U.S. Financial Markets Rally on European Bailout and Tech Stocks
Major Wall Street Indexes including Dow Jones Industrials (NYSE:DIA) and S&P 500 (NYSE:SPY) rallied hard in the last hour of trading on rumors of a Franco/German agreement to settle the Greece Crisis.
British newspaper Guardian reported that a deal was at hand between France and Germany to expand the bailout funds for the peripheral nations and markets rallied hard in response.
If a settlement is at hand it won’t be a moment too soon as Spain was downgraded two levels by Moody’s due to its high debt load and funding risks.
Coca Cola (NYSE:KO), Yahoo (NASDAQ:YHOO) and Intel (NASDAQ:INTC) all posted favorable earnings reports while tech (QQQ) darlings Apple (NASDAQ:AAPL) missed expectations and was hammered down 7% in the after hours session, along with IBM (NYSE:IBM)
The homebuilder index (NYSE:ITB) came in more positive than last month and inflation picked up with the Producer Price Index ticking up +0.8% versus a previous reading of zero.
Tomorrow comes more inflation news with the CPI and news about Housing Starts, Single Family Building Permits and the Fed Beige Book.
Stock Market Roundup:
Dow Jones Industrials (NYSE:DIA) +180; +1.6%
S&P 500 (NYSE:SPY)+24.5; +2.1%
NASDAQ (NASDAQ:QQQ) +42.5; +1.6%
Russell 2000 (NYSE:IWM) +20.7; +3.1%
Bottom Line: It all comes down to Europe and this is truly one of the most important times in modern financial and economic history.
Disclosure: No positions in ETFs or stocks discussed in this article.
John Nyaradi is the author of The ETF Investing Premium Newsletter.