Dow Jones soars over 2%, NASDAQ leaps 3%, as eurozone policy makers agree deal 

(MENAFN - ProactiveInvestors - Australia) From North America: U.S. equity markets joined a global rally overnight and looked set to end the quarter on a high note after European leaders reached an agreement that alleviated concern banks in the region would fail.

By the close the Dow Jones soared 288 points to 12,880, while the NASDAQ jumped 86 points to 2935.

In a summit in Brussels, the region's policy makers agreed to a deal that includes a mechanism to inject capital directly into beleaguered banks, as well as unveiled a 149 billion economic-growth plan for the eurozone.

The expectations for the summit were so low, that the deal sparked a rally for markets. Spain and Italy have been of particular concern, as both countries struggle with financial troubles such as high debt, and rising borrowing costs.

The broad rally continued even after economic data in the US showed consumer spending unchanged in May and consumer sentiment falling in June.

In corporate news, Research In Motion (NASDAQ:RIMM)(TSE:RIM) shares continued to disappoint, sliding 18.84% after the maker of the BlackBerry mobile device posted underwhelming financial results and said it is laying off about 5,000 people and delaying the rollout of its new operating system.

Belgium's Anheuser-Busch InBev (NYSE:BUD) reported early morning Friday it struck a deal to buy the remaining 50 per cent of Mexican brewer Grupo Modelo S.A. in a deal valued at 20.1 billion.

The beer giant already owns a 50 per cent stake in the Mexican-based company, which makes beers such as Corona Extra, the best-selling imported beer in the U.S.

Beauty products maker Coty Inc. Friday said it planned to raise 700 million in an initial public offering in the wake of its unsuccessful 10.7 billion takeover bid for Avon Products (NYSE:AVP).

Constellation Brands (NYSE:STZ) Friday said fiscal first quarter 2013 earnings fell amid a slight drop in sales, though the wine and spirits company still beat market expectations.

Earnings slipped to 72 million, or 38 cents per diluted share, compared with the 74.5 million, or 35 cents per share profit last year. Excluding restructuring charges and other items, earnings were 40 cents per share. Sales fell to 634.8 million from 635.3 million.

Elster Group SE (NYSE:ELT) said Friday that it has struck a deal to be acquired by British manufacturing buy-out specialist Melrose PLC (LON:MRO) for a rough total of 2.3 billion.

Nike (NYSE:NKE) shares were down 7.92% after the company said late Thursday that its fourth-fiscal-quarter profit fell 8%.

For the fourth quarter ended May 31, net profit was 549 million, or 1.17 per share, down from 594 million or 1.24 per share a year earlier. Revenues were 6.47 billion, up from the prior year's 5.77 billion.

Analysts were expecting a profit of 1.37 per share on revenue of 6.51 billion according to FactSet.

Shares of KB Home (NYSE:KBH) surged 14.02% as the home builder reported earnings a bit ahead of analyst estimates, though its sales figures were not as strong.

Smith & Wesson Holding Corp. (NASDAQ:SWHC) posted better-than-expected fourth-quarter earnings and said operating earnings for the next fiscal year would grow by at least 50%.

It also projected better than 10% sales growth for the first quarter and full fiscal year.

On the economic front, personal spending fell less than 0.1% in May, the first decline since last November, the Commerce Department said. And spending for April and March were revised lower.

Separately, consumer sentiment fell this month to the lowest level since December, according to data released by the University of Michigan and Thomson Reuters.

The sentiment gauge fell to a final June reading of 73.2 - the lowest level since December - from 79.3 in May, led by households with income above 75,000, according to the data report. A preliminary estimate for June pegged the level at 74.1.

A measure of Chicago-area manufacturing conditions in June edged higher with the Chicago PMI increasing to 52.9% from May levels of 52.7%. Economists anticipated a reading of 53.0%.

Commodities

In NYMEX futures trading, crude for August delivery rose 6.25 to 83.94 a barrel while gold futures for August delivery jumped 52.70 to 1,603.10 an ounce.


Europe

In afternoon trading, the FTSE 100 added 2%, the DAX jumped 3.5% and the CAC 40 rallied 3.8%.