Global Market Report 22 February 2012

The Dow Jones Industrial Average pierced the 13,000 level for the first time in almost four years, but traded largely below the mark in a choppy session in which stocks turned negative at times.

The Dow broke through 13,000 before noon and a handful of other times throughout the day, but ended the session at 12,965.69, up 15.82 points, or 0.12%. The Dow last traded at the 13,000 level on an intra-day basis on May 20, 2008.

The Standard & Poor's 500-stock index finished up 0.98 point, or 0.07%, at 1,362.21. The Nasdaq Composite closed down 3.21 points, or 0.11%, at 2,948.57.

Five of the S&P's 10 sectors were higher, led by energy and telecommunications stocks but weighed down by health-care shares. Among blue chips, Alcoa rose the most, gaining 2.6%, followed by Chevron, which was up 1.6%.

Markets were largely supported by the deal in which euro-zone finance ministers agreed to a EUR130 billion rescue for Greece that requires private creditors to take a 53.5% write-down on their holdings of Greek debt, more than the 50% to which they agreed in October.

In corporate news, Wal-Mart Stores slid 3.9% after the retailer reported somewhat disappointing fiscal fourth-quarter results, and provided outlooks for the current quarter and fiscal year that were less than upbeat.

Home Depot rose 0.5% after the home-improvement retailer's fiscal fourth-quarter earnings exceeded expectations. The outlook for the year was upbeat.

Kraft Foods rose 1.5% after the packaged-food company reported fourth-quarter earnings that were in line with estimates. Revenue fell a bit shy.

Wynn Resorts climbed 6% after the casino operator said it has asked co-founder Kazuo Okada to resign from the board after an investigation found him to be "unsuitable."

GTx slumped 36%. The company said the Food and Drug Administration placed a hold on clinical trials evaluating GTx's prostate-cancer treatment following reports of increased risk of blood clots.

Corcept Therapeutics soared 47%. The company said the FDA approved its oral medicine to treat Cushing's syndrome, an endocrine disorder.

Treasury bonds fell after agreement on a fresh bailout deal for Greece to avoid a default next month, and held losses after a two-year note sale that went off without much fanfare. At 7:45AM (AEST) the 10 year Treasury note was 2.05% and the 5 year note was 0.90%.

European stock markets closed lower, as investors shifted their focus to Greece's underlying debt problems after euro-zone finance ministers earlier approved terms of a bailout package for the country.

The pan-European Stoxx Europe 600 index declined 0.5% to 266.78, snapping a four-day winning streak.

Negative sentiment spread across Europe, after euro-zone finance ministers ended a marathon meeting with an agreement to provide Greece with EUR130 billion as part of a fresh bailout package. Greece also reached a deal with private bond holders to take a haircut of more than 53% on around EUR200 billion worth of debt.

The Athens General Index fell 3.5% to 797.13, with National Bank of Greece SA off 9.5%.

Among major banks, Deutsche Bank AG lost 2.1% and Commerzbank AG lost 0.6%, helping drag the German Dax 30 index 0.6% lower to 6,908.18.

Also adding downward pressure to the German index, Deutsche Lufthansa AG shed 2.3%. An ongoing strike in the airline's major hub, Frankfurt, was extended through Friday. Around 160 Lufthansa flights were cancelled on Tuesday.

The French CAC 40 index closed 0.2% lower at 3,465.24, weighed down by Total SA, which declined 0.4%.

Also adding pressure in France, Schneider Electric SA lost 3.2% ahead of reporting earnings on Wednesday.

The broader oil sector weighed on the markets after rallying on Monday. Tullow Oil PLC, off 3.6%, posted one of the biggest drops in Europe after what analysts viewed as a mixed well update. BG Group PLC declined 1.9%, pulling the UK FTSE 100 index down 0.3% to 5,928.20.

The euro recovered against the US dollar and Japanese yen in the wake of a euro-zone agreement to approve a long-awaited bailout for Greece.

Asian stock markets ended mixed as reaction to European approval for new aid to Greece was muted by widespread anticipation of the deal.

Japan's Nikkei Stock Average slipped 0.2% and South Korea's Kospi closed flat, but Hong Kong's Hang Seng Index rose 0.3% after moving in and out of positive territory during the session. The Shanghai Composite Index added 0.8%.

Many blue-chip Japanese exporters lost ground after a strong rally on Monday. Sony dropped 1.4%, Sharp lost 2%, and Citizen Holdings fell 2.9%.

Car makers were especially weak, with Mazda Motor Corp. suffering after reports that it would need to issue new stock in order to shore up its finances.

Shares of Mazda dropped 9.9%, while Nissan Motor lost 1.5%, and Mitsubishi Motors finished down 2%.

In Hong Kong, telecom plays were among the outperformers, with China Telecom up 4.1% on news it would begin offering Apple Inc.'s popular iPhone 4S next month.

Rival iPhone carrier China Unicom Hong Kong Ltd. added 2.3%, while China Mobile closed 1% higher.

In Seoul, Samsung Electronics added 0.4% a day after saying it would spin off its liquid-crystal display business into a separate company.

Meanwhile, Korea's key shipbuilding sector weighed on the market, with Hyundai Mipo Dockyard down 2.8%, Daewoo Shipbuilding & Marine Engineering down 2.7%, and Hanjin Heavy Industries & Construction down 2.2%.

Resource stocks diverged, but showed particular weakness in Hong Kong.

Shares of Chinese oil giant Cnooc fell 2.9%, while China Petroleum & Chemical Corp., or Sinopec, dropped 1% after Citigroup downgraded its shares to neutral from buy.

Aluminum Corp. of China and Jiangxi Copper each finished down 1.2%, and Angang Steel fell 0.5%.

Base metals closed sharply higher on the London Metal Exchange, underpinned by investor relief over a second bailout package for Greece, market participants said.

Oil futures climbed more than 2% to finish at their highest level in nine months, lifted by optimism over Greece's latest bailout and mounting tensions with Iran.

Gold futures rallied and silver ended at a three-month high amid elation over the long-awaited Greek bailout deal and a weaker US dollar.