The Nasdaq
The reason for all the optimism? Encouraging signs out of Europe. Yesterday, I wrote about how the Germans were becoming more open to a tighter fiscal union across the continent, which would provide relief to embattled countries like Italy and Spain. However, the concern was whether Germany would soften its stance enough that Italy and Spain would agree to any proposals put forth by the Germans, who have fought for more fiscal austerity since the eurozone crisis began.
Well, it looks as though the Germans blinked. As a result of actions at today’s EU Summit meeting, there will be a euro-wide banking supervisor. In addition, bailouts to banks can now come directly from the central European banking supervisor. This provides relief for countries like Spain, which no longer have to borrow money for their banking system, because the banks can now go directly to the European Central Bank.
In response, yields on Spanish and Italian bonds plummeted today. That temporarily breaks the cycle of rising debt payments that was crushing Spain’s efforts to “right its ship.”
Remember, though, that today's market euphoria doesn't necessarily mean that Europe’s woes are fixed. Consider this a step in the right direction. Yet, with many members of the eurozone still facing deficits and slow growth for years to come, this is likely the first of many proposals aimed at strengthening euro integration.
Stocks Seeing Losses Today
In spite of positivity out of Europe, some companies managed to buck the upward trend today. Nike
Finally, we come to insurers. Aetna, Humana, and Wellpoint were all down about 3% today. The losses steam from investor uncertainty, as they continue to digest what the Supreme Court’s upholding of Obamacare means for these companies.
Take the long-term view
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