Markets Grind Gears as Greece, IMF Just Can't Get Along
Today's financial recap and tomorrow's financial outlook.
US markets remained mixed today as negative news on Greece knocked down an early rally.
The S&P 500 extended up to 2115.02 this morning on a better-than-expected May retail sales report.
But around 10:30 ET this morning, it was reported that IMF officials walked out on Greece during bailout talks in Brussels. Greece was unwilling to conform to demands by the IMF in order to receive bailout money, playing hardball to the very end as it believes creditors will eventually concede.
The major averages gave up much of early gains, with the S&P 500 finishing at 2108.86, up 0.2%.
Jobless claims missed expectations by a tiny margin, while business inventories for April rose 0.4%, slightly higher than the 0.2% consensus.
Oil prices continued to slip today on concerns of oversupply conditions. The International Energy Agency forecasted the demand for oil to increase slightly during 2015. However. traders appear to be more concerned that Saudi Arabia stated it may increase its output, and that Iran may soon enter the market once they've finalized their nuclear deal.
US bond yields rose again today on the positive economic data, which drove bullish action in bank stocks and utilities. Real estate and health care also preformed well.
Transports got boosted by the lower oil prices.
The highly watched biotech sector finished in the green today. The NASDAQ Biotechnology ETF (IBB) rose 0.6%, and the S&P Biotech ETF rallied 0.7%.
Netflix (NFLX) shares finished down 0.8% despite Topeka raising its target price to $746.
Mobileye (MBLY) continued its rally today. Shares were up 5.5% today after the National Transportation Safety Board reported that collision avoidance systems should be made standard in vehicles.
Lululemon (LULU) shares fell 1.1% after founder Dennis Wilson reported that he would be selling his remaining 20 million shares in the company. Wilson stated he will sell his remaining shares due to disputes with the board of directors.
Ambarella (AMBA) shares continued their rollercoaster ride today. Shares closed down 1.3% at $111.50.
Hess Corp (HES) rallied 4.9% today after it announced that it will sell its 50% stake in Bakken assets to Global Infrastructure Partners for $2.7 billion. Hess also plans to pursue a joint-venture with Global Infrastructure Partners.
European markets came out positive today despite the Greece news. The German DAX rose 0.60%, France's CAC rallied 0.74%, and Spain's IBEX gained 0.35%. However, the turmoil in Greece drove strong demand for European bonds.
Asian markets posted strong gains today. The Nikkei surged 1.68%, the Hang Seng Index rose 0.83%, and the Shanghai Composite gained 0.30%. Australia's ASX rallied 1.42%.
Today on T3 Live
Sean Udall, manager of the TechStrat Report, took advantage of the dip in Criteo (CRTO) to initiate a position in the stock at $45.77. Sean believes fear over Apple (AAPL) blocking ads on its devices is overblown. Criteo finished at $47.00 today.
Read More About the TechStrat Report Here
Friday's Financial Outlook
US economic data for tomorrow will include the PPI report, University of Michigan sentiment, and the Baker Hughes US rig count.
Overseas economic data will feature the Swiss KOF Institute summer economic forecast, Britain's construction output, and Euro-Zone industrial production.
There are no major earnings reports scheduled for tomorrow.
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