Dow up 93; stocks enjoy their best week of 2012

The Dow ends the week up 3.6% despite European worries. Spain is expected to seek eurozone aid to prop up its banks. McDonald's sees uncertainty hitting results, but Wal-Mart leads the blue chips. Crude oil briefly falls under $83.

By Charley Blaine Jun 8, 2012 12:16PM
Charley BlaineUpdated: 6:42 p.m. ET

Stocks shrugged off worries about China, Spain and Europe today and rallied solidly to their best weekly gains of the year.

In fact, the market was earned back all of its losses of a week ago, when stocks tumbled on a weak jobs report and the Dow Jones industrials ($INDU) lost all of their gains for 2012. With today's gains, the Dow is back to a 2.8% gain for the year.

The rally was a surprise after markets fell in Asia and Europe after Federal Reserve Chairman Ben Bernanke wouldn't tell the Joint Economic Committee Thursday when or if the Fed was going to try a new round of stimulus for the struggling economy.

The risks to the market remain, however. Spain is expected to ask the European Union for emergency aid on Saturday to prevent a run on its banks, Reuters reported today. It is the fourth and largest country in Europe to seek help since the eurozone's debt crisis began. And the hope is that a deal will get done before June 17, when Greece will try again to elect a new government. There remain grave concerns that Europe is sinking into a major recession that could affect economies around the world.

The Dow closed up up 93 points to 12,554. The Standard & Poor's 500 Index ($INX) gained 11 points to 1,326, and the Nasdaq Composite Index ($COMPX) had gained 27 points to 2,858.

Article continues below.
The Nasdaq-100 Index ($NDX), heavily influenced by Apple (AAPL), jumped 24 points to 2,559. Apple had gained $8.60 to $580.32, adding roughly 5 points to the index.

For the week, the Dow gained 3.6%, with the S&P 500 up 3.7% and the Nasdaq up 4%. The gains for the Dow and S&P 500 were the best since the week of Dec. 19. The Nasdaq's gain was its best since the week of Nov. 28.

In addition to the Dow's 2.8% gain for the year, the S&P 500 is up 5.4%, with the Nasdaq up 9.7%.

Facebook (FB) was up 79 cents to $27.10 after market-research firm ComScore said markets can use the website to boost sales.

Facebook, of course, had a troubled initial public offering that's caused no end of trouble for Nasdaq OMX Group (NDAQ), the parent of the Nasdaq trading platform.

The botched trades have proved quite expensive. CNBC reported today that UBS Financial Services (UBS) was looking at losses of perhaps $350 million from the Facebook debacle. UBS is preparing to sue the big investment house, CNBC's Maria Bartiromo reported.

UBS was off 6 cents to $11.61 in New York. Nasdaq OMX was up 1 cent to $22.12.

Nasdaq did get one bit of good news. Dow component Kraft Foods (KFT) is moving its listing from the New York Stock Exchange to the Nasdaq on June 26. And, once Kraft spins off its snacks business into Mondelez International, both will remain on Nasdaq using the tickers KRFT and MDLZ, respectively.

Markets for the week



6/8/2012

6/1/2012

% chg.

YTD chg.
Dow Industrials

12,554.20

12,118.57

3.59%

2.76%
S&P 500

1,325.66

1,278.04

3.73%

5.41%
Nasdaq 

2,858.42

2,747.48

4.04%

9.72%
Russell 2000

769.09

737.42

4.29%

3.80%
Crude oil 

$84.10

$83.23

1.05%

-14.90%
(per barrel)

0.00

0.00

0.00%

0.00%
U.S. Dollar Index 

82.56

82.97

-0.50%

2.53%
10-yr. Treasury

1.64%

1.47%

11.59%

-12.51%
Gold

$1,591.40

1,622.10

-1.89%

1.57%

Wal-Mart leads the Dow
Leading the Dow was Wal-Mart Stores (WMT), up $2.35 to $68.22, a 12-year high, thanks to a report that its Latin American subsidiary saw sales rise 10.2% in May compared with a year ago. Wal-Mart's gain added more nearly 18 points to the blue-chip index.

Following Wal-Mart were JPMorgan Chase (JPM), Bank of America (BAC) and Home Depot (HD).

McDonald's (MCD) and Alcoa (AA) were the laggards.

McDonald's fell 63 cents to $87.75 after warning that economic volatility around the world and rising costs may drag on its second-quarter earnings. The shares had dropped to as low as $85.92.

Twenty-six of the 30 Dow stocks were higher. In addition, 408 S&P 500 stocks were higher, led by Sprint Nextel (S), Expedia (EXPD) and Masco (MAS). The laggards were natural-gas producer Exelon (EXC), a victim of lower natural gas prices, and U.S. Steel (X).

Meanwhile, 81 Nasdaq-100 stocks were higher, led by Expedia and Sears Holdings (SHLD). Apple, Microsoft (MSFT), Intel (INTC) Qualcomm (QCOM), Cisco Systems (CSCO) and Google (GOOG) were responsible for 14.9 points of the index's gain. (Microsoft publishes MSN Money.)

Energy prices -- New York close



Fri.

Thur.

Month chg.

YTD chg.
Crude oil (-CL)

$84.10

$84.82

-2.81%

-14.90%
(per barrel)











Heating oil (-HO)

$2.6721

$2.6671

-1.15%

-8.31%
(per gallon)











Natural gas (-NG)

$2.2990

$2.2740

-5.08%

-23.08%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.6852

$2.6850

-1.38%

1.05%
(per gallon)











Brent crude 

$99.47

$99.93

-2.36%

-7.37%
(per barrel)











Retail gasoline

$3.5550

$3.5600

-1.80%

8.52%
(per gallon; AAA)












Two Chesapeake directors get thumbs-down votes from shareholders
Chesapeake Energy (CHK) was having an amazing annual meeting, and shares were up 51 cents to $18.36. Shareholders overwhelmingly voted against two directors standing for re-election.

Only 27% of shareholder votes were cast in favor of board member Richard Davidson, the former CEO of Union Pacific (UNP). V. Burns Hargis, president of Oklahoma State University, received 26.4% of votes cast.

Both men tendered their resignations, the company said, under a measure that drew 97.1% of votes, requiring directors who don't receive a majority of votes cast to offer to step down.

In recent weeks, Chesapeake has faced extreme scrutiny and a plunging share price as low natural-gas prices and high debt levels have generated a liquidity crisis. Earlier this week, it agreed to shuffle its board, allowing two large shareholders, Carl Icahn and Southeastern Asset Management, to appoint a majority of the board members.

Crude oil briefly falls below $83
Crude oil (-CL) dropped below $83 a barrel in New York for the first time since early October before rebounding this afternoon. But oil rebounded in the afternoon, settling at $84.10 a barrel, down 72 cents. Brent, the benchmark North Sea crude, was off 24 cents to $99.69 a barrel.

Natural gas (-NG) fell to the lowest levels since April 20, settling at $2.299 per million British thermal units.

The average retail price of gasoline fell to $3.555 a gallon from $3.56 on Thursday, according to AAA's Daily Fuel Gauge Report. For the week, the price is down 1.6%. It's also down 9.7% from its April peak of $3.936 a gallon.

Gold (-GC) rebounded this afternoon, settling up $3.40 to $1,591.40 an ounce. Copper (-HG), however, fell 8.55 cents to $3.2985 a pound. Silver (-SI) slipped 5.8 cents to $28.471 an ounce.

Interest rates were lower as well, with the 10-year Treasury yield dropping to 1.637% from Thursday's 1.654%. The yield had actually dropped to as low as 1.562%.

The euro was at $1.25125, down slightly against the dollar after dropping to as low as $1.24471.

Short hits from the markets -- New York close



Fri.

Thur.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0800%

0.080%

14.29%

700.00%
5-year Treasury note 

0.712%

0.715%

6.11%

-14.22%
10-year Treasury note

1.637%

1.654%

3.54%

-12.51%
30-year Treasury bond

2.765%

2.757%

3.48%

-4.29%
Currencies











U.S. Dollar Index

82.562

82.106

-0.68%

2.53%
British pound

1.5427

1.5540

0.09%

-0.71%
(in U.S. $)

 








U.S. $ in pounds

£0.648

£0.643

-0.09%

0.71%
Euro in dollars

$1.25

$1.26

0.85%

-3.79%
(in U.S. $)

 








U.S. $ in euros

€ 0.802

€ 0.796

-0.84%

3.94%
U.S. $ in yen 

79.55

79.67

1.27%

3.18%
U.S. $ in Chinese

6.40

6.36

0.23%

1.11%
yuan











Canada dollar

$0.969

$0.973

0.07%

-1.22%
(in U.S. $)

 








U.S. dollar 

$1.033

$1.027

-0.07%

1.23%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,591.40

$1,588.00

1.74%

1.57%
(per troy ounce)

 








Copper (-HG)

$3.285

$3.371

-2.39%

-4.39%
(per pound)

 








Silver (-SI)

$28.4710

$28.5290

2.57%

1.99%
(per troy ounce)

 








Wheat (-ZW)

$6.3025

$6.4175

-2.10%

-3.45%
(per bushel)

 








Corn (-ZC)

$5.9800

$5.940

7.70%

-7.50%
(per bushel)

 








Cotton 

$0.6872

0.7129

-4.36%

-25.04%
(per pound)

 








Coffee

$1.574

1.584

-3.41%

-31.46%
(per pound)

 








Crude oil (-CL)

$84.10

$84.82

-2.81%

-14.90%
(per barrel)










 

129Comments
Jun 8, 2012 2:28PM
avatar
And still no jobs...crude falls?  What about passing that on to the consumer, we're still paying 4.19/gal.
Jun 8, 2012 2:07PM
avatar
"Stocks appear headed to best week of 2012"

Following by far, the worst week of the year. Forgive me, but  I'm Underwhelmed.........
Jun 8, 2012 1:50PM
avatar
I wish the stock market had an all you can eat buffet like a real casino. Then I could try to recoup my losses in pie and mashed potatoes. There are no Elvis impostors or TV showgirls. But there are hookers advertising here.
Jun 8, 2012 2:07PM
avatar
When is MSN going to start blocking these a-whole spammers?? It's not that difficult, it's the same idiots everyday!!!!!!  Reporting as spam is a joke if nothing is done. WAKE UP MSN!
Jun 8, 2012 2:12PM
avatar
Stocks years best week.  More B.S from MSN and Fraud Street ! They are shoveling  it deep today !! They want your MONEY!   Just ask Jon Corzine the money man $$$$$
Jun 8, 2012 1:41PM
avatar
wow, another European bank needing help and stocks are up!  Nice to see such optimism...are people stupid or what?
Jun 8, 2012 12:56PM
avatar
WOW !!!!!!!!!!!  Someone found the report that things were better!!!!!!!!!!!!  TOLD you they would.Charlie always finds it.an saves the day LOL!!!!!!!!!!  He was so happy he hit the wrong key at 82.85 gal?
Jun 8, 2012 1:29PM
avatar
The headlines of these articles change every few hours. A few hours ago its was market down as Euro fears return. The internet has contributed significantly to the volatility of the market.
Jun 8, 2012 3:27PM
avatar
"Stocks appear headed to best week of 2012"

 

WHY?????

Jun 8, 2012 1:13PM
avatar
This is easy!  All is total and unequivocable BS!  How in H do these 'guys' sleep at night! 
Jun 8, 2012 12:55PM
avatar

Crude was at $82.85 a gallon, down $1.97.

 

A gallon?


 

Jun 8, 2012 2:15PM
avatar
Good ole Charlie and his stupid headlines and worthless information again.-
Jun 8, 2012 3:07PM
avatar
It does seem mighty suspect that we see realistic losses last week based on the state of global economic failure, and then have an entire week of gains on nothing-news. Apparently Wal-Mart is leading today's rally. That's imported cheap goods and non-quality checked foods shipped overland by their trucks, their gas and sent to stores that wiped out local commerce nationwide. Just WHO is enamored by that?

Does anyone find it amusing that a Meth-Lab in a purse caused an evacuation at a Wal-Mart and another was recently found operating in one of their restrooms. GO WAL-MART!!!!!!!!!! Not.

Jun 8, 2012 2:31PM
avatar

stocks, hehehehe, headed for best, hahahahahah, excuse me, hahahahaha!!! for best week of the year, HAHAHAHAHAHAHA!!! ah hahahahah!!! right after it wiped out all it's gains for the year, that's called msn math, 3 plus 3 equals 234 hahahahahaha!!! oh, that's what I luv about MSN, it's more than "Misinformed" they outright paint a burning house and say, 'this looks nice, everything is great' meanwhile the house burns down to the ground

 

hang in there people, Nov is coming and obama is leaving, big time, just hang in there, nothing msn can say, or twist or make up, to stop that!

avatar
In the early 2000s all I heard was invest in the foreign market. Now that the foreign market is suffering the pessimism is real.
Jun 8, 2012 3:27PM
avatar
Garsh, what good news! I've got fistfuls of cash to donate to Wall Street today! The heck with reality, where do I sign up? Hallelujah!
Jun 8, 2012 5:04PM
avatar
Not. Almost no major corporations have the Founder at the helm. They are comprised of Board Directors and hired-in executives who never paid a penny for that power and as we know with complete certainty... absolute power corrupts absolutely. Our economy as been rigged to create a false Elitist Class. Few Americans are okay with that and the globe certainly isn't. I see this week as being a final burst of greed by these types. Spain, Greece, Italy, Portugal and Ireland are all about to walk away from Bond Shark strangulation. Since the American Economy has been stagnant since those massive job termination days, it's pretty evident that the stashed cash is in Euro and about to (enter your rhyming word here). it should occur to us that the major gyrations of the last few weeks are over-stuffed greedy wealth trying to move mountains of fiat money someplace safer? It's fiat (fake). You touch it and it crumbles some part of the artificial empire. Anyone is welcome to refute these statements AFTER reading up on the French Revolution. Exactly the same with slightly different pompous names.
Jun 8, 2012 6:26PM
avatar
obame says the private sector is doing fine.   What the hell  does he know about the private sector?  What does he know about anything?
Jun 8, 2012 6:31PM
avatar
I will have to keep repeating this mantra;  It Does Not matter who the POTUS is;
the real problem lies with 535 who hold total control of OUR CHECKBOOK and
are unwilling to reform themselves to any degree.  Why dont you whine about
their vacations, pay, perks and pensions for a while?  Not to me, but rather in
a letter to each of your own.   

Jun 8, 2012 4:25PM
avatar
You know Endeavor you should find something else to rag on Romney about....... draft dodger just does not come off right from you..... I guess it is because everyone knows you liberals idolized the draft card burners.......... I bet you got a picture of Jane Fonda in your bathroom.
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