Dow up 115 as stocks rally ahead of Greek election

The major averages finish higher for a 2nd straight week as central banks vow to keep markets functioning after Greeks try to elect a government Sunday. Consumers are more pessimistic. Industrial production slips. Crude oil tops $84.

By Charley Blaine Jun 15, 2012 12:46PM
Charley BlaineUpdated: 7:41 p.m. ET

Stocks rallied Friday, finishing higher for a second week in a row on relief that central banks around the world stand ready to ensure that global financial markets don't seize up after Sunday's parliamentary election in Greece.

The Dow Jones industrials ($INDU) gained more than 100 points for a second straight day, in part because of options and futures expirations.

The gains certainly had little to with the domestic economy. There was a larger-than-expected decline in industrial production in May, a significant weakening in a closely watched measure of consumer confidence and a decline in manufacturing growth in New York State.

The stakes in Greece are big enough that JPMorgan analysts believe that a victory by the conservative New Democracy party would boost the Standard & Poor's 500 Index ($INX) by 26 points, or about 2%, and add about 10 basis points -- a tenth of a percentage point -- to the 10-year Treasury yield, which finished today at 1.587%, down from Thursday's 1.611%. A win by the leftist Syriza Party would cut the S&P 500 by 3% from the S&P 500 and knock 12 basis points from the 10-year yield.

The Dow closed up 96 points to 12,748. The S&P 500 had added 12 points to 1,341, and the Nasdaq Composite Index ($COMPX) was sporting a gain of 34 points to 2,870.

Article continues below.
The Nasdaq-100 Index ($NDX) had gained 31 points to 2,571. Apple (AAPL), normally the biggest influence on the index, rebounded from a loss to $569.55 and closed up $2.60 to $574.13, contributing 2.2 points to the index's gain.

It was a week with interesting performances. Facebook (FB) jumped $1.72 to $30.01, its first finish above $30 since May 25 and a 10.8% gain for the week.

Banks jumped as central banks promised to ensure adequate liquidity on Monday and beyond.

Natural gas futures
(-NG) fell back today but ended the week up 7.3% to $2.467 per million British thermal units, suggesting to many that gas has finally bottomed after falling to 10-year lows.

The Dow finished the week up 1.7%. The S&P 500 gained 1.3%, and the Nasdaq and Nasdaq-100 were up 0.5%.

For the year, the blue chips are up 4.5%, with the S&P 500 up 6.8% and the Nasdaq up 10.3%.

Markets for the week



6/15/2012

6/8/2012

% chg.

YTD chg.
Dow Industrials

12,767.17

12,554.20

1.70%

4.50%
S&P 500

1,342.84

1,325.66

1.30%

6.78%
Nasdaq 

2,872.80

2,858.42

0.50%

10.27%
Russell 2000

771.35

769.19

0.28%

4.11%
Crude oil 

$84.03

$84.10

-0.08%

-14.98%
(per barrel)

0.00

0.00

0.00%

0.00%
U.S. Dollar Index 

81.61

82.56

-1.16%

1.34%
10-yr. Treasury

1.59%

1.64%

-3.05%

-15.18%
Gold

$1,628.10

1,591.40

2.31%

3.91%

Bankers warn about Greece's threat
Central banks intensified warnings Friday that Europe’s failure to tame its debt crisis threatens the global economy as Greece’s election in two days looms as the next flashpoint for investors.

A victory by Syriza, the party that promises to renege on Greece’s end of the bailout, could speed the nation’s exit from the euro. The New Democracy Party has promised to stay in the eurozone and continue the country's austerity program, even as Greece suffers through a 5th year of recession.

Greek stocks actually had a big rally all week. The Athens Index COMPOS rose 13.7% to 560.26. While public polling on the election has been put on hold, private polls suggest the New Democracy party is leading. Spain's IBEX-35 Index ($ES:IBEX) rose 2.6%, but Italy's FTSE-MIB Index ($IT:FTSEMIB) slipped 0.4%.

The Group of 20 leaders prepare to gather in Mexico next week, and the Federal Reserve's Federal Open Market Committee meets Tuesday and Wednesday.

Some investors think the lackluster U.S. data increases the chances that the Federal Reserve will signal more easy money to counter slowing growth when it releases its policy statement after the meeting.

Meanwhile, international banking regulars were close to easing a requirement that banks maintain big cushions of liquid assets like cash and bonds that can survive market meltdowns and other crises, The Wall Street Journal said. The rule change would allow other assets, including gold and stock, to be counted as part of liquidity buffers.

Energy prices -- New York close



Fri.

Thur.

Month chg.

YTD chg.
Crude oil (-CL)

$84.03

$83.91

-2.89%

-14.98%
(per barrel)











Heating oil (-HO)

$2.6465

$2.6278

-2.10%

-9.19%
(per gallon)











Natural gas (-NG)

$2.4670

$2.4950

1.86%

-17.46%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.7017

$2.6764

-0.77%

1.67%
(per gallon)











Brent crude 

$97.61

$97.17

-4.18%

-9.10%
(per barrel)











Retail gasoline

$3.5240

$3.5320

-2.65%

7.57%
(per gallon; AAA)












Bank of America, Chevron lead the Dow
Microsoft (MSFT), up 68 cents to $30.02, contributed 5.1 points to the Nasdaq-100 gain on a Wall Street Journal report that it's buying Yammer, which builds internal social-networking sites for business. (Microsoft is the publisher of MSN Money.)

Microsoft was also the third-best performer among the 30 Dow stocks, following Bank of America (BAC) and Chevron (CVX). The laggards were Home Depot (HD) and Procter & Gamble (PG).

Energy, materials and technology were the strongest sectors of the market, but telecom and healthcare stocks are the strongest sectors for the week.

A total of 446 S&P 500 stocks were higher today. Natural-gas producer WPX Energy (WPX) was the top S&P 500 performer, rising 82 cents to $14.79. The gain came as natural prices moved nearly 8% higher for the week.

WPX was followed by telecommunications company Frontier Communications (FTR), up 21 cents to $3.93, women's accessorizer Fossil (FOSL), up $3.80 to $75.49 and travel site Expedia (EXPE), up $2.52 to $50.05.

Zimmer Holdings (ZMH), the maker of joint replacement devices, was the top S&P 500 performer for much of the day but finished 13th. Shares closed at $63.20, up $2.57, after rival Biomet reported a 3.4% gain in fiscal-fourth-quarter sales to $739.5 million. U.S. revenue was up 7%, privately held Biomet said. European revenue fell 8%.

The S&P 500 laggards were Southwest Airlines (LUV), down 27 cents to $8.93, and Rockwell Collins (COL), off $1 to $49.07.

Eighty-seven Nasdaq-100 stocks were higher, led by Nuance Communications (NUAN), up $1.17 to $21.85, and Expedia.

Whole Foods Market (WFM), Ross Stores (ROST), Kimberly-Clark (KMB), Dollar General (DG), Dollar Tree (DLTR) and Seattle Genetics (SGEN) were among stocks hitting all-time highs today.

Today was a Quadruple Witching day. That meant options for indexes and stocks and futures for indexes and options are expiring and generated more than-usual volume and helped stocks move higher.

Crude oil and gold move higher
Crude oil (-CL) rallied in late trading and settled up 12 cents to $84.03 a barrel. Crude fell slightly on the week. Brent crude was up 54 cents to $97.51 a barrel.

The national average price of gasoline fell to $3.524 a gallon Friday from Thursday's $3.532, AAA's Daily Fuel Gauge Report said. That brings the decline in unleaded gasoline to about 10.5% since peaking in early April, though the price is still up 7.6% on the year.

Gold (-GC) settled up $8.50 to $1,628.10 an ounce. Silver (-SI) closed up 33.3 cents to $28.74 an ounce, and copper (-HG) finished up 2.9 cents to $3.3835 a pound. For the week, gold was up 2.3% and is up 3.9% for the year. Silver rose 0.9% for the week, while copper was up 3%.

Interest rates were lower, despite the dollar's moving lower against the euro.

Short hits from the markets -- New York close



Fri.

Thur.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.100%

28.57%

800.00%
5-year Treasury note 

0.678%

0.720%

1.04%

-18.31%
10-year Treasury note

1.587%

1.611%

0.38%

-15.18%
30-year Treasury bond

2.694%

2.708%

0.82%

-6.75%
Currencies











U.S. Dollar Index

81.605

81.988

-1.83%

1.34%
British pound

1.5625

1.5559

1.38%

0.56%
(in U.S. $)

 








U.S. $ in pounds

£0.640

£0.643

-1.36%

-0.56%
Euro in dollars

$1.26

$1.26

2.11%

-2.59%
(in U.S. $)

 








U.S. $ in euros

€ 0.792

€ 0.792

-2.06%

2.66%
U.S. $ in yen 

78.93

79.41

0.47%

2.37%
U.S. $ in Chinese

6.39

6.37

0.18%

1.05%
yuan











Canada dollar

$0.977

$0.978

0.90%

-0.39%
(in U.S. $)

 








U.S. dollar 

$1.024

$1.023

-0.90%

0.39%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,628.10

$1,619.60

4.09%

3.91%
(per troy ounce)

 








Copper (-HG)

$3.384

$3.355

0.53%

-1.53%
(per pound)

 








Silver (-SI)

$28.7400

$28.4070

3.54%

2.96%
(per troy ounce)

 








Wheat (-ZW)

$6.0950

$6.2350

-5.32%

-6.63%
(per bushel)

 








Corn (-ZC)

$5.7950

$6.015

4.37%

-10.36%
(per bushel)

 








Cotton 

$0.7088

0.703

-1.35%

-22.69%
(per pound)

 








Coffee

$1.5200

1.5105

-6.72%

-33.81%
(per pound)

 








Crude oil (-CL)

$84.03

$83.91

-2.89%

-14.98%
(per barrel)










 

89Comments
Jun 15, 2012 2:09PM
avatar
Perhaps some good news, for the nation, to read between the lines of today's Obama news. Obama's pathetic pivotal speach yesterday and today's Obama proclamation that he is abandoning his sworn oath and duty to uphold and defend the Constitution and the laws of this nation by illegally circumventing congress and conferring amnesty upon illegal Mexicans and other Hispanics are indications that he and his re-election campaign are drowning. I wonder how many jobs will be taken, from African Americans, by all of these new work permit holding, no-longer-illegal, non African-Americans? Also, I wonder how that news will be received by the up-til-now monolithic voting block known as the African American community? Obama is flailing away, grasping at anything he can to keep at bay, political death. HOPEfully, he and his campaign will slip beneath the political waves and just go away! That will be CHANGE that this country could live with!
Jun 15, 2012 1:48PM
avatar
Where is the money coming from to keep this stock market up? This has got to be some kind of a con game.
Jun 15, 2012 2:54PM
avatar

Obama inherited a lot of issues from Bush, including 4% unemployment, a Democrat contolled House and Senate and $1.89 gallon gasoline.  Bush made a lot of concessions to the Dems and I disagreed with a lot he did in his second term but Obama had all the tools at his disposal  and a majority in his party to get things done.  All Obummer did was shove health control down our throats, reward his political supporters, increase the size of government and triple the deficit.  A president may not have a direct bearing on the economy but the people he appoints with the same ideology he has certainly do.

 

Its interesting that Obama wants to tax the rich ( folks making $250k and up) while hobknobing ( or knobgobbling) with all the rich and famous from Hollywood.  Those folks are the true 1%ers but I guess since they are supporting Obama he will give them exemptions from the higher taxes.

 

Its interesting that the same immigration proposals Obummer made today are part of what the Republican Convention in Texas proposed last week.

Jun 15, 2012 1:53PM
avatar

Hahahahahahahaha...LMAO!  Rallying ahead of the Greek Election, eh?  And plunging again on news of the Greek election on Monday, I suppose.

 

Try working for your money for a change.

Jun 15, 2012 2:09PM
avatar
Interesting that after 5 years of no austerity Greece is still in a recession.  When has government spending ever helped a country out of recession?  Certainly not in the 1930's and certainly not in the Great Recession.
Jun 15, 2012 2:37PM
avatar

Bendover is pumping Twister stimulus into the market today because after Sunday and the Greek elections the market is going to tank.  Sucker in the small investor if you can Wall Street because its going to come apart soon.  You can bet that we are going to have QE3, QE4 and so on for the next decade until we get some politicians with gonads enough to stop this madness.

 

We are poised to end up like Japan for the next 20 years, ain't life grand.

Jun 15, 2012 3:49PM
avatar
Johnny you hit the nail on the head when you say that Wall Street goes up on Hopes, Dreams and Rumors!!!!  But that happens every day with Wall Street as well as all the financial markets. Very little is transacted on Actual hard cold data!  Instead of Wall Street it should be named "Crystal Ball Street".
Jun 15, 2012 3:44PM
avatar
Greece and the US market in the same sentence? Give me a break.  This is all distraction. The truth of the matter is the market sees more money for nothing coming their way
Jun 15, 2012 3:32PM
avatar
The pump and dump is in ladies and gentlemen. Enjoy Monday. Until of course QE3 gets let loose. Then it will be hunky dory for a couple of months then QE4 will be screamed for. I am so glad I am 100% debt free. I might be able to weather this fiasco.
Jun 15, 2012 3:12PM
avatar
Stocks rally ahead of Greek election

So they can dump after the election.

Jun 15, 2012 3:30PM
avatar
The Central Banks say they will make sure that won't happen!  But Rueters is writing "Red Alert, Red Alert". They will not know what the final vote is going to be for days!!!!!  Of course you know there will be the straw poll people who think they know but then again they don't!.  Frankly if I was another country I would want all the dead beaters out!  All this hype and pressure over saving a curency!  Isn't it funny we never had this problem before when we had all those individual currencies. And this effort of all those Euro Countries to save the dead beats is honorable but basically stupid!!!! Time will tell how New York wants the news to go down.  But guarantee you the brokers will all be busy on Father's day sending out emails and texts to all their clients!!!!! And I'm sure they will all have to get in early on Monday so they get the script on what and what they are not supposed to say!!!!! Am I saying that Wall Street is Scripted?  YES!!!!!
Jun 15, 2012 4:03PM
avatar

Too bad Americans can't live on whether or not Greece can get it together, wow a rally? again?? where have I heard that one before? We need solid ground on jobs here not in some other godforsaken continent!

 

Romeny + obama = Reagan/carter redux in Nov

Jun 15, 2012 3:32PM
avatar
This reminds me of the dot com bust, Industrial production slips and the DOW goes up no earnings and profits and the stock market moves up..stock market going up on hopes and dreams and rumors equals a CRASH coming to Wall Street Soon.
Jun 15, 2012 1:56PM
avatar
<----- What am I doing in the stock market
Jun 15, 2012 3:26PM
Jun 15, 2012 2:34PM
avatar
What recession? The 1%'s all made tons of money.
Jun 15, 2012 4:26PM
avatar

Hey Pete,

you wrote: "The economy has always done better under democrats than republicans. That includes but not limited to the stock market, jobs, housing"

Now is Obama a Democrat, a Democrap or an Illusionist?

What is it that you are drinking? The democrats always end up riding the Republicans economy until Frank and Dodds alike SCREW it, then they blame Georges Bush.

Now I understand why Carter voted for Obama, he didn't want to be the worst US president.

 

I am guessing you are on welfake wages huh?

Jun 15, 2012 1:14PM
avatar

some bad news coming in a couple hours  about our economy     good news is I HOPE its not to bad

market should really jump up

Jun 15, 2012 3:36PM
avatar
What happened yesterday? A bit afrer 1500 hrs rumors invaded Wll Street and buyers were coming out of everywhere....Manipulators got caught with their pants down, panic set in when we topped 200....The good guys enjoyed it; scumbags didn't so the Dow finished up 155...Today we've had buyers most of the day so we are up nicely...Still 30 min. to go though...Never be complacent...Scumbags not happy at all, we are pretty sure that regardless what happens in Greece on Sunday they wil be ready, willing and able to do their thing on Monday....We will see.
Jun 15, 2012 5:38PM
avatar
The Republicans did it, the Democrats did it...........blah, blah, blah...........They both did it folks and until people wake up nothing is going to change for the better. Anything that comes out of either sides mouth is nothing but window dressing.
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[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.

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