Wild day on Wall Street
Stock prices have moved violently all day on Wall Street, with the Dow Jones industrial average swinging more than 400 points during the session, CNNMoney reported. Positive influences include a strong U.S. jobs report and a step toward resolving Europe’s escalating debt problems.
The Dow was up 133 points midafternoon after being down more than 200 points an hour earlier. The blue chips were lifted by shares of Kraft and Procter & Gamble. The biggest drag on the Dow were shares of Bank of America, which fell 4 percent.
Stocks got a boost in afternoon trading on reports that the European Central Bank had agreed to purchase Italian bonds in exchange for massive budgetary concessions from that country.
Italy was quickly becoming the latest domino to potentially fall in the euro zone, and the concern among investors is that Italy — the euro zone’s third-largest economy — might be too large to save.
“The crisis in Europe is quickly becoming on par with the financial crisis of 2008,” said David Levy, portfolio manager at Kenjol Capital Management.
“The jobs report shows that things aren’t getting much worse in the U.S., but the focus is clearly on Europe at this point,” Levy said.