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Stocks Sag After Weak NFP Report, Greece Worries Weigh


Today's financial recap and tomorrow's financial outlook.


Today at T3 Live

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Daily Recap

With US market closed on Friday, the June NFP report was released this morning.

Nonfarm payrolls rose by 223,000 last month, slightly missing the 230,000 consensus. Additionally, April and May's numbers were revised down by 60,000, and average hourly earnings missed expectations.

Last week's jobless claims numbers were also below Wall Street's outlook.

The S&P 500 initially had a small rally after the economic news hit. The index hit a morning high of 2085.06 before dipping to finish fractionally lower at 2076.61.

Traders may have assumed the weak numbers could push out expectations for Fed Rate hikes. However, wories over Greece, which is holding an important referendum on its bailout program Sunday, drove profit taking.

The Russell 2000 was notably weak today, falling 0.7%.

And in another sign of stress, the VIX (VIX) rose 5.2% to 16.93.

However, traders did bid up some riskier sectors, like real estate, transportation, and biotech, all of which outperformed the major averages.

Shares of Yelp (YELP) crashed lower intraday after Bloomberg reported that the company will not pursue a sale in the near future, as had been rumored. The stock finished down 10.0% at $38.18.

In related news, Twitter (TWTR) was once again the subject of takeover rumors today, driving a modest afternoon rally. Shares closed up 0.9% at $35.72.

BP (BP) announced today that it settled all claims related to its 2010 oil spill for $18.7 billion. The stock rose 5.1% as the company can stomach the blow.

Vertex Pharmaceuticals (VRTX) rallied 4.0% to $131.26 after receiving FDA approval for its Orkambi cystic fibrosis treatment.

On the international front, Sweden's central bank lowered its main interest rate to -0.35% from -0.25% to hold down its currency.

Meanwhile, Chinese stocks took another major hit today even though regulators announced market-friendly rule changes including easier restrictions on margin lending. The Shanghai Composite fell 3.5%, while the Shenzen Index fell 5.6%.

Monday's Financial Outlook

US markets will be closed Friday ahead of Saturday's July 4 holiday.

On the US economic calendar, the ISM Services PMI and Labor Market Conditions Index will be reported at 8:00 a.m. ET.

Overseas, we will see Swiss CPI, German Factory Orders and Construction PMI, and Euro-Zone Retail Sales and Sentix Investor Confidence data. But most importantly, the Bank of Australia will announces its rate decision late Monday evening.

There are no major companies reporting earnings.

On Sunday, Greece will hold its vote on whether it will accept austerity demands from the IMF, ECB, and European Commission, which will drive the news flow over the weekend and into Monday. A no vote could eventually lead to Greece leaving the Eurozone, while a yes vote could help stabilize confidence in the European economy.

No positions in stocks mentioned.
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