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NEW YORK — Stocks surged Friday, erasing their losses for the week, after Italy and Greece moved closer to forming new governments and getting their financial crises under control. The Dow Jones industrial average jumped about 260 points and roared back above the key 12,000 level.
Italy's benchmark stock index leapt 3.7 percent and the nation's borrowing costs plunged after the country's Senate passed a crucial austerity budget demanded by the European Union. Other European stock markets and the euro also pushed higher as investors became more confident that Italy would avoid a fiscal disaster.
The passage clears the way for Italian Premier Silvio Berlusconi to step down. Berlusconi was widely considered an obstacle to serious economic reforms. The yield on Italy's benchmark two-year bond dropped 0.43 percentage point to 5.69 percent. That's a sign bond investors think Italy will succeed in managing its massive debt load.
The Dow jumped 259.89 points, or 2.2 percent, to 12,153.68. It had closed below 12,000 the previous two days. Friday's rally pushed the Dow up 1.4 percent for the week.
Together with a 112-point gain Thursday, the Dow has now made up most of the 389-point plunge it suffered Wednesday. That sell-off was triggered by a spike in Italy's borrowing costs and a breakdown in talks to name a new prime minister in Greece.
In Greece, too, there was good news for the markets Friday. Lucas Papademos, a former central banker, was sworn in as interim prime minister. Papademos took over a coalition government after a two-week political crisis that jeopardized the country's ability to continue receiving emergency loans.
Plenty of uncertainty still hangs over financial markets. Brian Gendreau, senior investment strategist at Cetera Financial Group, noted that the VIX index is still above 30, a sign that traders expect stocks to stay volatile.
Gendreau expects the S&P 500 to trade in a range of 1,200 to 1,275 until Europe's debt crisis looks closer to resolution and the U.S. Congress signs off on a larger debt-cutting plan. A supercommittee in Congress has until Nov. 23 to agree on a deficit-reduction package of at least $1.2 trillion over a decade.
"We still don't have a real resolution on either side of the Atlantic," Gendreau said.
The S&P 500 rose 24.16, or 1.9 percent, to 1,263.85. Only 13 of the 500 stocks in the S&P fell. Technology and materials companies had the biggest gains. The S&P 500 gained 0.8 percent for the week.
Walt Disney Co. jumped 6 percent. The company reported record annual profits and revenue after the market closed Thursday, thanks to stronger advertising sales at ESPN and the Disney Channel.
The Nasdaq composite rose 53.60, or 2 percent, to 2,678.75. The index edged down 0.3 percent for the week.
In other corporate news:
- D.R. Horton Inc. returned to a quarterly profit as more people bought houses. But the builder's earnings and revenue fell below what analysts had expected. D.R. Horton's stock dropped 2.2 percent.
- Nordstrom Inc. also reported stronger quarterly profit late Thursday. But the retailer lowered its full-year profit outlook below what analysts expected. Its stock fell 0.9 percent.
- Viacom Inc., the parent of Nickelodeon, said it will move its stock listing to the Nasdaq Stock Market from the New York Stock Exchange next month because it's more "cost effective." The company's class B stock rose 3.6 percent.
- E-Trade Financial Corp. sank 3.5 percent. The online broker said late Thursday that it had decided against putting itself up for sale. E-Trade's largest shareholder, the hedge fund Citadel Advisors, had been pushing for a sale.
Click here to see active issues or search for a stock.
U.S. bond trading was closed for Veterans Day.
The Associated Press contributed to this report.
Leave a Comment:
This is very vexing. Nothing has been fixed in Europe yet. The "medicine" prescribed by France and Germany is plunging Greece, Ireland, Portugal and now Italy into a depression with no way out. These are the same policies put in place in the 1920s. They didn't work out very well then, either.
So, why did the stock markets go up? You don't make a profit off of tens of millions of unemployed people living in poverty. In Europe OR the United States.
The credibility of Wall Street is just as morally profound as the Administration of Penn State.
The first represents nothing more than amoral gambling with taxpayer and shareholders money to enrich the already rich, and the second amorally gambles with the sexual privacy of children to protect throwing a leather ball around.
Both represent despicable sociopathy.
Pathetic.
and next week a bird will crap on the head of Silvio Burlesqconi and the DOW will swan dive again into the Nether Regions where it will rest until the next serious bowel movement . . .
SOARS 260 points? Now that's liberal media.
My 401k is soaring. not realy.
FoxNews called it a stock market "soar," also.
I guess conservative media does the same thing.
Rush Limabaugh's kids are so funny...
http://www.foxbusiness.com/markets/2011/11/11/wall-street-soars-on-euro-hopes-data/
Quack
But Fox Lies doesn't it????
The wall street guys can go to hell with their greed and Bonuses !!!!!!!!!!!!!
Nice gain. Keep it going.
So predictable. It'll go back down again on Monday, then back up again on Tuesday. Rinse and repeat.
That "rinse and repeat" phrase made shampoo companies a lot of dough.
Until next week - after the hedge fund guys are through placing their bets - and there is another "crisis of confidence" in Europe and the market drops another 400 points...
Hard to understand how this works. As was already said, nothing was fixed. Now all-of-a-sudden all the debts have been paid back and everybody is back to work? What kind of shell game is this? Based on what new productivity is this bubble expanding again?
I guess we're in the money again, eh?
It's nothing but a casino game plain and simple.
Th Dow is up 1,000 points since the OWS weenies started their squat-fest. Keep up the good work! HAHAHAHAHAHAHAHAHHA!!!!!!!!
Yes, but about the failure of MF Global Holding? Why do we place our trust in this system? What about the growing poverty rate? The system can function and still be broken!
That makes no freaking sense.
Try "The system can work for some people(the rich) and not work for others (the poor)."
I actually have to say that comment made me laugh. The HAHAHAHA part just killed me lol.
Wow! The market was up today! Big deal..get so tired of hearing anything about the stock market. Who cares if it goes up 50 points today or down 100 tomorrow? If you have a 401K your probably in it for the long haul anyway. Gotta be more important news out there somewhere!
"Progress in Europe"
As compared to what? At least the citizens didn't lynch all the politicians and banksters?
I am SICK of this!
Markets up and down hundreds of points every other day.
American's think that their party of choice is not responsible for this mess and can fix it.
and there are too few of us that want to talk about the fact that the world's financial and political systems are one in the same and rigged against most of the people
YAWN!
Any thoughts on why oil moves in parallel with other securities and why oil at $99.00 a barrel today? I remember reading that the reason oil climbed from $70 to over $100 earlier this year was because of Libya and a weak dollar. I just read an article about how Libya's oil exports are climbing back to normal at a faster pace than expected and if you look at the value of the dollar it is stronger than it was at its low point in April. Not that we ever came close to a shortage of supply anywhere in the world because of Libya's meager contribution but that was what Wall Street backed media was telling us. And it still only takes about $15 a barrel on average to get it out of the ground. But then I remember....it never has had anything to do with supply and demand anyway....at least not since the bubble and bust mentality hit oil trading. So what actually happended yesterday or today that inserted capital into the market today? I am not buying into the Italian Job.
Oh it "roared" past the magical 12K and everything's now going to be alright- as if everything in Europe is now fixed and we're all going to have jobs come Monday morning. No, come Monday the market will tank again due to someone passing gas in Europe- the game will still be on, business as usual
Who
cares about the stock market and the bunch of people (Stock brokers) who manipulate
it? The brokers are way too rich (with your hard earned money) and never have worked
an honest day in their lives-its gambling pure and simple-yeah with your money
but don’t worry u won't collect!!
Spoken like someone hopelessly devoid of both ability and a clue...
If the above person is clueless, please explain why my investments have lost huge amount regained to previous level, only to drop again? How is it going to pay back? Why are people in small towns trying to live off these same investments beginning to struggle?
What the market is doing is reacting to less uncertenty. The market hates uncertentity! As far as back to work what is happening is the austerity measures are at least making these countries look at who is funding jobs....It is the government and doing it with other peoples money..Namely thier kids. Same thing we better learn. Gov does not produce anything and so jobs created in this fassion have no underpinning reality of GDP production.
Some infrastructure would be nice. Fix our bridges, roads, ports and airports. We'll need the transportation. Get our fire fighters, police and emergency responders fully funded. Start helping the other 99% succeed, not just the 1%.
Buy! No Sell! No, No Buy! Oh WTF just forget it.
The holidays are coming - grab your ankles and hang on - more raping and pillaging are on the way.....gas, heating oil, food, you name it!
I think that is called BOHICA.
IMHO
Exactly - I assume we agree?
Again, don't you get it America reform Wall Street now!!
today's news
The 1,066-member workforce of MF Global Holdings Ltd's brokerage has been terminated, the latest aftershock to the parent company's $41 billion collapse nearly two weeks ago.
The trustee in charge of liquidating the brokerage said in a statement that the workers were let go immediately, though they will be paid through November 15 and up to 200 will be rehired to help with the wind-down.
The move comes as the trustee, James Giddens, works to identify and locate the brokerage's assets, including $600 million in missing customer money.
What everyone seems to be blind to is the fact that the austerity measures placed on Greece have done nothing but harm the Greek economy while at the same time adding much more debt to Greece’s finances. This austerity is not and never was a solution to Greece’s problems but just a way to bring Greece to her knees so the rich could pick over the deflated possessions of an increasingly impoverished country. What you must see, before it is too late, is that the PIGGS are only the beginning. The ruining of every indebted nation via "austerity measures" is nothing more than a transfer of wealth on a grand global scale. Is it any wonder that bankers are replacing Prime Ministers in these countries? They can't afford to have anyone rocking the boat and we can't afford to let them continue. Take a good look at Greece, America; we are no different, just bigger.
Mark T-731621
spoken like someone who thinks he knows it all or.............I get it a "broker"
Nope - I'm just an educated individual capable of objective thought and rational reasoning. It sure beats the alternative...
What ever Mark, so smart (sorry eduacted) and you not capable of seeing that that Wall Street has problems-honestly.... maybe readin too many of them books
I always get a good laugh watching American Greed on cnbc when the SEC catches inside traders making a couple million here or there, or Martha Stewart who made 50 grand. Yet, Madoff got away with Billions. Then they all think they are doing a good job. ROFL.
This is like the mall security guard catching the kid stealing a pack of gum, but doesn't notice the guy with the 18 wheeler parked in front loading up everything in the store.
I think the day we, the people of the United States, placed our trust in retirement funds in Wall Street investments was the day we opened the flood gates. It has supplied the "investors" and cooperations with billions of dollars.
Our stupidity perhaps and their and our greed has placed us squarely where we are. What is there to celebrate as all the concerns/problems exist and the greed has it disappeared? I wonder what would happen if people stopped investing for their retirement?
Than those poor CEO couldn't have their million dollar salary. If there are solutions to come, they will have to come because of the actions of the many, as the few wealthiest 1% don't want to play by different rules as they are currently winning all the jackpots.
This gain is just a disguise and Halloween is long gone until next year! So what about some truth for the remaining 364 days of this year. How long will it be before we recognize the Emperor is indeed naked???????
Greece-and very soon, Portugal, Italy & Spain will get pinched. These countries will need to play ball with Germany (known as the "bank") or get out of the ECM.......Argentina filed bancrupcy and is doing quite well now. Perhaps Greece should leave the euro zone. It will be very difficult since Greece has no control of their currency.
Yet my 401k is worth less now than it was worth 3 years ago. Go figure.
Three years ago the market was loaded up with "funny money"...i.e. mortgage backed securities, CDO's and other derivatives...the market then collapsed to a low point of 6547 with the housing bust. Equity and NAV literally vanished into thin air...it's gone...never to come back. Mutual fund NAV (stocks and bonds) now had to be determined from a much smaller pie....that would be one explanation for your diminished account value.
Flash in the pan ....Nothing groundbreaking is going to happen ...this just keeps the markets doped up for just a little longer. There is gunna be a mess in 2012, guaranteed !
And the Rich continue to grow richer while the financial condition of the Middle Class continues to worsen! Thanks a lot Tbaggers for working so hard to kill off the Middle Class and squelch the profits of those Small Business proprietors so desperately in need of a healthy Middle Class customer base!
Solution: Tax the Super Wealthy, put that money into government backed Work Projects that will get money into the pockets of the Middle Class workers of America*! It's the only way we'll ever manage to break out of this depression!
*Note: I'm talking about putting money intto the pockets of your neighbors and friends living right here in the good old USA, not Indonesia, India, or China!!