NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

The stock market is desperately looking for good news.

On Tuesday, oil prices fell, the euro sank to a 22-month low, and the yield on the U.S. government's 10-year Treasury note fell near a historic low after a report suggested that Spain will have more trouble repaying its debts.

But stocks rose anyway. In fact, they had one of their best days in an otherwise dreary month. Investors focused on hopes that China is poised to rev up its economic growth machine and that upcoming elections in Greece will help the country stay in the euro.

"The overriding news isn't that great," said Robert Pavlik, chief market strategist at investment advisors Banyan Partners. "But Greece and China are taking the pressure off the market in the short term."

Gains in industrial stocks that depend heavily on the Chinese economy, like Caterpillar and Alcoa, helped push the Dow Jones industrial average up 125.86 points. The Dow closed at 12,580.69, up 1 percent.

China is the largest market for aluminum, which Alcoa makes, and Caterpillar recently said it is aggressively courting China to sell its construction equipment. Both stocks gained 3 percent.

It was only the fifth gain for the Dow this month. The index is down 4.8 percent for May and is headed for its first monthly loss since September. The main culprits behind the decline have been the increasing likelihood that Greece will drop out of the euro currency and a worsening of Spain's financial condition.

The NYSE DOW closed HIGHER ▲ 125.86 points or ▲ 1.01% Tuesday, 29 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,580.69 ▲ 125.86 ▲ 1.01%
Nasdaq___ 2,870.99 ▲ 33.46 ▲ 1.18%
S&P_500__ 1,332.42 ▲ 14.60 ▲ 1.11%
30_Yr_Bond 2.842 ▼ 0.00 ▼ -0.14%

NYSE Volume 3,441,646,500
Nasdaq Volume 1,670,854,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,391.14 ▲ 34.80 ▲ 0.65%
DAX_____ 6,396.84 ▲ 73.65 ▲ 1.16%
CAC_40__ 3,084.70 ▲ 41.73 ▲ 1.37%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,168.20 ▲ 48.00 ▲ 1.16%
Shanghai_Comp 2,389.64 ▲ 28.27 ▲ 1.20%
Taiwan_Weight 7,342.29 ▲ 206.29 ▲ 2.89%
Nikkei_225____ 8,657.08 ▲ 63.93 ▲ 0.74%
Hang_Seng____ 19,055.46 ▲ 53.93 ▲ 1.35%
Strait_Times___ 2,801.85 ▲ 14.63 ▲ 0.52%
NZX 50 Index__ 3,478.29 ▲ 16.04 ▲ 0.46%

http://finance.yahoo.com/news/rare-...1hOWQwLTExZTEtOWI5Zi1hMGVkZDg3ZmE3NTA-;_ylv=3

A rare gain for the Dow on hopes for China growth

Dow Jones industrial average posts a rare gain of nearly 125; Facebook flops again

By Pallavi Gogoi, AP Business Writer

The stock market is desperately looking for good news.

On Tuesday, oil prices fell, the euro sank to a 22-month low, and the yield on the U.S. government's 10-year Treasury note fell near a historic low after a report suggested that Spain will have more trouble repaying its debts.

But stocks rose anyway. In fact, they had one of their best days in an otherwise dreary month. Investors focused on hopes that China is poised to rev up its economic growth machine and that upcoming elections in Greece will help the country stay in the euro.

"The overriding news isn't that great," said Robert Pavlik, chief market strategist at investment advisors Banyan Partners. "But Greece and China are taking the pressure off the market in the short term."

Gains in industrial stocks that depend heavily on the Chinese economy, like Caterpillar and Alcoa, helped push the Dow Jones industrial average up 125.86 points. The Dow closed at 12,580.69, up 1 percent.

China is the largest market for aluminum, which Alcoa makes, and Caterpillar recently said it is aggressively courting China to sell its construction equipment. Both stocks gained 3 percent.

It was only the fifth gain for the Dow this month. The index is down 4.8 percent for May and is headed for its first monthly loss since September. The main culprits behind the decline have been the increasing likelihood that Greece will drop out of the euro currency and a worsening of Spain's financial condition.

Facebook plunged 10 percent to $28.84, shaving $25 billion off from the company's market value in its first seven days of trading. The glitch-plagued IPO has drawn scrutiny from regulators and ire from disgruntled investors who had trouble executing trades.

Blackberry maker Research in Motion plunged 11 percent in after-hours trading to $10 after the company said it expects to post a loss in its first quarter amid tough competition in the smartphone business.

The Standard & Poor's 500 index closed up 14.60 points at 1,332.42, and the Nasdaq composite added 33.46 points to 2,870.99.

U.S. markets were closed Monday for Memorial Day.

Oil prices fell below $91 after ratings agency Egan Jones downgraded Spain's debt Tuesday. Crude oil prices have been dropping steadily from $106 four weeks ago amid signs of slowing global growth.

Analysts have been concerned that Spain and other weak European economies could drag the European Union into recession this year. It would lead to lower demand from Europe, a region that consumes 16 percent of the world's oil. It also could harm trading partners like the U.S. and China and slow down global demand for oil.

The same worries flagged in the report sent the euro to $1.246, its lowest point against the dollar since July 2010. Investors fled to the safety of U.S. government bonds, sending the yield on benchmark 10-year Treasury note as low as 1.71 percent, near an all-time low.

Stock investors on Tuesday appeared relieved with news from Greece that a party in favor of abiding by the terms of the country's financial rescue could win in national elections next month. That could avoid a catastrophic rift with Greece's international creditors and keep the struggling country within the euro zone.

There was also some positive news from the beleaguered U.S. housing market. The Standard & Poor's/Case-Shiller report found that home prices increased in 12 of the 20 cities it tracks. The increase in March from the month before was the first in seven months. It was the latest evidence of a slow recovery taking shape in the troubled housing market.

In Europe, concerns that Spain's ailing banking sector might worsen the European debt crisis sent the Spanish stock market to nine-year lows. Other European markets rose.

Spain's banks are sitting on huge amounts of soured investments in the country's imploded real estate market. That has led to the recent nationalization of Bankia, the country's fourth-largest lender. Bankia revealed last week that it needs far more money in state aid than previously expected, $23.8 billion.

Madrid's Ibex index fell 2.3 percent and Bankia dropped another 13.6 percent.

Other stocks that were making big moves:

”” Interline Brands shot up 40 percent after the maintenance company said it is being acquired by a pair of private equity groups for about $811 million.

”” Patriot Coal rose 6 percent after the company said its CEO is leaving the company. Last week Patriot announced that it is working with private equity firm The Blackstone Group after there were concerns that the mining company could run short on cash.

”” ConocoPhillips rose over 2 percent after a Citi analyst said the company is likely to pay hefty dividends this year thanks to asset sales that generated higher returns than analysts expected.

 

[bigdog]

Source: http://finance.yahoo.com

Fearing a financial rupture in Europe, investors around the world fled from risk Wednesday. They punished stocks and the euro, and the yield on a benchmark U.S. bond hit its lowest point since World War II.

In the United States, where concerns about Europe have already wiped out most of this year's gains for stocks, major averages fell more than 1 percent. The Dow Jones industrial average closed down 161 points.

With Spain's banking system teetering and Greece's political future unclear ahead of crucial elections next month, European stocks lost even more. The euro dropped below $1.24, to its lowest point since the summer of 2010.

"Everyone's just afraid that if Europe doesn't get its act together, there will be a big spillover in the U.S.," said Peter Tchir, manager of the hedge fund TF Market Advisors.

He said the uncertainty over Europe's future was reminiscent of the financial crisis in the fall of 2008, when it was briefly unclear whether banks would be bailed out and "we had these giant swings up and down."

Wall Street, which woke up to increased anxiety over higher Spanish borrowing rates, was down from the opening bell.

The Dow closed down 160.83 points, or 1.3 percent, at 12,419.86. The Dow has had a miserable May, losing more than 6 percent, and is on track for its first losing month since September.

The Standard & Poor's 500 index lost 19.10 points to 1,313.32. The Nasdaq composite index fell 33.63 to 2,837.36. Energy stocks were hit hardest because of a big drop in the price of oil, but stocks in all major industries fell.

The NYSE DOW closed LOWER ▼ -160.83 points or ▼ -1.28% Wednesday, 30 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,419.86 ▼ -160.83 ▼ -1.28%
Nasdaq___ 2,837.36 ▼ -33.63 ▼ -1.17%
S&P_500__ 1,313.32 ▼ -19.10 ▼ -1.43%
30_Yr_Bond 2.718 ▼ -0.12 ▼ -4.36%

NYSE Volume 3,534,310,750
Nasdaq Volume 1,738,806,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,297.28 ▼ -93.86 ▼ -1.74%
DAX_____ 6,280.80 ▼ -116.04 ▼ -1.81%
CAC_40__ 3,015.58 ▼ -69.12 ▼ -2.24%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,148.70 ▼ -19.50 ▼ -0.47%
Shanghai_Comp 2,384.67 ▼ -4.97 ▼ -0.21%
Taiwan_Weight 7,261.80 ▼ -80.49 ▼ -1.10%
Nikkei_225____ 8,633.19 ▼ -23.89 ▼ -0.28%
Hang_Seng____ 18,690.22 ▲ 53.93 ▼ -1.92%
Strait_Times___ 2,788.49 ▼ -13.36 ▼ -0.48%
NZX 50 Index__ 3,481.34 ▲ 3.05 ▲ 0.09%

http://finance.yahoo.com/news/europe-worries-stalk-wall-street-202500134.html

Europe worries stalk Wall Street; Dow loses 161

Stocks lose big as Europe worries stalk Wall Street; 10-year Treasury yield at postwar low

By Daniel Wagner, AP Business Writer

Fearing a financial rupture in Europe, investors around the world fled from risk Wednesday. They punished stocks and the euro, and the yield on a benchmark U.S. bond hit its lowest point since World War II.

In the United States, where concerns about Europe have already wiped out most of this year's gains for stocks, major averages fell more than 1 percent. The Dow Jones industrial average closed down 161 points.

With Spain's banking system teetering and Greece's political future unclear ahead of crucial elections next month, European stocks lost even more. The euro dropped below $1.24, to its lowest point since the summer of 2010.

"Everyone's just afraid that if Europe doesn't get its act together, there will be a big spillover in the U.S.," said Peter Tchir, manager of the hedge fund TF Market Advisors.

He said the uncertainty over Europe's future was reminiscent of the financial crisis in the fall of 2008, when it was briefly unclear whether banks would be bailed out and "we had these giant swings up and down."

Wall Street, which woke up to increased anxiety over higher Spanish borrowing rates, was down from the opening bell.

The Dow closed down 160.83 points, or 1.3 percent, at 12,419.86. The Dow has had a miserable May, losing more than 6 percent, and is on track for its first losing month since September.

The Standard & Poor's 500 index lost 19.10 points to 1,313.32. The Nasdaq composite index fell 33.63 to 2,837.36. Energy stocks were hit hardest because of a big drop in the price of oil, but stocks in all major industries fell.

The trigger for Wednesday's sell-off was Spain, where the banking system is under strain a week after its fourth-largest bank required $23.8 billion in government aid to cover souring real estate loans.

Investors are increasingly worried that problems at the bank, Bankia, might recur at other Spanish banks. Many lent heavily during the nation's real estate bubble. Losses from the real estate crash might be too big for Spain's government to shoulder.

Spain has enacted harsh government spending cuts to bring its budget deficit within strict new European guidelines. But the country is in a recession, has 25 percent unemployment and might need a bailout, like Greece, Ireland and Portugal.

On Wednesday, borrowing rates rose sharply for Spain and Italy, which are seen as the next problem cases in a debt crisis that has rocked global markets for more than two years. Traders dumped bonds issued by those governments.

The yield on Spain's 10-year bonds, a key indicator of market confidence in the country's ability to pay down its debt, shot as high as 6.69 percent, the highest since the euro currency was launched in 2002.

Intense demand for low-risk, easily tradable securities led investors to buy U.S. government debt. The yield on the 10-year Treasury note plunged to 1.61 percent from 1.74 percent late Tuesday.

Wednesday's yield appeared to be the lowest since 1945, said Bill O'Donnell, head of U.S. Treasury strategy at the Royal Bank of Scotland, citing data from the European Central Bank and other sources.

Federal Reserve daily records only go back to 1962, and those reflect a previous record of 1.70 percent, set May 17.

"There's just a massive flight to safe-haven assets today," O'Donnell said.

He characterized the rush into U.S. bonds by citing a well-known, unsavory analogy made by Richard Fisher, the head of the Federal Reserve's Dallas bank: "The U.S. is the prettiest horse in the glue factory."

Yields on German government bonds, also seen as safe, turned lower.

Concern about Europe lurked around every corner: The European Commission said consumer confidence fell sharply across the region last month. Spaniards withdrew money from their banks, spreading fear about the Spanish government's ability to go on without itself being bailed out. Spain's main stock index closed down 2.6 percent.

An opinion poll in Greece showed that the far-left Syriza party is gaining support ahead of elections June 17. Syriza opposes the system of bailouts and sharp budget cuts that have kept Greece afloat but also gutted its economy.

If the party wins, Greece may be forced to exit the euro currency. The shock waves could reach nations that have received bailouts, like Portugal, and those that might need them, like Italy.

Until the Greek elections next month, things will be too uncertain for the U.S. market to sustain a meaningful rally, said David Kelly, chief market strategist at J.P. Morgan Funds.

If Greece's leaders allow the bailouts to continue and European governments start spending to spur growth, Kelly expects the market eventually to rise. If Syriza wins and Greece is expelled from the euro, he expects a volatile market for months.

Amid the tumult, Europe's executive branch called on the 17 countries that use the currency to create a "banking union" that can centrally oversee and, if needed, bail out national banks.

If Europe's financial crisis plunges it into a deep recession, global economic growth will likely falter, reducing demand for commodities and machines that power growth.

Fearing that outcome, traders pushed the stocks of heavy equipment maker Caterpillar and aluminum company Alcoa to among the biggest declines of the 30 companies that make up the Dow.

The euro fell as low as $1.2360, the lowest since the summer of 2010. Benchmark stock indexes closed down 2.2 percent in France, 1.8 percent in Italy and Germany.

When banks and big investors get frightened, they sell stocks or bonds and park the money in the safest government debt markets. They buy Japanese yen, German bonds and especially U.S. Treasurys.

Such purchases are not about turning a profit, said O'Donnell of RBS. That's why German government two-year notes are paying zero percent: People are simply handing their money over for safekeeping.

The U.S. Treasury market is still considered one of the safest places in the world to stash billions in a hurry. At $11 trillion, no other market is as large, so there's always somebody ready to buy or sell them.

"When people just want to get their money back, there's not a lot of competition," O'Donnell said.

Food and energy commodities fell sharply. Crude oil lost more than $3 to below $88 a barrel. Crude has been falling steadily since the beginning of May, when it traded as high as $106 a barrel.

Kelly, of J.P. Morgan Funds, said investors should remember that the U.S. is on firmer economic footing than Europe, and make sure their portfolios could withstand either possible outcome.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks close lower, capping a dismal May; worst monthly point loss for Dow since May 2010

They sold in May and went away, all right.

With a disappointing finish on Thursday, the stock market closed what was by some measures its worst month in two years. Over five dismal weeks, Facebook fizzled, a debt crisis in Europe loomed, and nobody was in the mood to buy.

When May was mercifully over, the Dow Jones industrial average and other major indexes had erased most of the strong gains they built up through March and held on to in April.

"The sentiment has changed," said Craig Callahan, co-founder and president of ICON Advisers in Denver. "Any time the market dips like this, it erodes some confidence. It scares people out of the market. All of the above, May has done that."

The Wall Street adage that investors should "sell in May and go away" may not be sound strategy all the time — many financial advisers say it's foolish — but this year it looked like good advice.

The Dow lost 820 points for the month, its worst showing since May 2010. That month, investors were spooked by a one-day "flash crash" in stocks when a large trade overwhelmed computer servers.

This May, stocks limped to the finish. The Dow closed down 26.41 points on Thursday to end the month at 12,393.45. It declined on all but five of 22 trading sessions.

The Standard & Poor's 500 index dropped 2.99 points to close at 1,310.33. It fell 6.3 percent in May, its worst month since September. The Nasdaq composite index fell 10.02 points to 2,827.34, and had its worst month in two years.

The NYSE DOW closed LOWER ▼ -26.41 points or ▼ -0.21% Thursday, 31 May 2012
Symbol …........Last ......Change.....
Dow_Jones 12,393.45 ▼ -26.41 ▼ -0.21%
Nasdaq___ 2,827.34 ▼ -10.02 ▼ -0.35%
S&P_500__ 1,310.33 ▼ -2.99 ▼ -0.23%
30_Yr_Bond 2.672 ▼ -0.05 ▼ -1.69%

NYSE Volume 4,557,619,500
Nasdaq Volume 2,268,248,750

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,306.95 ▲ 9.67 ▲ 0.18%
DAX_____ 6,264.38 ▼ -16.42 ▼ -0.26%
CAC_40__ 3,017.01 ▲ 1.43 ▲ 0.05%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,133.70 ▼ -15.00 ▼ -0.36%
Shanghai_Comp 2,372.23 ▼ -12.43 ▼ -0.52%
Taiwan_Weight 7,301.50 ▲ 39.70 ▲ 0.55%
Nikkei_225____ 8,542.73 ▼ -90.46 ▼ -1.05%
Hang_Seng____ 18,638.41 ▲ 53.93 ▼ -0.28%
Strait_Times___ 2,772.54 ▼ -11.41 ▼ -0.41%
NZX 50 Index__ 3,488.29 ▲ 6.94 ▲ 0.20%

http://finance.yahoo.com/news/sell-may-away-stocks-close-205217541.html

Sell in May and go away: Stocks close dismal month

Stocks close lower, capping a dismal May; worst monthly point loss for Dow since May 2010

By Christina Rexrode, AP Business Writer

They sold in May and went away, all right.

With a disappointing finish on Thursday, the stock market closed what was by some measures its worst month in two years. Over five dismal weeks, Facebook fizzled, a debt crisis in Europe loomed, and nobody was in the mood to buy.

When May was mercifully over, the Dow Jones industrial average and other major indexes had erased most of the strong gains they built up through March and held on to in April.

"The sentiment has changed," said Craig Callahan, co-founder and president of ICON Advisers in Denver. "Any time the market dips like this, it erodes some confidence. It scares people out of the market. All of the above, May has done that."

The Wall Street adage that investors should "sell in May and go away" may not be sound strategy all the time — many financial advisers say it's foolish — but this year it looked like good advice.

The Dow lost 820 points for the month, its worst showing since May 2010. That month, investors were spooked by a one-day "flash crash" in stocks when a large trade overwhelmed computer servers.

This May, stocks limped to the finish. The Dow closed down 26.41 points on Thursday to end the month at 12,393.45. It declined on all but five of 22 trading sessions.

The Standard & Poor's 500 index dropped 2.99 points to close at 1,310.33. It fell 6.3 percent in May, its worst month since September. The Nasdaq composite index fell 10.02 points to 2,827.34, and had its worst month in two years.

On Thursday, investors latched on to a sliver of good news in the morning: May sales from retailers like Target and Macy's looked healthy, and sent stock futures higher.

Then the government offered two unpleasant pieces of economic data. The number of people applying for unemployment benefits rose to a five-week high, and economic growth from January through March was slower than first thought.

Underscoring the crisis in Europe, the head of the European Central Bank, Mario Draghi, told European leaders that the setup of the 17-country euro currency union was unsustainable "unless further steps are taken."

The Dow was down as much as 103 points and up as much as 70 before ending slightly lower. Energy companies were the worst performers for the day and the month. The price of oil, which ended April at almost $105, ended May at $86.53.

Worried about Europe and the weaker readings on the U.S. economy, investors continued a stampede Thursday into U.S. government bonds, which they see as a safer place to put their money.

The yield on the benchmark 10-year U.S. Treasury note tumbled to its lowest level on record, 1.54 percent. The yield rose later in the day to 1.57 percent. It was 1.62 percent on Wednesday.

The 10-year Treasury yield was 1.55 percent in November 1945, after the end of World War II, when government price controls kept interest rates down to preserve financial stability.

In the stock market, the "sell in May" strategy posits that investors can make more money by sitting out the summer and early fall, when prices tend to languish.

The math is compelling. From 1926 through last year, the S&P 500 rose an average 4.3 percent in the six months of May through October, versus 7.1 percent in November through April.

The problem, critics point out, is that stocks move widely above and below their averages from year to year.

One researcher, Larry Swedroe of Buckingham Asset Management, found that "sell in May" beat an ordinary strategy of buying and holding stocks if you started investing in 1960, 1970 and 2000, but not if you started in 1950, 1980 or 1990.

But this time, at least, it would have worked. Investors who bought stocks exactly according to the Dow last Nov. 1 and sold them on April 30 would have gained 13 percent. Investors who held on through May would have seen those gains cut in half.

For the calendar year, the limp May left the Dow up 1.4 percent, the S&P up 4.2 percent and the Nasdaq up 8.5 percent. Two months ago, all three indexes were up more than twice as much.

The month's most spectacular market blunder was Facebook, which debuted on the Nasdaq exchange May 18 at $38 a share. By Thursday's close it had fallen more than $8 from there.

The stock's first day was complicated by technical problems at the Nasdaq, and questions later emerged about whether Morgan Stanley, which helped take the company public, had offered some clients better information about the stock.

JPMorgan Chase stock lost 23 percent of its value during the month after the bank disclosed a surprise trading loss of $2 billion or more — a black eye for CEO Jamie Dimon, who has built a reputation as a master of risk management.

Then there was Europe. Troubles in Greece dominated headlines for much of the month, but Spain has been the market's albatross this week. It will have to spend almost $24 billion to bail out one of its biggest banks.

There is still no agreement over how to solve the crisis: Stronger countries like Germany want governments to cut spending, but voters in weaker countries like Greece have shown they are in no mood for more fiscal pain.

On Thursday, the European Union demanded that Spain provide more details about how it plans to finance the overhaul of its banking sector.

Spain's key stock market index was flat, while Greece rose nearly 3 percent. Borrowing rates for Spain fell somewhat, suggesting investors were feeling a little better about that country's finances.

"Greece is a failed chemistry experiment," said Michael Strauss, chief investment strategist at the Commonfund investment firm in Connecticut. "But we are more worried about Spain because of its size and the scope."

Strauss said he advised clients to take money out of stocks in early spring, when the S&P was above 1,400, or about 90 points higher than where it closed Thursday.

Strauss expects the index to return to 1,385 before the year is over, though he cautioned those gains might not last.

May's results are a familiar template. In both 2010 and 2011, the market rose for several months before falling in May because of concerns about debt in Europe.

Linda Duessel, market strategist at Federated Investors in Pittsburgh, argued that this May's declines were only natural after the run-up at the beginning of the year.

"After you get a good run, you get a correction," Duessel said. "Corrections are a very normal part of the cycle."

 

[bigdog]

Source: http://finance.yahoo.com

Dismal job market pushes Dow into 275-point plunge

US stocks nose-dive after dismal jobs report; Dow industrials turn negative for the year

The Dow closed down 274.88 points, or 2.2 percent, at 12,118.57. The Dow is off 0.8 percent for the year; two months ago, it was up more than 8 percent for the year.

The Standard & Poor's 500 index fell 32.29 points, or 2.5 percent, to 1,278.04. The Nasdaq dropped 79.86, or 2.8 percent, to 2,747.48. Both indexes are still up for the year ”” 1.6 percent for the S&P 500 and 5.5 percent for the Nasdaq.

The stock market suffered its worst day of the year Friday after a surprisingly weak report about hiring and employment cast a pall of gloom over the U.S. economy. The Dow Jones industrial average plunged 275 points.

Traders stampeded into the safety of bonds, pushing the yield on the benchmark 10-year Treasury note to a record low. Fearful investors bought gold, causing the price to spike nearly $60 an ounce, and concern about a global economic slowdown drove the price of oil to its lowest since October.

"The big worry now is that this economic slowdown is widening and accelerating," said Sam Stovall, chief equity strategist at S&P Capital IQ, a market research firm.

It was the Dow's steepest one-day drop since November.

The Standard & Poor's 500 index and Nasdaq composite index both fell more than 3 percent. The Nasdaq has dropped more than 10 percent since its peak ”” what traders call a market correction. The S&P 500 is just a point above correction territory.

American employers added just 69,000 jobs in May, the fewest in a year, and the unemployment rate increased to 8.2 percent from 8.1 percent. Economists had forecast a gain of 158,000 jobs.

The report, considered the most important economic indicator each month, also said that hiring in March and April was considerably weaker than originally thought.

The NYSE DOW closed LOWER ▼ -274.88 points or ▼ -2.22% Friday, 1 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,118.57 ▼ -274.88 ▼ -2.22%
Nasdaq____ 2,747.48 ▼ -79.86 ▼ -2.82%
S&P_500__ 1,278.04 ▼ -32.29 ▼ -2.46%
30_Yr_Bond 2.540 ▼ -0.13 ▼ -4.94%

NYSE Volume 4,606,099,500
Nasdaq Volume 1,978,203,620

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,260.19 ▼ -60.67 ▼ -1.14%
DAX_____ 6,050.29 ▼ -214.09 ▼ -3.42%
CAC_40__ 2,950.47 ▼ -66.54 ▼ -2.21%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,116.90 ▼ -16.80 ▼ -0.41%
Shanghai_Comp 2,373.44 ▲ 1.20 ▲ 0.05%
Taiwan_Weight 7,106.09 ▼ -195.41 ▼ -2.68%
Nikkei_225____ 8,440.25 ▼ -102.48 ▼ -1.20%
Hang_Seng____ 18,558.34 ▲ 53.93 ▼ -0.38%
Strait_Times___ 2,745.71 ▼ -26.83 ▼ -0.97%
NZX 50 Index__ 3,452.00 ▼ -36.29 ▼ -1.04%

http://finance.yahoo.com/news/dismal-job-market-pushes-dow-201501885.html

Dismal job market pushes Dow into 275-point plunge

US stocks nose-dive after dismal jobs report; Dow industrials turn negative for the year

By Daniel Wagner, AP Business Writer



The stock market suffered its worst day of the year Friday after a surprisingly weak report about hiring and employment cast a pall of gloom over the U.S. economy. The Dow Jones industrial average plunged 275 points.

Traders stampeded into the safety of bonds, pushing the yield on the benchmark 10-year Treasury note to a record low. Fearful investors bought gold, causing the price to spike nearly $60 an ounce, and concern about a global economic slowdown drove the price of oil to its lowest since October.

"The big worry now is that this economic slowdown is widening and accelerating," said Sam Stovall, chief equity strategist at S&P Capital IQ, a market research firm.

It was the Dow's steepest one-day drop since November.

The Standard & Poor's 500 index and Nasdaq composite index both fell more than 3 percent. The Nasdaq has dropped more than 10 percent since its peak ”” what traders call a market correction. The S&P 500 is just a point above correction territory.

American employers added just 69,000 jobs in May, the fewest in a year, and the unemployment rate increased to 8.2 percent from 8.1 percent. Economists had forecast a gain of 158,000 jobs.

The report, considered the most important economic indicator each month, also said that hiring in March and April was considerably weaker than originally thought.

Earlier data showed weak economic conditions in Europe and Asia, too. Unemployment in the 17 countries that use the euro currency stayed at a record-high 11 percent in April, and unemployment spiked to almost 25 percent in Spain.

There were signs that growth in China, which helped sustain the global economy through the recession, is slowing significantly. China's manufacturing weakened in May, according to surveys released Friday.

The Dow closed down 274.88 points, or 2.2 percent, at 12,118.57. The Dow is off 0.8 percent for the year; two months ago, it was up more than 8 percent for the year.

The Standard & Poor's 500 index fell 32.29 points, or 2.5 percent, to 1,278.04. The Nasdaq dropped 79.86, or 2.8 percent, to 2,747.48. Both indexes are still up for the year ”” 1.6 percent for the S&P 500 and 5.5 percent for the Nasdaq.

Traders sold all types of risky investments and rushed to the safety of U.S. government bonds and gold. Bond prices rose sharply, briefly pushing the yield on the benchmark 10-year U.S. Treasury note down to 1.44 percent, the lowest on record. The yield ended the day at 1.46 percent.

Gold for August delivery climbed $57.90, nearly 4 percent, to $1,622.10 per ounce.

"Everybody's looking for a safe haven," said Adam Patti, CEO of IndexIQ, an asset management firm. He's skeptical of that strategy, believing the swing was driven by short-term traders "looking to flip in and out of things," rather than long-term investors willing to ride out a few bumps in the market.

May was the worst month for the stock market in two years by some measures. Investors' worries about Europe's debt crisis intensified as the month wore on. Greece's political future is uncertain, and it appears increasingly likely to stop using the euro currency. That could rattle financial markets and make Greece's economy ”” already hobbled ”” even weaker.

Friday's jobs report drew traders' attention back to the weakening U.S. economy, said Todd Salamone, director of research for Schaeffer's Investment Research in Cincinnati.

"The weaker jobs report translates into anticipation of slower growth ahead and weaker corporate earnings, and that ratchets stock prices lower," Salamone said.

The record-low yield on the 10-year Treasury note reflected rapid buying by traders with the biggest portfolios, including central banks, endowments and pension funds, said Ira Jersey, U.S. interest rate strategist at Credit Suisse. He said money managers were selling investments priced in euros and stashing their money in U.S. securities.

Several analysts raised the possibility that the weakening economy will prompt more action by governments and central banks seeking to juice global economic activity. Anticipation of some policy response prevented even deeper losses, Stovall said.

The Federal Reserve undertook programs in 2009 and 2010 to buy U.S. government bonds. Its goal was to lower interest rates and encourage people to buy riskier investments like stocks. At least in public, the central bank so far has resisted a third round of purchases, known as quantitative easing.

Anticipation of bond-buying by the Fed "might put in a little bit of a floor to the market, but the overall economic picture is still bad," said Bob Gelfond, CEO of MQS Asset Management, a New York hedge fund.

The dollar fell partly because traders expect more intervention by the Federal Reserve, Gelfond said.

The euro rose half a penny against the dollar to above $1.24. A day earlier, fears about Europe's finances had pushed the euro to a nearly two-year low against the dollar.

Only 17 of the 500 companies in the S&P index were higher for the day.

Homebuilder stocks fell the most, despite a report that construction spending rose for a second month in April. PulteGroup fell 11.8 percent, D.R. Horton 8.4 percent and Lennar 8.3 percent.

Boeing, the biggest U.S. exporter, fell 3.4 percent, one of the biggest declines among the 30 companies that make up the Dow. Traders fear that the economic slowdown will hurt global demand for its airplanes and defense technologies.

A slower global economy would reduce demand for energy. The price of a barrel of oil fell $3.49 to $83.04, extending a monthlong slide. The price of oil is at a 16-month low.

Stocks closed way down in Europe. Greece's benchmark stock index fell 4.4 percent, Germany's 3.4 percent and France's 2.2 percent.

 

[bigdog]

Source: http://finance.yahoo.com

US stocks close mixed as calm returns to the market after last week's plunge; Europe fears ebb

Calm returned to the stock market Monday after a spasm of fearful selling last week. Major indexes closed mixed after trading modestly lower for most of the day.

The Dow Jones industrial average opened at its lowest level since December after a 275-point sell-off on Friday ignited by grim economic signals, especially a dismal report on the U.S. labor market.

Randy Frederick, managing director of active trading and derivatives at the brokerage Charles Schwab, expects trading to remain slow and steady unless traders are moved by positive news, like a surprisingly strong economic report, or fresh fears about Europe's financial stability.

"You've got to find a catalyst for people to enter the market, and frankly, I just don't see one right now," Frederick said.

In Europe, bond investors appeared less concerned about the finances of some of the region's financially troubled countries. Bond yields fell for Italy and Spain, meaning that they appear less likely to default. Lower bond yields translate into decreased borrowing costs for those debt-strapped nations.

The price of the 10-year U.S. Treasury note fell, lifting its yield to 1.53 percent. The yield hit a record low of 1.44 percent on Friday as fears of a global slowdown increased demand for safe investments.

The Dow closed down 17.11 points, or 0.1 percent, at 12,101.46. The Standard & Poor's 500 index rose a fraction to 1,278.18. The Nasdaq composite index rose 12.53, or 0.5 percent, to 2,760.01.

Among the ten industry groups in the S&P 500, only three fell: Energy companies, whose revenue will be hurt by falling oil prices; industrials, hit by fears of a global economic slowdown; and financial stocks, which would likely bear the brunt if Europe's problems worsened.

The NYSE DOW closed LOWER ▼ -17.11 points or ▼ -0.14% Monday, 4 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,101.46 ▼ -17.11 ▼ -0.14%
Nasdaq____ 2,760.01 ▲ 12.53 ▲ 0.46%
S&P_500__ 1,278.18 ▲ 0.14 ▲ 0.01%
30_Yr_Bond 2.571 ▲ 0.03 ▲ 1.22%

NYSE Volume 4,011,954,750
Nasdaq Volume 1,795,203,620

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,260.19 ▲ 0.00 ▲ 0.00% closed June 4
DAX_____ 5,978.23 ▼ -72.06 ▼ -1.19%
CAC_40__ 2,954.49 ▲ 4.02 ▲ 0.14%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,033.40 ▼ -83.50 ▼ -2.03%
Shanghai_Comp 2,308.55 ▼ -64.89 ▼ -2.73%
Taiwan_Weight 6,894.66 ▼ -211.43 ▼ -2.98%
Nikkei_225____ 8,295.63 ▼ -144.62 ▼ -1.71%
Hang_Seng____ 18,185.59 ▲ 53.93 ▼ -2.01%
Strait_Times___ 2,698.90 ▼ -46.81 ▼ -1.70%
NZX 50 Index__ 3,452.00 ▼ -36.29 ▼ -1.04%

http://finance.yahoo.com/news/mixed-close-wall-street-calm-201721672.html

A mixed close on Wall Street as calm returns

US stocks close mixed as calm returns to the market after last week's plunge; Europe fears ebb

By Daniel Wagner, AP Business Writer

Calm returned to the stock market Monday after a spasm of fearful selling last week. Major indexes closed mixed after trading modestly lower for most of the day.

The Dow Jones industrial average opened at its lowest level since December after a 275-point sell-off on Friday ignited by grim economic signals, especially a dismal report on the U.S. labor market.

Randy Frederick, managing director of active trading and derivatives at the brokerage Charles Schwab, expects trading to remain slow and steady unless traders are moved by positive news, like a surprisingly strong economic report, or fresh fears about Europe's financial stability.

"You've got to find a catalyst for people to enter the market, and frankly, I just don't see one right now," Frederick said.

In Europe, bond investors appeared less concerned about the finances of some of the region's financially troubled countries. Bond yields fell for Italy and Spain, meaning that they appear less likely to default. Lower bond yields translate into decreased borrowing costs for those debt-strapped nations.

The price of the 10-year U.S. Treasury note fell, lifting its yield to 1.53 percent. The yield hit a record low of 1.44 percent on Friday as fears of a global slowdown increased demand for safe investments.

The Dow closed down 17.11 points, or 0.1 percent, at 12,101.46. The Standard & Poor's 500 index rose a fraction to 1,278.18. The Nasdaq composite index rose 12.53, or 0.5 percent, to 2,760.01.

Among the ten industry groups in the S&P 500, only three fell: Energy companies, whose revenue will be hurt by falling oil prices; industrials, hit by fears of a global economic slowdown; and financial stocks, which would likely bear the brunt if Europe's problems worsened.

Caterpillar, which exports heavy machinery, fell 2.6 percent on fears that slower building in China and Europe will reduce demand for construction equipment. Most of the other big losers in the Dow average offer global financial services: JPMorgan Chase, General Electric and Bank of America.

Chesapeake Energy, the second-biggest U.S. natural gas producer, rose 6 percent, the most in the S&P 500. The company said it will replace four board members, bowing to pressure from activist shareholder Carl Icahn.

Aside from banks, homebuilders had the biggest declines in the S&P 500. PulteGroup lost 6.8 percent, Lennar 5.3 percent and D.R. Horton 4.8 percent. The declines added to steep losses for all three companies on Friday. In two days, they have lost about one-third of the huge gains that they posted in the first three months of the year.

The S&P 500 has fallen nearly 10 percent since its recent peak of 1,419, reached on April 2. Traders call a decline of that size a market correction.

Since April, traders have grown increasingly nervous about Europe's finances. Spain's banks are in shambles, and Cyprus appears close to joining the club of bailed-out countries that already includes Greece, Portugal and Ireland.

Voters in Greek elections this month might choose leaders who intend to reject Europe's bailout money and harsh spending cuts. That could lead to Greece's expulsion from the euro, potentially rattling financial markets.

Falling bond yields for Spain and Italy added to signs of growing confidence that Europe can avoid a messy breakup of its currency union. The euro rose a penny against the dollar, to around $1.25. It fell last week to a nearly two-year low against the dollar but rose after the May jobs report renewed concerns about the U.S. economy.

European stocks closed mixed.

 

[bigdog]

Source: http://finance.yahoo.com

US stocks waver, then rise, even though Spain warns that it could lose access to borrowing

As world leaders searched for a way out of Europe's mounting debt crisis, U.S. investors moved to the sidelines.

The major market indexes closed modestly higher, after wavering between slight gains and losses throughout the morning. Trading volume was light and the stock moves were small. In Europe, markets were mixed.

The Dow Jones industrial average rose 26.49 points, or 0.2 percent, to 12,127.95. It traded within a range of 75 points, one of the narrowest of the year.

At the end of the day, the Standard & Poor's 500 index closed 7.32 points higher to 1,285.50. The Nasdaq composite index rose 18.10 points to 2,778.11.

Timothy McCandless, senior stock analyst at Bel Air Investment Advisors in Los Angeles, described Tuesday's market as stuck in purgatory: The economy is not strong enough to represent a healthy recovery, but not weak enough for the Federal Reserve to do more to help.

"It's wrestling with those two sides," McCandless said. "We're right in between."

Finance ministers and central bank presidents from the world's seven wealthiest nations held an emergency conference call to discuss how Europe can heal its weakest countries without alienating the stronger ones that have to foot the bill. Leaders are worried that Spain and Cyprus, which are scrambling for money to prop up their troubled banks, will soon need to be bailed out by their richer counterparts.

"As we saw in Lehman Brothers, when fear hits the banking system, it shuts down," said Jim Millstein, CEO of the advisory firm Millstein & Co. and a former Treasury official who oversaw the agency's investments in AIG and other troubled financial institutions.

The call didn't yield any concrete solutions for Europe, at least not publicly. Several investors who were unsure of what to do Tuesday said they expect more clarity — and perhaps more drama — later this month, after Greece holds elections June 17 and world leaders from the nations known as the Group of 20 meet for the two days afterward.

The NYSE DOW closed HIGHER ▲ 26.49 points or ▲ 0.22% Tuesday, 5 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,127.95 ▲ 26.49 ▲ 0.22%
Nasdaq____ 2,778.11 ▲ 18.10 ▲ 0.66%
S&P_500__ 1,285.50 ▲ 7.32 ▲ 0.57%
30_Yr_Bond 2.619 ▲ 0.05 ▲ 1.87%

NYSE Volume 3,358,654,750
Nasdaq Volume 1,627,203,380

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,260.19 ▲ 0.00 ▲ 0.00% closed
DAX_____ 5,969.40 ▼ -8.83 ▼ -0.15%
CAC_40__ 2,986.10 ▲ 31.61 ▲ 1.07%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,092.40 ▲ 59.00 ▲ 1.46%
Shanghai_Comp 2,311.92 ▲ 3.37 ▲ 0.15%
Taiwan_Weight 7,000.45 ▲ 105.79 ▲ 1.53%
Nikkei_225____ 8,382.00 ▲ 86.37 ▲ 1.04%
Hang_Seng____ 18,259.03 ▲ 53.93 ▲ 0.40%
Strait_Times___ 2,714.83 ▲ 15.93 ▲ 0.59%
NZX 50 Index__ 3,420.79 ▼ -31.20 ▼ -0.90%

http://finance.yahoo.com/news/stocks-inch-higher-investors-await-202651407.html

Stocks inch higher as investors await Europe news

US stocks waver, then rise, even though Spain warns that it could lose access to borrowing

By Christina Rexrode, AP Business Writer

As world leaders searched for a way out of Europe's mounting debt crisis, U.S. investors moved to the sidelines.

The major market indexes closed modestly higher, after wavering between slight gains and losses throughout the morning. Trading volume was light and the stock moves were small. In Europe, markets were mixed.

The Dow Jones industrial average rose 26.49 points, or 0.2 percent, to 12,127.95. It traded within a range of 75 points, one of the narrowest of the year.

Timothy McCandless, senior stock analyst at Bel Air Investment Advisors in Los Angeles, described Tuesday's market as stuck in purgatory: The economy is not strong enough to represent a healthy recovery, but not weak enough for the Federal Reserve to do more to help.

"It's wrestling with those two sides," McCandless said. "We're right in between."

Finance ministers and central bank presidents from the world's seven wealthiest nations held an emergency conference call to discuss how Europe can heal its weakest countries without alienating the stronger ones that have to foot the bill. Leaders are worried that Spain and Cyprus, which are scrambling for money to prop up their troubled banks, will soon need to be bailed out by their richer counterparts.

"As we saw in Lehman Brothers, when fear hits the banking system, it shuts down," said Jim Millstein, CEO of the advisory firm Millstein & Co. and a former Treasury official who oversaw the agency's investments in AIG and other troubled financial institutions.

The call didn't yield any concrete solutions for Europe, at least not publicly. Several investors who were unsure of what to do Tuesday said they expect more clarity — and perhaps more drama — later this month, after Greece holds elections June 17 and world leaders from the nations known as the Group of 20 meet for the two days afterward.

Spain isn't part of the Group of Seven, the countries that held the conference call, but the U.S. and Germany are. As the G-7 leaders met, Spain's prime minister issued a plea for Europe "to support those that are in difficulty." Just beforehand, Spain's finance minister said the country was in danger of not being able to borrow money on the open market.

The yield on Spain's 10-year bonds crept down to 6.31 percent, but that is still dangerously high. Other countries including Greece and Portugal were forced to seek bailouts once their borrowing costs hit 7 percent.

Patrick O'Keefe, director of economic research at the accounting and consulting firm J.H. Cohn, was surprised that markets didn't react more forcibly to Spain's warning flags.

"A couple of years ago, a statement like that by any sovereign would have roiled the market," O'Keefe said. He guesses that the market, used to bad news by now, has already priced in European calamity.

"We were saying, 'We're on the brink' in 2008,'" O'Keefe said. "We're not all that far from the brink now."

In the U.S., the Institute for Supply Management reported that U.S. service companies grew at a slightly faster pace in May. The stock indexes briefly popped higher on the news.

At the end of the day, the Standard & Poor's 500 index closed 7.32 points higher to 1,285.50. The Nasdaq composite index rose 18.10 points to 2,778.11.

O'Keefe said the market is waiting for a blueprint about what to do in Europe and other regions. "I think the markets are looking and saying, 'Where is the political leadership?" O'Keefe said. "And that's true around the world. The Europeans just happen to be out of the frying pan and into the fire right now."

A central problem in Europe is whether the best solution means spending less money or more. Any plan is sure to irritate at least some countries. The German finance minister said again Tuesday he would oppose watering down budget cuts that stronger countries like his own want to impose on weaker countries like Greece.

Some leaders have pushed for a central body that would have more authority over banks in all 17 countries that use the euro. A deposit-insurance program, like the one run by the Federal Deposit Insurance Corp. in the U.S., could keep fearful customers in Spain and Greece from yanking their money out of banks there.

Spain on Tuesday pushed for a European "banking union" that could give bailouts to European banks directly, possibly bypassing national governments and the strings they want to attach to any rescue loans.

European markets were mixed. Greece's main stock index plunged 5 percent. Germany's benchmark index was basically flat. Stocks rose in France and Spain.

Starbucks fell nearly 3 percent a day after announcing it will remake its food offerings. J.C. Penney fell 4 percent after CEO Ron Johnson said his new pricing strategy had confused customers. Homebuilders Lennar and PulteGroup each rose 6 percent or more after being hammered in the past two trading sessions.

 

[bigdog]

Source: http://finance.yahoo.com

Hopes for new action from Europe and the Fed sends stocks surging; Dow jumps 286 points

Hope that European leaders will take steps to ease the region's debt crisis sent stocks surging to their best day this year Wednesday.

Speculation that the Federal Reserve could make another move to help the flagging U.S. economy also drove traders out of bonds and into stocks Wednesday after weeks of losses.

News reports said Germany and European Union officials were considering a plan to lend money from the European bailout fund to help rescue Spain's hobbled banks.

Jeff Kleintop, chief market strategist at LPL Financial, said the market appeared to be turning on rumors. But the all the talk was enough to convince some traders that the worst was over for now.

As of Monday, worries about Greece and Spain had pulled the Standard & Poor's 500 index down nearly 10 percent from its peak in early April. "The next 10 percent move is not down, it's up," Kleintop said.

The rally started early and gathered force in the afternoon. The charge turned the Dow Jones industrial average positive for 2012 and erased the biggest loss of the year less than a week after it happened: the 275-point plunge set off by a dismal U.S. jobs report on Friday.

The Dow Jones industrial average surged 286.84 points Wednesday to close at 12,414.79, its biggest gain since December 20.

In other trading, the Standard & Poor's 500 rose 29.63 points to 1,315.13. The Nasdaq composite rose 66.61 points to 2,844.72.

The NYSE DOW closed HIGHER ▲ 286.84 points or ▲ 2.37% Wednesday, 6 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,414.79 ▲ 286.84 ▲ 2.37%
Nasdaq____ 2,844.72 ▲ 66.61 ▲ 2.40%
S&P_500__ 1,315.13 ▲ 29.63 ▲ 2.30%
30_Yr_Bond 2.720 ▲ 0.10 ▲ 3.86%

NYSE Volume 4,268,368,500
Nasdaq Volume 1,786,404,500

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,384.11 ▲ 123.92 ▲ 2.36%
DAX_____ 6,093.99 ▲ 124.59 ▲ 2.09%
CAC_40__ 3,058.44 ▲ 72.34 ▲ 2.42%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,104.70 ▲ 12.30 ▲ 0.30%
Shanghai_Comp 2,309.55 ▼ -2.36 ▼ -0.10%
Taiwan_Weight 7,056.15 ▲ 55.70 ▲ 0.80%
Nikkei_225____ 8,533.53 ▲ 151.53 ▲ 1.81%
Hang_Seng____ 18,520.53 ▲ 53.93 ▲ 1.43%
Strait_Times___ 2,760.83 ▲ 48.52 ▲ 1.79%
NZX 50 Index__ 3,464.51 ▲ 43.72 ▲ 1.28%

http://finance.yahoo.com/news/dow-l...1iMDIxLTExZTEtYjRmYi04MGY2YjJmNjIwZjY-;_ylv=3

Dow leaps 286 points, its biggest day of the year

Hopes for new action from Europe and the Fed sends stocks surging; Dow jumps 286 points

By Matthew Craft, AP Business Writer

Hope that European leaders will take steps to ease the region's debt crisis sent stocks surging to their best day this year Wednesday.

Speculation that the Federal Reserve could make another move to help the flagging U.S. economy also drove traders out of bonds and into stocks Wednesday after weeks of losses.

News reports said Germany and European Union officials were considering a plan to lend money from the European bailout fund to help rescue Spain's hobbled banks.

Jeff Kleintop, chief market strategist at LPL Financial, said the market appeared to be turning on rumors. But the all the talk was enough to convince some traders that the worst was over for now.

As of Monday, worries about Greece and Spain had pulled the Standard & Poor's 500 index down nearly 10 percent from its peak in early April. "The next 10 percent move is not down, it's up," Kleintop said.

The rally started early and gathered force in the afternoon. The charge turned the Dow Jones industrial average positive for 2012 and erased the biggest loss of the year less than a week after it happened: the 275-point plunge set off by a dismal U.S. jobs report on Friday.

The Dow Jones industrial average surged 286.84 points Wednesday to close at 12,414.79, its biggest gain since December 20.

LPL has started to pull back on bets against the S&P 500 and the euro. "We've decided it's time to declare victory," Kleintop said.

A speech by a Federal Reserve official also added to speculation that the Fed may take more steps to bolster the U.S. economic recovery. Dennis Lockhart, president of the Fed's Atlanta regional bank, says weak job growth over the past two months highlighted the "halting and tenuous" recovery. If the trend continues, "further monetary actions to support the recovery will certainly need to be considered," he said.

Federal Reserve Chairman Ben Bernanke will likely be asked about more actions to help the economy when he testifies before a congressional committee on Thursday.

Companies whose stocks have been clobbered the most over the past month had the best gains. Homebuilders rallied, helped by a strong earnings report from Hovnanian Enterprises and rising applications for new mortgages. Hovnanian's CEO said he sees signs that the housing industry may be entering the early stages of recovery. The Mortgage Bankers Association reported that applications for mortgages rose 1.3 percent last week, largely a result of more people trying to refinance their existing loans.

Hovnanian leapt 18 percent. PulteGroup Inc. surged 7 percent and Lennar Corp. 4 percent.

The gains were spread across the market. Only 11 companies in the S&P 500 dropped, and every industry group in the index rose, led by energy and financial companies. Roughly seven stocks rose for every one that fell on the New York Stock Exchange.

Jim Russell, chief equity strategist at U.S. Bank Wealth Management in Cincinnati, Ohio, said it's natural for the market to have a strong day after an extended beat-down. On such days, it's usually the companies that were hit the hardest that fare best.

"In market language, it's called a technical bounce," he said. "There's no bad news today, so the market goes up. Frankly, it's that simple."

U.S. markets followed major European indexes higher. Indexes rose 2.4 percent in the U.K. and France. Borrowing costs eased for Spain, another positive sign.

In other trading, the Standard & Poor's 500 rose 29.63 points to 1,315.13. The Nasdaq composite rose 66.61 points to 2,844.72.

A Federal Reserve survey showed growth across the country. Hiring was steady, according to the Fed's "Beige Book." That's in marked contrast to the government's monthly jobs report, which said employers added the fewest jobs in a year last month.

The dollar dipped and Treasury yields rose as investors moved money out of defensive investments. The yield on the benchmark rose to 1.64 percent from 1.57 percent late Tuesday.

Among stocks making big moves:

”” Morgan Stanley jumped $1.08, 8 percent, to $13.94 amid reports that the Blackstone Group and other private equity firms may try to buy a stake in the bank's commodities business.

”” UnitedHealth Group gained $1.66, 3 percent, to $57.70 after the health insurer said it will raise its quarterly dividend from 16 cents to 21 cents per share . The board also approved a plan to buy back stock.

”” Tempur-Pedic International plunged $21.28, 49 percent, to $22.39. The mattress maker said it expects quarterly profits to fall by half compared to last year. Tempur-Pedic blamed its competitors' aggressive marketing campaigns and promotions for hurting its sales.

 

[bigdog]

Source: http://finance.yahoo.com

Investors didn't hear what they wanted from Federal Reserve Chairman Ben Bernanke.

An early rally in stocks faded in the afternoon Thursday after Bernanke signaled no immediate further steps from the Fed to stoke economic growth in the United States, which has shown signs of faltering.

A report that Americans cut back sharply on their credit card purchases in April, suggesting consumers were losing confidence in the economy, also took some steam out of the market.

Bank stocks also lost ground late in the day after the Fed said it wants U.S. banks to set aside more money to cushion against unexpected losses, a key step in preventing another financial crisis.

The Dow Jones industrial average had been up as much as 140 points but closed up 46.17 points, or 0.3 percent, at 12,460.96.

"The market is addicted to easy money, and Bernanke has the job of not pulling the trigger unless the situation needs stabilizing," said Doug Roberts, chief investment strategist at the investment company Channel Capital Research.

Bernanke told a joint economic committee in Congress that the Fed was ready to act if the economy needs it, but he did not spell out any additional steps on the way.

The Fed chairman said the central bank was "prepared to take action as needed to protect the U.S. financial system and economy in the event that financial stresses escalate."

Weaker hiring in May and comments by a Fed regional president had led some investors to hope that the Fed might try something new. The stock market enjoyed its biggest rally of the year on Wednesday.

On Thursday, the early rally in stocks came after China cut its benchmark lending rate for the first time in nearly four years, adding to efforts to reverse a sharp slowdown in economic growth there.

The NYSE DOW closed HIGHER ▲ 46.17 points or ▲ 0.37% Thursday, 7 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,460.96 ▲ 46.17 ▲ 0.37%
Nasdaq____ 2,831.02 ▼ -13.70 ▼ -0.48%
S&P_500__ 1,314.99 ▼ -0.14 ▼ -0.01%
30_Yr_Bond 2.760 ▲ 0.04 ▲ 1.36%

NYSE Volume 3,933,011,750
Nasdaq Volume 1,651,331,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,447.79 ▲ 63.68 ▲ 1.18%
DAX_____ 6,144.22 ▲ 50.23 ▲ 0.82%
CAC_40__ 3,071.16 ▲ 12.72 ▲ 0.42%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,156.70 ▲ 52.00 ▲ 1.27%
Shanghai_Comp 2,293.13 ▼ -16.43 ▼ -0.71%
Taiwan_Weight 7,080.31 ▲ 24.16 ▲ 0.34%
Nikkei_225____ 8,639.72 ▲ 106.19 ▲ 1.24%
Hang_Seng____ 18,678.29 ▲ 53.93 ▲ 0.85%
Strait_Times___ 2,759.26 ▼ -1.57 ▼ -0.06%
NZX 50 Index__ 3,473.96 ▲ 9.44 ▲ 0.27%

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

Stock rally fades; no immediate help from Fed

US stocks get a lift from China, but rally stalls after Bernanke testimony

By Pallavi Gogoi, AP Business Writer

NEW YORK (AP) -- Investors didn't hear what they wanted from Federal Reserve Chairman Ben Bernanke.

An early rally in stocks faded in the afternoon Thursday after Bernanke signaled no immediate further steps from the Fed to stoke economic growth in the United States, which has shown signs of faltering.

A report that Americans cut back sharply on their credit card purchases in April, suggesting consumers were losing confidence in the economy, also took some steam out of the market.

Bank stocks also lost ground late in the day after the Fed said it wants U.S. banks to set aside more money to cushion against unexpected losses, a key step in preventing another financial crisis.

The Dow Jones industrial average had been up as much as 140 points but closed up 46.17 points, or 0.3 percent, at 12,460.96.

"The market is addicted to easy money, and Bernanke has the job of not pulling the trigger unless the situation needs stabilizing," said Doug Roberts, chief investment strategist at the investment company Channel Capital Research.

Bernanke told a joint economic committee in Congress that the Fed was ready to act if the economy needs it, but he did not spell out any additional steps on the way.

The Fed chairman said the central bank was "prepared to take action as needed to protect the U.S. financial system and economy in the event that financial stresses escalate."

Weaker hiring in May and comments by a Fed regional president had led some investors to hope that the Fed might try something new. The stock market enjoyed its biggest rally of the year on Wednesday.

On Thursday, the early rally in stocks came after China cut its benchmark lending rate for the first time in nearly four years, adding to efforts to reverse a sharp slowdown in economic growth there.

"China is the world's economic locomotive at the moment, and it can't afford to slow down at a time when other major economies are in precarious positions," said Matthew Kaufler, portfolio manager at mutual fund group Federated Investors.

The broader stock market drifted lower during the afternoon as well. The Standard & Poor's 500 index ended down 0.14 point at 1,314.99. The Nasdaq composite index finished down 13.70 points at 2,831.02.

Industrial stocks that rely heavily on the Chinese market for sales were among the biggest gainers on the New York Stock Exchange. Heavy equipment maker Caterpillar rose 48 cents to $87.14.

The price of gold, which since 2009 has often surged as the Fed has bought bonds to stimulate the economy, fell almost 3 percent after Bernanke's testimony. Gold declined $46 an ounce, the biggest decline since April, to $1,588.

Gold tends to fall when traders expect the value of the dollar to rise, which is a likely outcome if the Fed doesn't take steps to keep interest rates low, like buying government bonds.

On Friday, after the government reported that the country created only 69,000 jobs in May, gold rocketed $58 an ounce, partly because investors believed the Fed might step in.

The sharp moves up and down aren't likely to stop until there's a clear answer from the Fed, said Jon Nadler, senior analyst at Kitco Metals. That may take until June 20, when the Fed holds its next policy meeting.

"This is a market built on anticipation and little else," he said.

Michelle Girard, senior U.S. economist with Royal Bank of Scotland, said the Fed may extend a program called Operation Twist, in which it sells short-term securities and buys long-term bonds to drive down long-term interest rates, for a few months. That program is set to expire at the end of this month.

Investor fear has grown recently that Greece will leave the euro currency union, triggering a financial a panic in Europe and dragging down the rest of the world economy.

Some fear over Europe was allayed Thursday when Spain raised $2.6 billion from the bond market. The interest rate on its benchmark 10-year note fell to 6.02 percent from 6.26 percent late Wednesday in trading on the secondary market, a sign that bond investors have more confidence in Spain's finances.

Among stocks making big moves in the U.S.:

”” Pharmacyclics Inc. rose $1.96, or 6 percent, to $36.73 after an analyst predicted that the company's experimental lymphoma drug could grow into a blockbuster product.

”” Molina Healthcare, an insurance company, plunged $7.99, or 31 percent, to $17.77 after it withdrew its 2012 profit forecast, citing a possible revenue shortfall in Texas.

”” Men's Wearhouse dropped $6.72, or 19 percent, to $28.85 after reporting disappointing financial results and issuing a weak forecast for its second quarter.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks finish best week of 2012 on news that businesses are restocking faster than expected

Stocks rose for the fourth day in a row on Friday, capping their best week so far this year.

It was a relief for investors after the big drops of the previous week.

Stocks fell in morning trading, with the Dow Jones industrial average down almost 63 points. But they turned around after the government said businesses are restocking their shelves faster than analysts had expected.

The Commerce Department said U.S. wholesale stockpiles grew 0.6 percent in April. That's twice as fast as they grew in March and a sign that businesses are ordering enough goods to lead to increased factory production and sales. Investors had been braced for more sluggish growth.

Oil fell 72 cents to $84.10 per barrel. Sure, it was pushed down by long-term economic worries. But lower energy costs help consumers.

"If you had some doubts about an economic recovery, oil in the $80s is a lot better than oil at $110," said Jim Dunigan, managing executive of investments for PNC Wealth Management in Philadelphia. Oil traded just below $110 in late February.

The Dow finished 93.24 points higher, or three-quarters of a percent, at 12,554.20. It ended the week up almost 3.6 percent.

The Standard & Poor's 500 index rose 10.67 points, or 0.81 percent, to close at 1,325.66. The Nasdaq composite rose 27.40 points, or 0.97 percent, to close at 2,858.42.

Nine out of the ten industry groups in the S&P 500 rose. Only energy stocks declined, following energy prices lower.

The NYSE DOW closed HIGHER ▲ 93.24 points or ▲ 0.75% Friday, 8 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,554.20 ▲ 93.24 ▲ 0.75%
Nasdaq____ 2,858.42 ▲ 27.40 ▲ 0.97%
S&P_500__ 1,325.66 ▲ 10.67 ▲ 0.81%
30_Yr_Bond 2.765 ▲ 0.01 ▲ 0.29%

NYSE Volume 3,307,896,500
Nasdaq Volume 1,383,703,620

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,435.08 ▼ -12.71 ▼ -0.23%
DAX_____ 6,130.82 ▼ -13.40 ▼ -0.22%
CAC_40__ 3,051.69 ▼ -19.47 ▼ -0.63%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,111.20 ▼ -45.50 ▼ -1.09%
Shanghai_Comp 2,281.45 ▼ -11.68 ▼ -0.51%
Taiwan_Weight 6,999.65 ▼ -80.66 ▼ -1.14%
Nikkei_225____ 8,459.26 ▼ -180.46 ▼ -2.09%
Hang_Seng____ 18,502.34 ▲ 53.93 ▼ -0.94%
Strait_Times___ 2,737.89 ▼ -21.37 ▼ -0.77%
NZX 50 Index__ 3,449.47 ▼ -24.48 ▼ -0.70%

http://finance.yahoo.com/news/stock-market-posts-best-week-201445118.html

Stock market posts best week of 2012

Stocks finish best week of 2012 on news that businesses are restocking faster than expected

By Joshua Freed, AP Business Writer



Stocks rose for the fourth day in a row on Friday, capping their best week so far this year.

It was a relief for investors after the big drops of the previous week.

Stocks fell in morning trading, with the Dow Jones industrial average down almost 63 points. But they turned around after the government said businesses are restocking their shelves faster than analysts had expected.

The Commerce Department said U.S. wholesale stockpiles grew 0.6 percent in April. That's twice as fast as they grew in March and a sign that businesses are ordering enough goods to lead to increased factory production and sales. Investors had been braced for more sluggish growth.

Oil fell 72 cents to $84.10 per barrel. Sure, it was pushed down by long-term economic worries. But lower energy costs help consumers.

"If you had some doubts about an economic recovery, oil in the $80s is a lot better than oil at $110," said Jim Dunigan, managing executive of investments for PNC Wealth Management in Philadelphia. Oil traded just below $110 in late February.

The Dow finished 93.24 points higher, or three-quarters of a percent, at 12,554.20. It ended the week up almost 3.6 percent.

The Standard & Poor's 500 index rose 10.67 points, or 0.81 percent, to close at 1,325.66. The Nasdaq composite rose 27.40 points, or 0.97 percent, to close at 2,858.42.

Nine out of the ten industry groups in the S&P 500 rose. Only energy stocks declined, following energy prices lower.

Wal-Mart Stores was the biggest gainer in the Dow, up $2.35, or 3.6 percent, at $68.22. Other companies that depend heavily on a strong economy grew too, including Intel, up 47 cents, or 1.8 percent, at $26.41, and General Electric, up 20 cents, or 1 percent, to $19.20. Home Depot rose $1.11, or 2.2 percent, to $52.35.

Facebook rose 79 cents, or 3 percent, to $27.10 after announcing an "app center" that will recommend new add-on software for users. Anything that boosts user interaction is likely to help it sell more ads, which has been a key concern for investors in its new stock, which debuted three weeks ago at $38.

Chesapeake Energy shareholders punished their directors and were rewarded by the market. The stock rose 51 cents, or 2.9 percent, to $18.36 after shareholder votes prompted the resignations of two directors at the company's annual meeting Friday. Earlier in the day the company said it will sell pipeline assets in three deals for a total of more than $4 billion in cash.

Navistar International rose $4.25, or 17.6 percent, to $28.36 after the activist investor Carl Icahn boosted his stake in the truck maker.

Markets fell in Asia. Shanghai's stock index lost a half-percent, its fifth day of losses. Japan's Nikkei fell 2.1 percent.

Chinese leaders have been showing signs of urgency ahead of May trade and industrial data due out this weekend that might be even weaker than earlier pessimistic forecasts. The Chinese government cut interest rates for the first time in four years and has reduced gasoline and diesel prices for the second time in a month.

Over the long run, that will put more money in the pockets of Chinese consumers. In the short run it's a sign that the government is worried about growth.

"That shows they're being proactive, but on the other hand, it also makes you wonder, what's the data is really like?" said Uri Landesman, president of Platinum Partners. "I'm wondering how bad the data's going to be. I'd be very surprised if it's good."

China is a key U.S. trade partner so its growth is important to U.S. companies. Its importance is magnified by the possibility that Europe's economy will go from slow growth to shrinkage, Landesman said.

Major European markets fell, although their declines were smaller after the U.S. inventory news came out. France's benchmark index lost 0.6 percent, Britain's and Germany's each dropped 0.2 percent.

9697

 

[bigdog]

Source: http://finance.yahoo.com

Investor relief over a rescue for Spain's banks fades quickly; Dow loses 142

In the United States, the broader market drifted lower all day. The Standard & Poor's 500 index ended down 16.73 points at 1,308.93, and the Nasdaq composite index closed down 48.69 points at 2,809.73.

The Dow finished down 142.97, one of its biggest daily declines this year, at 12,411.23. It opened up almost 100 points.

A burst of enthusiasm over a rescue of Spanish banks melted away within hours Monday, and investor anxiety about the troubled finances of Europe grew on both sides of the Atlantic.

On Wall Street, stocks opened sharply higher but sank all day. Selling accelerated in the last hour of trading, and the Dow Jones industrial average closed down 142 points.

More alarming, bond investors signaled that they are less confident about lending money to the governments of both Spain and Italy, which investors fear will be next to seek help.

Jim Herrick, director of equity trading at Baird & Co., said investors realized "that this Band-Aid approach with Spain will not solve larger problems in Europe and that this could be a long, arduous process."

As investors considered the long-term fate of Europe, Herrick said, "it was time to sell."

European countries committed over the weekend to funnel up to $125 billion to Spain to distribute to its banks, which have been driven almost to insolvency from a bust in real estate prices four years ago.

Spain became the fourth European nation to seek a rescue, after Greece, Portugal and Ireland.


The NYSE DOW closed LOWER ▼ -142.97 points or ▼ -1.14% Monday, 11 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,411.23 ▼ -142.97 ▼ -1.14%
Nasdaq____ 2,809.73 ▼ -48.69 ▼ -1.70%
S&P_500__ 1,308.93 ▼ -16.73 ▼ -1.26%
30_Yr_Bond 2.723 ▼ -0.04 ▼ -1.52%

NYSE Volume 3,537,531,500
Nasdaq Volume 1,512,609,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,432.37 ▼ -2.71 ▼ -0.05%
DAX_____ 6,141.05 ▲ 10.23 ▲ 0.17%
CAC_40__ 3,042.76 ▼ -8.93 ▼ -0.29%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,111.20 ▼ -45.50 ▼ -1.09%
Shanghai_Comp 2,305.86 ▲ 24.41 ▲ 1.07%
Taiwan_Weight 7,120.23 ▲ 120.58 ▲ 1.72%
Nikkei_225____ 8,624.90 ▲ 165.64 ▲ 1.96%
Hang_Seng____ 18,953.63 ▲ 53.93 ▲ 2.44%
Strait_Times___ 2,786.71 ▲ 48.82 ▲ 1.78%
NZX 50 Index__ 3,454.24 ▲ 4.77 ▲ 0.14%

http://finance.yahoo.com/news/relief-over-spain-bank-rescue-204859578.html

Relief over Spain bank rescue fades quickly

Investor relief over a rescue for Spain's banks fades quickly; Dow loses 142

By Pallavi Gogoi, AP Business Writer

A burst of enthusiasm over a rescue of Spanish banks melted away within hours Monday, and investor anxiety about the troubled finances of Europe grew on both sides of the Atlantic.

On Wall Street, stocks opened sharply higher but sank all day. Selling accelerated in the last hour of trading, and the Dow Jones industrial average closed down 142 points.

More alarming, bond investors signaled that they are less confident about lending money to the governments of both Spain and Italy, which investors fear will be next to seek help.

Jim Herrick, director of equity trading at Baird & Co., said investors realized "that this Band-Aid approach with Spain will not solve larger problems in Europe and that this could be a long, arduous process."

As investors considered the long-term fate of Europe, Herrick said, "it was time to sell."

European countries committed over the weekend to funnel up to $125 billion to Spain to distribute to its banks, which have been driven almost to insolvency from a bust in real estate prices four years ago.

Spain became the fourth European nation to seek a rescue, after Greece, Portugal and Ireland.

Market strategists had hoped that the rescue in Spain would at least temporarily ease fear that debt problems in Europe will explode into a world financial crisis and hurt the fragile global economy.

Those strategists had predicted a rally in stocks after the deal was announced. But the relief was short-lived, and investors were still worried about an election Sunday in Greece that could lead to that country's exit from the euro.

In the case of Spain, investors appeared uncertain about whether the rescue would be enough to save the banks and whether the terms of the loan, still undisclosed, would deliver another blow to the recession-hobbled Spanish economy.

France's main stock index closed down 0.3 percent, and Germany's rose just 0.2 percent. Both indexes were up more than 2 percent earlier in the day. Spain's benchmark stock index shot higher by 6 percent but closed down 0.5 percent.

In the United States, the broader market drifted lower all day. The Standard & Poor's 500 index ended down 16.73 points at 1,308.93, and the Nasdaq composite index closed down 48.69 points at 2,809.73.

The Dow finished down 142.97, one of its biggest daily declines this year, at 12,411.23. It opened up almost 100 points.

"People want to see clarity," said Stephen Carl, head of equity trading at The Williams Capital Group, an investment bank in New York. "No one likes a situation that's to be determined."

The yield on Spanish 10-year bonds climbed 0.29 percentage point to 6.47 percent, an indication that bond investors are demanding a higher return to lend money to the Spanish government. The yield had fallen earlier.

The cost of insuring Spanish government debt rose almost to a record high, suggesting investors are more nervous about a Spanish government default, according to Markit, a financial information company.

The yield on the comparable Italian bond crept higher, too ”” by 0.28 percentage point from Friday to 5.83 percent.

Finance ministers of the 17 countries that use the euro currency said they would make the $120 billion available to the Spanish government to distribute to its banks.

Bond investors were worried that the debt from the rescue package would put additional strain on Spain's finances, though. The European Union made clear Monday that there would be some strings attached besides interest.

"When people lend money, they never do it for free. They want to know what is done with the money," said Joaquin Almunia, the European Competition Commissioner.

Adding to the economic fear, Italy said its economy contracted by 0.8 percent in the first three months of the year, the worst showing in three years. The Italian government is struggling to fend off the perception that Italy will be next to need a rescue.

The price of oil reversed an earlier gain, falling 65 cents to $83.46 a barrel. Investors bought safer investments like U.S. Treasury notes, sending the yield on the benchmark 10-year note down to 1.59 percent from 1.64 percent Friday.

Also adding to market worries was China's economic slowdown. A large steelmaker in China, Baoshan Iron & Steel, said it lowered steel prices as demand from makers of appliances and cars slowed.

"China is a big piece of the global economic puzzle," Herrick said. "Any piece of news that comes out from there will be closely scrutinized."

The news sent stocks of steelmakers sharply lower. U.S. Steel fell 6.5 percent, while AK Steel Holding fell even further, 14 percent, after its stock was downgraded by an analyst on similar concerns.

Apple stock fell $9.15, or 1.6 percent, to $571.17, as investors appeared unimpressed by what the company unveiled at a conference for software developers in San Francisco.

Apple showcased a new operating system for the iPhone, a thinner MacBook Pro laptop and other products. Apple traded as high as $588.50 earlier.

Among other stocks making big moves on Monday:

”” Micronetics Inc. nearly doubled, rising $7.10 to $14.59 after the maker of microwave and radio frequency components agreed to a takeover by Mercury Computer Systems Inc.

”” EnergySolutions fell $1.97, or 55 percent, to $1.62 after the nuclear industry service company appointed board member David Lockwood as its new chief executive, and lowered its full-year adjusted earnings estimate.

”” Progress Energy rose $1.47, or 2.5 percent, to $59.60 after federal regulators cleared Duke Energy's proposed takeover of the company, a deal that will create the nation's largest electric utility.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks move higher on Wall St. after Fed official says he supports moves to stimulate economy

the Dow rose 162.57 points, or 1.3 percent, to close at 12,573.80. The Standard & Poor's 500 index gained 15.25 points to 1,324.18, and the Nasdaq composite rose 33.34 to 2,843.07. Trading was light for a second day.

Stocks staged one of their strongest rallies of the year Tuesday, erasing a big decline from the day before, after a Federal Reserve official said he supported more measures to stimulate the economy.

The Dow Jones industrial average shot up 162 points, and every major category of stock in the U.S. market closed higher.

Charles Evans, president of the Fed's Chicago bank, told Bloomberg News that he supported action to produce faster job growth, including having the Fed commit to super-low interest rates until unemployment falls significantly.

Last week, Fed Chairman Ben Bernanke told a committee of Congress that he was ready to act if the economy needs it, but he laid out no immediate steps.

Investors have been worried about an escalating crisis in Europe over government debt and the health of banks, and job growth in the United States has been slower over the past three months than it was earlier in the year.

"If there's really bad news, it creates a heightened sense of anticipation that the Fed is going to ride to the rescue," said Jeff Lancaster, a prinicpal at the wealth advisory firm Bingham, Osborn & Scarborough in San Francisco.

"It's almost like you've crashed your car and you've got a $500 deductible, and you take the car to the body shop and you just have this perverse desire for the damage to be well over $500," he said.

The NYSE DOW closed HIGHER ▲ 162.57 points or ▲ 1.31% Tuesday, 12 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,573.80 ▲ 162.57 ▲ 1.31%
Nasdaq____ 2,843.07 ▲ 33.34 ▲ 1.19%
S&P_500__ 1,324.18 ▲ 15.25 ▲ 1.17%
30_Yr_Bond 2.772 ▲ 0.05 ▲ 1.80%

NYSE Volume 3,442,926,750
Nasdaq Volume 1,598,636,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,473.74 ▲ 41.37 ▲ 0.76%
DAX_____ 6,161.24 ▲ 20.19 ▲ 0.33%
CAC_40__ 3,046.91 ▲ 4.15 ▲ 0.14%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,118.30 ▲ 7.10 ▲ 0.17%
Shanghai_Comp 2,289.79 ▼ -16.06 ▼ -0.70%
Taiwan_Weight 7,072.08 ▼ -48.15 ▼ -0.68%
Nikkei_225____ 8,536.72 ▼ -88.18 ▼ -1.02%
Hang_Seng____ 18,872.56 ▲ 53.93 ▼ -0.43%
Strait_Times___ 2,797.08 ▲ 9.27 ▲ 0.33%
NZX 50 Index__ 3,425.60 ▼ -28.64 ▼ -0.83%


http://finance.yahoo.com/news/hope-fed-help-powers-us-204222206.html

Hope for Fed help powers US stocks to big gain

Stocks move higher on Wall St. after Fed official says he supports moves to stimulate economy

By Pallavi Gogoi, AP Business Writer

Stocks staged one of their strongest rallies of the year Tuesday, erasing a big decline from the day before, after a Federal Reserve official said he supported more measures to stimulate the economy.

The Dow Jones industrial average shot up 162 points, and every major category of stock in the U.S. market closed higher.

Charles Evans, president of the Fed's Chicago bank, told Bloomberg News that he supported action to produce faster job growth, including having the Fed commit to super-low interest rates until unemployment falls significantly.

Last week, Fed Chairman Ben Bernanke told a committee of Congress that he was ready to act if the economy needs it, but he laid out no immediate steps.

Investors have been worried about an escalating crisis in Europe over government debt and the health of banks, and job growth in the United States has been slower over the past three months than it was earlier in the year.

"If there's really bad news, it creates a heightened sense of anticipation that the Fed is going to ride to the rescue," said Jeff Lancaster, a prinicpal at the wealth advisory firm Bingham, Osborn & Scarborough in San Francisco.

"It's almost like you've crashed your car and you've got a $500 deductible, and you take the car to the body shop and you just have this perverse desire for the damage to be well over $500," he said.

Rob Lutts, president and chief investment officer of Cabot Money Management, said investors were looking for an excuse to buy.

"The question for Bernanke is should he add more medicine when he's already doped up the patient enough already," he said.

Materials companies, industrial companies and banks rose the most, but each of the 10 major categories of stock in the Standard & Poor's 500 climbed. Energy stocks also had an impressive day after the price of oil rose from an eight-month low.

Over the weekend, European countries committed to lend Spain up to $125 billion to save its failing banks. But on Monday, the Dow fell 142 points. Investors fretted that they did not know enough about the details.

The big rally in U.S. stocks on Tuesday came despite more discouraging signs from Europe. Spain's borrowing costs jumped for a second day, to the highest level since Spain adopted the euro currency.

The interest rate, or yield, on Spain's 10-year bond rose 0.20 percentage point to 6.67 percent. It rose as high as 6.81 percent earlier in the day. At 7 percent, economists say, countries generally can no longer finance their own debt.

The rescue loan will be funneled through the government of Spain, and investors are also worried about whether Spain will have to repay that loan before it pays its other debt.

That makes bondholders less willing to buy Spain's debt, and makes them demand a higher interest rate to compensate for the added risk that they will not be paid back first if Spain is unable to pay all its debt.

"The market needs some confidence and foreign buyers won't buy Spanish debt if they won't get paid first," said William O'Donnell, head of U.S. Treasury strategy at Royal Bank of Scotland.

Borrowing costs for Italy, which analysts fear will be the next European country to seek some kind of rescue, rose even more. They jumped 0.47 percentage point to 6.02 percent.

Investors are also nervous ahead of an election in Greece this weekend that may determine whether that country cuts itself free from the euro.

Stocks slipped early in Madrid, then turned positive and were up 0.1 percent after U.S. markets opened. France's CAC-40 rose 0.1 percent, and Germany's DAX gained 0.3 percent.

In the U.S., the Dow rose 162.57 points, or 1.3 percent, to close at 12,573.80. The Standard & Poor's 500 index gained 15.25 points to 1,324.18, and the Nasdaq composite rose 33.34 to 2,843.07. Trading was light for a second day.

Investors sold U.S. government debt, an indication that they were willing to move money into riskier assets. The yield on the benchmark 10-year U.S. Treasury note climbed 0.08 percentage point to 1.67 percent.

Michael Kors Holdings, a high-end clothing company, rose $2.06, or 5 percent, to $40.24 after reporting that its fourth-quarter profit more than tripled on strong demand grew for its luxury clothing and accessories.

The company also boosted its earnings forecast for the quarter and the year. Luxury spending has recovered from the recession faster than other consumer spending. Stocks of other upscale retailers, like Nordstrom, also rose.

Among other stocks making big moves:

”” VeriFone Systems, an electronic payments company, fell $2.02, or 6 percent, to $31.92. A jury ruled against it last week in a patent dispute, and VeriFone said late Monday that it was booking $18 million in expenses.

”” A123 Systems, which makes batteries for electric cars, jumped 54 cents, or 52 percent, to $1.58 after saying it had developed new lithium ion technology capable of operating in extreme heat or cold. Heat generated by powerful next-generation batteries is one of the biggest hurdles in developing cars that do not use fossil fuels.

”” Textron, which makes planes, rose 94 cents, or 4 percent, to $24.52, one of the biggest gains in the S&P 500. Business jet operator NetJets said it plans to spend up to $9.6 billion on planes from Textron's Cessna unit and from Bombardier.

”” First Solar, the world's largest maker of a type of solar panel, rose $2.62, or 21.2 percent, to $14.95. It reported strong demand from Europe and will delay the closing of a German plant.

 

[bigdog]

Source: http://finance.yahoo.com

US stocks end lower as Europe teeters; Dow off 77

Stocks end lower as Italy's borrowing costs surge; Cyprus warns it may need a bailout


The NYSE DOW closed LOWER ▼ -77.42 points or ▼ -0.62% Wednesday, 13 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,496.38 ▼ -77.42 ▼ -0.62%
Nasdaq____ 2,818.61 ▼ -24.46 ▼ -0.86%
S&P_500__ 1,314.88 ▼ -9.30 ▼ -0.70%
30_Yr_Bond 2.711 ▼ -0.06 ▼ -2.20%

NYSE Volume 3,510,391,000
Nasdaq Volume 1,665,758,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,483.81 ▲ 10.07 ▲ 0.18%
DAX_____ 6,152.49 ▼ -8.75 ▼ -0.14%
CAC_40__ 3,030.04 ▼ -16.87 ▼ -0.55%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,111.50 ▼ -6.80 ▼ -0.17%
Shanghai_Comp 2,318.92 ▲ 29.13 ▲ 1.27%
Taiwan_Weight 7,088.83 ▲ 16.75 ▲ 0.24%
Nikkei_225____ 8,587.84 ▲ 51.12 ▲ 0.60%
Hang_Seng____ 19,026.52 ▲ 53.93 ▲ 0.82%
Strait_Times___ 2,786.88 ▼ -10.20 ▼ -0.36%
NZX 50 Index__ 3,381.73 ▼ -43.87 ▼ -1.28%

http://finance.yahoo.com/news/us-st...1iNTlkLTExZTEtODdiYS05NmMxMDAwZGYwMTI-;_ylv=3

US stocks end lower as Europe teeters; Dow off 77

Stocks end lower as Italy's borrowing costs surge; Cyprus warns it may need a bailout

By Christina Rexrode, AP Business Writer

U.S stocks skidded Wednesday, a looming election in Greece and the broader debt maelstrom in Europe their ominous backdrop.

Major market indexes wavered for much of the day but fell sharply after the finance minister of Cyprus warned that his country may seek its own bailout this week, stoking the uneasy feeling that the crisis is far from over.

In a troubling sign, Spain's 10-year borrowing rate inched up to 6.71 percent from 6.67 percent. Other countries in Europe have had to seek bailouts when their borrowing rates hit 7 percent.

European leaders said over the weekend that they will lend up to $125 billion to Spain's banks, but that has not soothed markets. Investors want more details about the plan, including where the money would come from and how likely it is that Spain would pay it back.

Investors aren't even sure they can believe the announcements out of Europe, said Jeff Sica, president and chief investment officer of SICA Wealth Management in Morristown, N.J.

"(Spanish Prime Minister Mariano) Rajoy came out a few weeks ago and said Spain didn't need money, and then he needs 100 billion euro," Sica said. "There's not a level of trust where people could say, 'The people in charge of this crisis have it under control.'"

Moody's, the credit ratings agency, downgraded Spain's government debt three notches late Wednesday, placing it one level above junk status. It downgraded Cyprus's debt by two, pushing it deeper into junk rating.

Italy ”” which, like Cyprus, could be the next flashpoint in the debt crisis ”” had setbacks of its own. Its 10-year borrowing rate rose to 6.07 percent from 6.02 percent, and the interest rate on its one-year bonds also rose sharply.

Greece will hold elections Sunday, and voters may endorse a party that wants to cancel the terms of Greece's own bailout. That would almost certainly force Greece to leave the euro currency.

Greece's elections are especially hard to predict because rules there forbid polling in the two weeks before an election, said Jim McDonald, chief investment strategist at Northern Trust in Chicago.

So "in a void of real developments," McDonald said, investors are hard-pressed to figure out how to trade, which helps explain the market's whiplash-inducing changes this week.

The Dow Jones industrial average shed 77.42 points to end at 12,496.38 after another day of volatile trading. The Dow had been down as much as 120 points and up as much as 24 points. That followed a triple-digit gain on Tuesday and a triple-digit loss on Monday.

The Standard & Poor's 500 index fell 9.30 points to 1,314.88, and the Nasdaq composite index fell 24.46 points to 2,818.61.

Richard Ross, global technical strategist at Auerbach Grayson in New York, said he's still bullish on U.S. stocks. He thinks their decline throughout May, perhaps a necessary correction, means they're ready to charge ahead.

The market's inability to make up its mind this week, he said, is a result of investors trading on news headlines rather than examining the fundamentals of individual stocks.

"The sovereign debt crisis, the Greek elections, the Egyptian elections ”” if you are basing an investment strategy around these headlines, you will be paralyzed," Ross said.

The interest rate on the U.S. 10-year Treasury note fell to 1.60 from 1.66 percent. Investors moved money into one of the few places where they think it will be safe, with the U.S. government.

Big movers included JPMorgan Chase, which rose 53 cents to $34.30 after CEO Jamie Dimon testified to Congress about the bank's surprise $2 billion trading loss. Dell jumped 30 cents to $12.28 after the computer maker said it would begin paying its first shareholder dividend. Cigarette maker Philip Morris International rose 69 cents to $85.70 after announcing it would buy back more of its own stock.

Scotts Miracle-Gro, which makes lawn-care products, fell $2.84 to $40.21 after issuing weak forecasts for profit and revenue. Cobalt International Energy fell $1.36 to $21.67 after announcing it will abandon a Gulf of Mexico well that hasn't yielded any commercial hydrocarbons. Nike fell $5.38 to $102.22.

U.S stocks skidded Wednesday, a looming election in Greece and the broader debt maelstrom in Europe their ominous backdrop.

Major market indexes wavered for much of the day but fell sharply after the finance minister of Cyprus warned that his country may seek its own bailout this week, stoking the uneasy feeling that the crisis is far from over.

In a troubling sign, Spain's 10-year borrowing rate inched up to 6.71 percent from 6.67 percent. Other countries in Europe have had to seek bailouts when their borrowing rates hit 7 percent.

European leaders said over the weekend that they will lend up to $125 billion to Spain's banks, but that has not soothed markets. Investors want more details about the plan, including where the money would come from and how likely it is that Spain would pay it back.

Investors aren't even sure they can believe the announcements out of Europe, said Jeff Sica, president and chief investment officer of SICA Wealth Management in Morristown, N.J.

"(Spanish Prime Minister Mariano) Rajoy came out a few weeks ago and said Spain didn't need money, and then he needs 100 billion euro," Sica said. "There's not a level of trust where people could say, 'The people in charge of this crisis have it under control.'"

Moody's, the credit ratings agency, downgraded Spain's government debt three notches late Wednesday, placing it one level above junk status. It downgraded Cyprus's debt by two, pushing it deeper into junk rating.

Italy ”” which, like Cyprus, could be the next flashpoint in the debt crisis ”” had setbacks of its own. Its 10-year borrowing rate rose to 6.07 percent from 6.02 percent, and the interest rate on its one-year bonds also rose sharply.

Greece will hold elections Sunday, and voters may endorse a party that wants to cancel the terms of Greece's own bailout. That would almost certainly force Greece to leave the euro currency

 

[bigdog]

Source: http://finance.yahoo.com

Stocks surge on expectations of central bank help

Dow Jones average jumps after report says major central banks are ready to keep money flowing

A report that major central banks would be ready to pump money into the financial system after the Greek elections this weekend gave the stock market a late push higher.

The Reuters report said major central banks were preparing for coordinated action if the results of Greek elections on Sunday strain global financial markets.

The Dow Jones industrial average jumped 155.53 points to close at 12,651.91 Thursday. That's a gain of 1.2 percent. The Dow jumped 100 points after the report came out then pulled back.

Investors are on edge ahead of Greece's election this weekend because parties opposed to the terms of the country's financial bailout could take control of the government. If that happens and the country leaves the euro, many fear the currency union could be torn apart and European banks could fail.

The stock market began climbing in early trading after a tame inflation reading and another weak jobs report raised expectations that the Federal Reserve would offer more support for the U.S. economy.

Applications for unemployment benefits rose last week, according to the latest government report. The four-week average increased for a third straight week, another sign that the jobs market remains weak.

The government's main measure of U.S. consumer prices fell in May by 0.3 percent, the biggest drop since December 2008. Analysts said the slowdown in price increases could make it more likely that the Fed will announce new steps to boost the economy when it meets next week. Low inflation gives the Fed more leeway to inject money into the financial system, keep interest rates low and encourage borrowing.

"The markets are higher, I think, because there are enough investors who believe that this morning's data on prices and jobless claims increase the case for more Fed easing as soon as next week's meeting," said Clark Yingst, chief market analyst at the securities and banking firm Joseph Gunnar.

The NYSE DOW closed HIGHER ▲ 155.53 points or ▲ 1.24% Thursday, 14 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,651.91 ▲ 155.53 ▲ 1.24%
Nasdaq____ 2,836.33 ▲ 17.72 ▲ 0.63%
S&P_500__ 1,329.10 ▲ 14.22 ▲ 1.08%
30_Yr_Bond 2.708 ▼ 0.00 ▼ -0.11%

NYSE Volume 3,657,875,250
Nasdaq Volume 1,640,681,380

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,467.05 ▼ -16.76 ▼ -0.31%
DAX_____ 6,138.61 ▼ -13.88 ▼ -0.23%
CAC_40__ 3,032.45 ▲ 2.41 ▲ 0.08%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,089.80 ▼ -21.70 ▼ -0.53%
Shanghai_Comp 2,295.95 ▼ -22.98 ▼ -0.99%
Taiwan_Weight 7,075.10 ▼ -13.73 ▼ -0.19%
Nikkei_225____ 8,568.89 ▼ -18.95 ▼ -0.22%
Hang_Seng____ 18,808.40 ▲ 53.93 ▼ -1.15%
Strait_Times___ 2,773.81 ▼ -13.07 ▼ -0.47%
NZX 50 Index__ 3,416.09 ▲ 34.35 ▲ 1.02%

http://finance.yahoo.com/news/stocks-surge-expectations-central-bank-201433134.html

Stocks surge on expectations of central bank help
Dow Jones average jumps after report says major central banks are ready to keep money flowing

By Matthew Craft, AP Business Writer

A report that major central banks would be ready to pump money into the financial system after the Greek elections this weekend gave the stock market a late push higher.

The Reuters report said major central banks were preparing for coordinated action if the results of Greek elections on Sunday strain global financial markets.

The Dow Jones industrial average jumped 155.53 points to close at 12,651.91 Thursday. That's a gain of 1.2 percent. The Dow jumped 100 points after the report came out then pulled back.

Investors are on edge ahead of Greece's election this weekend because parties opposed to the terms of the country's financial bailout could take control of the government. If that happens and the country leaves the euro, many fear the currency union could be torn apart and European banks could fail.

The stock market began climbing in early trading after a tame inflation reading and another weak jobs report raised expectations that the Federal Reserve would offer more support for the U.S. economy.

Applications for unemployment benefits rose last week, according to the latest government report. The four-week average increased for a third straight week, another sign that the jobs market remains weak.

The government's main measure of U.S. consumer prices fell in May by 0.3 percent, the biggest drop since December 2008. Analysts said the slowdown in price increases could make it more likely that the Fed will announce new steps to boost the economy when it meets next week. Low inflation gives the Fed more leeway to inject money into the financial system, keep interest rates low and encourage borrowing.

"The markets are higher, I think, because there are enough investors who believe that this morning's data on prices and jobless claims increase the case for more Fed easing as soon as next week's meeting," said Clark Yingst, chief market analyst at the securities and banking firm Joseph Gunnar.

Yingst said the market could easily switch directions in the coming days. "Traders are just following the trend one way on one day, but are perfectly happy following it the other way the next."

The Standard & Poor's 500 rose 14.22 points to 1,329.10. The Nasdaq composite gained 17.72 points to 2,836.33.

The gains were broad. All 10 industry groups in the S&P 500 rose. International Game Technology led the S&P with a 14.3 percent leap, following the company's announcement that it would buy up to $1 billion of its own stock. The stock jumped $1.90 to $15.12.

Just the whiff of another round of help from the Fed has been enough to shoot stocks higher in recent weeks, but the gains often disappear as quickly as they arrive. Last Wednesday, the Dow posted its best day this year, surging 286 points. Comments from a Fed official that hinted at more stimulus helped launch the rally.

The enthusiasm fizzled the next day, however, after Fed Chairman Ben Bernanke told a closely watched Congressional hearing that no new steps were being contemplated at the moment.

The question of will or won't the Fed act next week is top of mind for investors. The Fed's latest round of bond purchases winds down at the end of this month, and market players wonder whether a third is on the way, or if the current program might be extended. By making trillions of dollars' worth of bond purchases, the Fed helps keep interest rates ultra-low and encourages investors to put money into other assets, like stocks.

"Ultimately, all that matters for investors right now is whether these developments mean the Federal Reserve is more or less likely to ease policy in order to support what they may see as an insufficiently strong economic recovery," said Dan Greenhaus, chief global strategist at the brokerage BTIG, in a note to clients.

In Europe, borrowing rates for Spain touched a record high Thursday after the rating agency Moody's cut its credit rating to one notch above junk status. Spain's benchmark 10-year bond hit 6.96 percent before pulling back.

Major stock indexes in Europe barely budged. Greek stocks were the exception. Athens' main index surged 10 percent following rumors that elections this weekend will yield a government that can keep the country in the euro. Greek law forbids the release of new public opinion polls in the last two weeks before the election.

Among stocks making big moves:

”” Nokia plunged 15 percent, or 44 cents, to $2.35. The cellphone maker cut its earnings forecast and announced plans to eliminate $2 billion in costs by the end of next year. Nokia said it will close its main manufacturing plant in Finland, shutter research facilities in Germany and Canada and lay off 10,000 employees.

”” Kroger rose 6 percent after the grocery store chain raised its profit forecast for the year. The Cincinnati-based company, which operates Ralphs, Food 4 Less and other grocery stores, also announced it will spend $1 billion to buy back its stock. Kroger's stock gained $1.29 to $22.58.

”” Winnebago Industries reported that its quarterly profit more than tripled, mainly because of higher prices for its vehicles. The results topped analysts' expectations. Winnebago's stock rose 3 percent, or 23 cents, to $9.22.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks finish at 1-month high as investors turn their attention to an election in Greece

Stocks recorded their third big gain of the week and closed at a one-month high Friday because of expectations that the central banks of countries around the world will step in to limit the damage from a debt crisis in Europe.

The Dow Jones industrial average climbed 115 points.

Now investors wait for a crucial election on Sunday in Greece that will help determine whether that country stops using the euro as its currency. Such an exit would destabilize financial markets.

Mario Draghi, president of the European Central Bank, said his institution stood ready to support Europe's banking system by continuing to lend money to solvent banks. He also appeared to leave open the possibility of an interest rate cut.

The Dow rose 115.26 points to close at 12,767.17, its highest finish since May 11. The Standard & Poor's 500 index climbed 13.74 points to 1,342.84, also its highest since May 11. The Nasdaq composite index rose 36.47 points to 2,872.80.

For the week, the Dow rose 0.9 percent, the S&P 1 percent and the Nasdaq 1.3 percent.

The week included four moves of 100 points or more for the Dow, the first time that has happened since April:

”” On Monday, the Dow lost 142 points as enthusiasm faded for a $125 billion rescue of Spanish banks.

”” On Tuesday, the Dow climbed 162 after a Federal Reserve official said he supported more measures to stimulate the economy.

”” On Thursday, the Dow gained 155, primarily because of late reports about possible coordinated action by central banks.

The NYSE DOW closed HIGHER ▲ 115.26 points or ▲ 0.91% Friday, 15 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,767.17 ▲ 115.26 ▲ 0.91%
Nasdaq____ 2,872.80 ▲ 36.47 ▲ 1.29%
S&P_500__ 1,342.84 ▲ 13.74 ▲ 1.03%
30_Yr_Bond 2.694 ▼ -0.01 ▼ -0.52%

NYSE Volume 4,323,237,500
Nasdaq Volume 2,035,541,120

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,478.81 ▲ 11.76 ▲ 0.22%
DAX_____ 6,229.41 ▲ 90.80 ▲ 1.48%
CAC_40__ 3,087.62 ▲ 55.17 ▲ 1.82%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,107.00 ▲ 17.20 ▲ 0.42%
Shanghai_Comp 2,306.85 ▲ 10.90 ▲ 0.47%
Taiwan_Weight 7,155.83 ▲ 80.73 ▲ 1.14%
Nikkei_225____ 8,569.32 ▲ 0.43 ▲ 0.01%
Hang_Seng____ 19,233.94 ▲ 53.93 ▲ 2.26%
Strait_Times___ 2,811.00 ▲ 37.19 ▲ 1.34%
NZX 50 Index__ 3,447.07 ▲ 30.99 ▲ 0.91%

http://finance.yahoo.com/news/stocks-1-month-high-now-205017209.html

Stocks at 1-month high; now investors watch Greece

Stocks finish at 1-month high as investors turn their attention to an election in Greece

By Matthew Craft, AP Business Writer

Stocks recorded their third big gain of the week and closed at a one-month high Friday because of expectations that the central banks of countries around the world will step in to limit the damage from a debt crisis in Europe.

The Dow Jones industrial average climbed 115 points.

Now investors wait for a crucial election on Sunday in Greece that will help determine whether that country stops using the euro as its currency. Such an exit would destabilize financial markets.

Mario Draghi, president of the European Central Bank, said his institution stood ready to support Europe's banking system by continuing to lend money to solvent banks. He also appeared to leave open the possibility of an interest rate cut.

Draghi said in Frankfurt that the ECB has a "crucial role" in extending credit to banks in times of instability, when banks can't always borrow money on financial markets.

On Thursday, Reuters reported that ECB, the Federal Reserve, the Bank of England and other global financial authorities were ready to act in concert to limit the fallout from Greece.

Investors also are more confident about the election itself, said Peter Tuz, a money manager, at Chase Investment Counsel, which runs mutual funds.

"There's a growing sense of optimism," he said. "The betting now is that the 'let's stay in the euro' segment of the population will win."

Borrowing costs for Spain were unchanged. They fell slightly for Italy, an indication that investors are feeling a little better about that country's solvency. They have been worried that Italy will have to seek financial rescue.

The Dow rose 115.26 points to close at 12,767.17, its highest finish since May 11. The Standard & Poor's 500 index climbed 13.74 points to 1,342.84, also its highest since May 11. The Nasdaq composite index rose 36.47 points to 2,872.80.

For the week, the Dow rose 0.9 percent, the S&P 1 percent and the Nasdaq 1.3 percent.

The week included four moves of 100 points or more for the Dow, the first time that has happened since April:

”” On Monday, the Dow lost 142 points as enthusiasm faded for a $125 billion rescue of Spanish banks.

”” On Tuesday, the Dow climbed 162 after a Federal Reserve official said he supported more measures to stimulate the economy.

”” On Thursday, the Dow gained 155, primarily because of late reports about possible coordinated action by central banks.

Energy stocks rose the most Friday. OPEC oil ministers agreed Thursday to keep their production target steady, a compromise meant in part to soothe economically troubled countries.

A pair of weak economic reports helped push Treasury prices up and yields down.

A report on U.S. factory production showed a drop in manufacturing, a key driver of economic growth. A gauge of manufacturing in New York sank to its lowest level since November.

The yield on the 10-year Treasury note fell to 1.60 percent from 1.64 percent Thursday. Traders have been shifting money into the safety of the Treasury market ahead of the Greek election. That higher demand has kept yields near all-time lows.

Among stocks making big moves:

”” Microsoft rose 68 cents, or 2.3 percent, to $30.02 following reports that the company is in talks to buy Yammer, a developer of social networks within companies.

”” Capital One Financial rose 80 cents, or 1.5 percent, to $53.81 after the company said uncollectable and delinquent loans at its credit card business dropped last month.

”” Defense contractor AAR plunged $1.23, or 10.6 percent, to $10.34. The company updated its forecast for fourth-quarter and fiscal-year earnings, and they were weaker than Wall Street expected.

”” YPF, Argentina's state-controlled oil and gas producer, rose 72 cents, or 6.9 percent, to $11.17 after Mexican telecommunications billionaire Carlos Slim said he had acquired an 8.4 percent stake in the company.

0451

 

[bigdog]

Source: http://finance.yahoo.com

US stocks meander despite victory of pro-Europe party in Greek elections; debt crisis festers

Crisis-weary investors scoffed Monday at what had appeared to be a hopeful turn in the European debt crisis: a victory for pro-Europe parties in a Greek election. U.S. stocks were little changed, and borrowing costs for Spain surged to alarming levels.

Investors appeared fed up with policy makers' inability to resolve a crisis that has bedeviled markets for more than three years. Leaders of the most developed countries are meeting in Mexico to discuss the crisis and the slowing global economy.

"Even though we avoided the worst-case scenario in Greece, the crisis has entered a new and dangerous phase, and it doesn't end with Greece," said Michelle Gibley, director of international research at the Schwab Center for Financial Research, a division of the Charles Schwab brokerage.

U.S. indexes opened lower then drifted between modest gains and losses. Homebuilders rallied after a measure of confidence among U.S. builders rose to a five-year high.

Spanish borrowing rates spiked Monday above levels that forced other countries to take bailouts, a sign that bond investors fear Spain will default on its debts.

The Dow Jones industrial average closed down 25.35 points, or 0.2 percent, to 12,741.82. The Nasdaq composite index rose 22.53 points, or 0.8 percent, to 2,895.33. It was lifted by Apple, its biggest component, which rose $11.65, or 2 percent, to $585.78.

Rival tech titan Microsoft will make a "major" announcement after the market closes. Many expect it to introduce a tablet computer that would compete with Apple's market-dominating iPad.

The Standard & Poor's 500 index rose 1.94 points, or 0.1 percent, to 1,344.78. Of its 10 major industry categories, only financials and energy stocks fell. Banks would be hit hard if the European crisis spun out of control. Energy companies followed oil prices lower.

The NYSE DOW closed LOWER ▼ -25.35 points or ▼ -0.20% Monday, 18 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,741.82 ▼ -25.35 ▼ -0.20%
Nasdaq____ 2,895.33 ▲ 22.53 ▲ 0.78%
S&P_500__ 1,344.78 ▲ 1.94 ▲ 0.14%
30_Yr_Bond 2.679 ▼ -0.02 ▼ -0.56%

NYSE Volume 3,262,847,000
Nasdaq Volume 1,615,798,620

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,491.09 ▲ 12.28 ▲ 0.22%
DAX_____ 6,248.20 ▲ 18.79 ▲ 0.30%
CAC_40__ 3,066.19 ▼ -21.43 ▼ -0.69%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,183.90 ▲ 76.90 ▲ 1.87%
Shanghai_Comp 2,316.05 ▲ 9.20 ▲ 0.40%
Taiwan_Weight 7,281.50 ▲ 125.67 ▲ 1.76%
Nikkei_225____ 8,721.02 ▲ 151.70 ▲ 1.77%
Hang_Seng____ 19,427.81 ▲ 53.93 ▲ 1.01%
Strait_Times___ 2,826.44 ▲ 15.44 ▲ 0.55%
NZX 50 Index__ 3,455.68 ▲ 8.60 ▲ 0.25%

http://finance.yahoo.com/news/us-stocks-meander-european-debt-181717268.html

US stocks meander as European debt crisis festers

US stocks meander despite victory of pro-Europe party in Greek elections; debt crisis festers

By Daniel Wagner, AP Business writer

Crisis-weary investors scoffed Monday at what had appeared to be a hopeful turn in the European debt crisis: a victory for pro-Europe parties in a Greek election. U.S. stocks were little changed, and borrowing costs for Spain surged to alarming levels.

Investors appeared fed up with policy makers' inability to resolve a crisis that has bedeviled markets for more than three years. Leaders of the most developed countries are meeting in Mexico to discuss the crisis and the slowing global economy.

"Even though we avoided the worst-case scenario in Greece, the crisis has entered a new and dangerous phase, and it doesn't end with Greece," said Michelle Gibley, director of international research at the Schwab Center for Financial Research, a division of the Charles Schwab brokerage.

U.S. indexes opened lower then drifted between modest gains and losses. Homebuilders rallied after a measure of confidence among U.S. builders rose to a five-year high.

Spanish borrowing rates spiked Monday above levels that forced other countries to take bailouts, a sign that bond investors fear Spain will default on its debts.

The Dow Jones industrial average closed down 25.35 points, or 0.2 percent, to 12,741.82. The Nasdaq composite index rose 22.53 points, or 0.8 percent, to 2,895.33. It was lifted by Apple, its biggest component, which rose $11.65, or 2 percent, to $585.78.

Rival tech titan Microsoft will make a "major" announcement after the market closes. Many expect it to introduce a tablet computer that would compete with Apple's market-dominating iPad.

The Standard & Poor's 500 index rose 1.94 points, or 0.1 percent, to 1,344.78. Of its 10 major industry categories, only financials and energy stocks fell. Banks would be hit hard if the European crisis spun out of control. Energy companies followed oil prices lower.

On Sunday, Greek voters elected a party that wants to continue a program of international bailout loans that are conditioned on painful budget cuts. Traders had fretted for weeks that a radical leftist party would prevail and reject Europe's unpopular bailout plan.

The next step, traders feared, would be Greece's dropping the shared currency. Anxiety over a Greek exit was so pronounced that many expected bank runs on Monday if political anti-bailout parties had won the election.

Yet Greece's situation remains precarious. The anti-bailout party got a big chunk of the vote. There's also no guarantee that the winners will be able to form a government. Elections a month ago failed to produce a governing coalition, leading to Sunday's do-over.

Many had expected stocks and other risky investments to rally on relief that the conservative party won. But the broader scope of Europe's financial burdens soon overshadowed whatever breathing room the election provided.

Safe investments rose and riskier ones fell as traders continued their long vigil for a more permanent solution in Europe. Leaders there are considering a centralized system of bank regulation and deposit insurance to complement proposals of closer economic coordination.

"It doesn't appear that any lasting solution is a possibility any time soon," Schwab's Gibley said. "Until we get some kind of coming together, volatility is likely to continue."

Attention shifted Monday toward Spain and Italy, both of which will require international help if they can't convince bond investors that their finances are sound. Benchmark stock indexes closed down 3 percent in Spain and 2.8 percent in Italy.

The yield on the 10-year Treasury note fell to 1.58 percent from 1.63 percent earlier Monday as demand increased for low-risk investments.

The yield on Spanish 10-year bonds jumped as high as 7.18 percent, the highest since Spain joined the euro. Only a week ago, Europe unveiled a massive bailout of Spain's banks intended to reassure investors about the nation's finances.

Greece, Ireland and Portugal needed bailouts after their borrowing costs rose above 7 percent. It looks like tiny Cyprus will need a bailout as well.

The Greek election "should be seen as a significant net positive for markets, but markets don't always react in a rational manner," said David Kelly, chief global strategist for JPMorgan Funds.

The ISE Homebuilders index rose 34 cents, or 3.5 percent, to $9.98. Lennar, PulteGroup, D.R. Horton, Toll Brothers and Hovnanian Enterprises all rose strongly.

Giant military contractor SAIC fell 38 cents, or 3.1 percent, to $11.86. The Defense Department said Friday that SAIC had lost its biggest contract to Lockheed Martin, a $4.6 billion deal to run the department's global network.

Energy prices, which are sensitive to investors' expectations of future economic growth, fell. Benchmark crude for July delivery slid 76 cents to $83.27 per barrel in electronic trading on the New York Mercantile Exchange.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks up sharply on Wall Street on hopes that the Fed will take new action on the economy

Stocks rose sharply on Wall Street Tuesday as traders turned their focus back to corporate news from the U.S. and hopes that the Federal Reserve will come up with a plan to jumpstart the economy. Banks and materials stocks led the market higher.

The Dow Jones industrial average soared 95.51 points to 12,837.33, its highest close in a month. Microsoft was one of the biggest gainers in the Dow. The stock jumped 3 percent after the company announced a new tablet computer called Surface to compete with the immensely popular iPad from Apple. Microsoft was up 86 cents at $30.70.

Stock traders are also latching on to recent signals from the Federal Reserve that the central bank may reveal plans to stimulate the economy at the end of its two-day meeting Wednesday.

"A good portion of today's strong market action is from a hope factor that we're going to get more easing from the Fed," said Peter Cardillo, chief market economist at Rockwell Global Capital.

Economists say that even if the Fed does not act after its meeting, it will send a clear message that it is standing by to do so if needed.

Financial companies were among the best performing stocks as investors hoped for Fed action: Bank of America soared 4.5 percent, Citigroup gained 3.5 percent, JPMorgan Chase was up 2.2 percent and Morgan Stanley rose 3 percent.

Bank investors were also pleased to learn that a federal housing agency will clarify the process under which home lenders are forced to buy back soured home loans. The buybacks have cost banks billions of dollars. The uncertainty surrounding how much loans they will have to repurchase from the government has led them to reduce lending.

The agency's statement comes just as the housing market is showing signs of healing. American builders broke new ground on more single-family homes in May and requested more permits to build homes and apartments than they have in the past three and a half years.

The Commerce Department also said April was much better for housing starts than first thought. The government revised the figures up to 744,000, the fastest building pace since October 2008.

Material stocks rose on the prospect of demand from home construction. US Steel rose over 9 percent and Freeport-McMoran Copper rose over 3 percent.

In other trading, the Standard & Poor's 500 index rose 13.20 points to 1,357.98. Seven of the 10 industry groups in the S&P rose. The technology-heavy Nasdaq composite index rose 34.43 points to 2,929.76. The Dow Jones Utility average touched the highest level since August 2008 before closing slightly lower.

The NYSE DOW closed HIGHER ▲ 95.51 points or ▲ 0.75% Tuesday, 19 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,837.33 ▲ 95.51 ▲ 0.75%
Nasdaq____ 2,929.76 ▲ 34.43 ▲ 1.19%
S&P_500__ 1,357.98 ▲ 13.20 ▲ 0.98%
30_Yr_Bond 2.727 ▲ 0.05 ▲ 1.79%

NYSE Volume 3,815,346,000
Nasdaq Volume 1,845,445,000

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,586.31 ▲ 95.22 ▲ 1.73%
DAX_____ 6,363.36 ▲ 115.16 ▲ 1.84%
CAC_40__ 3,117.92 ▲ 51.73 ▲ 1.69%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,167.40 ▼ -16.50 ▼ -0.39%
Shanghai_Comp 2,300.79 ▼ -15.26 ▼ -0.66%
Taiwan_Weight 7,273.13 ▼ -8.37 ▼ -0.11%
Nikkei_225____ 8,655.87 ▼ -65.15 ▼ -0.75%
Hang_Seng____ 19,416.67 ▲ 53.93 ▼ -0.06%
Strait_Times___ 2,841.25 ▲ 17.03 ▲ 0.60%
NZX 50 Index__ 3,480.38 ▲ 24.71 ▲ 0.71%

http://finance.yahoo.com/news/stocks-snap-higher-hopes-fed-175329183.html

Stocks snap higher on hopes for new Fed action

Stocks up sharply on Wall Street on hopes that the Fed will take new action on the economy

By Pallavi Gogoi, AP Business Writer

Stocks rose sharply on Wall Street Tuesday as traders turned their focus back to corporate news from the U.S. and hopes that the Federal Reserve will come up with a plan to jumpstart the economy. Banks and materials stocks led the market higher.

The Dow Jones industrial average soared 95.51 points to 12,837.33, its highest close in a month. Microsoft was one of the biggest gainers in the Dow. The stock jumped 3 percent after the company announced a new tablet computer called Surface to compete with the immensely popular iPad from Apple. Microsoft was up 86 cents at $30.70.

Stock traders are also latching on to recent signals from the Federal Reserve that the central bank may reveal plans to stimulate the economy at the end of its two-day meeting Wednesday.

"A good portion of today's strong market action is from a hope factor that we're going to get more easing from the Fed," said Peter Cardillo, chief market economist at Rockwell Global Capital.

Economists say that even if the Fed does not act after its meeting, it will send a clear message that it is standing by to do so if needed.

Financial companies were among the best performing stocks as investors hoped for Fed action: Bank of America soared 4.5 percent, Citigroup gained 3.5 percent, JPMorgan Chase was up 2.2 percent and Morgan Stanley rose 3 percent.

Bank investors were also pleased to learn that a federal housing agency will clarify the process under which home lenders are forced to buy back soured home loans. The buybacks have cost banks billions of dollars. The uncertainty surrounding how much loans they will have to repurchase from the government has led them to reduce lending.

The agency's statement comes just as the housing market is showing signs of healing. American builders broke new ground on more single-family homes in May and requested more permits to build homes and apartments than they have in the past three and a half years.

The Commerce Department also said April was much better for housing starts than first thought. The government revised the figures up to 744,000, the fastest building pace since October 2008.

Material stocks rose on the prospect of demand from home construction. US Steel rose over 9 percent and Freeport-McMoran Copper rose over 3 percent.

In other trading, the Standard & Poor's 500 index rose 13.20 points to 1,357.98. Seven of the 10 industry groups in the S&P rose. The technology-heavy Nasdaq composite index rose 34.43 points to 2,929.76. The Dow Jones Utility average touched the highest level since August 2008 before closing slightly lower.

In Europe, borrowing costs eased for Spain: its benchmark 10-year bond yield fell below the key 7 percent level to 6.99 percent.

Spain raised $4.28 billion in an auction of 12- and 18-month bills, more than analysts had expected. However Spain's cost to raise the money skyrocketed. The Spanish government had to pay an interest rate of 5.07 percent for the 12-month bills, up sharply from 2.98 percent at the last such auction on May 14.

Still, investors were heartened to see that people were willing to lend Spain money.

"Even though it cost Spain dearly and yields rose to a record, the fact is that it was not shut out of the markets," said Cardillo.

Major European stock markets rose: Spain's IBEX 35 index rose 2.7 percent. Germany's DAX added 1.8 percent and France's CAC-40 rose 1.7 percent.

The dollar and Treasury prices fell as traders moved money out of low-risk assets. The dollar fell about a penny against the euro to $1.27 and the yield on the 10-year Treasury note rose to 1.62 percent from 1.58 percent late Monday.

Among other stocks making big moves:

”” Oracle soared 84 cents, or about 3 percent, to $27.96 after the software maker surprised investors with the early release of its fourth-quarter earnings. The results beat Wall Street's forecasts, and the company said new software licenses increased sharply.

”” J.C. Penney plunged $2.08, or 8.5 percent, to $22.25 after the chain store announced that Michael Francis, the former Target executive brought in to help redefine the company's brand, was leaving the company. It was the biggest loss of any stock in the S&P 500.

”” Barnes & Noble fell 61 cents, or 4 percent, to $14.63 after the book store chain reported a wider loss than Wall Street was expecting. It also reported that its Nook e-reader sales fell 11 percent in the quarter.

”” Walgreen plunged $1.87, or 5.85 percent, to $30.09 after the company said it is buying a $6.7 billion stake in European health and beauty retailer Alliance Boots. Investors worried about a deal that would expose the biggest U.S. drugstore chain to a continent beset by worries of a recession.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks drift lower on gloomy economic outlook from the Federal Reserve, P&G disappoints

It's going to take more than low interest rates to fire up investors.

The Federal Reserve's latest plan to help the economy failed to impress Wall Street on Wednesday. Stocks finished slightly lower for the day, and not much better than they were before the Fed announcement.

The Fed said it would keep its "Operation Twist" program going through the end of the year rather than let it expire at the end of this month. It aims to keep long-term interest rates low by selling the Fed's short-term U.S. government debt and buying long-term debt.

Economists have pointed out that long-term interest rates are already near record lows, and that consumers and businesses who aren't borrowing today won't necessarily borrow tomorrow just because it's a little cheaper.

The Fed also sharply lowered its outlook for U.S. economic growth. Chairman Ben Bernanke said the economy would grow no more than 2.4 percent this year, down from an April forecast of no more than 2.9 percent.

"What the markets really don't like was he ratcheted down growth sharply," said Doug Cote, chief market strategist at ING Investment Management.

The Dow Jones industrial average closed down 12.94 points, or a tenth of a percent, at 12,824.39. The Standard & Poor's 500 index fell 2.29 points, or 0.2 percent, to 1,355.69. The Nasdaq composite index rose 0.69 points, a fraction of a percent, to 2,930.45.

Indexes dipped right after the Fed's announcement came out at 12:30 p.m., then quickly went back to where they were. It was the latest knee-jerk response to news headlines in a stock market that has been buffeted in recent weeks by fears that Europe's 17-nation currency union could rupture.

The NYSE DOW closed LOWER ▼ -12.94 points or ▼ -0.10% Wednesday, 20 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,824.39 ▼ -12.94 ▼ -0.10%
Nasdaq____ 2,930.45 ▲ 0.69 ▲ 0.02%
S&P_500__ 1,355.69 ▼ -2.29 ▼ -0.17%
30_Yr_Bond 2.724 ▼ 0.00 ▼ -0.11%

NYSE Volume 3,695,711,500
Nasdaq Volume 1,571,459,750

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,622.29 ▲ 35.98 ▲ 0.64%
DAX_____ 6,392.13 ▲ 28.77 ▲ 0.45%
CAC_40__ 3,126.52 ▲ 8.60 ▲ 0.28%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,176.80 ▲ 9.40 ▲ 0.23%
Shanghai_Comp 2,292.88 ▼ -7.92 ▼ -0.34%
Taiwan_Weight 7,334.63 ▲ 61.50 ▲ 0.85%
Nikkei_225____ 8,752.31 ▲ 96.44 ▲ 1.11%
Hang_Seng____ 19,518.85 ▲ 53.93 ▲ 0.53%
Strait_Times___ 2,852.14 ▲ 9.73 ▲ 0.34%
NZX 50 Index__ 3,444.79 ▼ -35.59 ▼ -1.02%

http://finance.yahoo.com/news/feds-latest-action-doesnt-impress-175717898.html

Fed's latest action doesn't impress investors

Stocks drift lower on gloomy economic outlook from the Federal Reserve, P&G disappoints

By Joshua Freed, AP Business Writer

It's going to take more than low interest rates to fire up investors.

The Federal Reserve's latest plan to help the economy failed to impress Wall Street on Wednesday. Stocks finished slightly lower for the day, and not much better than they were before the Fed announcement.

The Fed said it would keep its "Operation Twist" program going through the end of the year rather than let it expire at the end of this month. It aims to keep long-term interest rates low by selling the Fed's short-term U.S. government debt and buying long-term debt.

Economists have pointed out that long-term interest rates are already near record lows, and that consumers and businesses who aren't borrowing today won't necessarily borrow tomorrow just because it's a little cheaper.

The Fed also sharply lowered its outlook for U.S. economic growth. Chairman Ben Bernanke said the economy would grow no more than 2.4 percent this year, down from an April forecast of no more than 2.9 percent.

"What the markets really don't like was he ratcheted down growth sharply," said Doug Cote, chief market strategist at ING Investment Management.

The Dow Jones industrial average closed down 12.94 points, or a tenth of a percent, at 12,824.39. The Standard & Poor's 500 index fell 2.29 points, or 0.2 percent, to 1,355.69. The Nasdaq composite index rose 0.69 points, a fraction of a percent, to 2,930.45.

Indexes dipped right after the Fed's announcement came out at 12:30 p.m., then quickly went back to where they were. It was the latest knee-jerk response to news headlines in a stock market that has been buffeted in recent weeks by fears that Europe's 17-nation currency union could rupture.

"It's obvious we're still in a trader's market, and it's a market that is still responding to news events, including the Fed, almost hour by hour, if not minute by minute," said Quincy Krosby, a market strategist with Prudential Financial.

Stocks spent most of the morning lower. Some of the same weakness being addressed by the Fed has forced Procter & Gamble Co. to reign in recent price increases as people cut back on spending. P&G is the world's largest consumer products company, and sales of its Tide detergent and Duracell batteries, among other things, are a good window into the economy.

P&G predicted continued slow growth in developed markets and slower growth in China, and cut estimates for fourth-quarter revenue and income. The stock dropped $1.83, 2.9 percent, to $60.39, making it the biggest decliner in the Dow Jones industrial average.

Next week, new figures on personal income and consumer sentiment will be released. The reports could signal more retrenchment by the U.S. consumer.

Actuant Corp., which makes industrial products, fell 94 cents, or 3.4 percent to $26.51 after predicting "uneven end market demand, notably in Europe and China." The company predicted revenue for its current and next fiscal years will be less than analysts had been expecting.

Adobe Systems dropped 90 cents, or 2.7 percent, to $31.99. The software maker, whose products include Adobe Reader and Photoshop, issued a profit forecast late Tuesday that was weaker that analysts were expecting. Its income for the latest quarter fell 2 percent on higher expenses.

La-Z-Boy plunged almost 13 percent after earnings came in far below what analysts were expecting. The stock lost $1.66 to close at $11.47.

Markets in Europe rose and the euro strengthened against the dollar. Benchmark stock indexes rose 0.5 percent in Germany, 0.6 percent in Britain and 2.1 percent in Italy.

Borrowing costs fell in Europe, too. Yields on government bonds in Spain and Italy fell, a signal that investors are less worried about the finances of those two countries.

The yield on the benchmark 10-year Treasury note rose to 1.63 percent from 1.62 percent the day before as investors moved money out of low-risk assets.

Randy Warren, chief investment officer for Warren Financial Service, lamented the focus on the Fed, saying investors should be thinking about where to put their money considering Europe's problems and a weak euro. He favors American companies who mostly do business in the U.S.

"There's plenty to choose from for investors," he said. "They just have to think more than five minutes ahead."

 

[bigdog]

Source: http://finance.yahoo.com

Pile-up of bad economic news sends stocks sharply lower on Wall Street; Dow plunges 251

Investors yanked money out of stocks Thursday after new reports from the U.S. and China pointed to a sharp slowdown in manufacturing.

The Dow Jones industrial plunged 251 points, the second-biggest drop this year.

Losses in energy and materials companies led a widespread rout on the stock market. The Dow started sinking after 10 a.m., when the Philadelphia branch of the Federal Reserve reported a sharp contraction in manufacturing in the Northeast. The losses accelerated throughout the day.

"The news has been horrible out there," said Uri Landesman, president of Platinum Partners. "The U.S. economy is slowing down. And China's growth is definitely under question."

The bad news kept piling up as the day went on. Mining and other companies that made basic materials fell hard after prices for commodities such as copper and oil dropped. Goldman Sachs analysts advised their clients to bet that stocks would fall, and speculation swirled that Moody's would cut the credit ratings of 17 banks.

The Dow lost 250.82 points to close at 12,573.57, a drop of 2 percent. Alcoa lost 37 cents to $8.55. A new report that manufacturing slowed in China was troubling since that country's economy has helped drive global economic growth over the past four years. China is a major importer of copper and other basic materials.

The Standard & Poor's 500 index lost 30.18 points to 1,325.51, a decline of 2.2 percent. The Nasdaq composite fell 71.36 points, 2.4 percent, to 2,859.09. All three indexes lost their gains for the week.

The late-morning blows to investor confidence were just the latest reasons for people to pull money of out stocks. Earlier Thursday, the Labor Department reported that the four-week average of applications for unemployment benefits, a figure closely watched by economists, jumped to the highest level since September. The National Association of Realtors also reported that sales of previously occupied homes dropped 1.5 percent in May.

The NYSE DOW closed LOWER ▼ -250.82 points or ▼ -1.96% Thursday, 21 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,573.57 ▼ -250.82 ▼ -1.96%
Nasdaq____ 2,859.09 ▼ -71.36 ▼ -2.44%
S&P_500__ 1,325.51 ▼ -30.18 ▼ -2.23%
30_Yr_Bond 2.688 ▼ -0.04 ▼ -1.32%

NYSE Volume 3,935,650,250
Nasdaq Volume 1,795,443,380

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,566.36 ▼ -55.93 ▼ -0.99%
DAX_____ 6,343.13 ▼ -49.00 ▼ -0.77%
CAC_40__ 3,114.22 ▼ -12.30 ▼ -0.39%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,133.70 ▼ -43.10 ▼ -1.03%
Shanghai_Comp 2,260.88 ▼ -32.00 ▼ -1.40%
Taiwan_Weight 7,279.05 ▼ -55.58 ▼ -0.76%
Nikkei_225____ 8,824.07 ▲ 71.76 ▲ 0.82%
Hang_Seng____ 19,265.07 ▲ 53.93 ▼ -1.30%
Strait_Times___ 2,830.15 ▼ -25.53 ▼ -0.89%
NZX 50 Index__ 3,409.39 ▼ -35.40 ▼ -1.03%

http://finance.yahoo.com/news/dow-loses-251-second-biggest-201443068.html

Dow loses 251, it second-biggest drop of the year

Pile-up of bad economic news sends stocks sharply lower on Wall Street; Dow plunges 251

By Matthew Craft, AP Business Writer

Investors yanked money out of stocks Thursday after new reports from the U.S. and China pointed to a sharp slowdown in manufacturing.

The Dow Jones industrial plunged 251 points, the second-biggest drop this year.

Losses in energy and materials companies led a widespread rout on the stock market. The Dow started sinking after 10 a.m., when the Philadelphia branch of the Federal Reserve reported a sharp contraction in manufacturing in the Northeast. The losses accelerated throughout the day.

"The news has been horrible out there," said Uri Landesman, president of Platinum Partners. "The U.S. economy is slowing down. And China's growth is definitely under question."

The bad news kept piling up as the day went on. Mining and other companies that made basic materials fell hard after prices for commodities such as copper and oil dropped. Goldman Sachs analysts advised their clients to bet that stocks would fall, and speculation swirled that Moody's would cut the credit ratings of 17 banks.

The Dow lost 250.82 points to close at 12,573.57, a drop of 2 percent. Alcoa lost 37 cents to $8.55. A new report that manufacturing slowed in China was troubling since that country's economy has helped drive global economic growth over the past four years. China is a major importer of copper and other basic materials.

The Standard & Poor's 500 index lost 30.18 points to 1,325.51, a decline of 2.2 percent. The Nasdaq composite fell 71.36 points, 2.4 percent, to 2,859.09. All three indexes lost their gains for the week.

The late-morning blows to investor confidence were just the latest reasons for people to pull money of out stocks. Earlier Thursday, the Labor Department reported that the four-week average of applications for unemployment benefits, a figure closely watched by economists, jumped to the highest level since September. The National Association of Realtors also reported that sales of previously occupied homes dropped 1.5 percent in May.

All this came a day after the Federal Reserve slashed its estimates for U.S. economic growth and said it would extend a bond-buying program through the end of the year, disappointing investors who had hoped for bolder steps from the central bank to get the economy going again.

"What's worse is that things are getting weaker without the Fed coming in," said Rex Macey, chief investment officer at Wilmington Trust Investment Advisors. "We had a run-up in the market this month because people had been expecting Fed action. Today, the market is giving it back."

A manufacturing survey for countries that use the European currency also showed a contraction. The reports out of China and Europe helped sink commodity prices. Copper and platinum fell 2 percent. Benchmark U.S. crude hit its lowest level in almost nine months, $78.20 a barrel. That's down almost 30 percent from a peak in February.

The Philadelphia Fed index pushed Treasury prices up and yields down as traders shifted money into the their favorite hiding spot. The yield on the 10-year note slipped to 1.61 percent, down from 1.63 percent late Wednesday.

Material and energy companies, whose fortunes are closely tied to economic swings, led all 10 industry groups within the S&P 500 index lower. Just 12 of the 500 companies in the index rose.

In Europe, auditors calculated that Spain's troubled banks need as much as €62 billion ($78.76 billion). A Bank of Spain official said this scenario was much less than the €100 billion that the 17 countries in the euro currency union said they would provide for Spain's banking sector.

Among stocks making big moves:

”” ConAgra Foods, a major food maker whose brands include Hebrew National and Chef Boyardee, gained 2.7 percent. The company's adjusted earnings and sales topped Wall Street's expectations. The stock climbed 66 cents to $25.26.

”” Bed Bath & Beyond plunged 17 percent, the most in the S&P 500. The retailer said it expects weaker earnings in the current quarter than analysts expected even though it reported better profits after the market closed Wednesday. Bed Bath & Beyond's stock lost $12.50 to $61.17.

”” Red Hat slumped 6.2 percent. The largest provider of the Linux open source operating system for computers reported weak figures for deferred revenue. Red Hat's stock dropped $3.50 to $53.00.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks rise on Wall Street; banks help lead the way despite Moody's downgrade

The stock market bounced back Friday, a day after suffering its second-worst loss this year. Bank of America, JPMorgan Chase and other big lenders posted solid gains even though many of them had their credit ratings cut the day before.

Analysts said the downgrades from Moody's Investor Service late Thursday had been expected for months and removed some of the uncertainty that had been weighing on bank stocks.

"It's been like a cloud over the sector," said Brian Gendreau, market strategist with the broker Cetera Financial. "And look at who's going up: bank stocks. There are obviously some people who thought it would be much worse."

The Dow Jones industrial average gained 67.21 to close at 12,640.78. Bank of America gained 1.5 percent, or 12 cents, to $7.94, one of the best showings of the 30 stocks in the Dow.

In a note to clients, analysts at the investment bank Keefe Bruyette & Woods called Morgan Stanley "the clear winner." Some analysts had expected Moody's to lower Morgan Stanley's rating by three notches, instead of the two-notch cut it received.

Bank stocks rose across the board. Morgan Stanley rose 18 cents to $14.14. JPMorgan Chase climbed 48 cents to $35.99.

The Standard & Poor's 500 index rose 9.51 points to 1,335.02 and the Nasdaq composite index climbed 33.33 points to 2,892.42. The gains turned the Nasdaq positive for the week.

The NYSE DOW closed HIGHER ▲ 67.21 points or ▲ 0.53% Friday, 22 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,640.78 ▲ 67.21 ▲ 0.53%
Nasdaq____ 2,892.42 ▲ 33.33 ▲ 1.17%
S&P_500__ 1,335.02 ▲ 9.51 ▲ 0.72%
30_Yr_Bond 2.756 ▲ 0.07 ▲ 2.53%

NYSE Volume 4,955,749,000
Nasdaq Volume 3,320,032,250

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,513.69 ▼ -52.67 ▼ -0.95%
DAX_____ 6,263.25 ▼ -79.88 ▼ -1.26%
CAC_40__ 3,090.90 ▼ -23.32 ▼ -0.75%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,093.80 ▼ -39.90 ▼ -0.97%
Shanghai_Comp 2,260.88 ▼ -32.00 ▼ -1.40%
Taiwan_Weight 7,222.05 ▼ -57.00 ▼ -0.78%
Nikkei_225____ 8,798.35 ▼ -25.72 ▼ -0.29%
Hang_Seng____ 18,995.13 ▲ 53.93 ▼ -1.40%
Strait_Times___ 2,828.09 ▼ -2.06 ▼ -0.07%
NZX 50 Index__ 3,399.20 ▼ -10.19 ▼ -0.30%

http://finance.yahoo.com/news/us-stocks-bounce-back-big-205350759.html

US stocks bounce back; big banks move higher

Stocks rise on Wall Street; banks help lead the way despite Moody's downgrade

By Matthew Craft, AP Business Writer | Associated Press – 6 minutes ago

The stock market bounced back Friday, a day after suffering its second-worst loss this year. Bank of America, JPMorgan Chase and other big lenders posted solid gains even though many of them had their credit ratings cut the day before.

Analysts said the downgrades from Moody's Investor Service late Thursday had been expected for months and removed some of the uncertainty that had been weighing on bank stocks.

"It's been like a cloud over the sector," said Brian Gendreau, market strategist with the broker Cetera Financial. "And look at who's going up: bank stocks. There are obviously some people who thought it would be much worse."

The Dow Jones industrial average gained 67.21 to close at 12,640.78. Bank of America gained 1.5 percent, or 12 cents, to $7.94, one of the best showings of the 30 stocks in the Dow.

In a note to clients, analysts at the investment bank Keefe Bruyette & Woods called Morgan Stanley "the clear winner." Some analysts had expected Moody's to lower Morgan Stanley's rating by three notches, instead of the two-notch cut it received.

Bank stocks rose across the board. Morgan Stanley rose 18 cents to $14.14. JPMorgan Chase climbed 48 cents to $35.99.

The Standard & Poor's 500 index rose 9.51 points to 1,335.02 and the Nasdaq composite index climbed 33.33 points to 2,892.42. The gains turned the Nasdaq positive for the week.

Information technology stocks had the strongest gains of the 10 industry groups tracked by the S&P 500 index, followed by health care stocks and banks. The gains were small but widespread. All 10 sectors rose. Of the 30 stocks in the Dow, just two fell.

The Dow and S&P 500 finished the week lower, their first week of losses since June 1. The biggest drop of the week came Thursday, when a trio of weak manufacturing reports stirred fears about the global economy. The Dow lost 251 points, its second-steepest fall this year. The worst was June 1, after a dismal U.S. jobs report rattled markets.

Even with two days of deep losses, the S&P 500 is still up 1.9 percent this month. To Gendreau, it looks like investors have been overreacting to recent economic reports. "The market is getting jerked around," he said. "The economic data point to a softening economy, but we've had a softening economy for three years now."

Among other stocks making big moves:

”” Facebook surged 3.8 percent, rising $1.21 to $33.05. A Nomura analyst started covering the social-networking company with a price target of $40 and a "buy" recommendation. Brian Nowak said Facebook could make more money through charging companies for pages. He also thinks the stock looks cheap in comparison to what investors paid for Google at the same age.

”” Truck leasing company Ryder System plunged 13 percent, the worst decline in the S&P 500 index. The Miami-based company cut its earnings forecast for the second quarter and full year, blaming weak demand for commercial truck rentals and unusually high costs for medical benefits. The stock lost $5.31 to $35.44.

”” The cruise ship operator Carnival Corp. dropped 2.7 percent after reporting a 92 percent plunge in quarterly profits, largely a result of losses on derivative fuel contracts. The company's brands include the Costa line of cruise ships, whose Concordia capsized off the Italian coast in January. Carnival's stock lost 92 cents to $33.66.

1060

 

[bigdog]

Source: http://finance.yahoo.com

Europe's latest efforts to quell its financial crisis left investors exasperated Monday, causing steep losses in stock markets on both sides of the Atlantic.

In Europe, Spain formally asked for help to rescue the country's ailing banks, but its request left many questions unanswered, including how much it needs of the $125 billion loan package offered by other European governments. The uncertainty unsettled markets, pushing borrowing costs higher for Spain's government. Spain's stock market plunged 3.7 percent.

"Right now it's all about Europe, and confidence is pretty low," said Doug Cote, chief market strategist for ING Investment Management. "The policies that they proposing are too little too late."

The Dow Jones industrial average dropped 138 points to close at 12,502.66, a loss of 1.1 percent. The broader Standard & Poor's 500 index fell even more, 1.6 percent.

Big bank stocks slumped. Many analysts expect banks in Europe and the U.S. to suffer from a freeze-up in Europe's financial system if Spain fails to rescue its troubled banks. Spain's banks have been hobbled by loans made during a real-estate bubble, and the government has been inconsistent about how much help it will need to save them.

Bank of America dropped 4 percent, the biggest fall among the 30 stocks in the Dow Jones industrial average. BofA's stock lost 34 cents to $7.60. JPMorgan Chase fell 67 cents to $35.32 and Citigroup dropped $1.24 to $26.75.

Analysts worry that Europe's piecemeal approach to its spreading government debt crises may fall short, and the banking system of a large country like Spain could collapse. That could shock tightly connected global financial markets.

The NYSE DOW closed LOWER ▼ -138.12 points or ▼ -1.09% Monday, 25 June 2012
Symbol …........Last ......Change.....
Dow_Jones 12,502.66 ▼ -138.12 ▼ -1.09%
Nasdaq____ 2,836.16 ▼ -56.25 ▼ -1.94%
S&P_500__ 1,313.72 ▼ -21.30 ▼ -1.60%
30_Yr_Bond 2.682 ▼ -0.07 ▼ -2.69%

NYSE Volume 3,445,243,750
Nasdaq Volume 1,509,282,880

Europe
Symbol... .....Last ….....Change.......
FTSE_100 5,450.65 ▼ -63.04 ▼ -1.14%
DAX_____ 6,132.39 ▼ -130.86 ▼ -2.09%
CAC_40__ 3,021.64 ▼ -69.26 ▼ -2.24%

Asia Pacific
Symbol...... ….....Last .....Change…......
ASX_All_Ord__ 4,072.00 ▼ -21.80 ▼ -0.53%
Shanghai_Comp 2,224.11 ▼ -36.76 ▼ -1.63%
Taiwan_Weight 7,166.38 ▼ -55.67 ▼ -0.77%
Nikkei_225____ 8,734.62 ▼ -63.73 ▼ -0.72%
Hang_Seng____ 18,897.45 ▲ 53.93 ▼ -0.51%
Strait_Times___ 2,811.19 ▼ -16.90 ▼ -0.60%
NZX 50 Index__ 3,401.12 ▲ 1.93 ▲ 0.06%

http://finance.yahoo.com/news/weary-investors-sell-stocks-spain-204249766.html

Weary investors sell stocks as Spain seeks help

Stocks slide on Wall Street after Spain's request for bank help leaves questions unanswered

By Matthew Craft, AP Business Writer

Europe's latest efforts to quell its financial crisis left investors exasperated Monday, causing steep losses in stock markets on both sides of the Atlantic.

In Europe, Spain formally asked for help to rescue the country's ailing banks, but its request left many questions unanswered, including how much it needs of the $125 billion loan package offered by other European governments. The uncertainty unsettled markets, pushing borrowing costs higher for Spain's government. Spain's stock market plunged 3.7 percent.

"Right now it's all about Europe, and confidence is pretty low," said Doug Cote, chief market strategist for ING Investment Management. "The policies that they proposing are too little too late."

The Dow Jones industrial average dropped 138 points to close at 12,502.66, a loss of 1.1 percent. The broader Standard & Poor's 500 index fell even more, 1.6 percent.

Big bank stocks slumped. Many analysts expect banks in Europe and the U.S. to suffer from a freeze-up in Europe's financial system if Spain fails to rescue its troubled banks. Spain's banks have been hobbled by loans made during a real-estate bubble, and the government has been inconsistent about how much help it will need to save them.

Bank of America dropped 4 percent, the biggest fall among the 30 stocks in the Dow Jones industrial average. BofA's stock lost 34 cents to $7.60. JPMorgan Chase fell 67 cents to $35.32 and Citigroup dropped $1.24 to $26.75.

Analysts worry that Europe's piecemeal approach to its spreading government debt crises may fall short, and the banking system of a large country like Spain could collapse. That could shock tightly connected global financial markets.

"It's the same headline risk that we've been dealing with for God knows how long," said Chip Cobb, senior vice president of Bryn Mawr Trust Asset Management in Pennsylvania. "Everybody wants something to happen sooner or later, and nothing's happening."

The leaders of the 27 countries in the European Union meet Thursday and Friday in Brussels for another summit aimed at reining in the crisis, but market players remain skeptical that Germany will sign off on efforts to quell the crisis. As the region's largest and strongest economy, Germany has to participate for any plan to work.

"What the market wants is action," Cote said. He said investors wanted to see steps toward binding the weak and stronger economies closer together.

The dollar and Treasury prices rose as investors shifted money into low-risk investments. The yield on the 10-year Treasury note fell to 1.61 percent from 1.67 percent late Friday.

In other trading, the S&P 500 index fell 21.30 points to 1,313.72. All 10 of the index's industry groups fell. The Nasdaq composite lost 56.26 points, or 1.9 percent, to 2,836.16.

Energy stocks were also big losers after the price of crude oil fell again. Benchmark U.S. crude lost 55 cents a barrel to $79.21, continuing a slump that has brought the price down from $110 in late February. Exxon Mobil fell 87 cents to $81.24.

Energy prices have been falling as traders anticipate that slower growth in China and the crisis in Europe will drag down global economic growth and decrease demand for energy.

European markets closed sharply lower. Stocks dropped 4 percent in Italy and 2 percent in both France and Germany. Shares of European banks, including Spain's Banco Santander SA and Deutsche Bank AG, sank.

Borrowing costs rose for Spain and Italy, a sign of skepticism that those countries will be able to pay their debts. The yield on Spain's 10-year government bond rose 0.16 percentage point to 6.58 percent. That's dangerously high.

Among other stocks making big moves Monday:

”” Teva Pharmaceutical Industries gained 4 percent after the drugmaker said a federal court reaffirmed patents protecting its multiple sclerosis treatment Copaxone. The stock jumped $1.71 to $39.72.

”” Chesapeake Energy dropped 8 percent. Reuters reported that the company colluded with a Canadian rival to suppress land prices in areas that were considered rich in oil and natural gas. The stock lost $1.58 to $17.03.

”” Pfizer and Bristol-Myers Squibb both sank after federal regulators delayed approving their highly touted blood-thinning drug, Eliquis. Bristol-Myers's stock dropped 3 percent, or $1.23, to $34.13. Pfizer's fell 1 percent, or 26 cents, to $22.47.