It’s unfortunate that European countries are not more like big banking firms in the sense that downgrades increase their valuations. That’s exactly what happened to a group of large international banks; one day after Moody’s downgraded 15 of the world’s largest financial firms, 13 soared higher.
The Dow Jones Industrial Average (INDEX: ^DJI ) finished the day up .53%, with the help of the banking Dow components Bank of America (NYSE: BAC ) , and JP Morgan Chase, both up 1.53% and 1.35% respectively.
|Index||Gain/ Loss||Gain/ Loss %|
|Dow Jones Industrials||53.51||.43%|
|August WTI Futures||.57||.73%|
Source: Yahoo! Finance
Internationally, good news came out of Spain, where external auditors determined that the country will need to supply its banking sector with $78 billion to survive the worst-case scenario. Although this number is astronomical, it’s considerably lower than originally thought. Spain’s IBEX 35 increased 1.5%, as the 10-year Spanish note dropped -.27% on the news.
Benchmark WTI crude oil prices moved back into the $80 range, with August futures prices increasing 2.5% today. The price increase was buoyed up by positive investor sentiment about a viable solution to the euro-zone debt fiasco. Both big oil and small benefited from the stiff increase in price. Kodiak Oil and Gas (NYSE: KOG ) popped 3.25%, with additional help from a buy rating by Wunderlich Securities, which claims that the E&P company has operations sitting in the middle of some of the most productive areas in the Williston basin.
The recently spun-off Philips 66 (NYSE: PSX ) was up 2% today, as the refining company finalized a pioneering deal with Delta Airlines (NYSE: DAL ) for a 185,000 barrel-per-day refinery in Trainer, Pennsylvania. This deal will allow Delta to use refined jet fuel, as the airline company expects to put a dent in its $12 billion yearly fuel cost.
Keep a long term focus
It seems that the broad markets are again in a minor adjustment after a heavy sell-off day. With news pouring in by the hour with promises of easing capital liquidity, the markets are in for increased volatility. Now would be a great time to check out the Motley Fool’s special report describing 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.