U.S. stocks are on pace to end the prolonged period of losses as Wall Street is up in mid-day trading today. Despite consumer sentiment falling in June, key economic indicators are showing that the U.S. is growing, albeit in a choppy pattern. The key catalyst for gains across the major U.S. stock indices seems to be progress being made to resolve the debt crisis in Greece. The financial problems of the European Union have been weighing on the markets for quite some time. On Friday, France and Germany announced that they had reached an outline agreement to help rescue Greece. The plan would require help from the private sector, primarily the financial institutions holding Greek debt. Not all stocks have been doing well, however. Research In Motion (RIMM), once a giant in the mobile phones market, continues to struggle. Shares hit a new 52-week low after the company released disappointing first quarter results and guidance fell below analyst estimates.
Major U.S. Stock Indices
DJIA: 12,004.10 (+0.34 percent)
S&P 500: 1,271.04 (+0.27 percent)
NASDAQ: 2,619.23 (-0.17 percent)
Russell 2000: 785.75 (+0.54 percent)
In other news:
- Germany’s softened stance on the Greece bailout may increase the possibility of a resolution significantly. [WSJ]
- Just when the populace was building outrage on Wall Street bonuses, banks could be on the verge another round of layoffs.Bank of America (BAC), Credit Suisse (CS), and Morgan Stanley (MS) are among banks that have said they plan to cut jobs. [NY Times]
- Despite being an internet company, Bankrate (RATE)has seen shares drop about 3 percent below its IPO price today.
- Chinese stocks like Sino-Forest (TRE:CA) and Harbin Electric (HRBN) are falling hard on accusations from short-strategy research firms. [Marketwatch]
- The U.S. spent about $325 billion just on healthcare costs deemed “unnecessary” in 2009. [The Economist]
Check back for more news.
