U.S. equity markets rallied Friday afternoon after President Barack Obama urged Europe to move to combat its economic crisis and a media report said Spain would seek help for its banks.
By the close the Dow Jones jumped 93 points to 12,554, while the NASDAQ rallied 27 points to 2858.
Reuters cited sources in Brussels and Berlin in reporting that Spain would likely request euro-zone help with recapitalizing its banks during the weekend, with an announcement expected Saturday.
President Barack Obama on Friday took a more strident tone with Europe, urging the region’s leaders to aid the troubled banking sector and warning of the fallout if Greece were to leave the euro zone.
Europe must stabilize its financial system and inject capital into weak banks as soon as possible and European leaders must also show a political commitment to a stronger euro zone and fiscal integration, Obama said.
In corporate news, McDonald's Corp. (NYSE:MCD) said Friday that global same-store sales grew 3.3 percent in May but cautioned on its second-quarter earnings outlook.
For the second quarter, the fast food chain said earnings per share will be trimmed by 7 to 9 cents due to global economic weakness. Analysts polled by FactSet Research currently expect the company to earn $1.41 per share for the second quarter.
Chesapeake Energy (NYSE:CHK) Friday plans to sell pipelines and related infrastructure in three separate transactions totaling more than $4 billion in cash.
The natural-gas company said selling the midstream assets will reduce previously budgeted capital expenses by around $3 billion over the next three years.
Global foods giant Kraft Foods (NYSE:KFT) announced Friday that it will move its listing from the New York Stock Exchange to the Nasdaq market.
The company said the transfer will yield greater cost efficiencies, while providing visibility advantages for the company’s brands.
On the economic front, the U.S. trade deficit for April came in at $50.1 billion, roughly in line with forecasts of analysts by Briefing.com, and down from the revised $52.6 billion in March.
Wholesale inventories for April rose by 0.6%, after increasing by 0.3% in the month prior.
In NYMEX futures trading, crude for July delivery lost $1.60 to $83.22 a barrel while gold futures rose $1.50 to $1,589.50 an ounce.
European stocks closed lower with the FTSE 100 and DAX both falling 0.2% while the CAC 40 (CAC40) declined 0.6%.
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