Top 3 Reasons Markets Were High on Optimism Over Greece
Markets closed up on Wall Street today: Dow +1.21%, S&P +1.29%, Nasdaq +1.53%, Oil +2.52%, Gold +0.31%.
On the commodities front, Oil (NYSE:USO) made a reversal, climbing to $92.90 a barrel. Precious metals were also up today, with Gold (NYSE:GLD) rising just above the $1500 mark after closing Monday at $1,497.10, a five-week low for the commodity. Silver (NYSE:SLV) was up 0.92% to $33.91.
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Today’s markets were up because:
1) Greek solution seems imminent. Despite rioting in Athens today, people are feeling confident that Greece’s parliament will pass the austerity measures Wednesday that will prevent the country from defaulting on its debts, hopefully avoiding what could have been a domino effect, with other fragile economies collapsing in Greece’s wake along with Greece’s debtors.
2) Home prices report. According to the Case-Shiller Report, home prices rose in April for the first time in 8 months. While numbers are still down year-over-year, this reversal has people hopeful that the market has turned around.
3) Oil prices jump. While the low gas prices that have resulted from the devaluation of crude futures have increased consumer confidence in the economy, higher oil prices help the market as well, with oil companies like Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) leading Dow gains as crude jumped over 2% today.
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