January 9, 2012
Mr. Market decided to start this week off right: After a brief foray into negative territory, it rebounded sharply and is trading up for the morning.
|Dow Jones Industrial Average (INDEX: ^DJI )
|S&P (INDEX: ^GSPC )
|Nasdaq (INDEX: ^INIX )
The big stuff
The news continues to swirl about the European debt crisis. Germany and France both threatened that Greece will not get any more bailout funds until a bond swap agreement can be made. Chancellor Angela Merkel and President Nicolas Sarkozy are both urging a swift solution to avoid potential default of the euro.
In early-morning trading, Alcoa (NYSE: AA ) is trading up over 3%, and Bank of America (NYSE: BAC ) isn't far behind, with a 2.8% gain for the morning.
Alcoa has announced trimming operations at three European aluminum smelters. This is just one aspect of a broader global plan to reduce smelting by 12%. High costs have wounded the company's profits lately. Watch it after the bell today, as it releases results after the markets close.
Bank of America continues to whipsaw as rumors swirl about a potential mortgage refinancing. It remains one of the most sensitive financial institutions right now, so look for its shares to continue exaggerated swings up or down. For investors who like roller coasters, this could be a fun ride. For those who would like the dust to settle with regard to the mortgage mess, it's time to hurry up and wait.
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