SEARCH
« Tax Tip: Do You Have to File? | Main | A Rare Look into Where Apple Products are Made »
Tuesday
Feb212012

Will Euro Zone Finance Deal for Greece Boost Dow Past 13,000?

Hemera/Thinkstock(NEW YORK) -- With European finance ministers agreeing to a bailout package for Greece, global stock markets are trending upward on Tuesday.  Equity markets in the U.S. opened up, after being closed on Monday in honor of Presidents Day, with all eyes watching if the Dow would pass the 13,000 mark.

On Tuesday morning, the Dow Jones Industrial Average opened to 12,980, approaching its highest level since May 2008. The S&P 500 opened to 1,364, also approaching its highest level since 2008. On Friday, the Dow closed at 12,950, up 0.35 percent, and the S&P 500 closed at 1,361.

Euro-zone finance ministers finished seven months of deliberating in Brussels Tuesday and agreed to a bailout plan for Greece -- its second in three year -- of 130 billion euros, or about $171.5 billion.  Martin Koehring, economist for the Economist Intelligence Unit, said without the bailout, Greece faced the prospect of defaulting on a 14.5 billion euros -- or about $19.1 billion -- bond redemption due by March 20.

"If we get a resolution or even improvement as far as Greece and stress in the financial markets is concerned, that could boost some of the gains we're seeing in the stock markets," Nick Bennenbroek, head of currency strategy for Wells Fargo, said ahead of the deal.

Meanwhile, back in the U.S., Home Depot announced strong fourth-quarter earnings Tuesday, including a 32 percent increase in net income to $774 million.  Kraft reported a fourth quarter net income of $830 million, up from $540 million, in line with expectations.

However, Walmart reported a 15 percent drop in profit for the fourth quarter to $5.16 billion, missing estimates.

Copyright 2012 ABC News Radio







ABC News Radio