Dow Edges Closer To 13,000, Then Drops Back

Dow Edges Closer To 13,000, Then Drops Back
Market News
Like Us On Facebook
Like Us On Facebook

The Dow Jones industrial average made an early run at 13,000 on Tuesday, but stocks fell and leveled off. Investors were wrestling with what to make of a deal to prevent Greece from a potentially catastrophic default on its debt. The Dow made it as high as 12,983, then quickly lost its gains. It was unchanged at 12,949 just after 10 a.m. EST. The Dow hasn’t seen 13,000 since May 2008, before a financial crisis brought the U.S. economy to its knees.

The broader Standard & Poor’s 500 was up a point at 1,362. The Nasdaq composite index fell a point to 2,950.

Under the bailout deal, Greece will get euro130 billion, or about $172 billion, from other European nations and the International Monetary Fund. It will also owe euro107 billion less to investors who own its government bonds.

After months of the talks crawling along and vague headlines yanking the market up and down, the conclusion was almost anticlimactic, with an agreement already expected by the markets.

European markets fell after the deal was announced. Stocks were down almost 4 percent in Greece, a little more than 1 percent in Spain and less than 1 percent in France and Britain.

Investors noted that Greece remains in deep recession. Its private-sector investors were also forced to take a 53.5 percent loss on the face value of their bonds, which could discourage future investment.

The U.S., where markets were mixed, enjoyed strong earnings reports from several big-name companies, including Home Depot and Dollar Thrifty. The exception was Wal-Mart, which reported a 15 percent drop in quarterly profits.

The Dow has been climbing more or less steadily since the start of the year, adding 6 percent since Dec. 30. On three days this year, it has added more than 100 points. It hasn’t lost 100 on any day.

Its last close above 13,000 was May 19, 2008, when Lehman Brothers and Merrill Lynch investment banks still existed and unemployment was 5.4 percent, far below today’s 8.3 percent.

Among big movers Tuesday:

-Wal-Mart fell 4 percent after missing analysts’ expectations for revenue and per-share earnings. The world’s biggest retailer has lost some of its momentum in the past couple of years with strategic errors like a brief foray away from “everyday low prices,” which turned off cash-strapped bargain hunters, and a short attempt to declutter its shelves and offer fewer items, which turned off customers who went there for the convenience.

-Home Depot rose 2 percent after beating analysts’ expectations for revenue and per-share earnings. The home-repair giant has been hurt by the housing market, which has led homeowners to take on fewer expensive home renovations. Warm weather helped drive small-scale home projects in the latest quarter.

Associated Press

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Preston Waters

Preston Waters is a thinker. He's not your traditional philosophical persona, however, as he leaves no topic untouched. Covering all the bases, from business to women, Preston Waters is the ultimate man's man for Gen-Y.

More In Market News

News Preston Waters

Stocks Off to Stellar Start in May

Stocks were kicking off May in high style Tuesday, posting sharp gains after a much better-than-expected report on U.S. manufacturing activity. The Dow Jones Industrial Average was rising 103 points, or 0.8%, at 13,317, after hitting a four-year high at 13,338. The S&P 500 was up 14 points, or 1%, at 1413, and the Nasdaq was adding 23 points, or 0.7%, at […]

News Preston Waters

Bank Of America, JPMorgan: Dow Midday Movers

U.S. stocks were rising in midday action Tuesday following a better-than-expected read on U.S. manufacturing activity.The Dow Jones Industrial Average was up more than 116 points, or 0.9%, at 13,330. The biggest percentage gainers within the Dow were Bank of America (BAC), JPMorgan Chase (JPM) and Intel (INTC). Shares of Bank of America rose 2.59% to $8.32. The bank said Tuesday it plans to lay […]

News Preston Waters

Monster Stocks Soar Amid Rumors Coca-Cola Is Set To Buy Energy Drink

Monster Beverage Corp’s shares soared on Monday following a report that Coca-Cola Co. was considering buying the energy drink maker. The Wall Street Journal cited unnamed people in reporting that the world’s biggest soft drink maker was in talks to buy Monster. If a deal transpired, Monster would be Coca-Cola’s largest brand acquisition ever. Monster declined […]

News Preston Waters

Stocks Surge After Strong Manufacturing Report

Stocks were surging in morning action Tuesday after a much better-than-expected report on the pace of national manufacturing activity in April.The Dow Jones Industrial Average was rising 80 points, or 0.6%, at 13,294. The S&P 500 was up 12 points, or 0.8%, at 1410, and the Nasdaq was adding 29 points, or 1%, at 3075. Stocks finished modestly lower Monday, marking […]

News Preston Waters

Bank Of America Keeps Shrinking

Bank of America (BAC)’s plan to lay off some of its highest-paid executives looks like the right response to the current banking environment. The Wall Street Journal reported Tuesday the bank will cut 2,000 positions in its investment banking, commercial banking and non-U.S. wealth-management units targeting “the high-earning employees whose efforts helped Merrill Lynch account for the bulk of […]

News Preston Waters

Stock Market Story: May 1

The first trading day of May got off to a mixed start early Tuesday with all three major U.S. equity indices honing to close to the flat line ahead of a key report on the pace of U.S. manufacturing activity in April. The Dow Jones Industrial Average was down 9.5 points, or 0.07%, at 13,204.The S&P 500 was up less than a […]

Also On Elite

Sports

Will Spain Be Team USA’s Biggest Threat At The Basketball World Cup?

It’s rare for any USA basketball fan to have reasonable cause for concern heading into an international tournament. This summer, however, a rapid succession of injuries and omissions ahead of the 2014 FIBA World Cup may have provided just enough reason for some nerves. There was already a changing of the guard in order, with […]

Life

12 Very Real And Disgusting Odors You Have Smelled During Summer In New York

If someone caught me off guard and picked my brain about the smells that I associate with summer, I’d instinctively describe some perfect scents imprinted in the Hallmark-version of my memory. The smell of a breezy beach at night, freshly cut grass, children who reek of sunscreen, salt water and chlorine – they’re all carefully […]

Sports

Rory McIlroy Says He Got His Game Back After Breaking Up With His Girlfriend

Rory McIlroy is approaching Tiger Woods territory. His performance at the PGA championship this weekend — where he coincidentally took Tiger down — solidified the Irish star’s status in the future of golf, and at this point, no one’s even close. We’ve known about Rory’s remarkable talent for the past few years now, but his […]

Humor

Guy Locks Himself In A Hot Car To Prove Babies And Dogs Are Wimps (Video)

A major part of being a parent is remembering that your child exists, but despite this cardinal rule, it seems there are no shortage of news stories featuring mothers and fathers who somehow locked their child in a hot car for hours on end. The child’s parent is normally held responsible in situations like this, […]

World

If You Stay A Virgin Too Long You Won’t Know How To Deal With Sex Later On In Life

If you’re planning on saving yourself for your wife, the conception of your children might be the only sex you have. In a study featuring Christian men who waited far, far too long to have sex, a University of Washington researcher found these men to have “uncomfortable sexual communication,” even after they were no longer virgins. According […]