Macroeconomics will probably be driving the market today (barring another event surfacing), and it's a "risk on" day as news emerges out of Europe that Greek tourism is better than expected this year. Perhaps the news that European authorities are in talks with the Spanish government to craft a bailout -- the details of which are expected to be released next Thursday -- also has something to do with it. American depositary receipts of Spanish lenders Banco Santander (NYS: SAN) and Banco Bilbao Vizcaya (NYS: BBVA) were up almost 2% and 3%, respectively, during the first half-hour of trading. The S&P 500 Index (INDEX: ^GSPC) and the Dow (INDEX: ^DJI) are in positive territory.
The U.S. Federal Reserve released its data-rich Flow of Funds report covering the second quarter yesterday. The report shows some positive developments. For example, the aggregate total of credit market instruments held by depositary institutions rose 3.8% year on year -- the fastest pace in four years. That suggests that credit is making its way to businesses and individuals, and it also increases the likelihood that QE3, the Fed's latest bond-buying program, will be effective. One bank will earn bumper profits as credit expands, and it's "The Only Big Bank Built to Last." Find out which one it is in The Motley Fool's limited-time free report.
The article Dow: Europe Leads "Risk On" Trading originally appeared on Fool.com.Fool contributor Alex Dumortier holds no position in any company mentioned. Click here to see his holdings and a short bio; you can follow him @longrunreturns . The Motley Fool has a disclosure policy .
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