Dow Flirts With 13,000

Suzanne O'Halloran analyzes the morning business headlines.
9:38 | 02/21/12

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Transcript for Dow Flirts With 13,000
-- futures up this morning -- markets in Europe they were down. All following approval of a bailout plan for Greece joining me -- to talk about this and the other business headlines this Tuesday Morse is now outward from Bloomberg TV Suzanne good morning to you -- -- and happy Fat Tuesday -- at him and he's done on Wall Street today. -- a man equipment and some -- today we've got a couple of things network focusing on of course. Agreed bailout. The Europeans actually. Getting that deal done and -- second. Bailout that Greece will have secured over a 173. Billion dollars but there's still a lot of questions about whether or not -- got -- Going to actually work and accurately added to its European -- -- -- a lot of questions. About what's happening in Greece are those bondholders economy taking a bigger loss on this writing is that kind of the bottom -- -- this deal. That's right and now acted any plant flowers and well an economist at apartment and he basically said that this -- -- blades -- a default. For now. But it doesn't solve all the other problems that are going on Greece and there's a lot of questions about whether or not behind apple playable and -- It's now how much the bondholders of course -- looking at a -- -- It's almost a temporary expert -- the US markets seem a little bit relieved that the deal got done. Over the holiday however the European markets not -- as we continue to get more. Probably going to see is is -- you that this deal is again -- temporary fix and not a long term fix which is what -- regionally. Authorities in some of the -- to the European markets some of that news and I've been here home markets though. Seem to be pretty upbeat -- -- -- pretty positive about this week it likely that surpassed that thirteen thousand point today because. Where they were -- and -- just about thirty point -- about twenty points not shy of that. We're we're not -- out and too far from -- Dow thirteen thousand certainly in very important key psychological level. Could be hit it today we surely can't likely perhaps we will -- some -- next week and again if we can get past that thirteen thousand level. Now I'd be very positive in terms of momentum for the market -- today that we do you have. A lot of earnings and investors are digesting any particular T Dow members Home Depot and Wal-Mart and those earnings were -- -- we can't see. A push and pull between these two large stocks and -- had better than expected results. Wal-Mart did not Wal-Mart shares could potentially be a drag -- out prevent. Today anyways -- thirteen thousand. Which is kind of a surprise -- -- -- missing Wall Street expectations Home Depot though warm weather I mean what's what's been driving those prices. Yet that's exactly right we did warm weather act as we now we really ask -- in -- winter here particularly in the northeast. And what and he sent today as -- were able to post better than expected profits. More builders are working overtime at Washington get some of their projects nine -- -- potentially winter coming in March or April which we have seen before. But for home deep and very good sign in terms of not only the profitability for the company but they did say warm weather -- -- an early suggestion I'll be at. That housing market -- potentially be bottoming out. And again with warm weather and just now hearing and then northeast and other areas actually of them -- even some areas in Colorado. I have skirted a pretty severe winter we have builders all over the nation and working overtime and that's kidney is for the US economy as well we've got Barnes & Noble Macy's are also -- their earnings today big headlines we should be expecting. Yeah I got Macy's came out what better than expected results this stock esteem and nice rally as well the nation's largest department store retailer what was interesting about NEC's. Is that they actually did a lot of planned promotion and there is abuse that went stores like Macy's that's a lot of discount teens actually hurt profits but -- -- promotions. Are actually a better way for a department store or retailer to actually lock in the profits -- some. Gellert sees it helps them and advance how they're going to report some of their sales -- actually ended up happening and there is solid fourth quarter. That's really good news as well because we have heard really mixed results about retail sales towards the end of the year. But we -- news -- you know the US consumer is getting a little bit -- company here and that -- -- but again it was all about the planned promotions for that store and results coming in better than expected that's not will be -- winner. -- you know you talked about consumer confidence getting a little bit stronger but Wal-Mart as we've been talking a little bit earlier. Not -- in great numbers that they haven't had great numbers in -- -- what they -- have -- you bring up a great point and I think Wal-Mart is a real reminder of the real economy. Wal-Mart is as we now the world's largest retailer they came out today and they said that profits came in. Lower than expected what's happening in at Wal-Mart is -- core customer which is some of that folks -- the lower income level. They're not doing -- shop mean they're very worried about. The economy a lot of these folks are still out of work unemployment is still stubbornly high as Fed Chairman Ben Bernanke describes it. Still a lot of customers that traditionally -- -- -- Wal-Mart stores once or twice a month. While perhaps -- not going in as much -- they're going in last Napoli heard from Wal-Mart today so. Wal-Mart a reminder that the broader economy is still suffering from high unemployment those shoppers are not spending as much in Wal-Mart as it would have in the past. And that's actually why we're seeing some other stores like the dollar stores even -- customers. Are trading down in the lower to deeper discounters while Wal-Mart does remind us that the US economy. Still in a bid and -- tough spot in. An unemployment for a lot of folks -- -- unfortunately about 8% is just weeks you hi I want. Also get your take on another economic indicator which is if you stop at the gas station lately you know that -- a little sore because gas prices they've been skyrocketing. What's driving up -- me I know it's a little bit early on for the travel season but is it is it shortage in supply is it fear. It's necessarily -- supply really out what we're seeing in oil market right now is fear obviously there are conflicts. In the Middle East between Iran and Israel that something we continue to follow also the European crisis as you -- with European stocks lower today. -- Mexican bailout from agrees that tells us that there is still a lot of concern about potentially. Weaker economy and that entire region not just Greece. But with oil we're continuing to follow oil we have WTI which -- kind of the benchmark for our you last prices at basically -- barrel but Brent crude. Which is a broader measure of global demand is at once when he won 21. And this is and acting gas prices and what we've seen and illegally -- check according to triple -- as we have gas prices at about 357. A gallon in some places areas of the United States even a little bit higher. Anything over 350 into trouble signs for folks -- -- businesses that get. The bulk of their revenues from the United States particularly some of the casinos in Vegas and also some of the retailers such as Wal-Mart. So this could -- -- actually another issue for the United States economy it's. Oil prices continue to climb and -- this morning I was looking out we did some -- internally here at Bloomberg our economics team. And were forecasting oil prices -- rise another 7%. Perhaps at three dollars and 73 cents or -- over the next couple of months. And that's an extra tax on consumer everyone knows -- eagle fill up your car -- from -- fifty dollars -- sixty or seventy dollars. And then you rethink how you gonna spank -- -- -- collected dinner he may not stop as much so we're keeping a very close -- an oil prices and yes it's really out -- -- supply issue. But a perception that supplies can be disrupted because of the unrest in. Wow -- 7% a step in -- -- -- fears. Unless I must switch here may be to a little bit lighter subject while we. Worry about what's happening with the price of oil Sean Combs. TV network. This is got to be pretty interesting what's -- gotten works. In Pristina I think I don't know him as that. But I guess what we're learning as he is planning -- network called Rubel says is reported in broadcasting and cable. I can eat lunch sometime at the end -- 2012 month struck me about this story. Is -- Comcast is supposedly the distributor of this network it will target a specific audience African Americans and Comcast. The cable provider is soliciting proposals for independent channels are planning to lunch or sell minority. -- networks it can be perhaps. Latino network or rats were learning -- -- -- networks are certainly really interesting and what that shows us as well as. A lot of -- -- cable providers are looking for new revenue streams. And it really targeting their audiences and this could be. The first one we get a glimpse that we'll see if it actually -- it's -- -- -- -- -- and he obviously with some of the MTB and TV properties. But we won't have the F specific details in terms of what that -- channel will look like until December according to broadcast and cable but certainly I -- I think we have and we know he's not -- you weren't here is partnering with one of the strongest cable franchises Comcast in the country get that distribution. And that's -- with a lot of these channels. And night now I look forward to -- I think it's a very Smart business decision. On -- and but also for Comcast's. Well yeah apps are you -- Herrera and Heather because when everyone -- call on the -- is -- an entrepreneur -- a very Smart businessman and it seems whenever he touches. He does not -- -- is not relent until it turns to gold. Very -- -- -- power from Bloomberg TV let's take one last look at the big more than before we let you go here on this Fat Tuesday. Again could be starting at that thirteen thousand point today the Dow up but 27 points at the futures in positive territory this morning. Suzanne thanks so much for joining us have a great Fat Tuesday ET thanks --

This transcript has been automatically generated and may not be 100% accurate.

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