Stocks shook off a series of downgrades by Moody's Investors Services as well as recent negative economic news to cut some of the losses posted just a day ago. Yesterday's 2.23% drop in the Dow Jones Industrial Average
Globally, uncertainty remains the name of the game, as Greek concerns and slowing growth in China are keeping investors on edge. Moody's did not spare European banks, as Barclays, HSBC Holdings, UBS, and many others were downgraded as well. European markets continued to slide after German business confidence reached a two-year low, in response to the United States' disappointing jobless claims report and manufacturing reports released yesterday. London's FTSE 100
Bank stocks topped the rising Dow, as Moody's reductions did not exceed investors' expectations. JPMorgan Chase led the charge, jumping 2.03% even after having its credit rating cut by three levels. Moody's cited the bank's recent $2 billion trading loss as an "important factor" in the demotion. Bank of America also benefited, increasing 0.38% after a one-notch demotion on its long-term debt. While the news is not as bad as expected, the downgrades should raise the banks' borrowing costs, so don't get too excited over today's jump.
Elsewhere in the Dow, Alcoa
With news coming out every day about a Greek exit or a Spanish bailout, it's important to keep a long-term outlook and let the speculators worry about the day-to-day fluctuations. Be sure to add these companies to your free watchlist to get up-to-date analysis. To get started, click on any company below:
Charlie Kannel owns shares of no company listed above. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Citigroup. Motley Fool newsletter services have recommended buying shares of Goldman Sachs and Moody's. The Motley Fool has a disclosure policy.
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