US STOCKS-Wall St up with tech but Europe keeps trade choppy - Reuters US STOCKS-Wall St up with tech but Europe keeps trade choppy - Reuters

Monday, June 18, 2012

US STOCKS-Wall St up with tech but Europe keeps trade choppy - Reuters

US STOCKS-Wall St up with tech but Europe keeps trade choppy - Reuters

Mon Jun 18, 2012 2:09pm EDT

* Greeks elect parties that support the country's bailout

* Spanish bond yields hit a euro-era record high

* Facebook shares rally again

* Dow off 0.1 pct, S&P 500 up 0.2 pct, Nasdaq up 0.8 pct

By Rodrigo Campos

NEW YORK, June 18 (Reuters) - U.S. stocks mostly rose on Monday, led by large technology companies, but trading was choppy as investors kept an eye on rising Spanish bond yields and the push to form a pro-bailout government in Greece.

Shares of eBay rose 4.6 percent to $42.56 after KBW started coverage on the company with a an "outperform" rating and a price target of $50.

Facebook shares also jumped, taking their cumulative gains in the last three sessions to about 17 percent.

But markets still took their cue from developments in Europe.

Equity futures rose overnight on news that Greece's center-right New Democracy party, which backs Athens' international bailout plan, is pushing to form a coalition after its narrow victory in Sunday's election.

However, German Chancellor Angela Merkel said on Monday she does not see any reason to speak about a new aid package for Greece on top of the two already agreed, slashing hopes that Athens would get more time to meet its fiscal targets.

The election results also offered little reprieve from contagion concerns as yields on both Italian and Spanish bonds rose, with Spain's 10-year yield climbing above the 7 percent mark at which other highly indebted euro-zone nations were forced to seek bailouts.

European authorities have already agreed to a 100-billion-euro ($125 billion) rescue for Spain's troubled banks.

"We don't know how the Greek government is going to shape out and what reforms they'll be able to put into place; there's still considerable uncertainty in Spain about their bank issues," said Tom Schrader, managing director of U.S. equity trading at Stifel Nicolaus Capital Markets in Baltimore.

"As we go through this period of indecisiveness ... you're going to see the markets basically whip around in a sideways pattern."

Last week, U.S. stocks rallied on Thursday and Friday on news that central banks of major economies would take steps to stabilize markets if necessary after the Greek vote. So much of the bullish bias of the election news was priced in. The S&P 500 rose 5.1 percent in the last two weeks.

The Dow Jones industrial average dipped 14.04 points, or 0.11 percent, to 12,753.13. The S&P 500 Index gained 2.51 points, or 0.18 percent, to 1,345.35. The Nasdaq Composite added 24.14 points, or 0.84 percent, to 2,896.94.

An index of energy shares fell 1 percent, with the sector ranking as the S&P 500's worst performer. U.S. crude futures dropped 1 percent after falling for six of the last seven weeks.

The NAHB/Wells Fargo Housing Market index rose 1 point in June from May to 29, its highest level in five years, but still well below 50, the reading needed to indicate a favorable view.

Still, homebuilders stocks rose and helped the S&P consumer discretionary sector gain 0.7 percent for the day. Pulte Homes shares rose 3.4 percent to $9.33 and Lennar Corp added 3.1 percent to $26.69.

European shares erased early gains and closed flat, with the FTSEurofirst 300 index up 0.04 percent.

Facebook struck a deal to acquire Face.com, whose facial-recognition technology has been in use on the social network. Facebook shares shot up 6.5 percent to $31.96.

DSW Inc plunged 11.2 percent to $52.19 after the footwear retailer gave guidance for its second-quarter and full-year earnings.



US-STOCKS-Wall St falls on euro zone contagion fears - Reuters UK

Mon Jun 18, 2012 5:04pm BST

* Greeks elect parties that support the country's bailout

* Spanish bond yields hit a euro-era record high

* DSW shares plunge after outlook

* Dow off 0.2 pct, S&P down 0.07 pct, Nasdaq up 0.4 pct (Updates to midday)

By Rodrigo Campos

NEW YORK, June 18 (Reuters) - U.S. stocks dipped in choppy trading on Monday as rising Spanish and Italian bond yields indicated increasing fear of euro zone debt crisis contagion despite a victory for pro-bailout parties in the Greek election on Sunday.

Equity futures rose overnight on news Greece's center-right New Democracy party, which backs Athens' international bailout plan, will try to form a coalition after it won Sunday's election.

But German Chancellor Angela Merkel said Monday she does not see any reason to speak about a new aid package for Greece on top of the two already agreed, slashing hopes that Athens would get more time to meet its fiscal targets.

The election results also offered little reprieve from contagion concerns as yields on both Italian and Spanish bonds rose, with Spain's 10-year bond yield climbing above the 7 percent mark at which other highly indebted euro-zone nations were forced to seek bailouts.

"We don't know how the Greek government is going to shape out and what reforms they'll be able to put into place; there's still considerable uncertainty in Spain about their bank issues," said Tom Schrader, managing director of U.S. equity trading at Stifel Nicolaus Capital Markets in Baltimore. European authorities have agreed to a 100 billion euro ($125 billion) rescue for Spain's troubled banks.

"As we go through this period of indecisiveness...you're going to see the markets basically whip around in a sideways pattern."

U.S. stocks rallied Thursday and Friday on news central banks of major economies would take steps to stabilize markets if necessary after the Greek vote, so much of the bullish bias of the election news was priced in.

Energy shares led declines on the S&P 500 as crude futures dropped 1.3 percent.

The Dow Jones industrial average fell 26.71 points, or 0.21 percent, to 12,740.46. The S&P 500 Index d1pped 0.96 point, or 0.07 percent, to 1,341.88. The Nasdaq Composite gained 10.81 points, or 0.38 percent, to 2,883.61.

The NAHB/Wells Fargo Housing Market index rose one point from the month before to 29, its highest level in five years, but still well below 50 needed to indicate a favorable view.

Still, homebuilder stocks rose and helped the S&P consumer discretionary sector gain for the day.

Pulte Homes shares rose 2.5 percent to $9.25 and Lennar Corp added 1.4 percent to $26.25.

European shares erased early gains and closed flat, with the FTSEurofirst 300 index unofficially down 0.01 percent.

DSW Inc plunged 11.9 percent to $51.79 after the footwear retailer gave guidance for its second-quarter and full-year earnings.

(Reporting by Rodrigo Campos, editing by Dave Zimmerman)



US STOCKS SNAPSHOT-Nasdaq gains more than 1 pct - Reuters

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Stocks mixed after Greek vote as relief rally wears thin - Toronto Star

TORONTO — The Toronto stock market was slightly higher near midday on Monday as investors weighed the outcome of the Greek elections against concerns about Spain’s debt troubles.

The S&P/TSX composite index moved up 18.42 points to 11,543.32, as traders navigated through a volatile trading session. The TSV Venture Exchange gained 2.74 points to 1,253.76.

The Canadian dollar dropped 0.35 of a cent to 97.48 cents US.

Much of the attention was focused on the outcome of the Greek election won by a party backing harsh austerity measures. That was considered a positive development, though concern then shifted toward Spain’s debt problems.

More: No let-up for Spain, Italy pain after Greek vote

More: G20 leaders breathe cautious sigh of relief over Greek election results

More: Greek election: Conservatives win election, vow to keep Greece in the eurozone

Commodities prices fluctuated as both developments influenced markets.

The July crude contract on the New York Mercantile Exchange was down $1.13 at US$82.90 a barrel.

Gold bullion dropped $4.60 to US$1,623.50 an ounce while July copper edged up one cent to US$3.40 a pound.

On Wall Street, the Dow Jones industrial average was off 34.74 points at 12,732.43. The Nasdaq composite index fell 5.44 points to 2,878.24 and the S&P 500 index dropped 2.15 of a point to 1,340.69.

The Greek election results suggested the country would not drop out of the euro currency union, a scenario that would have put severe stress on the financial system.

But much of the relief faded when it became clear that Spain’s fundamental economic and fiscal problems remain huge. Madrid’s ability to manage its debt without an international bailout was thrown into doubt Monday after investors pushed its borrowing rates up to the level at which Greece, Portugal and Ireland had to seek international bailouts.

European stocks were slightly higher in the afternoon. Britain’s FTSE 100 rose 0.32 per cent while Germany’s DAX added 0.61 per cent and France’s CAC-40 fell 0.79 per cent.

Asian stocks greeted the developments in Greece enthusiastically.

Tokyo’s benchmark Nikkei 225 index closed up 1.9 per cent to 8,721.02 and Hong Kong’s Hang Seng rose one per cent to 19,427.81. Australia’s S&P/ASX200 added two per cent to 4,136.90, while South Korea’s Kospi climbed 1.8 per cent to 1,891.71.

China’s benchmark Shanghai Composite Index added 0.4 per cent to 2,316.05. The Shenzhen Composite Index gained 1.1 per cent to 964.71.

In Canada, Yamana Gold Inc. announced the acquisition Monday of Extorre Gold Mines Ltd., a miner with a promising gold-silver project in Argentina for about $400 million. Yamana will pay $3.50 in cash and 0.467 of a Yamana share for each Extorre share, while also saying it plans to increase its dividend by 18 per cent. Yamana shares fell 21 cents to $16.15.

Celestica Inc. said it will wind down manufacturing services for Research in Motion over the next three to six months. Celestica says it has been working with RIM as the troubled BlackBerry maker assesses its supply chain strategy. Celestica shares were flat at $7.61, while RIM stock fell 24 cents to $10.93.

Chartwell Seniors Housing Real Estate Investment Trust is selling six properties in the United States for about US$165.5 million, including outstanding mortgages. Its units rose 30 cents to $9.10.

Microsoft is expected to make a “major” announcement on Monday, with speculation leaning toward either a tablet computer or a system that uses an upcoming version of Windows to help people access TV shows and movies across a range of devices.



Tantrums have made tennis the big business it is today - Daily Telegraph

Soon after that, the rule-makers introduced the crime of “racket abuse” to the professional lexicon. This is not related to what Jimmy Connors used to do in the 1970s when a line call went against him. (Namely, sticking the racket between his legs and stroking the handle in a suggestive manner.)

Bizarrely, it penalises players who take their frustrations out on their equipment, which is where the legend of John McEnroe – still the most celebrated figure in the sport – began. Playing in the Wimbledon quarter-final of 1977, McEnroe began bending his wooden Dunlop racket under his foot. The hostile response from the prim English crowd surprised and excited him. “I wanted to see what would happen so I kicked my racket across the court and they booed again,” he said. “I loved it.”

It didn’t take long before McEnroe was drawing crowds as much for his tantrums as for his equally compelling stroke play. They became part of the package, a piece of performance art. And whether or not they helped him win, they certainly made tennis hugely more popular.

Were those really the bad old days? Not in the memory of most sports fans, who still talk about the antagonism between McEnroe and Connors, or the way Ivan Lendl used to “tube” everyone he played against. (In layman’s terms, to hit the ball as hard as he could at their head or body.) Tubing is so rare these days that when Nicolás Almagro of Spain played a similar shot against Tomás Berdych at January’s Australian Open, Berdych flounced off the court without shaking hands.

Any marketeer knows that, in an individual sport, rivalry is a priceless asset. That highly charged generation of the Seventies and Eighties took a game that was still rooted in the suburban garden parties it had evolved from and turned it into big business. The incongruity of seeing their passion plays acted out on the pristine greensward of Wimbledon, in front of the blazered English gentry, only made them seem even more intense.

Tennis owes McEnroe, Connors and Lendl a huge debt. Between them, they killed off the popular image of two weak-chinned Englishmen drinking lemon barley water and saying: “Anyone for tennis?” This was no longer a pleasant afternoon pastime: this was war, fought with fuzzy yellow ammunition. Is it any coincidence that, three decades later, the sport has grown and grown to the point where its major players are among the best-paid athletes in the world?

And this is where the new orthodoxy of tennis takes over. To quote McEnroe again, “It feels like tennis has become such a business that all the life and personality has been sucked out of it.”

Professionalism may improve the quality of the ball-striking, but it also brings homogeneity in its wake. With their entourages and multiple sponsors, our top sportsmen have become individual PLCs.

Of course, there are still tensions bubbling away behind the scenes. You can’t help but notice that when Federer takes a stand on an issue, Nadal and Novak Djokovic tend to move to the opposite position. But when they go into a press conference after a match, they usually find time to congratulate their opponent. “He was just too good for me today,” is the standard line.

So while it’s impossible to condone Nalbandian’s savage attack on an unprotected shin, nor his mealy mouthed attempts at an apology, there is still something refreshing in seeing some unexpurgated emotion back on a tennis court. Next time, perhaps, he can do it without the bloodshed.



European banking stocks fall despite Greek vote result - BBC News

European banking stocks have fallen sharply despite the victory of the pro-bailout New Democracy party in Greece's elections on Sunday.

While the result raised hopes that Greece would stick to austerity measures and stay in the euro, analysts said that much uncertainty remained.

The fall in bank shares was seen across Europe, with Germany's Commerzbank down 3.6% and France's BNP losing 3.3%.

Spanish bond yields remained volatile, rising through the 7% danger level.

Wider share indexes were mixed. France's Cac was down 0.2% in afternoon trading, while Germany's Dax was 0.6% higher. Both had earlier risen 1%.

The UK's FTSE was up 0.3% after falling in early trading, while in New York, the Dow Jones was down 0.1% in opening exchanges.

Among other banking shares, Deutsche Bank was down 1%, while Credit Agricole had lost 2.9%. In the UK, Royal Bank of Scotland had given up 4.4%.

The interest rate on Spanish bonds - the eurozone country said to be most at risk of needing an international bailout in the future - hit another new high. The yield on Spain's 10-year bonds had initially fallen as low as 6.767%, before then rising to 7.144%.

Italy's 10-year bond yield also rose, hitting 6.08%, after earlier falling to 5.847%.

Euro slips

The main share indexes of Spain and Italy also fell.

Spain's Ibex was down 1.8%, while Italy's FTSE MIB lost 1.2%.

In the currency markets, the euro was slightly lower against the dollar, at $1.2628 from $1.2637 late on Friday.

Asian shares had earlier on Monday posted strong gains, with Japan's Nikkei 225 index and South Korea's Kospi both closing up 1.8%, while Australia's ASX 200 added 1.9%.

Antonis Samaras, the leader of the New Democracy party, said on Sunday that "the Greek people voted today to stay on the European course and remain in the eurozone".

"There will be no more adventures. Greece's place in Europe will not be put in doubt."

'Too euphoric'

Adrian Slack, head of equities at Bastion Capital, said the initial reaction to the Greek election result was "too euphoric".

He added: "Fundamentally, the problems [in Greece and the eurozone] haven't changed."

Peter Schiff, of the brokerage Euro Pacific Capital, added: "How long is it going to take for people to worry about Spain again?"

Spain's borrowing costs have been hitting euro-era record levels, indicating that lenders were concerned about Madrid's ability to repay its debts.

Last week, the ratings agency Moody's cut Spain's credit rating to one notch above "junk".

Yet other analsyts were more optimistic.

Masayuki Doshida, a senior market analyst at Rakuten Securities, said the victory of Greece's New Democracy party had allayed eurozone fears for now.

"There'll be a definite sense of relief spreading around today," said Masayuki Doshida, she said.

Fellow analyst, David Lennox of Fat Prophets, told the BBC that the worst of the Greek crisis could now be over.

"We think that early punters are already taking the view that a floor has been put under the crisis for now," he said.

Contagion concerns

The elections in Greece were being watched closely, not just by eurozone leaders but also investors all across the globe.

Greece, which is suffering from a sovereign debt crisis, has received two bailouts in the past two years.

It was given an initial package worth 110bn euros (£89bn; $138bn) in 2010, followed by another one agreed last year worth 130bn euros.

However, the EU and IMF have attached tough austerity measures, including state spending cuts, as pre-conditions to those packages.

There have been various demonstrations against these cuts in Greece and the Syriza party had said that it would renegotiate the conditions if it came to power.

It had led to fears that if eurozone leaders and Athens did not agree on the existing terms, Greece may be forced to leave the eurozone.

There were concerns that such a move may spread contagion to other eurozone countries and result in turmoil in the global economy.

However, the BBC's business editor, Robert Peston, said the new Greek government still faced an uphill challenge.

He said that bankers had told him Greece needed "eurozone governments and the European Central Bank to write off a big slug of what they are owed".


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