Stocks Close Higher on Wednesday, Led by Energy and Durable Goods (NWSA, BCS)
On Wednesday, US stocks rose after a government report that durable goods orders were higher than expected, the first gain since February. The 10-year bond yield increased to 1.62%. The dollar increased to $1.246 against the euro but fell to 79.70 to the yen. US oil prices returned to above $80 per barrel, the rally helping to accelerate US gains in stocks. Pressure continues to mount on European leaders as the recession deepens and investors remain concerned about the upcoming summit. Five of the largest banks in the US, including JPMorgan Chase (JPM), Bank of America (BAC) and Goldman Sachs (GS) are in the process of untangling their operations and creating 'living wills.' UK bank Barclays (BCS) agreed to pay more than $450 million in fines after admitting to the Libor manipulation allegations.
Word on the Street
- Talks continue for senior European officials on short-term measures for the eurozone crisis.
- Congress closes in on deal that may help the current student loan crisis in America.
- CEO Alan Mulally of Ford Motors (F) recognizes its middle class customer base and obstacles for future survival.
- Five of the biggest banks in US make 'living wills' and begin to untangle their global operations.
- Demand for durable goods much higher than expected, but momentum may not be sustainable.
- UK bank Barclays (BCS) to pay $453 million to settle Libor allegations.
- Anti-foreclosure laws created after the 2008 housing crash may be prolonging the slump.
- News Corp. (NWSA) Up on Plan to Split.
Published on Jun 27, 2012By InvestorGuide Staff