Stocks End Lower on Friday, Spain Asks for Aid (GE, MSFT)

Global and US stocks were down at the end of the week after Spain’s request for financial aid. An agreement was approved early on Friday to lend up to $123 billion to Spain to recapitalize its banks. Many are worrying that Friday’s losses will cancel out the gains made so far in July. Also driving down indices was the end of the commodities rally and a decline in oil for the first time in nine days. EBay (EBAY) cut their earnings output and Microsoft (MSFT) reported a quarterly loss of $492 million. Viacom (VIAB) and DirecTV (DTV) finally settled their dispute and will soon restore channels.

Word on the Street

• Global and US stocks fall as the Valencia region of Spain asks for financial aid.
• Big banks hit hard by the housing crisis as homeowner associations go after unpaid HOA fees.
• General Electric (GE) posts second-quarter earnings that were higher than expected on Wall Street.
• A commodities deal may be made between Qatar Investment Authority and Morgan Stanley (MS).
• Viacom Inc. (VIAB) and DirecTV (DTV) settle their program-fee dispute and plan to restore channels.
• US crude-oil futures end lower on Friday and break current streak of gains.
• California beats national job growth and adds 38,300 jobs in June.
• Venture capitalists are sensitive in their valuations and invest $7 billion in the second quarter, 12% less than 1 year ago.
• Capital One (COF) Posts a 90% Drop in Profits Due to Increased Loan Reserves.

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