Dow Votes No Confidence in Greece
Markets are flat to mixed, which is better than anticipated given Greece's failure to form a new coalition government. But then again, is anyone surprised that the newly elected Communists and neo-Nazis didn't play well together? New elections are forthcoming, but the country may run out of money before everything is settled, raising the specter of euro-ejection.
With that in mind, let's take a closer look at how the major indexes are faring and drill down on a few stocks making headlines.
|Dow Jones Industrial Average (INDEX: ^DJI)||(6.62)||(0.05%)||12,688.73|
|Nasdaq (INDEX: ^IXIC)||10.85||0.37%||2,913.43|
Source: Yahoo! Finance.
The Nasdaq looks poised to finish the day with gains, while the Dow and S&P 500 are barely into negative territory after fading into the afternoon. Here at home, new CPI numbers show that inflation is not here, nor on the horizon, while home sales may be showing signs of recovery. Inventory has moved into a healthy range, and while sales have decreased, it is because of a lack of sellers, especially in the strongest markets like Washington, D.C., leading many to think we have truly hit a bottom.
Despite that assertion and a first quarter that saw earnings increase 27%, shares of homebuilder and Dow component Home Depot (NYS: HD) are down 1.5% this session. Unseasonably warm weather was largely responsible for the gain, and the company cautioned that credit markets were holding back housing, however it does anticipate growing sales for the remainder of 2012.
On the other side of the Dow we have JPMorgan (NYS: JPM) , which is up 2.8%, clawing back some of the 12% decline after disclosing a $2 billion derivative trading loss. Although investors are conditioned to flee from banks at the first sign of trouble, this appears to be an isolated incident at perhaps Wall Street's best-run bank. Bank of America (NYS: BAC) is also up half a percent, likely as investors feel more comfortable that there is not a systemic problem -- at the moment -- but additional banking regulation or eurozone disaster could quickly change sentiment.
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At the time this article was published David Williamsonholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of JPMorgan Chase and Bank of America.Motley Fool newsletter serviceshave recommended buying shares of The Home Depot. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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