Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

U.S. Stocks Up; Banks Rally After Long-Awaited Moody's Downgrades

06/22/2012| 11:05am US/Eastern
Recommend:
0

--Stocks bounce from previous session's sharp losses

--Europe mostly lower on weak German Ifo data, but Spain rallies

--Financials rally after Moody's global banks downgrades

 
   By Matt Jarzemsky 
 

NEW YORK--U.S. stocks bounced from Thursday's steep decline, led by financial shares, after Moody's Investors Service completed its long-anticipated downgrade of more than a dozen global banks.

The Dow Jones Industrial Average rose 51 points, or 0.4%, to 12627 in mid-morning trade. J.P. Morgan led the benchmark higher with a 2.1% increase. The Dow fell 250.82 points, or 2%, to 12573.57 on Thursday, the second-biggest point and percentage loss of the year.

The Standard & Poor's 500-stock index tacked on five points, or 0.3%, to 1330. Financial shares led gains across eight of the index's 10 sectors, while industrials and materials lagged behind. The Nasdaq Composite added 12 points, or 0.4%, to 2871.

"My sense is it's mostly the downgrades, and, ironically, people trading the downgrades in the opposite direction," said Uri Landesman, president of New York hedge fund Platinum Partners. "Today you're just seeing a little bit of a relief rally, a little bit of buying on the bad news, which had already been discounted."

Investors had braced for downgrades since Moody's said in February that it was reviewing more than 100 global banks. Late Thursday, Moody's cited significant exposure to volatility and risk of large losses from capital markets activities in its ratings cuts.

European markets were mostly lower, with the Stoxx Europe 600 down 0.5%, as more downbeat economic data weighed on sentiment. June data showed Germany's Ifo index of business confidence fell to a two-year low of 105.3, below expectations of 105.6.

Meanwhile, Spain's IBEX-35 index bucked the trend by rallying 2.2%, after an external audit said the country's banks will need to increase capital by up to EUR62 billion ($77.75 billion) to survive a worst-case scenario. That number was a lot lower than many had feared.

Asian markets were broadly lower on the back of U.S. weakness Thursday, with Japan's Nikkei Stock Average losing 0.3%. Hong Kong's Hang Seng Index slumped 1.4%.

In the corporate arena, Ryder slid 12% after the truck rental company lowered its second-quarter and full-year earnings outlooks, citing lower-than-expected demand for commercial rental products.

Harvest Natural Resources soared 74% after the energy company agreed to sell its Venezuela assets to Indonesia's PT Pertamina for $752 million.

Darden Restaurants declined 1.1% after the operator of Olive Garden and Red Lobster projected continued weak growth for its major brands, citing expectations of a "frustratingly slow" economic recovery.

Associated Estates Realty dropped 3.1% after the real-estate investment trust said it planned a public offering of 5.5 million shares of its common stock.

Write to Matt Jarzemsky at matthew.jarzemsky@dowjones.com

Recommend :
0
Partner Area
React to this article
 
Latest news
Date Title
4m ago At margins of shale oil boom, a tempered euphoria
9m ago EpiCept Reports First Quarter 2013 Operating and Financial Results
9m ago FORD MOTOR COMPANY: Ford Fusion Energi Earns Top Vehicle Safety Rating from NHTSA
14m ago LIVE NATION ENTERTAINMENT, INC.: Live Nation Further Expands Presence In Asia, Forms Joint Venture With Lushington
1d ago CHINA XINIYA FASHION LTD (ADR): China Xiniya Fashion Limited Reports 2013 First Quarter Financial Results
1d agoDJHon Hai Confirms Death of Two Employees
1d agoDJHon Hai Confirms Death of Two Employees in Zhengzhou, China
1d ago MINOTAUR EXPLORATION LIMITED: 20 May 13 – Minotaur acquires Scotia Tenements from Breakawaynew!
1d ago BOART LONGYEAR LTD.: 2013 Annual General Meeting Webcast and Dial In Details
1d ago KRESTA HOLDINGS LTD: KRS ASX Announcement Appendix 3Y
Latest news
Advertisement
Hot News 
DANONE: COFCO, Mengniu and Danone Join Forces to Accelerate the Development of Fresh Dairy Products in China
CHINA LUMENA NEW MATERIALS CORP: Clarification announcement
FORD MOTOR COMPANY: Ford Fusion Energi Earns Top Vehicle Safety Rating from NHTSA
Microsoft to Unveil New Xbox
Goldman Sachs to Invest in Japan Green Energy
Most Read News
1d ago QIHOO 360 TECHNOLOGY CO LTD: Qihoo 360 Reports First Quarter 2013 Unaudited Financial Results
1d ago DANONE: COFCO, Mengniu and Danone Join Forces to Accelerate the Development of Fresh Dairy Products in China
1d agoDJMicrosoft to Unveil New Xbox
1d ago HANMI PHARMACEUTICAL CO. LTD.: Hanmi Pharmaceutical Wins the "Best RFID Implementation Award"
1d ago MACERICH CO: Macerich's Santa Monica Place Wins "Best-of-the-Best" Global Shopping Center Award
Most recommended articles
1d ago Yen edges up from lows, Asian shares firmer
3d ago European car sales end losing streak, respite may be brief
3d ago VOLKSWAGEN AG: Volkswagen Group makes stable start to second quarter: Deliveries top three million vehicles* in period to April
4d ago HUMANA INC: Quest Diagnostics Acquires Concentra's Laboratory Business, Enters into Exclusive Services Agreement
6d ago PHILIPS: announces the next phase of its connected lighting journey and upgrades Philips Hue making it even smarter
Dynamic quotes  
ON
| OFF
Copyright © 2013 Surperformance. All rights reserved.