Stocks Rocket Higher After Emergency Bailout
Stocks shot out of the gate Monday after the EU and IMF agreed to a $1 trillion emergency-rescue package for Greece and other nations over the weekend.
The Dow Jones Industrial Average jumped about 400 at the open, before paring that back to around 350 late morning. GE and Cisco led the pack, up about 7 percent each. The CBOE volatility index fell back below 30.
This comes after last week's nauseating selloff that sent the Dow below 10,400and the VIX above 40.
Financials, industrials and techs — the stocks that got hammered the most last week — led the pack today.
Bank of America , JPMorgan and Citigroup were all up more than 4 percent.
Goldman Sachs shares also rose despite a warning from the Wall Street giant warned that it faces more probes into its trading practices, particularly regarding Greece. Goldman shares rose 3.4 percent in premarket trading.
Boeing jumped more than 7 percent and Caterpillarrallied over 6 percent.
Commodities also rose sharply on the European developments, with oil gaining about $3 a barrel to cut into last week's big losses. Oil remains about 10 percent below its May high of $87.15.
The price moves were consistent with a big drop in the dollar. The dollar index, which tracks the US dollar against a basket of foreign currencies, fell 1.3 percent.
The US bond market tumbledon the developments in Europe. The benchmark 10-year note lost a full point in price while its yield, which moves inversely to price, rose to 3.55 percent from 3.43 percent late Friday.
European stock indexes shot higher with the FTSE-100, CAC-40 and DAX all up more than 4 percent. The euro also surged to more than $1.30 on the back of the agreement.
In earnings news, Berkshire Hathaway reported a quarterly profit of $2,272 per class A share during the fourth quarter, well above estimates.
Priceline.com is among the companies set to release quarterly earnings after the closing bell.
Following last week's wild market swings, including that nearly 1,000-point intraday decline for the Dow, NYSE CEO Duncan Neiderauer and Nasdaq OMX CEO Robert Greifeld will meet with the Securities and Exchange Commission Monday morning on ways to prevent such events from occurring in the future. It's scheduled for 10 am.
Also at 10 am, President Obama is expected to nominate Solicitor General Elena Kagan for the U.S. Supreme Court to replace the retiring Justice John Paul Stevens.
BP was among the only decliners on the board as the company is considering new options after a steel containment dome failed to contain the massive Gulf oil spill.
MONDAY: Fed's Hoenig, Kocherlakota speak; earnings from Priceline after the bell
TUESDAY: Intel shareholder meeting; wholesale trade; Congressional hearing on market's freefall; Fed's Rosengren, Lockhart speak; 3-year auction; earnings from Toyota
WEDNESDAY: Weekly mortgage applications; trade balance; weekly crude inventories; 10-year auction; Fed's Bullard speaks; earnings from Macy's
THURSDAY: Ford, Google shareholder meetings; weekly jobless claims; import/export prices; Fed's Kocherlakota speaks; 30-year auction; earnings from Kohl's, Nordstrom, Nvidia
FRIDAY: Government's retail-sales report; industrial production; consumer sentiment; business inventories; earnings from JC Penney
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