The Dow Finishes on a Strong Note


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

Gain/ Loss %

Dow Jones Industrials



S&P 500



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
It seems that the broad markets are again in a minor adjustment after a heavy sell-off day. With news pouring in by the hour with promises of easing capital liquidity, the markets are in for increased volatility. Now would be a great time to check out the Motley Fool's special report describing 3 Stocks That Will Help You Retire Rich. This free report will list three remarkable companies, as well as offer great advice on how to invest to secure a comfortable retirement. Get your free report now.

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