Dow Snaps Losing Streak, Nasdaq Falls for 5th Week
FOX Business: The Power to Prosper
The blue chips managed to tack on gains for the first time in seven weeks, while the Nasdaq added to its longest streak in nearly three years, as traders reacted to relatively upbeat news from Greece and mixed economic data.
Today's Markets
The Dow Jones Industrial Average gained 42.8 points, or 0.36%, to 12,004, the S&P 500 climbed 3.9 points, or 0.3%, to 1,272 and the Nasdaq Composite fell 7.2 points, or 0.28%, to 2,616. The FOX 50 traded higher by 2.3 points to 893.
For the week, the Dow was up 0.4%, the broad S&P 500 inched 0.04% higher and the Nasdaq shed 1%.
European sovereign debt concerns have taken the spotlight, along with U.S. economic data, in the last several sessions amid concerns Greece might have to restructure or default on its debt. Such an event, analysts say, could reverberate in debt markets in the euro zone and potentially even abroad.
In the short-term, aid from the European Union and the International Monetary Fund would help the country make payments on its bonds, staving off a debt event. There have been debates, however, among possible lenders over the specifications of such a deal.
In what Wall Street has seen a stabilizing move, Germany and France said Friday morning they would back a new aid package for Greece based on the so-called "Vienna Initiative," which was created in 2009 to help Central European banks moderate exposure during the financial crisis.
Greek Prime Minister George Papandreou also replaced his finance minister in the hopes a shake-up would restore some faith in the beleaguered government.
Still, many market participants who closely follow the events in Greece, particularly those who focus on European markets, struck a cautious tone.
"With so many false dawns regarding European debt, it is clear that no one is exactly over-enthusiastic about taking on large amounts of risk over the weekend," wrote David Jones, chief market strategist at IG Index, a London-based trading firm, in a research note.
Indeed, in a late-day move, Moody's put Italy's sovereign debt on review for a possible downgrade, citing economic concerns and the country's high debt level.
The euro bounced higher by 0.73% against the U.S. dollar and the greenback slumped 0.64% against a basket of world currencies.
Consumer sentiment fell more than expected in early June. The Reuters/University of Michigan gauge of consumer sentiment fell to 71.8 fom 74.3. Economists expected a reading of 74 for the month. The survey found individuals had a significantly dimmer outlook on the economy over the next year.
Fresh data from a private research group suggest economic growth will pick up over the next few months. The Conference Board's index of leading economic indicators rebounded by 0.8% after falling 0.4% the prior month.
On the corporate front, Research in Motion (NASDAQ:RIMM) posted a nearly 10% drop in its fiscal-fist quarter earnings, announced layoffs and said its current-quarter and full-year profits would come in well below Wall Street's expectations. The BlackBerry maker has seen increased competition from companies like Apple (NYSE:AAPL), which makes the popular iPhone and iPad. Shares plummeted more than 20% on the news -- the biggest one-day decline since 2008.
Capital One Financial (NYSE:COF) unveiled plans to acquire ING's online banking unit in a cash and stock deal valued at $9 billion.
Crude was down 6.3% on the week -- the biggest weekly fall since early May -- as traders worried the slowing pace of economic recovery would crimp worldwide demand for oil.
On the day, light, sweet crude dropped $1.94, or 2%, to $93.01 a barrel. Wholesale RBOB gasoline was down slightly to $2.95 a gallon.
Gasoline prices on the consumer level continue inching lower. A gallon of regular gas costs $3.68 on average nationwide, down from $3.93 last month, but well higher than the $2.71 drivers paid last year, according to the AAA Fuel Gauge Report.
In metals, gold was up $9.20, or 0.6%, to $1,539 a troy ounce. Silver gained 19 cents, or 0.53%, to $35.75 a troy ounce.
Corporate News
Bankrate (NYSE:RATE) made its New York Stock Exchange debut under the ticker "RATE." Shares ended the day higher by roughly 2%.
Foreign Markets
The English FTSE 100 gained 0.28% to 5,715, the French CAC 40 jumped 0.83% to 3,824 and the German DAX gained 0.76% to 7,164.
In Asia, the Japanese Nikkei 225 was down 0.64% to 9,351 and the Chinese Hang Seng plummeted 1.2% to 21,695.