Stocks are retreating from their highs after Spain became the latest European country to have its debt ratings cut by Standard & Poor's.
Stocks are retreating from their highs after Spain became the latest European country to have its debt ratings cut by Standard & Poor's.
The downgrade Wednesday comes a day after S&P cut its ratings on Greece and Portugal, which sent stocks plummeting.
Investors have been spooked that mounting debt problems in Greece are spreading to other countries and will slow a global economic recovery.
In midday trading, the Dow Jones industrial average is up 12.16, or 0.1 percent, at 11,004.15. The Standard & Poor's 500 index is up 3.03, or 0.3 percent, at 1,186.74, while the Nasdaq composite index is down 6.50, or 0.3 percent at 2,464.97.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — Stocks edged higher Wednesday after European leaders reassured investors that Greece would receive badly needed bailout loans.
Another strong batch of earnings also lifted stock prices. Comcast, Northrop Grumman and Dow Chemical all posted better-than-expected results. Trading was somewhat muted ahead of an announcement later in the day from the Federal Reserve about interest rates.
Investors were reassured by the latest news on Greece's debt crisis. German leaders said their country's portion of a bailout for Greece could be approved by the end of next week. Germany, the largest of the 16 countries that use the euro, has been slow to approve rescue measures to bail out Greece.
Markets had tumbled around the world the past two days after Standard & Poor's slashed its rating on Greece's debt to junk status. S&P also cut Portugal's debt rating.
Greece has asked for access to $60 billion in bailout money from the European Union and the International Monetary Fund. Without the money, Greece could default on $11.3 billion in debt payments due on May 19.
Greece's debt crisis has sent the euro sharply lower in the last few months. The euro rose back slightly against the dollar Wednesday, a day after plunging to its lowest level in about a year. European stock markets mostly fell, but were off their lows for the day.
In late morning trading, the Dow Jones industrial average rose 48.52, or 0.4 percent, to 11,040.51. The Standard & Poor's 500 index rose 2.35, or 0.2 percent, to 1,186.06, while the Nasdaq composite index rose 1.62, or 0.7 percent, to 2,473.09.
Earnings provided a boost to stocks early in the day. Cable company Comcast Corp., Northrop Grumman Corp. and Dow Chemical Co. were the latest companies to top earnings expectations.
Dow Chemical was the biggest winner, jumping $1.25, or 4.2 percent, to $31.32. Comcast rose 4 cents to $18.51, while Northrop Grumman rose 94 cents to $68.12.
About four stocks rose for every three that fell on the New York Stock Exchange, where volume came to 318 million shares, compared with 312.1 million shares traded at the same time on Tuesday.
Investors will also pay close attention to the Fed's interest rate-setting committee meeting that ends later in the day. The Fed is expected to hold a key interest rate at historic lows.
Bond prices dipped after surging higher a day earlier. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.74 percent from 3.69 percent late Tuesday.
Gold and oil both rose.
The Russell 2000 index of smaller companies rose 3.96, or 0.6 percent, to 725.23.
Overseas, Britain's FTSE 100 fell 0.1 percent, Germany's DAX index dropped 1 percent, and France's CAC-40 fell 0.1 percent. Japan's Nikkei stock average tumbled 2.6 percent.
