Courtesy of Blain.
Tonight’s Market Recap is sponsored by SimplerStocks – Simpler Stocks’ new report gives you instant access to the complete truth about the state of our economy.
Indexes opened slightly down at the open and buyers never really showed Friday as the S&P 500 0.53% and NASDAQ 0.31%. It is back to Greece watch after 2 days of Fed watch.
At an emergency summit on Monday, euro zone officials are expected to discuss how to handle a Greek default if no new Greek reform proposals arrive, Reuters reported. Athens has said without further aid, it will be unable to make a 1.5 billion euro ($1.7 billion) debt payment to the International Monetary Fund due on June 30. Meanwhile, large deposit outflows from Greece have raised concerns that Athens may have to implement capital controls . The European Central Bank expanded emergency funding for Greek banks as savers pulled out 1.2 billion euros in a single day on Friday, bankers said in a Reuters report.
Not all is lost of course but it would have been nice to see some follow through on the S&P 500 especially to break out of this massive range marked in yellow. The NASDAQ still is above its breakout level but just. Any Greek resolution would send both shooting up near term one would think so it’s difficult to be too bearish here.
Ten year yields on the 10 year Treasury fell back below the key 2.3% level as the constant bluff by the Fed that it will raise rates “any day now” seems to have some people unconvinced. They just seem to be kicking the can down the road every few meetings now.
There was a very hefty selloff in China. The Shanghai Composite tumbled 6.4 percent for its worst weekly decline in 7 years with property and banking stocks leading the index lower. This index had gone hyperbolic since February jumping from 3200 to 5200 so some pullback has to be expected – the question always is from where.
The slide was sparked by fresh tightening moves on margin lending by the China Securities Regulatory Commission (CSRC), as well as a deluge of initial public offerings (IPOs) that posed a huge threat to market liquidity. “25 new listings are due to take place today [and] it was estimated that a record of 6.7 trillion yuan ($1.1 trillion) worth of funds is being locked up for subscription to these IPOs,” IG market strategist Bernard Aw wrote in a note.
Homebuilders rallied after KB Home (KBH) reported fiscal second-quarter earnings that beat analysts’ estimates as orders jumped. KB climbed 9.4 percent, the most in more than two years, to lead the group.
ConAgra (CAG) closed up nearly 11 percent at a record after Jana Partners disclosed a 7.2 percent stake in the stock late Thursday and planned to nominate directors to the food-maker’s board.
Peabody Energy (BTU) advanced 6.9 percent amid a plan to sell its Queensland coal exploration portfolio, the Australian Financial Review reports, without saying where it got the information. Shares are down 22 percent this month.
Have a great summer weekend and we’ll see you back here Monday.
