Stocks rally on surprise EU deal
The Dow surges more than 200 points after Eurozone leaders agree to bail out banks and ease austerity measures. Oil jumps nearly 6%. US consumer sentiment drops to a 6-month low. Personal income and spending are little changed.
By Andrea Tse
Stocks shot higher Friday as global markets cheered concrete steps announced at the European Union summit to relieve the region's debt crisis.
Leaders agreed to ease austerity measures and rescue banks directly from a regional bailout fund. They also revealed a $149 billion economic growth plan for the eurozone.
Benchmark U.S. crude jumped $4.49, or 5.8%, to $82.18 per barrel in New York, while Brent crude rose by $4.09, or 4.5%, to $95.45 per barrel in London, The Associated Press reported.
The Thomson Reuters/University of Michigan's final reading on Consumer sentiment dropped to a six-month low in June, Reuters reported, falling to 73.2 from 79.3 in May. It was the lowest reading since December.
The U.S. Commerce Department reported Friday that Americans' personal income rose 0.2% in May, as expected, matching April's tiny increase. Spending was essentially unchanged, also as expected, after a downwardly revised increase of 0.1% for April. The personal saving rate was 3.9% in May, compared with 3.7% in April.
Research In Motion (RIMM) disappointed Wall Street on Thursday with its fiscal-first-quarter results. The BlackBerry maker reported a much wider-than-anticipated loss, pushed back the launch of the BlackBerry 10 until the first calendar quarter of 2013, and announced plans to lay off 5,000 employees, roughly 30% of its workforce.
Nike (NKE) posted fiscal-fourth-quarter earnings Thursday that missed analysts' expectations. The sneaker maker reported a profit of $549 million, or $1.17 a share, on revenue of $6.47 billion for the three months ended in May; analysts were expecting earnings of $1.37 a share on revenue of $6.51 billion. The company attributed the year-over-year decline in earnings to lower gross margin, higher SG&A spending, a higher effective tax rate and costs related to restructuring operations in western Europe.
Constellation Brands (STZ) will buy the remaining 50% of Crown Imports that it doesn't already own from Anheuser-Busch for $1.85 billion after Anheuser-Busch's deal to buy Modelo. Constellation and Modelo owned Crown as a joint venture.
More from TheStreet
Spending will remain tight until the middle class has some disposable income. Obamacare isnt the answer either. Here is what Donald Trump said about it.
Let me get this straight . . . …
We’re going to be “gifted” with a health care Plan we are forced to purchase and fined if we don’t,
Which purportedly covers at least ten million more people,
without adding a single new doctor,
but provides for 16,000 new IRS agents,
written by a committee whose chairman says he doesn’t understand it,
passed by a Congress that didn’t read it but exempted themselves from it,
and signed by a President who smokes,
with funding administered by a treasury chief who didn’t pay his taxes,
for which we’ll be taxed for four years before any benefits take effect,
by a government which has already bankrupted Social Security and Medicare,
all to be overseen by a surgeon general who is obese,
and financed by a country that’s broke!!!!!
What the hell could possibly go wrong?
Hi, I worked 34 years full time one co and destroyed my back. So hence I helped build this nation.
Now I'm on SSDI and they're going to cut my benifits to pay someones medical who just jumped the fence and NEVER worked a day in their life and are not a citizen.
Your welcome for my hard work
I can solve all our problems.
1) if your not a citizen (i don't care how long you been here or born her) GET OUT!
2) Have a box on our tax return Check yes if you wish to have some of your money go to Illeagles
" " " " " " " " No if you don't
Well see how many democrates have their taxes taken out?
Lets make it a choice of the people, have a pool of the money and when it runs out OH WELL
“To stand in silence when they should be protesting makes cowards out of men”
Predictions for Obama Care
1) Huge transfer of wealth to executives of Health Insurance Comapnies. Already companies like Blue Cross Blue Shield spend only 60 cents out of every dollar collected in preminums on health care cost and the other 40 cents out of each dollar goes to executive pay mostly and a little 5 percent goes to costs of doing the insurance (e.g. the 99 percent of workers at the insurance company and building rental, etc).
2) Huge trasnfer of wealth to executives of Hospitals which again have 40 cents of every dollar going to exective pay and only 60 cents going to costs directly associated with sick people.
3) As medicare will move over to being merely brought insurance the cost saving of the current medicare system which only spends 2 percent on non health care costs like wages for workers and building rental and spends 98 cents on patient care will be gone in a couple of years. Leaving older S.S. retired people having to buy $20,000 a year insurance plans while being given only $5,000 to pay for the insurance.
4) As states opt out of the medicare system as they would be forced to cover minimum wagers at state expense this means that half the workers who only make $16,235 a year on average will have to pay 2.5 percent of their income as penalty for not having insurance. That means they would have to pay $405 a year in penalties and still not have health care. Even the emergency rooms of hospitals will be closed to them as hospitals will not have to treat anybody under Obama care who did not have health insurance.
5) Illegal immigrants will have their health care insurance and co-pays and deductibles pay for by the US government as part of a deal worked out with the major industries that hire the illegal aliens in order to keep them in the country. As 50 million America citizens are forced out of the health care system as they can not afford health care the goverment taxed them for.
Yep the super rich are going to get richer and the rest of us are going to die from lack of medical care yet be taxed for it.
The fix is in, it appears Wall Street needed some news to make the quarter end up. So they role the old Europe good news model out. How many times have we heard that Europe is taking care of business? So let's look at this, they artificially cut borrowing cost so the losers can borrow more money. Next month we'll hear the losers still can't keep up with paying their debt again.
It's interesting that we were once were concerned about businesses reporting bogus numbers, now we have countries and continents reporting bogus numbers.
Time is running out and a dose of reality will be our next jolt, not fiction.
Stay thirsty my friends.
"Stockton, California, became the largest city to file for bankruptcy in U.S. history on Thursday after years of fiscal mismanagement and a housing market crash left it unable to pay its workers, pensioners and bondholders."
Obviously, with all the focus on Europe and their bailout, nobody cares about Stockton, CA and the many other cities in the US that are in trouble. I guess Stockton's solution is just go print up more money to get out of debt...after all it is now the new economic policy for both Europe and America!
The Eu scraped thier austerity measures (reduced spending) to bail out some banks. They call it concrete steps toward a stable EU economy.
This is just a band aid.....if they & the US continue with deficient spending...this problem will come around again probably within 2 years.
And when it does it will be much more painful for us all.
All human beings must balance thier budgets & pay off debt.
Wow? The market sees this as good news?
Let's see, they've bailed out Greece three times in less than two years, Ireland two times working on a third and they are about to bail out Spain. Up next Italy and Portugal?
From my view on this side of the pond it looks like the people of europe have allowed the banks to take over their lives. Now they are going to have a centralized european union "bailout bank"?
And, BTW, where's all the front page news stories about stockton California filing for Bankruptcy? Where's the front page news about the 10 American states that are in dire fiscal straights?
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