The Dow's Running Toward 13,000 This Morning
In classic fashion, after walking on eggshells for months about whether Greece would manage to get a bailout from the rest of Europe, the market hardly responded at all to news that the ailing European nation would indeed receive a second bailout of 130 billion euros. But a late-morning push sent the average toward the 13,000 level, and around 10:45 a.m. EST, the Dow Jones Industrials (INDEX: ^DJI) were up just 40 points to 12,990, while the S&P 500 (INDEX: ^GSPC) rose five points to 1,366.
Alcoa (NYS: AA) was the biggest gainer in the Dow, rising almost 3% in morning trading. The company is arguably one of the most economically sensitive to Europe among Dow stocks, as excess capacity and low margins have put a big squeeze on the industry lately.
Pfizer (NYS: PFE) rose slightly as the Financial Times reported that the company is looking at the potential for a partial IPO of its animal health division. The business, whose value is estimated at as much as $18 billion, has been the target of speculation about a spinoff or sale for a while, but the company is looking for the best way to divest itself of the business without triggering unnecessary tax liability.
On the analyst front, General Electric (NYS: GE) rose more than 1% after Citigroup took the industrial giant off its list of top picks but pushed up its price target for GE from $22 to $24. GE also stands to gain from a possible recovery in Europe.
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At the time this article was published Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter here. The Motley Fool owns shares of Citigroup. Motley Fool newsletter services have recommended buying shares of Pfizer. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.
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