Dow jumps 145 on hopes for Greek solution

Stocks rally for a second day on growing confidence Greece will enact new austerity measures. Nike's results push shares higher. Home prices in April were off 4% from a year ago -- but up from March.

By Charley Blaine Jun 28, 2011 1:11PM

Charley BlaineUpdated: 9:35 p.m. ET

For a second straight day, stocks pushed higher. Today, the cause was simple: Greece, despite all those protesters and all that tear gas.

The betting on Wall Street is that Greece's parliament will ignore the thousands in the Athens streets and approve in multiple votes this week tough new austerity measures so it won't default on its debt. Meanwhile, it appears that Europe's big banks will basically agree to new terms on the Greek debt that they hold.

So the euro was higher because -- for today, anyway -- Europe wasn't collapsing. And the dollar is falling. Commodity prices are higher, especially crude oil (-CL) and Brent crude. And stocks are higher, led by energy and materials stocks.

Meanwhile, shares of Nike (NKE) were up 10.1% to $89.90 after beating Street estimates on earnings and showing a growing order book. Monster Worldwide (MWW) shares rose 9.8% to $14.90 because of a tout from Oppenheimer & Co. And LinkedIn (LNKD) shares were up 12% to $85.56 because all the investment banks that brought the company public slapped "buy" ratings on the shares.

The Dow Jones industrials ($INDU) closed up 145 points, or 1.2%, to 12,189. The Standard & Poor's 500 Index ($INX) added 17 points, or 1.3%, to 1,297. The Nasdaq Composite Index ($COMPX), had jumped 41 points, or 1.5%, to 2,729.

The overall market had risen about 1% on Monday, thanks to a big rally in technology shares, especially Apple (AAPL), Amazon.com (AMZN) and Microsoft (MSFT), which publishes MSN Money.

The gains today and Monday have trimmed the market's losses from their April 29 peaks substantially. At the close on June 15, the Dow had fallen 7.1%, with the S&P 500 down 7.2% and the Nasdaq down 8.4%. As of today's close, the declines have fallen to 4.9% for the Dow and the S&P 500 and 5% for the Nasdaq.

The gains, however, have come on very weak volume, suggesting that real market bears aren't participating. (Another reason is that the July 4 weekend is coming up, and many investors may have gone to the beach.)

Whatever the reason, the market is moving decisively higher for now. How long the rally lasts is anyone's guess.


An IPO coming for Zynga and a settlement for Bank of America

After the close, The Wall Street Journal and others reported that online social gaming company Zynga, maker of the popular FarmVille and CityVille games, may make its initial filings perhaps Wednesday for an initial public, hoping to raise up to $2 billion.


The company is expecting a valuation of between $15 billion and $20 billion. At $20 billion, the valuation would be roughly that of Yahoo (YHOO), now about $19.4 billion.


Separately, Bank of America (BAC) may pay about 8.5 billion to settle claims from a group of 22 big-time investors that lost money on mortgage-backed securities purchased before the U.S. housing collapse. The deal, the largest such settlement to date, would be larger than all the profits Bank of America earned since the financial crisis of 2008 erupted.


The group, which includes money manager BlackRock (BLK), MetLife (MET) and the Federal Reserve Bank of New York, holds more than $56 billion in mortgage-backed securities at the center of the dispute. Bank of America rose 1.1% after hours to $10.94. It closed at $10.82, down 0.3% in regular trading.


A rising market amid weak reports
Perhaps the most amazing aspect of today's rally was that investors were apparently ignoring a decidedly mixed report on home prices via the S&P/Case-Shiller Home Price Index and a downbeat report on consumer confidence from The Conference Board.

The Case-Shiller report offered two views of home prices in the 20 markets it surveys. Prices rose slightly from March to April. But they were also down 4% or so from a year ago. The uptick from March to April may reflect the start of a spring buying season. The decline from a year ago represents the continuing overhang of foreclosures on the U.S. market.

The bottom line is probably this: Yes, there is some movement in the housing market nationally. But, in many markets, real estate is a mess.

The Conference Board's consumer confidence index fell to a lower-than-expected reading of 58.5 from May’s level of 61.7. Economists had forecast a largely unchanged reading of 60.7 in June after May's initial level of 60.8.

"We have a fairly weak economy with little to no job growth," Mark Vitner, senior economist at Wells Fargo Securities, told Bloomberg News. "With consumers so worried about their job prospects, I’m not so sure that we can count on demand picking up."

Crude oil, gold move higher
Crude oil settled up $2.28 to $92.89 this afternoon. Brent crude, the benchmark North Sea oil, was up $2.52 to $108.45.

The rebound helped energy shares move higher. Exxon Mobil (XOM) was up 2.2% to $79.63. Chevron (CVX) added 1.5% to $100.35. Schlumberger (SLB) jumped 4.6% to $84.35, and Diamond Offshore (DO) rose 0.9% to $68.10.


Meanwhile, gold (-GC) settled up $3.80 to $1,500.20 an ounce. Silver (-SI) added 5.3 cents to $33.64 an ounce. Copper was up 5.7 cents to $4.108 a pound.

The gains helped Freeport-McMoRan Copper & Gold (FCX) rise 3.6% to $50.44. U.S. Steel (X) added 3% to $43.31.

Energy prices -- New York close
 

Tues.

Mon.

Month chg.

YTD chg.
Crude oil (-CL)

$92.89

$90.61

-9.55%

1.65%
(per barrel)











Heating oil (-HO)

$2.8257

$2.7649

-7.45%

11.09%
(per gallon)











Natural gas (-NG)

$4.3570

$4.2560

-6.62%

-1.09%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.8896

$2.8075

-8.28%

17.79%
(per gallon)











Brent crude 

$108.78

$105.99

-6.81%

14.81%
(per barrel)











Retail gasoline

$3.5510

$3.5650

-6.06%

15.59%
(per gallon; AAA)












Caterpillar, IBM power the Dow
The blue chips were led on a percentage basis by heavy construction maker Caterpillar (CAT), up 3% to $103.84, with McDonald's (MCD) up 2.5% to $84.35 and Home Depot (HD) up 2.4% to $36.06. Caterpillar, IBM (IBM), McDonald's, Exxon and Chevron contributed more than 80 points to the Dow's gain.

Nike, Monster Worldwide  and Halliburton (HAL) , up 5.3% to $48.69, led the S&P 500.

Chinese online travel company Ctrip.com International (CTRP), First Solar (FSLR) and Fastenal (FAST) led the Nasdaq-100 Index ($NDX.X). But 42% of the index's 34-point gain to 2,286 came from five stocks: Oracle (ORCL), Apple, Google (GOOG), Microsoft and Qualcomm (QCOM).

Accenture to join S&P 500
Accenture (ACN) climbed 3.2% to $59.65. The world's second-largest technology- consulting firm will replace Wisconsin banking company Marshall & Ilsley (MI) in the S&P 500 after the close of trading on July 5. Marshall & Ilsley is being acquired by the Bank of Montreal (BMO).

First BanCorp (FBP) gained 20.4% to $4.36. The Puerto Rico lender said two funds managed by Oaktree Capital Management agreed to buy a 24.9% stake for $175.5 million. The company also agreed to sell $164 million of shares to institutional investors and other private equity firms.

First Solar gained 6.8% to $124.61. The big maker of thin-film solar modules has taken on a "robust project opportunity" that will insulate it from further price declines, Jefferies wrote in a note.

Short hits from the markets -- New York close



Tues.

Mon.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.03%

0.01%

-40.00%

-75.00%
5-year Treasury note 

1.60%

1.44%

-5.27%

-20.68%
10-year Treasury note

3.05%

2.93%

-0.16%

-7.87%
30-year Treasury bond

4.33%

4.28%

2.78%

-0.66%
Currencies











U.S. Dollar Index

75.49

75.828

1.06%

-4.79%
British pound

$1.60

$1.5995

-2.61%

2.77%
(in U.S. $)











U.S. $ in pounds

£0.63

£0.63

2.68%

-2.70%
Euro in dollars

$1.43

$1.42

-0.30%

7.56%
(in U.S. $)











U.S. $ in euros

€ 0.70

€ 0.70

0.30%

-7.02%
U.S. $ in yen 

80.87

80.39

-0.97%

-0.65%
U.S. $ in Chinese

6.48

6.47

-0.14%

-1.86%
yuan











Canada dollar

$1.014

$1.013

-1.65%

1.36%
(in U.S. $)











U.S. dollar 

$0.986

$0.986

1.86%

-1.34%
(in Canadian $)











Commodities











Gold (-GC)

$1,500.20

$1,496.40

-2.38%

5.54%
(per troy ounce)

 

 

 

 
Copper (-HG)

$4.092

$4.052

-2.05%

-7.98%
(per pound)

 

 

 

 
Silver (-SI)

$33.6380

$33.5850

-12.18%

8.73%
(per troy ounce)

 

 

 

 
Wheat (-ZW)

$6.4025

6.2275

-18.15%

-19.39%
(per bushel)

 

 

 

 
Corn (-ZC)

$6.8300

6.6075

-8.63%

9.72%
(per bushel)

 

 

 

 
Cotton 

$1.6091

1.62

1.41%

11.12%
(per pound)

 

 

 

 
Coffee

$2.5790

2.5015

-2.53%

7.23%



 

 

 

 
Crude oil (-CL)

$92.89

$90.61

-9.55%

1.65%
(per barrel)




 






43Comments
Jun 28, 2011 1:55PM
avatar

oh cut the %^&*.  why do you guys keep writing this garbage?  this country isn't affected by greece. 

 

it's all about institutional buying.  they are playing roulette.

 

For a second straight day, stocks are shooting higher. Today, the cause is simple: Greece, despite......
Jun 28, 2011 2:32PM
avatar
Glad to see that the large release of reserves of 60 million barrels of oil has curbed the speculation in the price of oil a whole lot!  What a load of crap!!!  Give this a day or two and then things will go right back the other direction when people start to see jumps in the price of gas at the pump because oil goes up 2 or 3 dollars/barrel
Jun 28, 2011 1:56PM
avatar
If we worried as much about america as we do GREECE we all would be better off. Does Greece have a gold mine or something over there that we want, maybe americans should relocate to greece that country gets more attention than people here do.
Jun 28, 2011 2:23PM
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Well, it is obvious to see the 'plant' here...below.  Greece has nada to do with anything, period.  It is all bologna.  The manipulation has become so obvious now it is a wonder why the SEC does not call a halt it.....yeah, that will happen!!!!
Jun 28, 2011 3:55PM
avatar
Does anyone here remember the old Disney movie called Pinocchio? Remember the puppet masters name was japetto, and whenever he wanted to, all he had to do is move his fingers and he would make Pinocchio "dance" to whatever tune he was playing?...does this sound familiar to anyone???...it SHOULD it's updated version is called Wall Street and there are MANY Pinocchio's who dance to their tune every day, looking like little wooden FOOLS.!!!
Jun 28, 2011 5:02PM
avatar
It is nice to see that the Moron oil traders and speculators are back to normal, screwing the country once again. Hopes of a Greece bailout is a very poor reason to raise prices. As usual, this falls in line with the  noremal Wall Street BS. They will use anything and everything to gauge people. It is bad enough that they have our country on the edge of another recession. They are a bunch of Greedy pigs who care nothing about this country or its people. What a shame.
Jun 28, 2011 2:28PM
avatar

Long Term Greece has little effect but short term it can cause a sharp drop when they default (and they will). Prudent investors are waiting on the sidelines now. Gains are the typical end of quarter window dressing.

Jun 28, 2011 5:10PM
avatar
Dow rally 145 due to Greece...not likely, I like CGT1's observation...my guess is that QE2 ends on thursday and this rally is a quick pump for the perverbial dump...no economic highs to justify a rally...I mean when investors IGNORE economic conditions what are they buying on?...bait and sell thats what their buying on.
Jun 28, 2011 4:21PM
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DOW JUMPS ON HOPES OF GREEK SOLUTION  WHO THE HELL WRITES THESE CAPTIONS  A 10 YEAR OLD? THE ONLY HOPE THAT YOU CAN BELIEVE IN THAT GREECE IF IT ACCEPTS AUSTERITY MEASURES FROM THE  IMF THE INTERNATIONAL MAFIA FEDERATION WILL DEFAULT AGAIN IN A VERY SHORT TIME  THAT IS HOPE AND CHANGE THAT YOU CAN BELIEVE IN !!!!!!!!!!!!!!!!!!!!​!!!!
Jun 28, 2011 5:39PM
avatar
Oil and Gold up, and the once mighty Dollar breaking apart? Big deal not helping us little guys
Jun 28, 2011 3:55PM
avatar

Here we go with Greece again. So what happens if Greece doesn't make it?

I guess that one house they sold last month will cover it.

Haven't heard much about jobs lately, can't put a positive spin on this one for now.

Any new ideas?

Jun 28, 2011 6:48PM
avatar

Anybody that has anything to do with Goldman Sachs needs their head examined.  They are nothing but a bunch of "money grubbing scumbags"  based on the the following:

 

 

Goldman Sachs, the country's fifth-largest bank by assets, plans to hire 1,000 people in Singapore while laying off a significant number of workers at home, according to Fox Business News..What's more, the investment bank plans on making the decision known to Congress even before telling its own shareholders, fearful of backlash. The jobs are “high-paying, skilled positions in sales and investment banking," according to one person familiar with the matter. Or, in other words, the Singapore hires will be filling the same sort of positions that are being cut in the United States

 

Jun 28, 2011 4:29PM
avatar

Are you freaking kidding me?  GREECE?  Sounds like more misinformation that institutional investors spout so they can get individuals to sell low and buy high.  How can such gross generalizations be made about a single trading day?

Jun 28, 2011 4:19PM
avatar
If you cant understand how Greece affects the European economy and that in turn affects the global economy then you guys are dumber than dirt...
Jun 28, 2011 6:16PM
avatar
The gains, however, have come on very weak volume, suggesting that real market bears aren't participating. (Another reason is that the July 4 weekend is coming up, and many investors may have gone to the beach.)

Pump & Dump.  It's been going on since some caveman pawned off defective arrow points onto an un-suspecting neanderthal.  The practice has contributed to every bubble, and to the bursting of those bubbles.  Insiders create or amplify a trend (pump phase), then let momentum and greed do most of the work for them.  When the time is right, well before the peak, they begin shorting the same positions they were previously touting, leaving the last suckers in holding the bag.  A really good technician can see it coming, and bail out before the inevitable crash.  I've become much more cautious over the years, but I still occasionally get screwed when I misread the signs or get too greedy.

Jun 28, 2011 7:42PM
avatar
Let me guess. emmmmmmmmmmm...None.
i heard the other day the greek parliament gave themselves a raise just a while ago??? just as congress/ senate gave themselves a raise due to inflation and at same time cut back social security and disability payments for both vet's and civilian's!
Jun 28, 2011 2:29PM
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The SEC won't do anything about it because they are probably a big player in the grand scheme of things also making large amounts of money off of the same manipulation.  Pure and simple greed at its worst!!
Jun 28, 2011 3:12PM
avatar
Disappointed They dumped now they pumped again. Shorts shorted down a bit now they cover for the ride up. Easy big money.
Jun 28, 2011 5:45PM
avatar
Ahhhhhh, FYI.....Did they read the headlines from Greece????"Fierce battles in the streets"
I doubt too stocks went up due to good news from there because there isn't any good news. It went down when it started and now its worse. They're just doing the manipulating thing again getting ready to dump it by Fri. If QE2 ends Thursday then it'll fit right into their plans. Do these people really think the public can't see its a stacked,rigged game?

Jun 28, 2011 4:31PM
avatar
And Linkedin (LKND) shares are up 12% to $85.56 because all the investment banks that brought the company public slapped "buy" ratings on the shares.

 

I'm Shocked, Shocked!

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