Domestically, bad news is perceived as good news, with each negative economic report seen as further proof for the Fed to announce economic-stimulus measures when it convenes next week. Unemployment claims unexpectedly rose this past week coupled with the Labor Department's report of the Consumer Price Index showing U.S. prices falling the most in almost three years.
Besides the negative domestic issues, Spain's sovereign debt is dissipating, raising borrowing costs to dangerous all-time highs. Despite reports showing the U.S economy is sputtering and eurozone debt issues reaching unsustainable levels, the Dow Jones Industrials (INDEX: ^DJI ) are up 0.85%. This maneuver is counterintuitive; investors are looking at the economy and factoring another round of quantitative easing into their purchasing decisions.
|
Index
|
Gain/Loss
|
Gain/Loss %
|
| Dow Jones Industrials |
90.86 |
0.73% |
| S&P 500 |
7.61 |
0.58% |
| Nasdaq |
3.49 |
0.12% |
Source: Yahoo! Finance.
Who's who
So far today's top performer of all the Dow components is Walt Disney (NYSE: DIS ) , up 2.09%. The company completed its five-year, $1 billion overhaul of Disney California Adventure, converting the Anaheim park into a multiday destination like Walt Disney World in Orlando.
The consumer goods sector is the top performer today, with Home Depot (NYSE: HD ) up 2.12% after yesterday's loss. Home Depot was not the only Dow component to be propped up by Federal Reserve quantitative easing rumors, as McDonald's (NYSE: MCD ) also is riding the stimulus wave to increase its share price by 1.30%.
Outside of the Dow, Nokia's (NYSE: NOK ) troubles continue as it's announced it is closing plants due to fierce competition as well as slicing 10,000 jobs. The negative news coupled with the troubled outlook is good for a 14% haircut for Nokia.
Takeaway
The midterm eurozone economic picture will begin to take shape this weekend as the Greek election takes place, with the country's European Union membership in the balance. The international economic picture presents complex problems that can only be treated in small doses, so expect some turbulence for the foreseeable future. With increased instability expected in the market, now is a great time to check out The Motley Fool's special report: "3 Stocks That Will Help You Retire Rich." This free report will list three remarkable companies as well as offer great advice on how to invest to secure a comfortable retirement -- get your free report now.
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