Market News: Groupon Inc, Verisign, Inc., Michael Kors Holdings Ltd

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The stock markets in the United States ended the trading session higher today driven by the announcement of Portugal that it would bailout Banco Espirito Santo SA (ELI:BES) after the troubled lender posted a huge loss of $.6 billion in the second quarter.

The central bank of Portugal took control of Banco Espirito Santo (ELI:BES) to alleviate concerns that its problems may worsen. According to the central bank, the troubled lender would receive $6.6 billion rescue money.

The Portuguese government would provide most of the bailout money in the form of a loan. A portion of the money will come from the European Union. Portuguese officials a bridge bank called Novo Banco will be created for the healthy assets of Banco Espirito Santo SA (ELI:BES) including deposits and loans that are likely to be repaid. It will retain its troubled assets, and its operations will be shut down over time. The bridge bank will be sold eventually to recover the bailout money.

According to Bloomberg, the value of global equities declined by approximately $1.2 trillion last week amid concerns that the financial crisis confronting Banco Espirito Santo SA (ELI:BES) and Argentina’s default would weaken the credit markets.

Chad Morganlander, a money manager at Stifel Nicolaus & Co., told commented, “We’re seeing reprieve of geopolitical concerns. The economy overall is moving forward with better-than-expected earnings, and we see an upward bias continuing over the next couple of months.”

U.S. Markets

• Dow Jones Industrial Average (DJIA)- 16,574.15 (+0.49%)
• S&P 500- 1,939.79 (+0.76%)
• NASDAQ- 4,386.91 (+0.79%)
• Russell 2000- 1,125.33 (+0.94%)

European Markets

• EURO STOXX 50 Price EUR- 3,070.46 (-0.07%)
• FTSE 100 Index- 6,677.52 (-0.02%)
• Deutsche Borse AG German Stock Index DAX- 9,154.14 (-0.61%)

Asia-Pacific Markets

• Nikkei 225- 15,474.50 (-0.31%)
• Hong Kong Hang Seng Index- 24,600.08 (+0.28%)
• Shanghai Shenzhen CSI 300 Index- 2,375.62 (+1.98%)

Stocks in Focus

The stock price of Groupon Inc (NASDAQ:GRPN) gained more than 8% to $7.02 per share today. The company is expected to report improved financial results after the market close tomorrow. Analysts polled by FactSet expected Groupon to report one cent in earnings per share on $60.8 million in revenue for the second quarter.

The shares of Verisign, Inc. (NASDAQ:VRSN) climbed more than 2% to $54.55 per share after Warren Buffett increased his stake on internet infrastructure service provider from 8.2% to 10.4%.

Michael Kors Holdings Ltd (NYSE:KORS) tanked almost 6% to $77.01 per share. The decline was caused by the statement of CEO John Idol that the retailer’s profitability will decline this year citing the reason that its initiative to bring in products earlier for the fall season did not work.

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