Photo: Cal Centelles/Flickr
Another day of slow news. U.S. economic data looked positive but negotiations to save Greece continue to drag on.First, the scoreboard:
Dow: 12,878 pts., +33.07, +0.26%
S&P 500: 1,347 pts., +2.72, +0.20%
NASDAQ: 2,904 pts., +2.09, +0.07%
Now for today’s top stories:
- European markets closed mixed as negotiations dragged on over the terms of the second Greek bailout. The DAX ended down -0.16 per cent while the CAC 40 closed up +0.18 per cent. The euro hit a 2012 high against the dollar.
- Greek politicians struggled to strike a deal on new austerity measures that the troika has demanded in exchange for the next round of bailout funds. Reports that a draft was nearing approval led to optimism early, however that feeling faded as news surfaced that leaders would meet again tomorrow because they had not yet penned a resolution. Greek PM Lucas Papademos also met with financial sector representatives led by Charles Dallara today to discuss private sector involvement in the bailout.
- U.S. economic data beat expectations across the board today. Most importantly, consumer credit crushed expectations, expanding by $19 billion in December. Analysts only expected an expansion of $7 billion. JOLT job openings also beat consensus, jumping from 3.12 million to 3.38 million in December. Economic sentiment also improved to 49.4 in January from 47.5—almost a positive outlook.
- The 9th Circuit Court struck down Prop 8—a California law which banned gay marriage. The decision did not lift the stay on gay marriages that is currently in place. Journalists are already speculating that the legal battle over the law will continue in the Supreme Court.
- Coca-Cola beat earnings expectations, with EPS coming in at $0.79 versus estimates of $0.77 for the fourth quarter. That was based on significant emerging market growth, with volumes growing 20 per cent in India. The brand itself saw growth of 5 per cent for the year and 3 per cent for the quarter.
- Walt Disney Co. beat earnings expectations but missed revenue estimates, reporting just after the bell. EPS came in at $0.80 versus estimates of $0.70, and revenue amounted to just $10.78 billion in comparison to estimates of $11.19 billion for the first quarter. The company saw a 16 per cent drop in studio entertainment revenue in the quarter.
- Right before the close, Scott Thompson was named as the new CEO of Yahoo, and Chairman Roy Bostock will not stand for re-election. Four board members will step down, and two new members have been named to replace them.
- CITI’S BUITER—There’s A 50 per cent Chance Of A Greek Exit From The Eurozone And Here’s How It Would Happen >