After a mini-bailout was brokered over the weekend and the beleaguered Spanish banks all set to dine on TARP tapas over the weekend, conventional wisdom was that markets would see a boost from the increased eurozone stability. Remember, though, that the news broke Friday, and the markets, after opening down, showed solid gains to close out the best week of the year.
Consider today the morning after, when the hangover kicks in and the consequences of action from over the weekend become more apparent. Banco Santander (NYS: STD) is down over 1% and the proverbial can-kicking hasn't fooled the bond market, as yields on Spanish debt rose, but hopefully the system will continue to stay solvent long enough until a more robust recovery can lift all sectors.
That said, let's take a closer look at where the three major indexes closed and at several stocks making headlines.
Dow Jones Industrial Average (INDEX: ^DJI)
Source: Yahoo! Finance.
After seeing declines every session last week, the VIX (INDEX: ^VIX) , the market's "fear" index, has climbed 2% today. All three indexes are slightly in negative territory, with the tech-heavy Nasdaq witnessing the worst declines. On the Dow, only eight components have gains on the day, with financial stocks among the worst losers.
The Nasdaq's decline comes despite Apple (NAS: AAPL) unveiling a new Macbook Pro at the company's Worldwide Developers Conference this afternoon. The new laptop has many long-rumored features including a retina display and the removal of the disc drive, enabling an ultra-thin design. Marketing Chief Phil Schiller called it "The most beautiful computer we have ever made," but that beauty comes at a price: The next-gen Macbook Pro starts at $2,199. Enthusiasm at the conference was palpable, and shares of related companies are getting bid up, including chip maker NVIDIA (NAS: NVDA) seeing a 3% rise.
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