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News of the deal in Europe broke overnight, and on Friday, stocks soared from the open. The Dow swung 430 points between its Thursday low and the high it reached late Friday. Some market analysts remained cautious. Uri Landesman, president of Platinum Partners LLC, a New York hedge fund, said he expects more sharp leaps and dives this summer as traders speculate about Europe's future. "This Europe thing is going to trade up and down based on the news of the day," Landesman said. Kelly took a brighter view. Besides the Europe deal, he referred to a Greek election this month won by parties that support a European bailout, and the Supreme Court's decision Thursday to uphold most of President Barack Obama's health care overhaul. "Uncertainty is diminishing," he said. "These are all big question marks that have been out there, and as those question marks decrease, stock prices and interest rates increase." As the first half of the year ends, there are still reasons to worry about the world economy: China's expansion is slowing, and U.S. employers have created far fewer jobs in March, April and May than the three months before. A report next Friday is expected to show another month of anemic U.S. job growth. Because of the economic fears and a deep slump in May as Spain's banks teetered near collapse, the S&P 500 lost 3.3 percent for the quarter. But the S&P started the summer strong. It rose 4 percent in June, its best month since February and its strongest June since 1999. For the year, the Dow is up 662.53 points, or 5.4 percent. The Nasdaq composite index is up 12.7 percent.
For the day, the Dow closed up 277.83 points, or 2.2 percent, at 12,880.09. The S&P 500 rose 33.12, or 2.5 percent, to 1,362.16. The Nasdaq rose 85.56, or 3 percent, to 2,935.05. Industrial and information technology stocks rose the most of the 10 industry groups in the S&P 500. Those companies would benefit from faster growth and stronger demand from Europe, a key trading partner. In corporate news, Research in Motion, maker of the BlackBerry, plunged $1.92, or 20.3 percent, to $7.54 after the company posted quarterly results that suggest it is crumbling faster than thought. RIM is cutting 5,000 jobs and unexpectedly delaying the launch of new phones deemed critical to its survival. The biggest gainer in the S&P was the alcoholic beverage giant Constellation Brands. The stock jumped 24.4 percent, or $5.30, to $27.06. Constellation is buying the 50 percent of Crown Imports LLC that it doesn't already own from Anheuser-Busch for $1.85 billion, giving it more U.S. control over Corona beers and other breweries. Nike plunged $9.11, or 9.4 percent, to $87.78, the biggest drop in the S&P 500. The world's largest athletic shoe and clothing company said profit dropped 8 percent last quarter on high product costs, a restructuring charge and an unexpected customs assessment.
[Associated
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