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business newsMidday Market Report: Greece Bailout Falls Flat
By
Vincent Trivett
Feb 21, 2012 1:50 pm
Markets are treating the bailout as a non-event.
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Greece is saved. For now. Greece will get its 130 billion euros from private creditors and central banks. A special escrow account will be set up to ensure that Greece will have enough to pay back its debt for the next three months. A constitutional amendment will prioritize debt repayment over spending. Eurozone wonks will be permanently deployed to Greece to monitor the country’s fiscal discipline.
Whether Greece will follow through is questionable. Greeks are being asked to give up a lot that they have come to hold dear, and as a country, they have not been very good about keeping promises to creditors. European stock markets closed on a negative note today, signaling that the accord between Greece and the Troika is probably not going to make the Greek problem go away any time soon.
Apparently, US investors had expected the Troika to come to Greece’s aid and priced in such expectations. Gains today have been modest.
Investors are hoping that the strong quarter for Home Depot (HD) signals a bottom in the housing market. The company beat earnings expectations for the fourth quarter and earned 36% more than the year before. Wal-Mart (WMT), however, is down 4% today after posting disappointing earnings. The big-box store was able to pull more shoppers in during the holiday quarter, but those customers spent less than they did last year.
Twitter: @vincent_trivett
Whether Greece will follow through is questionable. Greeks are being asked to give up a lot that they have come to hold dear, and as a country, they have not been very good about keeping promises to creditors. European stock markets closed on a negative note today, signaling that the accord between Greece and the Troika is probably not going to make the Greek problem go away any time soon.
- The FTSE 100 (^FTSE) lost 0.29%, closing at 5,928.20.
- The DAX (^GDAXI) declined 0.58% to 6,908.18.
- The CAC (^FCHI) fell 0.21% to 3,465.24.
Apparently, US investors had expected the Troika to come to Greece’s aid and priced in such expectations. Gains today have been modest.
- The Dow (^DJI) broke 13,000 for the first time since May 2008 today, before dipping back down slightly to 12,995.62, 0.35% above the last close.
- The S&P 500 (SPY) rose 0.34% to 1,365.91.
- The NASDAQ (^IXIC) rose 0.12% to 2,955.46.
Investors are hoping that the strong quarter for Home Depot (HD) signals a bottom in the housing market. The company beat earnings expectations for the fourth quarter and earned 36% more than the year before. Wal-Mart (WMT), however, is down 4% today after posting disappointing earnings. The big-box store was able to pull more shoppers in during the holiday quarter, but those customers spent less than they did last year.
Twitter: @vincent_trivett
No positions in stocks mentioned.
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