T3's Take 3: US Stocks Fall, Greece Sees Red
Today's financial recap and tomorrow's financial outlook.
Jeff Cooper, author of the Daily Market Report, initiated a short swing position in Sprouts Farmer's Market (SFM) around $24.15. The stock closed down $23.89, putting the position at a 1.1% profit.
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US Stocks Fall Behind
The S&P 500 finished down 0.3% after a flat open. Some of the drop was attributed to China, which had weak economic data over the weekend.
Most Asian markets took a hit today. The Shanghai Composite lost 1.1% despite the government's ongoing efforts to prevent the market from falling. The Hong Kong Hang Seng fell 0.9%. Japan's Nikkei rallied 0.1%.
The China weakness also impacted commodities markets. Crude oil was down 3.7%, while gold was down 0.9%.
European markets were another story, showing green almost all across the board. Positive euro-zone factory data pushed markets up, with the Netherlands, Spain, and Italy all reporting strong growth. The German DAX rallied 1.2%.
Greece Opens Red
Greek stock markets reopened for the first time in five weeks with an awful performance. The Athens Stock Exchange tumbled 16.2%. Banking stocks were hit the most with stocks such as Alpha Bank, Attica Bank, and Bank of Praeus closing down as much as 30% -- the daily volatility limit.
Greek economic data was weak. The Greek Markit manufacturing PMI data came in at its lowest level since Markit began recording data in 1999. Greece's economic sentiment index fell to its lowest level since October 2012.
The Chairman of the Hellenic Capital Markets Commission announced that there will be no state intervention in the market.
ISM manufacturing data was leaked early today. The report showed that the index fell to 52.7 from 53.5. The Bloomberg consensus was 53.5%. The drop signified a drop in the pace of growth in the US manufacturing sector. Readings above 50 signify an expansion.
Consumer spending saw the weakest growth in four months during June as demand for vehicles decreased. While less aggressive spending suggests a softening economy, economists are expect it to be offset by a strengthening housing sector and tightening labor market.
Tuesday's Financial Outlook
US economic data for tomorrow will include ISM New York, Factory Orders, and IBD/TIPP Economic Optimism.
Overseas economic data will include the Reserve Bank of Australia Rate Decision, British Nationwide House Prices, RBC Canadian Manufacturing PMI, and New Zealand unemployment rate.
Aetna (AET), CVS Health (CVS), Emerson (EMR), Kellogg (K), MGM Resorts (MGM), and Regeneron (REGN) will report earnings before the open tomorrow.
Cerner (CERN), DaVita (DVA), Devon Energy (DVN), ONEOK (OKE), and Walt Disney (DIS) will report earnings after the close.
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