Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
The broad markets rebounded nicely after the extended weekend, with optimism reigning over Greece and China. Although the news from overseas is welcomed, it's sure to change again, as the same issues have been the main catalysts for the volatility we've experienced recently. We'll have to wait and see what tomorrow brings, but today all three major indices finished above 1%, with the Dow Jones Industrials (INDEX: ^DJI ) up 1.01%.
The materials and technology sectors advanced the markets today, as China is expected to increase stimulus measures to boost growth. Chinese bankers announced that lending will be expanded to increase purchases as well as boost manufacturing and build out infrastructure.
Good news also came from Greece, where polls show the New Democracy party ahead of the anti-bailout party for the election being held on June 17. Elsewhere, though, the price of oil, after rallying by 1.5% midday, closed in the red over Spanish credit worries. ExxonMobil dropped with the price of oil as the energy giant, split 50/50 between oil and gas production, is already taking a hit from extremely low natural gas prices. However, the tightly run behemoth has an excellent balance sheet and vast reserves in a diverse geographic network that will allow it to withstand the worst of oil price cyclicality.
Another Dow component that finished the day in the red is McDonald's (NYSE: MCD ) . Though down a slight 0.16%, the drop put some pressure on the index since it's the third largest weighted company in the Dow. The company could be pinched by the Spanish debt issue and potential complications the eurozone could experience if Spain's debt issue keeps spiraling. McDonald's is reasonably susceptible to European weakness in general, since it drives about 40% of its revenue from the eurozone.
The main storyline for today was the spanking that some big-name Internet information providers suffered. The main culprit was Facebook (Nasdaq: FB ) , down 9.62%, as news spread that the company could be in the market to produce smartphones and potentially purchase Opera, a user-friendly Web browser. Zynga (Nasdaq: ZNGA ) is also trading lower, down 7.87% as the gaming company is continually coupled with Facebook because of the symbiotic relationship they share. Yelp (NYSE: YELP ) also struggled today, down 6.16%, as the company is facing a civil investigation from Federal Trade Commission, according to Bloomberg.
With Facebook trading off by close to 25% from its IPO price, it faces a tall task to regain the momentum it had before it went public. The Internet giant has perhaps the best name recognition out there, but it will need to find revenue drivers to effectively use its strong branding. Right now there is a clear winner among the recent technology IPO releases, and this company is smashing its competitors with an array of hidden weapons. Read this free report to find everything you will need to know about this fantastic company and why it's outperforming its competitors.