Greece and China Provide More Scares, But Bulls Fight Back
Today's financial recap and tomorrow's financial outlook.
Today at T3 Live
T3 Live's Virtual Trading Floor saw lots of action today, with Chief Strategic Officer Scott Redler outlining trades in stocks like JP Morgan (JPM), Wynn Resorts (WYNN), and FitBit (FIT).
The VTF was also buzzing with discussions of Greece,Chinese markets, and the overall boom in volatility.
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US markets bounced back from an ugly open to post gains on the day.
Traders were initially disturbed by yet another day of zero progress on the economic turmoil in Greece, as well as another drop in Chinese equities.
Intraday, the ISE Sentiment Index showed heavy buying of put options on US stocks and ETFs, indicating that short-term sentiment had grown very negative and that the selling got overdone.
Simultaneously, the S&P 500 fell below its 200 day moving average, but quickly reclaimed it, driving traders to buy the dip.
Traders were also encouraged by economic data as May Trade Balance and JOLTS Job Openings numbers came in above Wall Street's estimates.
The S&P 500 dropped as low as 2044.02 in morning action, but staged an impressive intraday rally to close at 2081.34, up 6%.
Crude oil, which dropped sharply in recent days, was another factor in the rally. After bottoming at $50.58 in morning trade, crude pushed up near $53 per barrel for a near-1% gain on the day.
Even with the broader market turnaround, global market turmoil drove demand for safety assets like US Treasuries, pushing yields down. In turn, that sent interest-rate sensitive sectors like utilities, real estate, and housing up sharply.
Emerging markets, regional banking, social media, and cyber security saw the biggest declines.
European equities continued to sell off on the Greek drama, with the DAX falling 2.0% and the CAC tumbling 2.3%.
European bonds yields collapsed with the major sovereign yields all dropping over 10 bps.
Wednesday's Financial Outlook
The Fed will release minutes from its June 16-17 FOMC Meeting tomorrow. MBA Mortgage Applications, Consumer Credit, and Crude Oil Inventories will also be reported.
Overseas, Switzerland will report its Consumer Price Index, and Australia will release its employment report.
Alcoa (AA) will kick off earnings season after the close, and traders will be looking forward to seeing its forecast for global aluminum demand.
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