Stocks bounced back from a sharp sell-off Wednesday, but all three major indexes closed in the red as investors continue to fret about Greece and Spain. Investors started to sense that the market was oversold in the morning, but wariness over the fiscal and political health of Greece and Spain kept it in negative territory. Yields on Spanish 10-year bonds crossed 6% for the first time in two weeks, stock market fell to its lowest level since 2003. Greek elections failed to yield a coalition government, which throws into question whether the nation will be able to meet the requirements needed to secure its next round of bailout funds. Tech stocks closed trading with mixed results, though jumped 3% following a strong earnings report. Demand Media jumped more than 8% after the co. reported better-than-expected results for the first quarter and raised its forecast for the current year. Yahoo closed down 0.4%, as activist investor Daniel Loeb of Third Point reiterated his call for the resignation of CEO Scott Thompson over inaccuracies on his academic resume. In the evening trade Cisco dropped 8.4% in heavy volume after the co. reported earnings in line with expectations and issued a weak outlook. Implied volatility surged above the 20 level on huge trading volumes.Thursday, May 10, 2012
Hit by European worries
Stocks bounced back from a sharp sell-off Wednesday, but all three major indexes closed in the red as investors continue to fret about Greece and Spain. Investors started to sense that the market was oversold in the morning, but wariness over the fiscal and political health of Greece and Spain kept it in negative territory. Yields on Spanish 10-year bonds crossed 6% for the first time in two weeks, stock market fell to its lowest level since 2003. Greek elections failed to yield a coalition government, which throws into question whether the nation will be able to meet the requirements needed to secure its next round of bailout funds. Tech stocks closed trading with mixed results, though jumped 3% following a strong earnings report. Demand Media jumped more than 8% after the co. reported better-than-expected results for the first quarter and raised its forecast for the current year. Yahoo closed down 0.4%, as activist investor Daniel Loeb of Third Point reiterated his call for the resignation of CEO Scott Thompson over inaccuracies on his academic resume. In the evening trade Cisco dropped 8.4% in heavy volume after the co. reported earnings in line with expectations and issued a weak outlook. Implied volatility surged above the 20 level on huge trading volumes.
