The markets charged upwards on Tuesday, bringing the S&P 500 just about two points shy of its record close of 1,565.15 despite a decline in home sales and worse than expected consumer confidence numbers. Buoying the markets was a strong increase in home prices and a strong increase in orders for durable goods.
At the close: DJIA: +0.77%, S&P 500: +0.78%, NASDAQ: +0.53%.
Here are three stories that helped move markets on Tuesday afternoon:
1) There’s no sure way to tell what the fallout from the closure of Cyprus’s second-largest bank will be, but word on the street is that it will be bad. Cypriot leaders and the Troika — a coalition of European Union finance minsters, the European Central Bank, and the International Monetary Fund, which are responsible for ensuring euro-zone economic stability — reached an eleventh-hour deal to close the bank over the weekend.
The country’s second largest bank, Laiki Bank, will be liquidated. Deposits over 100,000 euro will be transferred to a “bad bank” along with the bank’s portfolio of toxic assets, which include large amounts of Greek government bonds and nonperforming real estate loans. Shareholders of the bank will be wiped out, along with both senior and junior unsecured creditors. The large deposits will be frozen for the time being… (Read more.)