Benzinga Market Roundup: Volatile Day, Spain Downgraded

Just before the market closed, ratings agency Egan-Jones cut Spain's credit rating to CCC+ from B. The ratings change was Egan-Jones' fourth cut of Spain's credit rating in the past six weeks. Risk assets moved lower on the news. A great deal of uncertainty may remain in regards to Spain. The IMF is not involved in the Spanish bailout, nor is the ECB. This leaves just the EFSF/ESM conduit to bail out Spain. However, the ESM does not currently exist, as only three of the seventeen member nations have approved it. Also, Spain and Italy make up approximately 30% of the ESM's funding, raising the absurd possibility that Spain may be expected to bail itself out. Lastly, Germany hasn't even approved the ESM and German politicians are skeptical that they can approve the ESM before July 1. Those are just some of the problems with the Spanish bailout. However, investors spent most of the day with European issues largely on the back burner, as JP Morgan Chase's

CEO Jamie Dimon testified on Capital Hill and defended the bank. A look at where the market closed: