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Wall Street shakes Spanish flu

Tuesday, June 12, 2012 - 01:38

June 12 - Summary of business headlines: Stocks climb 1 percent as Spanish bond yields dip, but worries remain; Investors await JPMorgan lawmaker chat; Zynga may need new life after Facebook -analyst report. Conway G. Gittens reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Wall Street bounced back from euro worries as Spain's borrowing costs backed down from the highest ever in the euro zone. Blue chips took back all of the previous day's declines as stocks gained more than 1 percent across the board. Investors took heart from lower debt costs in Spain, but the drag on the global economy is still present. The head of French car maker Renault says he's preparing "for the worst" in Europe, predicting at least three more years of stagnation. And while eyes may be on Europe, the chatter is really all about Jamie Dimon. Seen here on the left when he testified during the U.S. financial crisis, the head of JPMorgan Chase will testify to lawmakers on Wednesday. The questions are expected to be tough as Congress seeks clarity on a $2-billion-plus trading loss. The issue puts talk of banks being too big to fail back on the front burner. Karen Petrou of Federal Finanical Analytics: SOUNDBITE: KAREN PETROU, MANAGING PARTNER, FEDERAL FINANCIAL ANALEPTICS (ENGLISH) SAYING: "Ideally the hearing would look at legislation. It would look at the policy issues raised by this case and how it fits into the regulatory framework." Shares of JPMorgan Chase are down 17 percent since the revelation on May 10. Zynga was a loser for the day after a research report suggested the days of Facebook-based gaming are fading rapidly. In Europe, Fitch downgraded Spanish banks, putting a cap on gains made during a volatile session. Conway Gittens, Reuters

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Wall Street shakes Spanish flu

Tuesday, June 12, 2012 - 01:38