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.
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Yup Steve diversity is the KEY....And that just doesn't mean investments in Stocks or Mutual Funds..
Yourself,real estate,stocks,savings your family and the like....
BTW....I have NO money in Mutual Funds....Period.
And I will leave you and others with this...Before We leave, to head out to a Casino.
A thought to remember " Don't save so much for rainy days, that you can't enjoy the sunny ones."
Others have eluded to this here also.......
You stated, correctly,,,
“In order to fix the economy we need to understand the we are a consumer nation and we need people to have cash to buy stuff so people can be hired to build stuff so they can buy stuff and so on.”
Your conclusion, however, is irrational.
Yes, we have become a “consumption/service sector” economy. The problem with your logic is that we don’t “build stuff” here anymore. Yes, we build large ticket items such as aviation, construction and commercial products but we don’t build apparel, common appliances and other consumables. We have a $600 Billion annual trade deficit to prove that.
In 1965 our economy was based on 53% domestic exportable manufacturing industries. Today it is 9%. Outsourcing has contributed to this but more importantly technology, automation and decentralization of industries is the bigger part. Even if we give people cash, (stimulus, lower interest rates, etc) we consume products built overseas. That consumption supports THEIR jobs and economies, not ours. Once again, $600 billion trade deficit. We used to be the largest exporter in the world with the largest creditor economy. Today we are third in exports, behind China and Germany, and have become the largest debtor nation in history. The correlation is obvious.
Our economy is a shambles because of monetary malfeasance, fiscal malinvestment and government’s incessant intrusion into the private sector. To believe our criminal and incompetent government is capable of any type of efficiency or fiscal management is ludicrous. Evidence is our soon to be $16 Trillion National Debt, but more importantly our $120 TRILLION of Unfunded Liabilities. We will never correct our economy based on consumption. If you believe we can, I challenge you to show me any economy in history based on such that has created the wealth, prosperity or standard of living we enjoyed when we built things and sold them to the rest of the world.
Our only long term solution is to bring as much exportable industry back to our shores as possible.
As an aside. Isn’t it interesting that we have a consumption based economy yet we tax based on production?
Well then Steve, I really have trouble what you seem to be bitching about...??
When my brokers/advisors wanted to start charging me 1% for doing little, I went along for awhile..
Christmas cards, Free luncheons, a Couple of Champagne parties a year, were costing us and other investors dearly....When i told them NO on increases of maintenance fees,but they said we will give you 50 "free trades" in a rolling year.... I started looking for alternatives..It's worked out very well over the last dozen or so years....I maintain 4 portfolios and do about 110-135 trades per year or a rolling 52 week cycle..And we have saved 10s of thousands since leaving them.
And we can invest in any type of instrument available on any Market anywhere.
I work in a government facility as an contractor. My employer has the 401K retirement option & matches up to 4% of my pay that I put into MY RETIREMENT account. I can't tell you how many people here opted out of the 401K & went to the IRA option. I think I have ran into about a dozen people that have done that.
It that stupidity or what?
Your employer is going to match up to a certain amount by %.....& you don't want want it?
Talk about stupid Americans. And there is about 15 % of them that don't even participate in the 401K retirement plan..........OMG
The very best thing a country, a community or a simple family household can do....is.
Balance's thier budget...and pay's down debt......PERIOD.
The very worst thing that a country a community or a family can do is.....deficit spending.
When they housing bubble burst the economy lost over 200 trillion of value and working capital. This has to be rebuilt the old fashion way. The biggest problem is how to get to the many the purchasing power that is needed to "Jump Start" this economy. However if you just give to the few, then of course you are doomed to fail and therefore Europe's bailout will of course come up short and the market once again may stagger or even crash. Whatever happens in Europe will happen here and when it does then what? Instead of calling this "The Great Recession" do we call it "the Great Depression Deaux". In order to fix the economy we need to understand the we are a consumer nation and we need people to have cash to buy stuff so people can be hired to build stuff so they can buy stuff and so on. That is how the free market works (stange to call it free market when nothing is really free). Just giving money to "Banks" and "Job Creators" will not fix anything. That is only plugging leaks of cashflow and not building up anything. when this is understood maybe then and only then will the economy recover and begin to grow.
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[BRIEFING.COM] Stocks entered the weekend on a mixed note as the S&P 500 shed 0.1% while the Dow ended with a gain of 0.1%.
The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%.
The consumer staples sector was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble (PG 81.89, +3.19). The second-largest staple stock advanced ... More
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