Stocks mixed as hope dims for Europe deal
Trader Edward Curran, right, works on the floor of the New York Stock Exchange. (Dec. 5, 2011) Credit: AP
Optimism about a European debt-crisis summit this week rose and fell Wednesday, but U.S. stock indexes barely budged. The Dow Jones industrial average closed 46 points higher, while other indicators were mixed.
Hopes have been building for the summit, which wraps up Friday. Traders hope it will generate a lasting solution to Europe's two-year-old debt crisis.
Wednesday, French and German leaders sought to downplay those expectations. Traders hope European countries will link their budgets more closely and impose greater fiscal discipline on heavily indebted nations like Greece.
Officials said a deal this week might include only some countries, and crafting a fuller plan might take until Christmas.
"The pattern has been get your hopes up, then be disappointed by EU summits," said Steve Van Order, fixed-income strategist at Calvert Investment Management.
Rating agencies have warned of possible downgrades for nations using the euro if they do not quickly set a firm plan for solving the ordeal.
The Dow rose 46.24 points, or 0.38 percent, to close at 12,196.37. Its biggest gains came from financial companies. Machinery maker Caterpillar Inc. fell 1.12 percent, the most in the Dow 30. The Standard & Poor's 500 index rose 2.54 points, or 0.20 percent, at 1,261.01. The Nasdaq composite index fell 0.35, or 0.01 percent, to 2,649.21.
Get ready for sun and fun with NewsdayTV's summer FunBook special! From celebrating America's 250th birthday to a new ride at Adventureland, NewsdayTV's Elisa DiStefano and Newsday lifestyle editor Meghan Giannotta have your inside look at Newsday's summer FunBook.
Get ready for sun and fun with NewsdayTV's summer FunBook special! From celebrating America's 250th birthday to a new ride at Adventureland, NewsdayTV's Elisa DiStefano and Newsday lifestyle editor Meghan Giannotta have your inside look at Newsday's summer FunBook.
