Market DispatchesMarket Dispatches

Stocks waver as European optimism fades

Finance ministers agree to give Spain 30 billion euros for its banks, but investors are unsure whether Germany's high court will approve a eurozone bailout. Coca-Cola announces a 2-for-1 stock split. Alcoa's earnings beat expectations.

By TheStreet Staff Jul 10, 2012 9:10AM
Updated at 1:03 p.m. ET


By Andrea Tse and wire services


Stocks gave up earlier gains Tuesday, wavering in late-morning trading as investors appeared to lose confidence that Germany's high court will approve the eurozone bailout.


The Dow Jones Industrial Average ($INDU) was up 15 points at 12,751. The S&P 500 ($INX) was down 2 points at 1,350. The Nasdaq Composite ($COMPX) was down 11 points at 2,921.

 

European leaders agreed on the terms of a bailout for Spain, approving the first aid payment of 30 billion euros (about $37 billion) for release by the end of the month, The Associated Press reported. Spain's benchmark borrowing rate fell and its stock market surged on the news. Spain is the largest European country to date to seek international assistance, AP said.


Italian yields were also falling amid expectations that Germany's top court will approve plans to more easily disburse eurozone rescue funds.


European investors got another bit of relief as the Office for National Statistics said U.K. factory output increased 1.2% in May.

 

The FTSE in London was rising 0.65%, and the DAX in Germany was up 0.79%.


Hong Kong's Hang Seng finished down 0.16% and the Nikkei in Japan closed lower by 0.44% after China reported weak trade data that pointed to more signs of a slowdown.


For the first time in 16 years, Coca-Cola (KO) announced a 2-for-1 stock split, CNBC reported, increasing its shares to 11.2 billion.

 

Aluminum giant Alcoa (AA) kicked off second-quarter earnings season by beating Wall Street estimates by a penny. Sales were $5.96 billion, topping the average analyst estimate of $5.81 billion, according to Thomson Reuters.

 

Investors at Research In Motion's (RIMM) annual shareholders meeting Tuesday will listen for details about the troubled BlackBerry maker's long-term strategy. RIM recently reported a worse-than-expected loss in its first quarter, announced 5,000 job cuts and said it was delaying its long-awaited BlackBerry 10 technology.

 

Advanced Micro Devices (AMD) said it sees a sequential decrease in revenue of 11% for the second quarter, down from a prior forecast for growth of 3%. The chip-maker cited slow growth in China and Europe as well as weak consumer demand for PCs for the weak outlook.

 

Intel (INTC) on Monday announced a series of deals totaling $4.1 billion with semiconductor manufacturing specialist ASML Holding (ASML) as the chip-maker looks to boost silicon manufacturing. Intel will invest about $1 billion in ASML's research and development over five years and will eventually take a $3.1 billion, 15% stake in Netherlands-based ASML.


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287Comments
Someone (lo2)
Jul 10, 2012 9:41AM
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Yesterday it was panic, panic, panic about Eurozone and earnings.  And isn't it amazing that after all the selling to get the prices lower we have forgotten about all the worlds problems and are buying once again.  TYPICAL WALL STREET BULLCRAP!  When are people going to wise up and realize that the financial markets are nothing more than a big SCAM!!!!!

Someone (lo2)
Jul 10, 2012 10:59AM
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You can see that Obama is trying to get the middle class of vote for him now when he is trying to extend the tax cut program for middle class people.  But the solution to tax issues is that the government needs to curb spending in which they are not. The only way to do that is to evaluate what is a necessary expense and what isn't.  So where can we start?  Politicians, Air Force One, Large Politician Retirement Funds?  The list can go on and on!!!!
steveG1956
Jul 10, 2012 10:15AM
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we have no national projects today.  the moon race is over.  freeways are done.  the great flood control dams are built and done. 

 

rah rah speaches like "green energy" are too nebulus to understand what that really means. 

 

let china make TV's and chairs, while we make the next big thing. 

 

yet what is it going to be?  artificial hearts?  kidney's?  lungs?  cloned spare body parts? 

 

we launched the internet.  set the standards for aircraft design. 

 

then we outsourced our livelihood. 

 

 

>>>>>>When Kennedy gave his speach in regards to sending a man to the moon and returning him safely he ignited the American spirit and commitment. We sit and ask ourselves what is wrong about America today. <<<<<<<

next time up
Jul 10, 2012 10:55AM
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In the 60's and 70's Liberals voted for social programs that benefited those less fortunate.  Today I believe  Liberals vote for social programs that will benefit them.  Big difference in my view.  This; I believe, destroyed the moral right of the left.  :)
flaxon
Jul 10, 2012 10:26AM
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Whether Romney wins or Obama wins the trends are in the process that America will will continue it's decline. I feel very fortunate that I have lived in the best of times for this country. And for those of you that will experience the hope and change  to come................​.....most of you asked for it so enjoy!!!

 

 

next time up
Jul 10, 2012 10:06AM
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When Kennedy gave his speach in regards to sending a man to the moon and returning him safely he ignited the American spirit and commitment. We sit and ask ourselves what is wrong about America today.  Well when the POTUS says one thing and does another he dumbs down the American spirit, breaks down committed progress, and creates a cynical climate whereby Americans become uninspired.  I think all of us want what is best America but the level of leadership inhibits most of us getting on the train and heading for a straightforward goal with a committed citizenery. Honesty, integrity and transparency were what we were promised.  So the issue to me is not a dem/rep issue it is a character/integrity issue. A child who comes from a home where he is lied to and decieved rarely is able to build that foundation of trust that will carry him through life and achieving his dreams.  Planned progress is short circuited by lieing and deception. This current market suffers from the character issue as well. Very few here see a clear picture of where any individual company is headed because many Ceos have now become spin masters, Jon Chambers has set the bar so low you could trip and fall on it.  The Wall Street crowd continues along  this arrogant path of lieing, cheating, and disinformation.   If we had  leaders who were hip to human nature and were disciplined in the foundation  that contributed to success no telling how quickly we could turn this market and country around.
Gary Myers (gmyers)
Jul 10, 2012 10:26AM
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SteveG1956,

 

 85,000 dropped out of the labor force altogether to collect Social Security disability payments."<<<<<<<

Being a veteran and having been around some disabled verterans during my tour

in Vietnam and the states I have always considered myself lucky that I was able

to WALK among them and not be one of them.

Gary Myers (gmyers)
Jul 10, 2012 10:21AM
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5pm

 

Well, we can always use the Bush solution.  "Go shopping".

 

It doesn't appear that any of the past 6 administrations and their accompanying

congresses has had any idea about what to do about our economic situation.

 

It seemed to get better under Clinton, but that was just a mirage because he used

the enormous surplus in the SS and medicare taxes to create the mirage of better

times. 

 

I think we have proven that politcs and politicans, no matter what party they are from

have no clue about how to fix the economy and society, or if they do they haven't successtully

implimented any of it.

steveG1956
Jul 10, 2012 10:24AM
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there's no doubt they have no clue of the value that design and manufacturing have in USA, much less have any respect for it.....

 

>>>>>>>>>I think we have proven that politcs and politicans, no matter what party they are from

have no clue about how to fix the economy and society, or if they do they haven't successtully

implimented any of it.<<<<<<<<<

steveG1956
Jul 10, 2012 9:54AM
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are war vets coming home to join the disability rolls? 

 

>>>>>>>>"June brought the perfect encapsulation of the Obama economy: More Americans signed up for disability benefits than got jobs. According to government statistics, 80,000 Americans found work last month, while 85,000 dropped out of the labor force altogether to collect Social Security disability payments."<<<<<<<

vineyard60
Jul 10, 2012 10:59AM
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Stocks sore on european optimism. More BULL "S" from Fraud Street. Smoke and Mirrors all day every day=Wall Street
Gary Myers (gmyers)
Jul 10, 2012 11:10AM
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Right, Left-Left,Right-Righ​t, Left-Left-Right.

 

The President and Congress are out of step and  marching us right over the cliff.

jon . (jon_83)
Jul 10, 2012 10:49AM
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WHY DON'T THESE WRITERS JUST "SHUT THE **** UP".
GEE, I GUESS THE OPTIMISM ONLY LASTED ABOUT AN HOUR?
WHAT'S YOU NEXT HEADLINE JACKASS?

to new Hope 2012
Jul 10, 2012 9:37AM
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Just another day on WS in their BS land.

 

 

GO MITT GO!!!

Gary Myers (gmyers)
Jul 10, 2012 11:00AM
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Damn, the Europeans must have dirven over the cliff in the past couple of hours.
steveG1956
Jul 10, 2012 9:47AM
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it's sporatic like weather predictions.  except weather is easier to predict. 

 

>>>When are people going to wise up and realize that the financial markets are nothing more than a big SCAM!!!!!<<<<<

Too Sick 2 Swag
Jul 10, 2012 9:50AM
avatar
I have to admit that if the ONLY TWO OPTIONS realistically on the table are extending the BTC's for ALL, or just for those under the $250k mark, I'd have to say that the latter makes more sense to me.

Just sayin.....

Someone (lo2)
Jul 10, 2012 10:54AM
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Oh, my the german court has not made a decision as of yet.  And investors want to see that done right now!!!!  GO STICK YOUR INVESTOR HEADS UP YOUR BUTT!!!!!!!
BH8352
Jul 10, 2012 11:31AM
avatar

>>>>premiums have been going up steadily for the last 20 years.<<<<

 

Oh just wait until you introduce millions more into a system already unable to properly support the number of people currently in it! Providers raise costs until their work load is manageable and profit is maximized. Economic cluelessness thinks this bill is a good idea in and of itself. Nobody will say the bill is all bad. If you think this will do anything to help health care overall in this country though, you're misinformed.

Gary C
Jul 10, 2012 9:47AM
avatar
And yet, the Euro is still falling against the Dollar. That is what we really need to watch, when our prices on exports are going to be driven right out of thier markets. And I ask myself, why are'nt we doing the same, and/or creating tariffs on some of these countries?
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