Stock markets are moving higher today as global finance leaders debate fiscal policy at a G7 Summit. There was confusion today over whether there is support for Japan's currency-devaluing policies or not. The yen has been dropping like a rock versus other currencies, which some fear could lead to a currency war, although that doesn't appear to be to be the case yet. The Dow Jones Industrial Average and S&P 500 shook off currency talk to rise 0.38% and 0.17%, respectively, in late trading.
Leading the Dow's charge were banking stocks after a large rival announced major job cuts. British bank Barclays announced a 1 billion pound loss for 2012 and said it would cut 3,700 jobs over the next three years, mostly in investment banking. Bank of America and JPMorgan responded by jumping 3.5% and 1%, respectively. A smaller Barclays means more opportunity for U.S. giants, particularly in the profitable investment-banking business.
On the downside, Coca-Cola has fallen 2.9% after fourth-quarter earnings fell short of expectations. The company reported revenue of $11.46 billion, up 5% on a comparable currency basis, and a 13% jump in net income to $1.87 billion, or $0.41 per share. The short-term problem is that both results fell short of expectations. Investors often put blinders on during earnings season and only look at expectations, missing the fact that revenue and earnings are growing for this dividend-paying giant. In the long term, the stock will bounce back from this blow today.
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The article Coca-Cola Holds the Dow Back From an Even Bigger Day originally appeared on Fool.com.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola. The Motley Fool owns shares of Bank of America and JPMorgan Chase & Co. 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 Motley Fool has a disclosure policy.
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