June 5 - Summary of business headlines: Blue chips snapped a four-day losing streak in a modest rally as growth in the U.S. services sector offset concerns about a burgeoning European debt crisis. Conway G. Gittens reports.
The Dow snapped back to life after a four-day losing streak thanks to some modestly good news from the U.S. economy. The services industry grew for the 29th consecutive month, even if that growth was not much better than the month before. New orders were up in May, according to the Institute for Supply Management, and that was enough to put U.S. investors in a slightly better mood. The Dow gained 26 points. The S&P 500 rose 7 points and the Nasdaq was up 18 points. Europe stopped anybody for getting too optimistic. An emergency G7 teleconference to discuss the growing debt crisis ended without much action or a major statement. And new data suggest all of the euro zone's major economies are in decline. Spain remains the latest worry. The country's Treasury Minister said Europe's fourth biggest economy is being pushed out of borrowing because the country's banking crisis is pushing debt yields too high. But billionaire investor Wilbur Ross thinks Europe, led by Germany's Angela Merkel, will come to the rescue of Spain and its banks. SOUNDBITE: WILBUR ROSS, CHAIRMAN, WL ROSS & COMPANY (ENGLISH) SAYING: "Both Spanish authorities and Chancellor Merkel seem to be moving toward a resolution, where there would be some funding., whether it's through the ECB, whether it's through one of the other facilities as a quid-pro-quo getting more control over fiscal policy. So I think they are moving, probably, in the right direction." European investors were not as sure, sending German stocks lower and French stocks higher. London remained closed for the Queen's Diamond Jubilee. Conway Gittens, Reuters