The Dow Jones Industrial Average (^DJI 0.63%) is up after Cyprus negotiated better terms for its bailout. As of 1:20 p.m. EDT the Dow is up 86 points, or 0.59%, to 14,659. The S&P 500 (^GSPC 0.38%) is up 0.6% to 1,572.
There was just one U.S. economic release today.
|
Report |
Period |
Result |
Previous |
|---|---|---|---|
|
Factory Orders |
February |
3% |
(1%) |
Source: MarketWatch U.S. Economic Calendar.
Factory orders in February rose 3%, led largely by orders for aircraft. That was in line with analyst expectations. The big reason stocks were up today is that Cyprus completed its bailout negotiations with the International Monetary Fund, the European Central Bank, and the European Union. Cyprus negotiated an extra two years -- until 2018 -- to reach a budget surplus of 4%. The 10 billion euro bailout is a 22-year loan at a 2.5% interest rate that the country will begin paying in 10 years. After announcing the completion of negotiations, Cypriot Finance Minister Michael Sarris resigned. For the time being, concerns that Cyprus will affect the rest of the European Union appear to be moot. Indexes across Europe rose between 1% and 2%.
Today's Dow leaders
Today's Dow leader is UnitedHealth (UNH +0.66%), up 5.5%. To investors' surprise last night, Medicare Advantage announced higher reimbursement rates for 2014. In a draft statement in February, Medicare Advantage had signaled that reimbursement rates would drop. Following complaints and lobbying by the health care industry, Medicare Advantage pulled a 180. Medicare Advantage covers more than 14 million Americans, and as of the end of 2012, UnitedHealthcare had 2.6 million members enrolled in the program.
Second for the Dow today is Procter & Gamble (PG 1.24%), up 1.8%. The company announced earlier today that four of its manufacturing facilities now send zero waste to landfills. Procter & Gamble is working toward zero landfill usage, and it's one of the companies leading the charge in sustainability. The company currently uses 99% of all the materials that enter P&G plants. The materials leave as finished products, recycling, or energy, and only 1% leaves as waste. The company does not further break down the percentages.
Third for the Dow today is Cisco (CSCO +0.57%), up 2%. Last Thursday Cisco announced that it would raise its quarterly dividend by 20% to $0.17 per share. This raises the company's forward yield to 3.2%. Fool contributor Richard Saintvilus recently laid out the case for Cisco; click here to see why he thinks the stock is cheap.
