Investing.com - U.S. stocks rose on Friday on talk central banks worldwide are crafting plans to stimulate the global economy via liquidity injections, if needed, should Greece exit the eurozone.
Talk of coordinated central bank action offset weak consumer sentiment and industrial production data in the U.S.
The Dow Jones Industrial Average closed up 0.91% on Friday, the S&P 500 index was up 1.03% while the Nasdaq Composite index finished up 1.29%.
The dollar fell and risk assets like stocks rose on widespread market talk that central banks worldwide will take coordinated steps to shield the economy from a possible Greek exit from the eurozone, including possible liquidity injections, should the need arise.
Greece will hold elections on Sunday, and a strong showing among leftwing Syriza politicians could open the door to a Greek exit from the eurozone down the road.
Past Greek administrations have accepted bailout money arranged by the European Commission, the European Central Bank and the International Monetary Fund, and in return, agreed to austerity measures such as layoffs and spending cuts to narrow deficits.
Leftwing Syriza politicians claim such policies have decimated growth rates, adding they would renegotiate such policies if elected.
Such a move could see an end to the flow of rescue funding flowing into Athens and open the door to a Greek exit, yet coordinated liquidity injections, which would weaken the dollar in exchange for easing credit conditions, could cushion the blow and be bullish for stocks.
Meanwhile, weak jobs figures and an escalating European debt crisis are taking its toll on the U.S. consumer, though stocks focused on Europe.
The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment fell to 74.1 in June from to 79.3 in May, Reuters reports.
The number fell short of a 77.5 reading predicted by a Reuters poll of economists.
Consumer spending drives 70 percent of the U.S. economy, and the disappointing numbers cemented some market expectations that the Federal Reserve will take steps soon to stimulate the economy, which would weaken the dollar.
The Federal Reserve, meanwhile, reported that industrial production, which includes output from the nation's factories, mines and utilities, contracted 0.1% in May from 1.0% in April, whose figure was revised down from 1.1%.
Market forecasts called for a gain of 0.1%.
Leading Dow Jones Industrial Average gainers included Bank of America, up 3.13%, Chevron, up 2.36%, and Microsoft, up 2.32%.
Leading index losers included Home Depot, down 0.56%, Procter & Gamble, down 0.47%, and Verizon Communications, down 0.46%.
European indices, meanwhile, finished largely up.
After the close of European trade, the EURO STOXX 50 rose 1.54%, France's CAC 40 rose 1.82%, while Germany's DAX 30 finished up 1.48%. Meanwhile, in the U.K. the FTSE 100 closed up 0.22%.
Markets will digest the outcome of the Greek elections next week.
On Tuesday of next week, the Federal Reserve begins its monetary policy meeting.
Talk of coordinated central bank action offset weak consumer sentiment and industrial production data in the U.S.
The Dow Jones Industrial Average closed up 0.91% on Friday, the S&P 500 index was up 1.03% while the Nasdaq Composite index finished up 1.29%.
The dollar fell and risk assets like stocks rose on widespread market talk that central banks worldwide will take coordinated steps to shield the economy from a possible Greek exit from the eurozone, including possible liquidity injections, should the need arise.
Greece will hold elections on Sunday, and a strong showing among leftwing Syriza politicians could open the door to a Greek exit from the eurozone down the road.
Past Greek administrations have accepted bailout money arranged by the European Commission, the European Central Bank and the International Monetary Fund, and in return, agreed to austerity measures such as layoffs and spending cuts to narrow deficits.
Leftwing Syriza politicians claim such policies have decimated growth rates, adding they would renegotiate such policies if elected.
Such a move could see an end to the flow of rescue funding flowing into Athens and open the door to a Greek exit, yet coordinated liquidity injections, which would weaken the dollar in exchange for easing credit conditions, could cushion the blow and be bullish for stocks.
Meanwhile, weak jobs figures and an escalating European debt crisis are taking its toll on the U.S. consumer, though stocks focused on Europe.
The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment fell to 74.1 in June from to 79.3 in May, Reuters reports.
The number fell short of a 77.5 reading predicted by a Reuters poll of economists.
Consumer spending drives 70 percent of the U.S. economy, and the disappointing numbers cemented some market expectations that the Federal Reserve will take steps soon to stimulate the economy, which would weaken the dollar.
The Federal Reserve, meanwhile, reported that industrial production, which includes output from the nation's factories, mines and utilities, contracted 0.1% in May from 1.0% in April, whose figure was revised down from 1.1%.
Market forecasts called for a gain of 0.1%.
Leading Dow Jones Industrial Average gainers included Bank of America, up 3.13%, Chevron, up 2.36%, and Microsoft, up 2.32%.
Leading index losers included Home Depot, down 0.56%, Procter & Gamble, down 0.47%, and Verizon Communications, down 0.46%.
European indices, meanwhile, finished largely up.
After the close of European trade, the EURO STOXX 50 rose 1.54%, France's CAC 40 rose 1.82%, while Germany's DAX 30 finished up 1.48%. Meanwhile, in the U.K. the FTSE 100 closed up 0.22%.
Markets will digest the outcome of the Greek elections next week.
On Tuesday of next week, the Federal Reserve begins its monetary policy meeting.