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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somewhat related to this is USA is still the world's largest producer of rice. and california leads that as an export product.
>>>BTW.......(Good News Story) For all the China thumpers or haters........The Motherland is purchasing a Million tons of Cotton from the good old USA...<<<
"The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment fell to 74.1 in June from to 79.3 in May, falling short of the 77.5 reading predicted by economists recently polled by Reuters.
This was the weakest reading since 69.9 in December.
"Income losses were reported by nearly one-third of all households in early June and the news reaching consumers about job prospects turned negative for the first time since late 2011," survey director Richard Curtin said in a statement."
BTW.......(Good News Story) For all the China thumpers or haters........The Motherland is purchasing a Million tons of Cotton from the good old USA...
They are building up their stockpiles with our M.metric tons, as they are Worlds largest user of cotton.
I know several will throw mud and water on this, but is a great help to our farmers in the Deep South.
I'm sure they welcome it, because the price has been down this year or over the past 12 months or so.
So far over the past week or so about 160,000 m/tons have been delivered.
"AP - The Obama administration will stop deporting and begin giving work permits to younger illegal immigrants who came to the U.S. as children and have since led law-abiding lives. The election-year initiative addresses a top priority of a growing Latino electorate that has opposed administration deportation policies.
The administration's decision will affect as many as 800,000 immigrants. Two senior administration officials described the plan on condition of anonymity ahead of its expected announcement Friday."
Brutus........Now remember we are dealing with a house of cards.......Not Dominoes..
You can change the outcome by removing 1 domino.
Can't usually do that with the cards.....They ALL just fall flat on their azz.
Greece may be that domino, but remains to be seen.
Pretty much Europe is gone as an economic player.
They will take the next 2,000 years living like they did in the dark ages to pay back the debt they owe.
Huge areas of Europe are about to go dark because they can not afford the fuel for their electrical plants.
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.
Yeah the Elections in Greece on Sunday are what many are holding their breath on......Ho Hum..
In the Greater Scheme of life.........in 6-12 months, what they do or don't do, may have little bearing on the rest of the World in general.........
A contagon spreading throughout the Eurozone, would be a total different scenario, but Greece is not going to change that, by itself.
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
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[BRIEFING.COM] Stocks ended modestly higher as the S&P 500 climbed 0.2%, and the Dow added 0.4% to register its 19th consecutive Tuesday of gains.
The major averages saw little change during morning action, but afternoon buying interest helped lift the indices to session highs. Most cyclical sectors (with the exception of materials and technology) finished among the leaders, but the defensively-geared health care sector settled atop the leaderboard as biotechnology outperformed. ... More
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