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.
Updated at 12:32 a.m. ET
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 $149 billion economic growth plan for the eurozone.
The Dow Jones Industrial Average ($INDU) was up 214 points at 12,817. The S&P 500 ($INX) was up 25 points at 1,354. The Nasdaq Composite ($COMPX) was up 68 points to 2,917.
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.
Anheuser-Busch InBev (BUD), the world's largest brewer, confirmed Friday that it will buy the rest of Mexican brewer Grupo Modelo that it doesn't already own for $20.1 billion.
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
MG: You mean my private health insurance plan? Yeah, I'm happy to stick with it. There isn't a PUBLIC OPTION. You must buy a PRIVATE plan and Medicaid was expanded. It's the 1993 GOP plan originally put up by the Heritage Foundation.
VF - my grief is with accountants that feel an applied percent is an appropriet "cost" for a service when we all know it's not. the true cost of a service is the direct labor associated with a task.
i worked a project for a few years where we made grip assemblies for one of the farm company tractors. we did $1 million a year in sales. we used 2 asembly line people SEMI full time. ($10 per hour people). periodically we'd use a buyer, inspector, shipping clerk.
accounting - in their number crunching ways, felt the product was not making any money and wanted to kill the product.
my question was HOW do you get $1 million in sales and spend it on cheap plastic material and 2 assembly people and STILL loose money?
their answer was thru all their favorite applied percentages. overhead, G&A, profit PERCENT. classic figures don't lie but liars can figure. in the end accounting really wanted to dump the entire department.
anyone of us would take that million dollar assembly line home if they knew it would take only 2 to 4 people to process it each year.
if i can't aford the game, i don't play it. it's not like there were not other ways to save anyway.
my bitch is that "simple 1% fee" is costing me $15,000 OR MORE in fees PER YEAR just because my balance has a few more zeros.
>>>>>>>And I bet you wouldn't have started using one of these funds if there was a fixed fee. Until you have a large enough amount to offset it, it would make no sense to take part.
Think about it, if there were even $1000 fee, and expected a 4% return, you would need 25K in order to break even. Besides, the bigger your balance that more a stake you have in the management of the fund.<<<<<<<
Obama Care is a tax -- Obama ran on no new taxes --- hmmm we got the short end of the stick
How is this tax going to be fair??? I am sure not all insurance plans are going to be equal nor will they all cost the same.
In some states the same plan will be cheaper than other states.
Is this a fair tax???
And it is a regressive tax hitting the middle class and poor more than it hits the 1 percenters.
Time the 99 percenters did something to get their representation back. My Congressman and Senator refuses to talk to me one on one. Yet Bill Gates invites them to parties all the time and talks to them all the time.
We have become the English our forefathers faught to get rid of.
- for instance - my mother died april 14th with $100K in her IRA account. granted it gets passed on, but SHE lost out on that money. she had terminal cancer the final 3 years, 2 of which she could have been able to travel.
to me she should have pulled the cash PAID THAT EARLY WITHDRAW PENTALTY TAX and had some fun with HER money.
but that's the way the rules are writen
Volcker....I just assumed anyone contributing to a 401 was aware of the pre-tax investment...
Also the fact that most Companies used to have "matching funds" up to a certain allocation, much of the time it was company stock, (after a certain time frame, it pays to convert that to other types of investments) more or less, diversification....Smart Money people say gaurd against having all your eggs in the basket...Company wages, company health and company stock....I personally made a few mistakes in this type of allocations and cost me some, when the stock values went South; Most of us didn't believe it could happen even while it was doing so...I lost several thousand dollars, before I started shuffling investments; Some were quicker then I and others almost refused to do anything about re-allocation....Many lost a bunch.
As far as a yearly maintenance fee or trading fees, those were paid by our employer in the past.
Think about it, if there were even $1000 fee, and expected a 4% return, you would need 25K in order to break even. Besides, the bigger your balance that more a stake you have in the management of the fund.
they should be fixed fees - because that's truly what the costs are.
add it up - a bank or instituion with x number of employees, their payroll, to accomplish the task at hand. divide one by the other.
it's not a percent based on savings amount, it's a fixed fee. and it's NOT even $1200 per entrant.
the excess cash received from these percent style fees are why CEO's can gather millions for themselves and their satff
>>>>And how do you think that fund will perform without attracting new entrants. After all, people with lower incomes or lower savings rates wouldn't look twice at something like that since it eat most of their savings in fees. Then the fund has no future without younger people building in it.<<<
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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.
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