Bank stocks lead post-plunge bounce
Shares of Citigroup, Bank of America and Morgan Stanley climb despite Moody's credit downgrades. Eurozone leaders meet in Rome to address the debt crisis.
By Andrea Tse
Stocks were rising Friday after the previous session's deep sell-off as investors shrugged off Moody's downgrade of 15 major banks late Thursday.
Stocks suffered their worst single-day drop in three weeks Thursday as investors were spooked by a batch of gloomy global economic data, a bearish trading call by Goldman Sachs (GS) and disappointment over the outcome of the Federal Reserve's latest policy meeting.
On Thursday evening, Moody's downgraded 15 of the world's biggest banks.
The Hong Kong Hang Seng index closed lower by 1.4%, and the Nikkei in Japan closed down 0.29%.
The FTSE in London was slipping by 0.88% and the DAX in Germany was declining by 0.98% as business confidence in the biggest eurozone economy fell to its lowest point in more than two years.
European leaders met in Rome on Friday to discuss a unanimous plan to bring relief to the eurozone debt crisis. One area of contention going into the meetings is the proposal to tax financial transactions and to have banks foot the bill for their own bailouts.
In Spain, independent audits indicate that the country's banks will, under duress, require up to 62 billion euros in financial support, below the earlier foreseen 100 billion euros in eurozone bailouts.
Friday's U.S. economic calendar is empty.
In corporate news, Monster Beverage (MNST) is being added to the S&P 500, replacing Sara Lee (SLE). Standard & Poor's expects the change to take place after the close on June 28. The change was prompted by Sara Lee's decision to spin off its international coffee and tea business to shareholders.
Shares of Darden Restaurants (DRI) fell after the company posted in-line earnings for its fiscal fourth quarter but came in slightly short on the top line.
Arch Coal (ACI) said after Thursday's close that it's laying off 750 employees, roughly 10% of its workforce. The company said it plans to reduce production at mining complexes in Appalachia because of a major downturn in demand for coal-based electricity.
Medtronic (MDT) said its board has approved a 7.2% increase in its regular quarterly cash dividend to 26 cents a share. The medical devices company said the dividend is payable on July 27 to shareholders of record on July 6.
Ryder Systems (R) lowered its fiscal-second-quarter outlook, citing weakness in its fleet management solutions business. The company now sees comparable earnings of 90 to 95 cents a share for the three months ended in June, down from a previous expectation for a profit of $1.07 to $1.12 a share.
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God this site is great entertainment especially all the predictions made here about the direction of the market or the price of say oil.
Let's face it, these people are wackos. In fact, they are the wackos of wackos. Most of these people couldn't predict a number 1 or 2 until it was too late.
Mitt is a hit even if he is rich. Remember God loves the Rich! The poor are poor because they worked very hard to be such.
On this date:
2000 - $5.7 trillion
2004 - $7.3 trillion
2008 - $9.9 trillion
2012 - $15.8 trillion
2000 - $9.5 trillion
2004 - $11.3 trillion
2008 - $13.9 trillion
2012 - $15.2 trillion
Debt as a % of GDP
2000 - 60.5%
2004 - 64.4%
2008 - 71.3%
2012 - 103.8%
FATTY Cakes has a strange interest in Salamis ??...And he always talks about licking Dorks...
What does all that mean?.......Inquiring minds have a need........."
Source please if you can....
Thanks in advance!
"Stocks suffered their worst single-day drop in three weeks Thursday as investors were spooked by a batch of gloomy global economic data, a bearish trading call by Goldman Sachs and disappointment over the outcome of the Federal Reserve's latest policy meeting." -
Gee the banks never got a downgrade before the great fall of 2008. How bad must things be now.
If we were down 250 yesterday over "Economic Worries" why are we having a rally today-did the worries and problems go away.
Oh yea- my prediction of Oil at $75 back in April is just about to be fulfilled. Great for the consumer-Bad for the economy.
Don't look for a real move upward until the First Wednesday in November- Bye Bye Barry!!
Ho hum just another day of dumb comments from the retarded twins, Rertado (AKA Retog) and MG. I think they are both related to Dorklicker or one of his homie cousins.
Go Mitt go. We all know Obami El Salami is leading the country down the road of ruin. Let's ruin El Salami future aspirations this coming November.
Down the crapper we go.......
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[BRIEFING.COM] The S&P 500 settled lower by 0.8% after early strength turned into afternoon weakness.
Today's headline event came in the form of Ben Bernanke's testimony before the Joint Economic Committee. During his remarks, Chairman Bernanke said premature tightening of monetary policy could stall the pace of recovery. This followed weeks of conflicting remarks from FOMC members, which sparked speculation regarding possible changes to the Fed's policy course.
However, ... More
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