The Greek elections stole the storylines overnight, yet investors expecting a strong market reaction were sorely disappointed. By the closing bell, the Dow Jones Industrial Average
Percent Return Today
Bank of America
As my colleague Eric Bleeker recapped today, the Greek elections resulted in defeat for the anti-bailout coalition and ensured that a worst-case scenario could be avoided in the near term. The eurozone's prospects still appear incredibly shaky, however, and Spanish bond yields climbed even higher today, showing that pessimism prevails for the time being. Pessimism also prevailed for shares of HP, Bank of America, and Alcoa, although the storylines were slightly different.
Nothing new for HP
For HP, today's loss accounted for approximately 31% of the Dow index's overall loss, but like a broken record, we've heard this noise before. Down 18% on the year, the computer maker trails the Dow's return by more than 22% in 2012. Lately, CEO Meg Whitman has seemed determined to reinvent this former tech powerhouse, comparing HP's ambitions with Starbucks' recent turnaround led by founder Howard Schultz. Reviving HP will prove difficult, however, especially given the incredible advancements in the tablet space made by competitor Apple
Rumors at Bank of America, too
Bank of America's shares dropped 1.77% to $7.76 today, and rumor has it the banking giant is looking at options to unload its international wealth-management division. According to CNBC, Julius Baer would purchase the wealth-management operations for somewhere between $1.5 billion and $2 billion. For Bank of America, a sale would mark another step in an ongoing strategy to build capital and shore up its balance sheet.
Alcoa strains with Spain
Alcoa's 1.47% drop today reflects an exaggerated movement by a raw-materials company with significant exposure to market sentiment. The aluminum maker derived 27.6% of sales from Europe in 2011, with Spain representing the largest portion of those sales. Today's gyrations in the Spanish bond market and the looming cloud over this critical European country probably depressed Alcoa's shares as well.
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