U.S. Investors Ignore Bad News as European Bailout Sparks Massive Rally
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Bad news out of Nike (NYSE: NKE)... shrug; Bad news out of Ford (NYSE: F)... oh well; Bad news out of RIM (Nasdaq: RIMM)... yeah, what else is new.
Investors in the U.S. are blowing-off all kinds of negative U.S. corporate news and keenly focused on Europe and positive developments on the bailout front there.
In a surprise move, leaders in the Eurozone agreed to create a single supervisory body for euro zone banks by the end of this year. Also, bailout funds can be used to directly recapitalize banks and the loans won't be ranked superior to those of private investors.
The news set off a world-wide relief rally. In Europe, the DAX rallied 4 percent and the CAC ramped near 5 percent. Italy's stock market closed up 6.6 percent. In Asia, the Nikkie rose 1.5 percent and the Hang Seng rose 2.2 percent. In the U.S., heading into the noon hour the Dow is up 220 points, the Nasdaq is up 67 and the S&P 500 is up 26.
With much of the corporate slow-down news in the U.S. tied directly to operations in Europe, it is no wonder that U.S. investors are reacting positively to developments there.
Investors in the U.S. are blowing-off all kinds of negative U.S. corporate news and keenly focused on Europe and positive developments on the bailout front there.
In a surprise move, leaders in the Eurozone agreed to create a single supervisory body for euro zone banks by the end of this year. Also, bailout funds can be used to directly recapitalize banks and the loans won't be ranked superior to those of private investors.
The news set off a world-wide relief rally. In Europe, the DAX rallied 4 percent and the CAC ramped near 5 percent. Italy's stock market closed up 6.6 percent. In Asia, the Nikkie rose 1.5 percent and the Hang Seng rose 2.2 percent. In the U.S., heading into the noon hour the Dow is up 220 points, the Nasdaq is up 67 and the S&P 500 is up 26.
With much of the corporate slow-down news in the U.S. tied directly to operations in Europe, it is no wonder that U.S. investors are reacting positively to developments there.
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