1 Dow Stock Finishing Strong
Consider this a resilient finish to a difficult week.
The drama-filled Greek debt deal was technically ruled a default, but in fact the country's private creditors agreed to take a nearly 75% haircut after exchanging their current bonds for new issues. Greece still has a long way to go; its economy contracted a horrifying 7.5% last year and after declining every year since 2008. One has to wonder if debt restructuring and more austerity measures can fix the underlying problem.
But a good jobs report that saw unemployment remain at 8.3% helped the Dow Jones Industrial Average (INDEX: ^DJI) to continue its rebound, up 0.1% -- but that still left it 55 points shy of last week's close, thanks to Tuesday's terrible performance. The Dow has now fallen two weeks in a row, despite a sense that the economy is continuing to recover. Not to be left out, the Nasdaq was the best performer of the three major indexes, with a 0.6% gain, while the S&P 500 (INDEX: ^GSPC) added 0.4%, with all but one of the 10 sectors making up the index recording gains.
As good as the Dow's day was, JPMorgan Chase (NYS: MSFT) fared even better. It led all Dow components with a 1.5% increase, which makes sense given the positive macro news, but a rising tide did not lift all "Too Big To Fail" boats, as competitor Bank of America (NYS: BAC) saw a minor decline. Increased certainty from the Eurozone, combined with a healthy domestic economy, will help the sector return to its winning ways and, predictably, the Direxion Financial Bull 3X (NYS: FAS) gained 2.2% today and is up an impressive 8.6% since Tuesday's close.
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