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Monday, June 20, 2011

English Lessons



Stocks turned higher, led by consumer staples, after wavering since the open Monday following news that a decision was delayed on emergency loans to Greece. The Dow Jones Industrial Average climbed above the psychologically-important 12,000-mark after snapping a six-week losing streak on Friday amid thin, choppy trading.
AmEx [AXP  49.09    0.59  (+1.22%)   ] and Caterpillar [CAT  97.35    1.40  (+1.46%)   ] led the blue-chip gainers while JPMorgan [JPM  40.6213    -0.1787  (-0.44%)   ] and BofA [BAC  10.6298    -0.0502  (-0.47%)   ] sagged.
The S&P 500 and the tech-heavy Nasdaq turned higher. Many traders are keeping their eyes on the 1,245 to 1,250 as the next support level on the S&P. The CBOE Volatility Index, widely considered the best gauge of fear in the market, slipped below 22.
Among the key S&P sectors, energy and financials were the biggest laggards, while health care and consumer staples rose. We’re watching the Greek play today,” said Brian Battle, vice president of trading at Performance Trust Capital Partners. “The headline is that the political will of the European union is finally meeting economic reality.”
Euro zone finance ministers postponed a decision on extending 12 billion euros ($17 billion) in emergency loans to Greece, saying Athens would first have to introduce harsh austerity measures.
The ministers said they expected the money, the next tranche in a 110 billion euro bailout of Greece by the EU and the IMF, to be paid by mid-July. Greece has said it needs the loans by then to avoid defaulting on its debt.
Moody’s warned on Friday it could cut Italy’s sovereign credit rating, citing challenges ahead for economic growth for the country.
The euro edged down against a basket of currencies, with further losses likely. Meanwhile, gold gained near $1,545 an ounce. Oil prices added to last week's losses with U.S. light, sweet crude below $93 a barrel and London Brent crude near $112.
With no notable economic news due Monday, investors will remain focused on Greece and the threat of contagion to other highly indebted euro zone countries.
Major financials were trading lower after Citigroup cut its price targets on Bank of America [BAC  10.6298    -0.0502  (-0.47%)   ], Goldman Sachs [GS  135.86    -1.37  (-1%)   ] and Morgan Stanley [MS  22.64    -0.19  (-0.83%)   ].
Meanwhile, KBW raised its price target on Discover Financial [DFS  23.77    0.68  (+2.94%)   ] to $30 from $26.
Research In Motion [RIMM  26.61    -1.14  (-4.11%)   ] continued to tumble after Bernstein cut its rating on the BlackBerry maker to "underperform" from "market perform."
PNC Financial [PNC  57.27    -0.52  (-0.9%)   ] has reportedly agreed to buy the Royal Bank of Canada’s retail operations for $3.45 billion.
Jim Albaugh, President and CEO of Boeing [BA  73.995    -0.165  (-0.22%)   ] Commercial Airplanes told CNBC Boeing is evaluating options for its 777 range of airplanes, considering whether to upgrade the 777 or build a completely new model.
General Electric [GE  18.49  ---  UNCH  (0)   ] reached a tentative four-year agreement with trade unions over job packages.
Ford [F  12.9311    0.1611  (+1.26%)   ] is spending $1 billion to develop a new generation of vehicles for its struggling Lincoln brand, the Wall Street Journal reported.
Meanwhile, Goldman Sachs upgraded a handful of coal stocks, citing rising oil prices. The brokerage upgraded Patriot Coal [PCX  19.61    0.63  (+3.32%)   ] to "conviction buy" from "neutral," Peabody Energy [BTU  54.64    0.77  (+1.43%)   ] to "buy" from "neutral" and Consol Energy [CNX  46.18    0.32  (+0.7%)   ] to "neutral" from "sell."
Harbin Electric [HRBN  12.24    3.852  (+45.92%)   ] skyrocketed almost 50 percent after the Chinese electric motor maker agreed to be taken private by a group led by Chief Executive Tianfu Yang in a deal that values the firm at $750 million.
European shares fell near a three-month low, as a delay on further loans for Greece intensified worries about the euro zone debt crisis.
Coming Up This Week:
TUESDAY: Existing home sales, FOMC meeting begins; Earnings from Walgreens, Barnes & Noble, Adobe
WEDNESDAY: Weekly mortgage apps, oil inventories, FOMC meeting announcement; Earnings from FedEx, Bed Bath & Beyond
THURSDAY: Weekly jobless claims, new home sales, money supply, Yahoo shareholders meeting; Earnings from ConAgra, Discover Financial, Oracle
FRIDAY: Durable goods, GDP, corporate profits

Meanwhile, Goldman Sachs upgraded a handful of coal stocks, citing rising oil prices?
A. TRUE
B.FALSE
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