Stocks Rally to the Positive; Obama Clarifies Private Sector Remarks
(NEW YORK) -- Stocks ended the week in positive territory although investors are keeping an eye on Europe's problems, which threaten to weaken the U.S. economy.
The Dow closed up 93 points to end the week's trading at 12,554. The Nasdaq Composite added 27, closing at 2,858.
The S&P gained 11 points to 1,325.
Spain could decide this month to ask for a bailout for its troubled banking sector. That would make it the fourth country in the 17 member eurozone to seek help since the EU crisis broke out. Spain's deputy prime minister says his government will not act until it has more information on how much money Spain needs to save its banks from collapsing.
Meanwhile, President Obama sought to clarify remarks he made early Friday, in which he said, "the private sector is doing fine."
"It’s absolutely clear the economy is not doing fine,” the president said while sitting alongside Philippines President Benigno Aquino in the Oval Office. “That’s the reason I had a press conference. That’s why I spent yesterday, the day before yesterday, this past week, this past month and this past year talking about how we can make the economy stronger. The economy is not doing fine. There are too many people out of work. The housing market is still weak, too many homes underwater and that’s precisely why I asked Congress to start taking some steps that can make a difference."
The president said what he was specifically addressing was that “we’ve actually seen some good momentum in the private sector. That has not been the biggest drag on the economy.”
There are still many other problems with the economy, Obama said, like securing financing for small business owners and teachers, police and firefighters being laid off. But that's why, he said, he was pushing for his "Jobs Bill" that independent economists argue would create a million jobs.
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