Dow jumps 278, has best month since October
Stocks soar -- as the blue chips enjoy their best June since 1999 -- after European leaders move to stabilize their banks. Apple and chip makers boost techs, but Research In Motion shares slump badly. Ford and Nike warn on European sales.
Stocks soared today, and the Dow Jones Industrial Average ($INDU) had its best monthly performance since October, after European leaders agreed to use the continent’s bailout funds to recapitalize struggling banks directly.
The goal of the decision is to prevent runs on banks in Spain, Italy and Greece that could destabilize Europe's fragile bank system. But the details still must be worked out, a process that may take weeks and could lead to more market volatility.
The Dow shot up 278 points, its best one-day gain since June 6. The Standard & Poor's 500 Index ($INX) had its best day since Dec. 20, and the Nasdaq Composite Index ($COMPX) finished with its biggest one-day performance since Nov. 30. Crude oil (-CL) jumped nearly to $85 a barrel, its biggest one-day jump in 16 months. The Dow finished up 3.93% in June.
The European news offset a University of Michigan report that consumers are gloomy about the economy, but the report of the Chicago Purchasing Managers suggested manufacturing is stabilizing. The market rally came despite steep losses in shares of Research In Motion (RIMM) and Nike (NKE) over earnings disappointments. Ford Motor (F) fell after warning that its European business would show a sizable loss for the second quarter.
The Dow's big gain took the blue-chip index to 12,880. The S&P 500 gained 33 points to 1,362, and the Nasdaq jumped 86 points to 2,935. The indexes had their highest closes since May 8.
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The Nasdaq-100 Index ($NDX) gained 79 points to 2,616, primarily due to strength in Apple (AAPL), Oracle (ORCL), Microsoft (MSFT), Intel (INTC) and Google (GOOG). (Microsoft publishes MSN Money.)
A whopping 89 stocks hit all-time highs today, including Costco Wholesale (COST), Walt Disney (DIS), Hershey Foods (HSY), Boston Beer (SAM) and WD-40 (WDFC).
In addition to the Dow's June performance, the S&P 500 climbed 4% in its best monthly performance since February. The Nasdaq's 3.8% gain was its best since March. The Nasdaq-100 had a up 3.6% gain, its best since March.
It was the best June for the Dow and S&P 500 since 1999 and the best for the Nasdaq since 2000.
Stocks, however, did end the second quarter lower. The Dow fell back 2.5%, with the S&P 500 down 3.3% and the Nasdaq and Nasdaq-100 both down 5.1%.
But the market for the year is still well in the black. The Dow is up 5.4% for 2012, with the S&P 500 up 8.3% and the Nasdaq up 12.7%. The Nasdaq-100 remains up 14.8%.
The week ahead is broken up by the July 4 holiday on Wednesday, when markets will be closed; they will close early on Tuesday. The big event of the week comes Friday with the June payroll and unemployment report.
Health stocks rise -- except health insurers
In the wake of the Supreme Court decision on the Affordable Health Care Act, 45 of the 52 stocks in the health care sector of the S&P 500 were higher.
The Health Care Select SPDR (XLV) exchange-traded fund, which tracks the sector, was up 78 cents to $38.01.
The one group that faltered: healh insurers. Wellpoint (WLP) was the hardest hit, down $2.11 to $63.79, followed by Aetna (AET), down $1.08 to $38.77.
The leaders were Cerner (CERN), which builds medical-information systems, up $4.63 to $82.66, and Agilent Technologies (A), which makes technical instruments, up $1.62 to $39.24.
|Markets for the week|
|6/29/2012||6/15/2012||% chg.||YTD chg.|
|U.S. Dollar Index||81.75||82.44||-0.84%||1.53%|
Crude oil and gold jump
Light sweet crude oil in New York settled up $7.27 to $84.96 a barrel. Brent crude had gained $6.44 to $97.80.
The national average price of gasoline fell to $3.353 a gallon from Thursday's $3.369, AAA's Daily Fuel Gauge Report said. The price is down 2.9% this week and 14.8% since peaking in early early. But the average price is still up 2.4% for the year.
Crude oil was up 6.5% for the week. Retail gasoline was off 2.9%.
Gold (-GC) rose $53.80 to $1,604.20 an ounce. Silver (-SI) for September delivery settled up $1.321 to $27.612 an ounce. Copper (-HG) for September delivery settled up 16.5 cents to $3.4965 a pound.
For the week, gold was up 2%, with silver up 3.6% and copper up 5.8%.
Interest rates were higher, with the 10-year Treasury yield at 1.659% from Thursday's 1.577%. The dollar was lower against major currencies, especially the euro.
|Energy prices -- New York close|
|Fri.||Thur.||Month chg.||YTD chg.|
|Crude oil (-CL)||$84.96||$77.69||-1.81%||-14.03%|
|Heating oil (-HO)||$2.7099||$2.5472||0.25%||-7.01%|
|Natural gas (-NG)||$2.824||$2.722||16.60%||-5.52%|
|(per mil. BTU)|
|Unleaded gasoline (-RB)||$2.6318||$2.4773||-3.34%||-0.96%|
|(per gallon; AAA)|
Europe moves to shore up its banks
The decision, by leaders of the 17-nation eurozone, would allow help to banks without adding directly to the sovereign debt of countries. That's been a problem for Spain and potentially for Italy. The deal also calls for a single regulator to watch over European banks.
Both countries have seen rates on their debt rise to levels that would be unsustainable in the long term, and the Italian and Spanish prime ministers, Mario Monti and Mariano Rajoy, pleaded for help with colleagues at the summit, held in Brussels.
The markets gave them some help. The yield on the Spanish 10-year bond fell to 6.329% after peaking at 7.26% on June 18. The Italian 10-year yield fell to 5.819%. It had peaked at 6.22% on June 13. Moreover, stocks in Europe rallied strongly on the news. Italian stocks were up more than 6%; Spanish stocks gained more than 5%.
There are lots and lots of questions about the aid plan and the plan for a single banking regulator for the continent. Presumably, it would include a standardized form of deposit insurance to prevent capital flight.
And there's always the chance that the deal will fall apart or investors will decide it's talk without substance.
Energy and financial stocks lead the market
Industrial and technology stocks led the market rally. United Technologies (UTX), up $2.93 to $75.53, and Boeing (BA), up $2.72 to $74.30, were the third- and fifth-best performers among the 30 Dow stocks after Bank of America (BAC), whose shares jumped 44 cents to $8.18 -- its first close above $8 since June 2.
Networking stocks were the strength in technology shares, with F5 Networks (FFIV) up $6.20 to $99.56. Cisco Systems (CSCO), up 69 cents to $17.17, was the second-best Dow performer.
Apple was up $14.95 to $584, adding nearly 12 points to the Nasdaq-100's gain by itself.
In addition, energy shares jumped on optimism for a rebound in Europe, and financial stocks rallied in hopes that the rescue effort in Europe would stabilize the global banking system.
Citigroup (C) was up $1.02 to $27.41, but JPMorgan Chase (JPM) was off 15 cents to $35.73 -- the only Dow stock with a loss.
Could Research In Motion fail?
Research In Motion shares were off $1.74 to $7.39, their lowest close since Dec. 16, 2003, after showing a larger-than-expected loss for the fiscal first quarter. The company also said it is delaying the introduction of its BlackBerry 10 device until next year and laying off 5,000 workers, about 30% of its workforce.
Analysts cut their price targets on the stock, and some predicted the company could run out of cash and possibly fail.
The stock is down 95% since peaking at $138.87 in May 2008.
Nike shares are slammed
Nike shares were down $9.11 to $87.78 after the company reported lower-than-expected earnings for the fourth quarter and cut guidance as well. The company blamed an economic slowdown in Europe, which represents about 25% of sales, and sees sales growth declining in China.
Higher costs for labor and marketing, especially in conjunction with the London Olympics, have pinched margins.
The stock is down 20.3% since peaking at $110.14 on May 3.
Ford sees weakening sales in Europe, Asia
Ford said late Thursday it expects a decline in second-quarter profit as a result of significant losses outside of North America.
Shares were down 50 cents to $9.59, their lowest level since Oct. 3.
Ford said second-quarter pretax losses in its Asian, South American and European regions could reach about $570 million, three times more than the $190 million it lost in those operations in its first quarter.
The company does expect to be profitable overall in the quarter thanks to strong results in North America and its Ford Credit lending business.
|Short hits from the markets -- New York close|
|Fri.||Thur.||Month chg.||YTD chg.|
|13-week Treasury bill||0.0800%||0.080%||14.29%||700.00%|
|5-year Treasury note||0.729%||0.693%||8.64%||-12.17%|
|10-year Treasury note||1.659%||1.577%||4.93%||-11.33%|
|30-year Treasury bond||2.763%||2.666%||3.41%||-4.36%|
|U.S. Dollar Index||81.753||83.007||-1.66%||1.53%|
|(in U.S. $)|
|U.S. $ in pounds||£0.636||£0.644||-1.93%||-1.13%|
|Euro in dollars||$1.27||$1.24||2.50%||-2.22%|
|(in U.S. $)|
|U.S. $ in euros||€ 0.789||€ 0.803||-2.44%||2.27%|
|U.S. $ in yen||80.00||79.42||1.84%||3.76%|
|U.S. $ in Chinese||6.38||6.35||-0.09%||0.78%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
|Crude oil (-CL)||$84.96||$77.69||-1.81%||-14.03%|
what? are you four years old?
Obama is the best moderate republican president we have had since Reagan.
You have to stop being spoon fed news by FOX and MSNBC and start thinking for yourself.
You may need to use words bigger that 4 letters to get the job done, but then four letter words are all politics are capable of communicating.
"Sell in May and go away."
That strategy would have missed a good month.
When OBAMACARE kicks in.........Dow will sink 278
When OBAMATAX kicks in.............Dow will sink another 278
That's what Peelosi said.........let's pass it so we can find what's in it............
DOW JUMPS 278???
What goes UP must comes DOWN..........IT IS SAID...
OBAMATAX will take care oF THAT....................
"The best month since October"? October when? 1929? 2112?
The DOW had the DOW that Wall Street wanted. It's all lies. The market is a lie, run by liars.
Thank you Mr. Obama and most of you Democrats in Congress for standing up for Americans, protecting America and preserving our nations Constitution!
Obama in 2012!
Van Hollen in 2016 & 2020!
God bless America!
Obama was taken a vocabulary test when he was asked to find 2 positive words finishing by the four letters ican.........he asked Michelle and together they couldn't....so here are the words:
When asked what the word Democrat would signify, then again he wouldn't know, so here you go:
Don't forget that November is the rodent's removal month....go vote.
An Arab enters a taxi..........
Once he is seated he asks the cab driver to turn off the radio because he must not hear music,
as decreed by his religion and, in the time of the prophet, there was no music, especially
Western music which is music of the infidel's and certainly no radio ........
So the cab driver politely switches off the radio, stops the cab and opens the back door.
The Arab asks him: "What are you doing man?"
The cabby answers: "In the time of the prophet there were no taxis.
So get out and wait for a camel."
What a joke!!!!!! The system needs to be fixed!
The DOLLAR is not down
OBAMA took us down
I can see, way too many libs and dems on this blog...
Yep, the dollar is down.
Hardly a surprise.....and wait...there's more on the way.
The core of it all. Lets laugh to the poor house...
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