By: Rob Black - Tue, 08 May 2012 17:08:49 -0800
Loser: S&P 500 Declines to Lowest Level in One Month
U.S. stocks retreated as political tension in Greece intensified concern about a euro exit and a deepening of the region’s debt crisis. Greek stocks sank to a two-decade low.Equities trimmed earlier losses after the S&P 500 dropped below 1,350, a so-called support level being watched by traders.McDonald’s Corp., the world’s largest restaurant chain, slumped 2.1 percent as April sales trailed projections.
It’s the unknown in Europe affecting the market. If Greece does exit the euro, will there be contagion? It could have a negative reverberation throughout the globe. Equities fell as Greece’s leaders met for a second day to try to form a government after an election that raised questions about the nation’s membership of the euro. Greece will fail this summer I think. The Europeans aren’t going to give them the money, the IMF’s not going to give them an OK. They will be out of money in June.
Winner: Disney Profit Rises 21% as Parks Counter ‘John Carter’ Walt Disney, the world’s largest entertainment company, said earnings rose 21 percent, as theme parks countered the sci-fi film “John Carter” that bombed in theaters. Income grew to $1.14 billion. Profit in the theme-park division jumped 53 percent as revenue grew 10% to $2.9 billion.Don’t forget the record-breaking opening of “Marvel’s The Avengers.”
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