Stocks Rise After Greek Bailout Deal
Sell in May and go away?
You wouldn't know it was May by looking at the market on this first trading day of May: Stocks advanced after a manufacturing gauge beat expectations and the EU and IMF offered Greece a bailout package worth more than $145 billion.
Some good economic news today.
The Institute for Supply Management reported its manufacturing index rose to 60.4 in April from 59.6 in March, its fastest pace in nearly six years.
Industrials were among the day's best peformers, with Boeing leading the Dow.
Among the morning's other indicators: Construction spending rose 0.2 percent in March, less than expected, while consumer spending rose for a sixth straight monthin March and household savings fell to a 1-1/2-year low.
Consumer-discretionary stocks were also a leader today, along with financials, which got a boost after Warren Buffett defended Goldman Sachs over the weekend, saying the bank's behavior does not warrant public fury.
Goldman shares rebounded today, after sliding nearly 10 percent last week, leading an aggressive market selloff on Friday.
Buffett also presented an upbeat outlook for the U.S. economy, among a number of other comments.
European countries agreed to an aid packageworth 110 billion-euro ($146.5 billion) for Greece, the biggest-ever bailout of a country. The ECB said it would accept all bonds— even junk-status — as security for loans.
But European stocks fellamid concerns that the bailout may face political obstacles and that Greece may not be able to take the austerity measures necessary.
Ford shares rose ahead of its sales results. Auto makers release their April sales numbers today.
Apple got a boost following news that the company sold 1 million iPads in less than a month.
United Airlines Parent UAL and Continental Airlines have made their merger officialin a $3 billion stock-swap deal.
The Gulf of Mexico oil spill continued to spread, with cleanup costs likely to exceed $14 billion. Energy giant BP, the majority owner of the well that is the source of the leak, will be on the hook for as much as $7 billion, analysts say.
BP shares fell more than 8 percent, after sliding more than 12 percent last week.
The Wall Street Journal reports that General Growth Properties is favoring the bankruptcy recovery plan put forth by Brookfield Asset Management rather than a competing offer from Simon Property Group.
MONDAY: Auto sales
TUESDAY: Pending-home sales; factory orders; earnings from Merck, Pfizer, CVS and MasterCard
WEDNESDAY: BOE monetary-policy meeting; weekly mortgage apps; ADP, Challenger job reports; Fed's Rosengren speaks; ISM services index; weekly crude inventories; earnings from Anheuser-Busch, Qwest, Time Warner, Garmin, CBS and Symantec
THURSDAY: Chain-store sales; ECB announcement; weekly jobless claims; productivity; Bernanke speaks; earnings from Activision, Kraft
FRIDAY: Goldman Sachs shareholders meeting; April jobs report; Fed's Plosser speaks; consumer credit; earnings from Liberty Media
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