Stocks are trading flat today as Europe debates whether or not to let Greece default on its debt to stop the financial crisis from spreading to other economies like Italy and Spain. This comes only a few weeks after Greece had agreed to a new austerity plan with aggressive cuts in order to receive the second installment of its massive IMF bailout package. The pressure is on for EU and IMF officials to come up with a plan to prevent further spreading of the debt crisis to some of Europe’s larger economies. The focus now seems to be shifting from rescuing Greece to emphasizing on limiting the contagion, which probably reminds most U.S. investors of what happened to Wall Street firms in 2008. Italy, for its part, successfully sold over $9 billion in debt to calm fears. In the U.S., investors are awaiting a host of economic developments that have huge implications on where the market could be heading in the near and longer term future. The U.S. government continues to debate on the debt ceiling, while the economy’s trade deficit widened by over 15 percent in May to over $50 billion. Oil moved higher today, trading at over $96 a barrel, while gold edge up as well.
Major U.S. Stock Indices
DJIA: 12,511.55 (+0.05 percent)
S&P 500: 1,321.50 (+0.15 percent)
NASDAQ: 2,796.71 (-0.21 percent)
Russell 2000: 834.92 (+0.17 percent)
In other news:
- When it comes to the U.S. debt ceiling, budget cuts and taxes, there’s a lot of talk but progress is nonexistent. [WSJ]
- Bank of America’s (BAC) could mean more help for homeowners struggling but still capable of making mortgage payments, and quicker resolution for those in foreclosure. [NY Times]
- News Corp. (NWS) Chairman Rupert Murdoch is no stranger to controversy, which is good for him because he’s embroiled in quite a bit of it lately. [WSJ]
- Is user privacy really the key to Google’s (GOOG) new social network beating Facebook? [Fortune]
- Could the fact that M&A lawsuits are skyrocketing hamper potential deals in the future? [Fox Business]
Check back for more news.