock indexes to gains after a week of losses. The Standard & Poor's 500, where Apple accounts for 4 percent of the index, enjoyed its best day in nearly five weeks. The Nasdaq composite index, where Apple accounts for an even heftier 12 percent, notched its biggest gain of the year.

And it was no thanks to Facebook. The social networking giant, on its second day as a public company, plunged 11 percent to $34.03, even as the rest of the market rallied.

It was tough to pin down any surefire reason for Facebook's stock decline. It did go public during the market's worst week of the year so far, and finished Friday just 23 cents above its opening price of $38. But that didn't explain Monday's decline.

"There must have been some sober second thoughts about this," said Brian Wieser, an analyst at Pivotal Research Group who was first to come out with a "Sell" rating on Facebook's stock on Friday. He sees the stock as too expensive considering the risks associated with Facebook's brief history and unproven advertising model. His fair price, or "target price," is $30.

Apple is also no stranger to fickle investors. Its stock soared 57 percent from the end of last year through April 9, climbing to more than $636 from $405 as iPhone sales seemed unstoppable. Then it fell for most of April and May, declining to about $530 on Friday, partly because investors are worried that phone companies will grow tired of subsidizing the expensive phones to sell to customers.

But Monday's gain of $30.90 to $561.28 — its second-biggest climb of the year so far — came after several analysts said they expect its iPhone business to continue to do well.

The benchmark Dow Jones industrial average rose 135.10 points, or 1.1 percent, to 12,504.48. The S&P 500 rose 20.77 points to 1,315.99, and the Nasdaq jumped 68.42 to 2,847.21.

That was welcome relief after a month that has been crippled by Greece, which failed to elect a new government two weeks ago and is teetering close to leaving the euro.

Investors desperate for good news latched on to weekend statements from China's Premier Wen Jiabao, who promised to boost the country's growth, a shift from previous rhetoric that focused mainly on curbing inflation.

That drumbeat of bad news about Europe continued, but Apple helped investors shrug it off. The weekend's Group of Eight meeting of world leaders brought only an ambiguous conclusion, producing promises to pursue growth in Europe but little in the way of concrete plans for how to do so.

"I wish I could say the coast is clear," said Katherine Nixon, chief investment officer for Northern Trust's personal financial services unit in Chicago. But, "the G-8 didn't really solve anything."

Caterpillar, which is heavily reliant on demand from China, climbed nearly 4 percent to $91.98, just its fourth gain in May. Several big-name financial firms, including Bank of America and Morgan Stanley, declined; bank stocks tend to fall when investors are concerned about Europe because of the banks' investments there. JPMorgan Chase, still smarting from an embarrassing trading loss, fell 3 percent to $32.51 after announcing it will halt plans to buy back its own stock.

Major stock indexes in France and Germany rose, but Greece and Spain fell.

Monday was the Dow's first gain after six straight days of losses, and only its third up day for May. Last week was the worst for the Dow since November. The month has wiped out nearly three-fourths of the Dow's first-quarter gains.

It wasn't clear if Monday's gains in the U.S. represented a corner turned or a temporary moment of relief. Tension over Europe still flowed freely.

Germany's deputy finance minister derided a plan pushed by the new French president that would require Germany and other stronger European countries to fund "Eurobonds" to prop up weaker countries like Greece and Portugal. Bankia, a bank nationalized by the Spanish government, was ordered to come up with more money for possible bad loans.

If anything, investors are growing more worried that the European debt problems "might not be as manageable as they previously believed," said Clark Yingst, chief market analyst for investment banking firm Joseph Gunnar in New York. "Today's rally has nothing to do with what is evolving around Greece."

Leaders of the 27 European Union countries will hold an informal meeting in Brussels on Wednesday, though it's unlikely they'll produce any solid game plan before Greece holds elections in June.

 

[bigdog]

Source: http://finance.yahoo.com

Just how nervous are investors about Greece? All it took to derail a day of stock market gains was a headline saying that the country was preparing to leave the euro, an outcome many analysts expect to happen eventually.

Major indexes were higher for most of the day after the National Association of Realtors reported that home prices surged 10 percent over the past year, the biggest gain in six years.

Then, with less than an hour of trading left, news hit that Greece's former prime minister said the country was considering dropping the euro. Investors have been anticipating that Greece could make a messy exit from the euro this year, but the prospect that it could be imminent gave the market a jolt.

A 50-point gain in the Dow Jones industrial average turned into a 57-point loss in 45 minutes. A last-minute recovery left the Dow down just 1.67 points at 12,502.81.

In other trading, the Nasdaq composite dropped 8.13 points to 2,839.08. The Standard & Poor's 500 inched up 0.64 of a point to 1,316.63. It was up 12 points earlier in the day.

Facebook's stock kept sliding, dropping 9 percent to $31. The social networking company has fizzled since its long-awaited initial public offering last week at $38. Facebook sank 11 percent on Monday, even as the rest of the stock market rallied.

The NYSE DOW closed LOWER ▼ -1.67 points or ▼ -0.01% Tuesday, 22 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,502.81 ▼ -1.67 ▼ -0.01%
Nasdaq___ 2,839.08 ▼ -8.13 ▼ -0.29%
S&P_500__ 1,316.63 ▲ 0.64 ▲ 0.05%
30_Yr_Bond 2.892 ▲ 0.10 ▲ 3.51%

NYSE Volume 4,129,135,750
Nasdaq Volume 1,866,863,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,403.28 ▲ 98.80 ▲ 1.86%
DAX_____ 6,435.60 ▲ 104.56 ▲ 1.65%
CAC_40__ 3,084.09 ▲ 56.94 ▲ 1.88%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,173.50 ▲ 49.10 ▲ 1.19%
Shanghai_Comp 2,373.31 ▲ 25.01 ▲ 1.06%
Taiwan_Weight 7,274.89 ▲ 82.66 ▲ 1.15%
Nikkei_225____ 8,729.29 ▲ 95.40 ▲ 1.10%
Hang_Seng____ 19,039.15 ▲ 53.93 ▲ 0.62%
Strait_Times___ 2,823.75 ▲ 33.59 ▲ 1.20%
NZX 50 Index__ 3,529.86 ▲ 36.47 ▲ 1.04%

http://finance.yahoo.com/news/slide...1hNDU5LTExZTEtYmU3Ny0zZGMzOGY4NDA4OTA-;_ylv=3

A late slide erases stock market gains

A warning about Greece preparing to exit the euro punctures early gains on Wall Street

By Matthew Craft, AP Business Writer

NEW YORK (AP) -- Just how nervous are investors about Greece? All it took to derail a day of stock market gains was a headline saying that the country was preparing to leave the euro, an outcome many analysts expect to happen eventually.

Major indexes were higher for most of the day after the National Association of Realtors reported that home prices surged 10 percent over the past year, the biggest gain in six years.

Then, with less than an hour of trading left, news hit that Greece's former prime minister said the country was considering dropping the euro. Investors have been anticipating that Greece could make a messy exit from the euro this year, but the prospect that it could be imminent gave the market a jolt.

A 50-point gain in the Dow Jones industrial average turned into a 57-point loss in 45 minutes. A last-minute recovery left the Dow down just 1.67 points at 12,502.81.

Facebook's stock kept sliding, dropping 9 percent to $31. The social networking company has fizzled since its long-awaited initial public offering last week at $38. Facebook sank 11 percent on Monday, even as the rest of the stock market rallied.

The realtor group said sales of previously occupied homes rose 3.4 percent last month to an annual rate of 4.62 million, more than economists had predicted. The median price jumped to $177,400, the biggest gain since January 2006, before the real-estate bubble popped.

"Existing home sales is one of the most important indicators for the housing market," said Dan Greenhaus, chief global strategist at the brokerage BTIG. "The improvement in today's data, while not spectacular, is nonetheless encouraging."

In other trading, the Nasdaq composite dropped 8.13 points to 2,839.08. The Standard & Poor's 500 inched up 0.64 of a point to 1,316.63. It was up 12 points earlier in the day.

PulteGroup, Lennar and other homebuilders gained more than 2 percent. S&P's homebuilder index has surged 38 percent this year, versus 4.7 percent for the S&P 500 index.

In recent years, most analysts considered the housing market a drag on the overall economy. Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi, said Tuesday's report is more proof that housing is no longer an obstacle. It's "not just healing" he said, in a note to clients. Construction has now contributed to economic growth for two straight quarters.

Leaders of the 27 European Union countries will meet in Brussels on Wednesday. The summit is expected to focus on ways to bolster the region's faltering economy and prevent a deeper financial crisis, though it's unlikely they'll produce any plans before Greece holds elections in June.

Among stocks making big moves:

”” Urban Outfitters jumped 7 percent, the best gain in the S&P 500. The retailer posted earnings late Monday that surpassed Wall Street analysts' expectations on record sales.

”” Benihana soared 21 percent on news that the restaurant group's board agreed to a buyout from the private equity firm Angelo, Gordon & Co. Shareholders still need to sign off on the deal.

”” Ralph Lauren rose 3 percent. The clothing company's quarterly earnings soared 29 percent, helped by strong sales and a lower tax rate. The company doubled its dividend to 40 cents per share.

 

[bigdog]

Source: http://finance.yahoo.com

A big final-hour comeback pulled the Dow Jones industrial average nearly back to where it started Wednesday.

The Dow was down as much as 191 points earlier as the threat of a financial crisis spreading from Europe shook markets. The euro dropped to a nearly two-year low against the dollar, and oil prices sank to their lowest this year.

A late surge of buying erased nearly all of the Dow's deficit, leaving it down just 6.66 points at 12,496.15 by the end of the day. Other indexes ended slightly higher.

In the last hour of trading, news crossed that the leaders of France and Italy favored using region-wide bonds to support Europe's economy. That gave traders hope that a summit of European leaders might produce concrete steps to tackle the economic morass there. The Organization for Economic Cooperation and Development warned Tuesday that the 17 countries that use the euro risk falling into a "severe recession."

Analysts and investors have turned increasingly skeptical this month that European leaders will prevent Greece from dropping the euro or agree on ways to jump-start the region's economy. The Dow has lost 5 percent this month, nearly wiping away its gains for the year. It has risen only three days in May.

The Standard & Poor's 500 index rose 2.23 points to 1,318.86. The Nasdaq rose 11.04 points to 2,850.12.

The NYSE DOW closed LOWER ▼ -6.66 points or ▼ -0.05% Wednesday, 23 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,496.15 ▼ -6.66 ▼ -0.05%
Nasdaq___ 2,850.12 ▲ 11.04 ▲ 0.39%
S&P_500__ 1,318.86 ▲ 2.23 ▲ 0.17%
30_Yr_Bond 2.794 ▼ -0.10 ▼ -3.39%

NYSE Volume 4,079,574,500
Nasdaq Volume 1,928,258,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,266.41 ▼ -136.87 ▼ -2.53%
DAX_____ 6,285.75 ▼ -149.85 ▼ -2.33%
CAC_40__ 3,003.27 ▼ -80.82 ▼ -2.62%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,118.80 ▼ -54.70 ▼ -1.31%
Shanghai_Comp 2,363.44 ▼ -9.87 ▼ -0.42%
Taiwan_Weight 7,147.75 ▼ -127.14 ▼ -1.75%
Nikkei_225____ 8,556.60 ▼ -172.69 ▼ -1.98%
Hang_Seng____ 18,786.19 ▲ 53.93 ▼ -1.33%
Strait_Times___ 2,786.89 ▼ -36.86 ▼ -1.31%
NZX 50 Index__ 3,510.20 ▼ -19.66 ▲ 1.04%


http://news.yahoo.com/rally-erases-steep-losses-wall-street-201649593--business.html

Late rally erases steep losses on Wall Street
By MATTHEW CRAFT and PALLAVI GOGOI

A big final-hour comeback pulled the Dow Jones industrial average nearly back to where it started Wednesday.

The Dow was down as much as 191 points earlier as the threat of a financial crisis spreading from Europe shook markets. The euro dropped to a nearly two-year low against the dollar, and oil prices sank to their lowest this year.

A late surge of buying erased nearly all of the Dow's deficit, leaving it down just 6.66 points at 12,496.15 by the end of the day. Other indexes ended slightly higher.

In the last hour of trading, news crossed that the leaders of France and Italy favored using region-wide bonds to support Europe's economy. That gave traders hope that a summit of European leaders might produce concrete steps to tackle the economic morass there. The Organization for Economic Cooperation and Development warned Tuesday that the 17 countries that use the euro risk falling into a "severe recession."

Analysts and investors have turned increasingly skeptical this month that European leaders will prevent Greece from dropping the euro or agree on ways to jump-start the region's economy. The Dow has lost 5 percent this month, nearly wiping away its gains for the year. It has risen only three days in May.

Plenty of good ideas to buttress Europe's financial system have been floated in recent weeks, said Paul Zemsky, global head of asset allocation at ING Investment Management. Eurobonds could be sold by countries in the currency union to raise money for bailouts and banks. Some have proposed insuring bank deposits across countries that use the euro, a program modeled on the U.S. Federal Deposit Insurance Corp.

"There are all these great ideas," Zemsky said. "But there's nothing yet. There's a lot of talk and no follow through."

Benchmark stock indexes dropped more than 2 percent in Germany and France and 3 percent in Spain and Italy.

The euro continued to fall against the dollar, reaching $1.25, the lowest since July 2010. Concerns about the stability of the European currency union if Greece leaves have knocked 5 percent off the euro this month. Yields on German government bunds fell as money shifted into low-risk investments.

If Greece exits, it could spread havoc throughout the global financial system. Bond traders could dump the bonds of Spain and Italy, sending their borrowing costs even higher. Banks in those countries could also be crippled if people start to yank money out of them, as has begun to happen in Greece.

"There's just a tremendous amount of 'what ifs'," Zemsky said. "If Greece leaves, I know equities are going to be a lot lower than they are today. It's not even close to being priced in yet."

Facebook rebounded 3 percent to $32 after getting pounded for two days following an initial public offering that was plagued with technical problems and has drawn scrutiny from regulators. The stock is still far below its initial price of $38.

The Standard & Poor's 500 index rose 2.23 points to 1,318.86. The Nasdaq rose 11.04 points to 2,850.12.

Benchmark crude lost $1.95 to $89.90 in New York trading. Oil has plunged 15 percent in May as investors predict that the European economy will continue to slow.

The dollar rose and yields on U.S. government debt fell as traders shifted money into the protection of Treasurys. The yield on the 10-year note sank to 1.73 percent, close to a record low, from 1.77 percent late Tuesday.

The dollar and Treasurys often trade in tandem when anxiety hits markets. Traders from around the world sell foreign assets and then need to buy dollars before buying dollar-denominated U.S. Treasurys.

Europe's struggles come at a time when Asia is also slowing. China's economic growth fell to a nearly three-year low of 8.1 percent in the first quarter and factory output in April grew at its slowest pace since the 2008 crisis, raising the threat of job losses and possible political tensions.

A poor earnings report from Dell helped tug down other tech stocks, including Intel and Microsoft. Dell reported disappointing results after the market closed Tuesday and predicted weak sales for its second quarter. Dell dropped 17 percent.

Other stocks making big moves included:

— Google gained 1 percent following news that a federal jury ruled against Oracle in its patent-dispute case against the Internet search giant.

— Ford rose 2 percent, a day after the company won back its blue oval logo, factories and other assets that were pledged as collateral for a massive loan taken out last decade.

— Guess rose 6 percent after its first-quarter results beat Wall Street's expectations, and an analyst recommended that investors buy the stock.

 

[bigdog]

Source: http://finance.yahoo.com

Hewlett-Packard helped pull the Dow Jones industrial average to a slight gain Thursday, giving the index only its fourth gain this month.

Stocks flipped between gains and losses throughout the day after a meeting of European leaders failed to deliver new steps to ease the region's debt crisis.

The Dow closed up 33.60 points at 12,529.75. Fears that Europe's troubles could turn into a worldwide financial crisis have pushed the 30-stock average down 5 percent this month, erasing most of its gains for the year.

In U.S. trading, the Standard & Poor's 500 index edged up 1.82 to 1,320.68. The Nasdaq composite index fell 10.74 points to 2,839.38.

U.S economic news gave traders little direction. Orders for long-lasting factory goods edged up in April, but a key category that tracks business investment spending fell for the second month in a row. The number of people applying for unemployment benefits dipped last week.

The potential for bad news to roil markets is so high that many investors would prefer to sit it out, said Stephen Carl, head equity trader at the Williams Capital Group.

"Uncertainty is playing a big part here," Carl said. "You don't know which way things are going to go."

Hewlett-Packard rose 3 percent after the maker of personal computers and printers said it plans to purge 27,000 employees, nearly 8 percent of the company's payroll. H-P expects the layoffs, part of a turnaround program under CEO Meg Whitman, to save $3 billion or more.


The NYSE DOW closed HIGHER ▲ 33.60 points or ▲ 0.27% Thursday, 24 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,529.75 ▲ 33.60 ▲ 0.27%
Nasdaq___ 2,839.38 ▼ -10.74 ▼ -0.38%
S&P_500__ 1,320.68 ▲ 1.82 ▲ 0.14%
30_Yr_Bond 2.847 ▲ 0.05 ▲ 1.90%

NYSE Volume 3,937,665,500
Nasdaq Volume 1,757,859,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,350.05 ▲ 83.64 ▲ 1.59%
DAX_____ 6,315.89 ▲ 30.14 ▲ 0.48%
CAC_40__ 3,038.25 ▲ 34.98 ▲ 1.16%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,106.20 ▼ -12.60 ▼ -0.31%
Shanghai_Comp 2,350.97 ▼ -12.46 ▼ -0.53%
Taiwan_Weight 7,124.89 ▼ -22.86 ▼ -0.32%
Nikkei_225____ 8,563.38 ▲ 6.78 ▲ 0.08%
Hang_Seng____ 18,666.40 ▲ 53.93 ▼ -0.64%
Strait_Times___ 2,779.53 ▼ -0.89 ▼ -0.03%
NZX 50 Index__ 3,496.19 ▼ -14.01 ▼ -0.40%

http://finance.yahoo.com/news/h-p-leads-dow-fourth-205601174.html

H-P leads Dow to its fourth day of gains in May

Stocks eke out small gains; Hewlett-Packard leads Dow Jones industrial average up 34 points

By Matthew Craft, AP Business Writer

Hewlett-Packard helped pull the Dow Jones industrial average to a slight gain Thursday, giving the index only its fourth gain this month.

Stocks flipped between gains and losses throughout the day after a meeting of European leaders failed to deliver new steps to ease the region's debt crisis.

The Dow closed up 33.60 points at 12,529.75. Fears that Europe's troubles could turn into a worldwide financial crisis have pushed the 30-stock average down 5 percent this month, erasing most of its gains for the year.

U.S economic news gave traders little direction. Orders for long-lasting factory goods edged up in April, but a key category that tracks business investment spending fell for the second month in a row. The number of people applying for unemployment benefits dipped last week.

The potential for bad news to roil markets is so high that many investors would prefer to sit it out, said Stephen Carl, head equity trader at the Williams Capital Group.

"Uncertainty is playing a big part here," Carl said. "You don't know which way things are going to go."

Hewlett-Packard rose 3 percent after the maker of personal computers and printers said it plans to purge 27,000 employees, nearly 8 percent of the company's payroll. H-P expects the layoffs, part of a turnaround program under CEO Meg Whitman, to save $3 billion or more.

European leaders wrapped up their latest summit Thursday with no new concrete steps to fix the continent's financial crisis, even as worries rise about a messy Greek exit from the euro currency union.

Markets in Europe recovered from a huge sell-off the day before. Germany's DAX increased 0.5 percent and the CAC-40 in France 1 percent.

In U.S. trading, the Standard & Poor's 500 index edged up 1.82 to 1,320.68. The Nasdaq composite index fell 10.74 points to 2,839.38.

Fears that Greece will drop the euro and set off a wider financial crisis have driven traders out of stocks and into the Treasury market this month. The surge in demand for Treasurys has knocked yields to all-time lows.

As a result, the U.S. federal government has been borrowing from bond markets at ever cheaper rates. The Treasury auctioned off seven-notes Thursday afternoon at 1.20 percent, the lowest rate on record.

Airline stocks surged. Analysts at JPMorgan Chase expect a drop in jet-fuel prices over the past three months to lift airlines' profits. US Airways Group jumped 11 percent and Delta Air Lines rose 5 percent. Southwest Airlines climbed 5 percent after the company said it plans to offer international flights from Houston's Hobby Airport.

Among other stocks making big moves:

”” Tiffany & Co. plunged 7 percent after the luxury retailer cut its 2012 sales forecast, citing slower spending growth in the U.S. and other countries.

”” Data-storage company NetApp sank 12 percent. NetApp expects much weaker profit in the current quarter as a result of "increasing uncertainty" in the global economy.

”” Pandora Media surged 12 percent after the online radio provider reported a smaller quarterly loss than analysts had expected. Ad sales and subscriptions soared over the year before. Pandora said it accounted for nearly 6 percent of all radio listening in the U.S..

 

[bigdog]

Source: http://finance.yahoo.com

More worries about Europe's debt mess send stocks lower ahead of the long Memorial Day holiday weekend.

Another flare-up in Europe's debt crisis knocked U.S. markets lower Friday. This time, it was more trouble at a major Spanish bank.

Stock indexes were waffling between small gains and losses until news broke in the afternoon that Bankia, a hobbled Spanish lender, asked that country's government for $23.8 billion in support. Earlier in the day, Standard & Poor's cut the bank's credit rating to junk status because of deepening uncertainty over its restructuring plans.

The Dow Jones industrial average dropped as much as 108 points, then recovered slightly to end down 74.92 points at 12,454.83. Concerns about Europe have sent the Dow on a steady slide this month, erasing most of its gains from the first quarter. It finished the week slightly higher, its first weekly gain for May.

In other trading, the Standard & Poor's 500 index fell 2.86 points to 1,317.82. The Nasdaq composite fell 1.85 points to 2,837.53.

The declines were broad. Eight of the 10 industry groups in the Standard & Poor's 500 index fell. The only sectors that rose were utilities and telecommunications, which investors tend to buy when they're skittish about the market. Trading volume was light ahead of the Memorial Day holiday.

Facebook, marking its one-week anniversary as a public company, fell 3.4 percent to $31.91. Talbots, the women's clothing chain, plunged 41 percent to $1.51 after announcing that a deadline expired without a deal to be bought by a private equity firm.

The NYSE DOW closed LOWER ▼ -74.92 points or ▼ -0.60% Friday, 25 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,454.83 ▼ -74.92 ▼ -0.60%
Nasdaq___ 2,837.53 ▼ -1.85 ▼ -0.07%
S&P_500__ 1,317.82 ▼ -2.86 ▼ -0.22%
30_Yr_Bond 2.846 ▼ 0.00 ▼ -0.04%

NYSE Volume 2,872,655,500
Nasdaq Volume 1,284,007,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,351.53 ▲ 1.48 ▲ 0.03%
DAX_____ 6,339.94 ▲ 24.05 ▲ 0.38%
CAC_40__ 3,047.94 ▲ 9.69 ▲ 0.32%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,081.20 ▼ -25.00 ▼ -0.61%
Shanghai_Comp 2,333.55 ▼ -17.42 ▼ -0.74%
Taiwan_Weight 7,071.63 ▼ -53.26 ▼ -0.75%
Nikkei_225____ 8,580.39 ▲ 17.01 ▲ 0.20%
Hang_Seng____ 18,713.41 ▲ 53.93 ▲ 0.25%
Strait_Times___ 2,772.75 ▼ -6.78 ▼ -0.24%
NZX 50 Index__ 3,486.23 ▼ -9.96 ▼ -0.28%

http://finance.yahoo.com/news/stocks-fall-wall-street-spanish-195627221.html

Stocks fall on Wall Street as Spanish bank teeters

More worries about Europe's debt mess send stocks lower ahead of the long holiday weekend

By Christina Rexrode, AP Business Writer

Another flare-up in Europe's debt crisis knocked U.S. markets lower Friday. This time, it was more trouble at a major Spanish bank.

Stock indexes were waffling between small gains and losses until news broke in the afternoon that Bankia, a hobbled Spanish lender, asked that country's government for $23.8 billion in support. Earlier in the day, Standard & Poor's cut the bank's credit rating to junk status because of deepening uncertainty over its restructuring plans.

The Dow Jones industrial average dropped as much as 108 points, then recovered slightly to end down 74.92 points at 12,454.83. Concerns about Europe have sent the Dow on a steady slide this month, erasing most of its gains from the first quarter. It finished the week slightly higher, its first weekly gain for May.

The declines were broad. Eight of the 10 industry groups in the Standard & Poor's 500 index fell. The only sectors that rose were utilities and telecommunications, which investors tend to buy when they're skittish about the market. Trading volume was light ahead of the Memorial Day holiday.

Facebook, marking its one-week anniversary as a public company, fell 3.4 percent to $31.91. Talbots, the women's clothing chain, plunged 41 percent to $1.51 after announcing that a deadline expired without a deal to be bought by a private equity firm.

In addition to the new worries about Spain, the head of Germany's central bank, which has been skeptical of bailing out Greece and other weak European countries, reinforced the point when he said it was an "illusion" to think allowing euro zone countries to borrow money jointly would solve the crisis.

In Asia, media reports suggested that some of China's biggest banks will miss their annual lending targets for the first time in seven years, and Taiwan lowered its economic growth forecast for the year. Caterpillar, which relies heavily on demand from China, fell 1 percent.

In other trading, the Standard & Poor's 500 index fell 2.86 points to 1,317.82. The Nasdaq composite fell 1.85 points to 2,837.53.

Stock indexes in France, Britain, Germany and Spain rose, while Greece's ATHEX plunged 3.5 percent. Borrowing rates edged higher for Spain and Italy.

Greece's June 17 elections are an overhang on the market. The results will determine if Greece agrees to the spending cuts that it must swallow if it wants to stay in the 17-country euro zone, or if it goes its own way.

The idea of cutting government spending is unpopular in a country which is in a fifth year of recession and residents have grown accustomed to public-sector largesse. But if Greece left the euro zone, it would have to revert to its own currency. That would be severely devalued, and the country's standard of living would probably be crushed.

Greece makes up just 2 percent of the euro zone economy, but its fate would carry ripple effects to other, larger members. Unnerved traders could dump the bonds of other struggling European countries, such as Spain and Italy. Residents could start to pull money out of banks there, as has been happening in Greece.

The standoffs so far have almost always lasted until the 11th hour.

"Every time you think it's going to fall off a cliff and end very badly, something happens," said Beata Kirr, senior portfolio manager at Bernstein Global Wealth Management in Chicago. "The European Central Bank steps in to buy Italian and Spanish bonds. Or Germany softens its stance on austerity. All of these things have happened when it's past the precipice."

8235

 

[bigdog]

Source: http://finance.yahoo.com

Wall Street was closed for the Memorial Day holiday on Monday May 28

Greek stock markets rebounded strongly on Monday from a 22-year low on hopes a pro-bailout party will win crucial national elections next month, which would avoid a catastrophic rift with international creditors and keep the struggling country within the euro currency union.

The main stock index in Athens soared to close up 6.9 percent, with the battered bank sector chalking up solid gains.

Four polls published Sunday reversed previous trends to indicate that conservative New Democracy could come first in the June 17 vote, slightly ahead of the anti-austerity radical left Syriza party. Although the conservatives would still fall short of a governing majority, the surveys suggested they could form a coalition government with socialist PASOK, which have also pledged to stick to Greece's austerity commitments.

Banks also received a boost Monday: The country's four largest lenders received promised support of €18 billion ($22.62 billion) to compensate for losses suffered in a massive debt restructuring deal earlier this year. The announcement was made by Greece's Financial Stability Fund after the Athens bourse closed.

Debt-crippled Greece is being kept afloat by huge international rescue loans, granted on condition of harsh cutbacks and reforms that slashed living standards.

The austerity, however, also caused huge popular resentment toward New Democracy and PASOK, the two parties that accepted the terms. Voters expressed that anger clearly in May 6 elections, giving a boost to anti-bailout parties. But the election proved inconclusive, with none of the parties able to form a coalition government, leaving Greece to hold another ballot next month.

Greece's bailout creditors ”” the other countries in the 17-nation eurozone and the International Monetary Fund ”” insist that if the country reneges on its austerity commitments, the rescue loans will stop.

That would unleash chaos. The government would be unable to pay hospital workers, police and teachers, pensions would dry up, and a potential panic run on bank deposits would destroy the tottering financial system. Eventually, the country could be forced to abandon the eurozone, reverting to a vastly devalued form of its old drachma currency.

The NYSE DOW closed LOWER ▼ -74.92 points or ▼ -0.60% FRIDAY 25 May 2012
Symbol …........Last ......Change.....[/U] [/B]
Dow_Jones 12,454.83 ▼ -74.92 ▼ -0.60%
Nasdaq___ 2,837.53 ▼ -1.85 ▼ -0.07%
S&P_500__ 1,317.82 ▼ -2.86 ▼ -0.22%
30_Yr_Bond 2.846 ▼ 0.00 ▼ -0.04%

NYSE Volume 2,872,655,500
Nasdaq Volume 1,284,007,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,356.34 ▲ 4.81 ▲ 0.09%
DAX_____ 6,323.19 ▼ -16.75 ▼ -0.26%
CAC_40__ 3,042.97 ▼ -4.97 ▼ -0.16%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,120.20 ▲ 39.00 ▲ 0.96%
Shanghai_Comp 2,361.37 ▲ 27.81 ▲ 1.19%
Taiwan_Weight 7,136.00 ▲ 64.37 ▲ 0.91%
Nikkei_225____ 8,593.15 ▲ 12.76 ▲ 0.15%
Hang_Seng____ 18,800.99 ▲ 53.93 ▲ 0.47%
Strait_Times___ 2,787.22 ▲ 14.47 ▲ 0.52%
NZX 50 Index__ 3,462.25 ▼ -23.98 ▼ -0.69%

http://finance.yahoo.com/news/greek-stocks-soar-pro-bailout-120819514.html

Greek stocks soar on pro-bailout party's poll gain

Greek stocks rebound after new polls predict pro-bailout party winning crucial June 17 vote

ATHENS, Greece (AP) -- Greek stock markets rebounded strongly on Monday from a 22-year low on hopes a pro-bailout party will win crucial national elections next month, which would avoid a catastrophic rift with international creditors and keep the struggling country within the euro currency union.

The main stock index in Athens soared to close up 6.9 percent, with the battered bank sector chalking up solid gains.

Four polls published Sunday reversed previous trends to indicate that conservative New Democracy could come first in the June 17 vote, slightly ahead of the anti-austerity radical left Syriza party. Although the conservatives would still fall short of a governing majority, the surveys suggested they could form a coalition government with socialist PASOK, which have also pledged to stick to Greece's austerity commitments.

Banks also received a boost Monday: The country's four largest lenders received promised support of €18 billion ($22.62 billion) to compensate for losses suffered in a massive debt restructuring deal earlier this year. The announcement was made by Greece's Financial Stability Fund after the Athens bourse closed.

Debt-crippled Greece is being kept afloat by huge international rescue loans, granted on condition of harsh cutbacks and reforms that slashed living standards.

The austerity, however, also caused huge popular resentment toward New Democracy and PASOK, the two parties that accepted the terms. Voters expressed that anger clearly in May 6 elections, giving a boost to anti-bailout parties. But the election proved inconclusive, with none of the parties able to form a coalition government, leaving Greece to hold another ballot next month.

Greece's bailout creditors ”” the other countries in the 17-nation eurozone and the International Monetary Fund ”” insist that if the country reneges on its austerity commitments, the rescue loans will stop.

That would unleash chaos. The government would be unable to pay hospital workers, police and teachers, pensions would dry up, and a potential panic run on bank deposits would destroy the tottering financial system. Eventually, the country could be forced to abandon the eurozone, reverting to a vastly devalued form of its old drachma currency.

Fears of such an outcome have battered Greek financial markets for weeks, pushing the Athens General Index to close at a 22-year low of 485.18 points on Friday. The latest polls, however, helped it claw back some of those losses, rising to 518.49 points.

"This is clearly due to the polls," said Sergios Melahrinos, analyst at Solidus Securities.

He noted that if the two pro-bailout parties manage to win the election and have Greece honor its austerity commitments, banks would gain access to rescue money needed to avoid collapse. Under the country's latest international bailout, domestic banks that took huge losses from a bond swap that more than halved Greece's privately-held debt will receive billions of euros to boost their capitalization. If a new government in Athens unilaterally tears up the bailout deal ”” as Syriza has threatened to do ”” the recapitalization would fall through.

"A potential win by the parties that back their recapitalization would be extremely good for lenders."

But Melahrinos warned that the market would remain vulnerable to the ups and downs in the polls in the leadup to the elections. "New polls that show a reversal would obviously change the market picture."

Sunday's surveys gave New Democracy a lead over Syriza ranging from 0.5 to 5.7 percent, with PASOK coming third. The polls also estimated that the two pro-bailout parties would gain a combined 159 to 165 seats in the 300-member parliament, up from 149 after the May 6 vote.

One survey in To Vima newspaper found that 65 percent want Greece to remain in the eurozone even if it has to implement the bailout agreement as it stands, while 24 percent said they would prefer to exit the euro rather than implement austerity policies.

Since the beginning of 2010, Greeks have suffered repeated income cuts and tax hikes, while unemployment has hit record levels with more than one in five workers jobless after tens of thousands of businesses closed. The country is in a fifth year of deep recession, and continues to import about twice as much as it exports.