Stocks Close Mixed on Greece Bailout Questions
NEW YORK (TheStreet) -- Stocks posted a mixed close Tuesday as the Dow pulled off the 13,000 mark and the market gave Greece's second bailout package a tepid reception.
The Dow Jones Industrial Average added 16.2 points, or 0.1%, at 12,966, after breaching the psychologically significant level of 13,000 for the first time since May 2008. Twenty two of the 30 blue-chip components rose, with Alcoa(AA) , Kraft(KFT) and Caterpillar(CAT) leading gains. Wal-Mart(WMT) , Travelers(TRV) and Merck(MRK) were the biggest laggards.
"The escalation of commitments is enough to create momentum in equities," says Michael Gayed, chief investment strategist at Pension Partners, who notes that the markets have been sensing a "dramatic shift" to the return of inflation expectations -- paving the way for conditions conducive to a stock rally.
"There's a direct connection between volatility and deflation scares," he said. But, "none of this happening
Over the extended President's Day weekend in the U.S., European finance ministers scrambled to consolidate a debt rescue plan needed to prevent Greece from defaulting on more than €14 billion in bond redemptions due on March 20. Although the €130 billion ($173 billion) package was finalized after more than 13 hours of talks in Brussels, concerns remained about the support for the plan.