May 3rd, 2010
08:44 PM ET

Stocky rally, oil prices inch higher

A look at highlights from the day's business news:

Stocks rally on Greek bailout

Stocks rallied Monday, bouncing back after a big selloff last week as investors welcomed news that European leaders agreed to provide Greece with $146 billion in aid over the next three years.

A number of better-than-expected economic reports and some positive monthly sales numbers from the nation's automakers added to the gains.

The Dow Jones industrial average rallied 143 points, or 1.3 percent. The S&P 500 index gained 15 points or 1.3 percent, surpassing 1,200, a key psychological level.

The Nasdaq composite rose 37 points or 1.5 percent.

Oil prices inch higher on Gulf spill

Oil prices rose Monday as investors bought crude on the possibility that the Gulf of Mexico spill could halt supply and amid optimism that Greece's woes may be over for now.

What prices are doing: Crude prices for June delivery inched 4 cents higher to settle at $86.19 a barrel.

Prices are up nearly 3 percent in the past week, but they're more than 72 percent higher than they were this time last year.

What's moving the market: Traders say that the massive oil spill in the Gulf of Mexico could be an impetus for higher prices in the near future, if it leads to a curtailment of offshore drilling and as oil tankers are diverted during the cleanup process. A curtailment in drilling could imply lower future supply, which would push up prices.

Dollar rises on upbeat economic reports

The dollar rose Monday following upbeat economic data and as concerns about the debt crisis in Europe lingered.

The dollar was up 0.9 percent versus the euro to $1.3194 and gained 0.4 percent against the U.K. pound at $1.5244. Against the Japanese yen, the dollar rose 0.7 percent to ¥94.6.

The euro remained under pressure as European stock markets struggled despite a bailout for the Greek economy that was much larger than previously estimated. (U.K. markets are closed for a public holiday.)

Greek officials announced Sunday that the debt-stricken nation has agreed to tough austerity measures as part of a three-year deal to receive $146 billion from the European Central Bank, European Commission and the International Monetary Fund.

Treasurys slip on Greek bailout

Treasurys fell Monday as the stock market posted gains on news of a bailout for Greece and on better-than-expected economic reports.

What prices are doing: The benchmark 10-year note fell 10/32 to 99-14/32, pushing the yield up to 3.7 percent. Bond prices and yields move in opposite directions.

 The 30-year bond fell 8/32 to 101-16/32 with a 4.54 percent yield. The 2-year note slipped to 100 with a 1.01 percent yield. The 5-year note fell to 100-5/32, yielding 2.48 percent.

What's moving the market: Over the weekend, Greece accepted a $146 billion bailout and agreed to cut its budget deficit to 3 percent of its gross domestic product by 2014. reporters Annalyn Censky, Chavon Sutton, Alexandra Twin and Ben Rooney contributed to this report.

Post by:
Filed under: Economy
soundoff (No Responses)

Comments are closed.