Stocks climb on hopes for action in Europe
The G-20 nations vow to counter any fallout from weekend elections in Greece. US consumer sentiment hits a 6-month low. Manufacturing and factory data also show weakness. Microsoft reportedly will buy Yammer.
By Andrea Tse
Stocks rose Friday as investors shrugged off weak readings on New York manufacturing activity and U.S. consumer sentiment, cheering reports that the world's biggest central banks are ready to calm markets should the outcome of Greece's general elections cause panic.
U.S. stocks jumped Thursday on rising hopes that additional stimulus is on the way from the Federal Reserve after a disappointing initial jobless claims number, as well as a report by Reuters that G-20 central banks are planning for coordinated action to bring liquidity if needed after the Greek election Sunday.
"The ECB has the crucial role of providing liquidity to sound bank counterparties in return for adequate collateral," European Central Bank President Mario Draghi said as he joined other central bankers of major economies who asserted they will act if chaos ensues after Greece's election.
"This is what we have done throughout the crisis, . . . and this is what we will continue to do," he said.
The FTSE in London was rising 0.23%, and the DAX in Germany was up 1.35%. Hong Kong's Hang Seng closed up 2.3%, while Japan's Nikkei finished flat.
Consumer sentiment dropped to a six-month low in early June on worries about unemployment and Europe's debt crisis, according to Thomson Reuters/University of Michigan's preliminary reading. Confidence fell to a reading of 74.1 in June from to 79.3 in May, short of the 77.5 predicted. It was the weakest number since December, when the index came in at 69.9.
The Federal Reserve Bank of New York reported Friday that its Empire State Manufacturing Index showed a much steeper-than-expected decline to 2.29 in June, the lowest level going back to last November, from 17.1 in May. Economists surveyed by Briefing.com had expected a drop to 10.
U.S. factories produced less in May than in April as automakers reduced their output for the first time in six months, The Associated Press reported. The Federal Reserve said factory output declined 0.4% last month after increasing 0.7% in April. Auto production fell 1.5%. Auto sales rose sharply earlier this year but slowed in May.
In corporate news, Yammer agreed to sell itself to Microsoft (MSFT) for $1.2 billion, the Wall Street Journal reported, citing a person familiar with the matter. (Microsoft owns and publishes MSN Money.)
It's unclear when the acquisition of Yammer will be completed and announced, said a person familiar with the deal, the Journal reported.
Yammer is often called Facebook for the workplace because it creates private social networks inside companies, the newspaper noted.
The reported Dell bid tops an earlier offer of nearly $2 billion from private investment firm Insight Venture Partners.
Goodrich will have to divest its electrical power generation and transmission systems businesses and should sell 60% of joint venture Aerolec within six months, China's Commerce Ministry said.
Best Buy (BBY) shares rose Thursday after an upgrade by Citigroup.
Citigroup changed its rating on the consumer electronics retailer to neutral from sell. Best Buy shares are down 35% this year.
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some 45% of the students in los angeles schools are not english speaking students.
how's that happen?
anchor babies growing up in sanctuary cisies and cities where the law looks the other way.
45% non-english students KILL the ability to properly teach. think of doubling the books - english and spanish - and what that cost is?
teachers are selected for being bilingual rather than for being a decent teacher. even "bilingual" being mainly spanish and WEAK english.
so now some 3 out of 5 adults under 20 have no high school diploma or GED.
wonderful. let's keep trashing the border states.
>>>He now thinks he can be a court and invalidate immigration laws. He believes he can pass his own "dream act" without Congress. This President should be IMPEACHED over this.<<<
Remember the story of the band on the Titanic continuing to play while the ship is sinking. The Dem/Repub continue to preach the idiotic party lines which haven't worked, most of us know will not work, but they continue down their hopeless path. I think most who have any knowledge of these markets either Rep, Dem, Indep, are beginning to question their sanity. To me it is similar to watching an overweight, unattractive, and over the hill stripper. Sad very Sad.
we're in bad states. the MSN slide show thingy of "fastest growing usa state economies" is showing california as #2.
from MY trench that isn't a very good thing
Lack of consumer demand = lack of profits = lack of manufacturing = job losses.
Borrowing money with interest to get out of existing debt doesn't work if you impose austerity measures that don't feed job growth.
When you count all of "the little people" together and see that we, as a whole, (and what happens to our pocket change) do impact the market, you realize that we are also too big to fail....but the people in charge still don't see it that way. Let the chips fall where they will - the revolution is here.
I think that B.O.'s motives are "all about himself" and he'll do anything to get elected. Now, you might say that this is what "all candidates" do. I agree that many do, but not all. Also, if this is what they all do, then why vote for a particular one.
I also think that B.O. is a bit clueless on what to do, so he just operates on the value of instituting policies that personally benefit "the groups that he embraces." He has no understanding of "what is good for the whole of the country."
We need a president who will institute policies that benefit our "nation as a whole" not policies directed at specific groups, that ends up fracturing us.
He was supposed to be "the great uniter" and instead he is the great divider.
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[BRIEFING.COM] Equities ended on their lows with the S&P 500 down 1.4%.
The S&P entered today's session with a week-to-date gain of 1.5% as investors expected reassuring words from today's Federal Open Market Committee Statement.
Stocks traded with slim losses until this afternoon's FOMC Statement and subsequent comments from Chairman Bernanke sent equities and Treasuries to their lows while also providing a significant boost to the dollar.
Today's Statement was ... More
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