It's unfortunate that European countries are not more like big banking firms in the sense that downgrades increase their valuations. That's exactly what happened to a group of large international banks; one day after Moody's downgraded 15 of the world's largest financial firms, 13 soared higher.
The Dow Jones Industrial Average (INDEX: ^DJI) finished the day up .53%, with the help of the banking Dow components Bank of America (NYS: BAC) , and JP Morgan Chase, both up 1.53% and 1.35% respectively.
Gain/ Loss %
Dow Jones Industrials
August WTI Futures
Source: Yahoo! Finance
Internationally, good news came out of Spain, where external auditors determined that the country will need to supply its banking sector with $78 billion to survive the worst-case scenario. Although this number is astronomical, it's considerably lower than originally thought. Spain's IBEX 35 increased 1.5%, as the 10-year Spanish note dropped -.27% on the news.
Benchmark WTI crude oil prices moved back into the $80 range, with August futures prices increasing 2.5% today. The price increase was buoyed up by positive investor sentiment about a viable solution to the euro-zone debt fiasco. Both big oil and small benefited from the stiff increase in price. Kodiak Oil and Gas (NYS: KOG) popped 3.25%, with additional help from a buy rating by Wunderlich Securities, which claims that the E&P company has operations sitting in the middle of some of the most productive areas in the Williston basin.
The recently spun-off Philips 66 (NYS: PSX) was up 2% today, as the refining company finalized a pioneering deal with Delta Airlines (NYS: DAL) for a 185,000 barrel-per-day refinery in Trainer, Pennsylvania. This deal will allow Delta to use refined jet fuel, as the airline company expects to put a dent in its $12 billion yearly fuel cost.
Keep a long term focus
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The article The Dow Finishes on a Strong Note originally appeared on Fool.com.
Joel South does not own shares in anycompany listed above. The Motley Fool owns shares of JP Morgan Chase and Bank of America Corporation Com. The Motley Fool has adisclosure policy.
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