NEW YORK —
U.S. stocks are rising in early trading Friday as investors anticipate action by central banks to head off a deeper European debt crisis.
The European Central Bank president said the bank would continue its “crucial role” of making sure the financial system has enough cash.
The comment wouldn’t normally arouse interest, but it followed a report Thursday from Reuters that central banks were ready to act in concert to stem any fallout from elections in Greece this weekend.
All eyes are on Greece, where an election on Sunday could determine whether the country stays within the euro currency union. Analysts are concerned about what will happen if a party opposed to the terms of the country’s financial bailout takes control of the government. If Greece leaves the euro, many fear it could imperil Spain, Italy and other countries and further weaken the region’s hobbled banks.
The Dow Jones industrial average rose 68 points to 12,720 as of 11 a.m. Microsoft was the Dow’s leading stock, rising 2 percent, following reports that the company is in talks to buy Yammer, a developer of social networks within companies. Microsoft gained 59 cents to $29.93.
“There’s a growing sense of optimism,” said Peter Tuz, a money manager, at Chase Investment Counsel, which runs mutual funds. “The betting now is that the ‘let’s stay in the euro’ segment of the population will win.” Investors are also reassured by reports that central banks have drawn up contingency plans.
Tuz, however, remains worried about the fallout from Greece leaving the euro. “There’s just too much uncertainty about what would happen, too many unknowns.”
The Standard & Poor’s 500 index rose seven points to 1,336. The Nasdaq composite rose 15 to 2,851.
Among stocks making big moves:
— GameStop sank 3 percent, or 52 cents, to $17.22. The drop came after research firm NPD said sales of video games plunged 28 percent last month. That’s the sixth straight month that sales have dropped more than 20 percent.
— Capital One Financial rose 1 percent after the company said uncollectable and delinquent loans at its credit card business dropped last month. Capital One’s stock gained 41 cents to $53.42.
— IntercontinentalExchange jumped $6.48 to $135.27 after the financial markets operator lost out in the bidding for the London Metal Exchange to Hong Kong Exchanges and Clearing. The 5 percent gain was the most of any stock in the S&P 500 index.
National News
June 15, 2012
Stocks rise as markets look to central bank help
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