The stock markets in the United States ended the trading session higher due to the strength of companies in the energy sector.
Investors are considering potential fallout from the election in Greece. The Syriza Party won 149 seats in the Parliament. Its leader, Alexis Tsipras wants to renegotiate the country’s debt to obtain a fair and mutually beneficial financial solution. Tsipras aims to change many of the austerity measure adopted by Greece since receiving a series of bailout that started in 2010.
In his speech, Tsipras told his supporters, “You are an example of history which is changing… Your mandate is undoubtedly cancelling the bailouts of austerity and destruction.The troika for Greece is the thing of the past.”
Commenting on the issue, Michael James, managing director of equity trading at Wedbush Securities told Bloomberg that result of the election in Greece contributed a “bit more risk into the market.”
James added that investors are currently focusing their attentions on the “busy earnings calendar this week” and the upcoming commentary from the Federal Reserve on Wednesday. He said, “Those are going to be the much bigger focus for traders than the situation in Greece.”
On the other hand, Bill Schultz, chief investment officer at McQueen, Ball & Associates opined that there is some sort of inflection point in the market. According to him, the market needs more to go higher. He also commented that the Greek election was not a big surprise.
The Federal Reserve will start its two-day policy meeting on Tuesday. Policy makers will determine whether the declining oil prices, the slowdown of the economic growth in Europe and any fallout from the Greek election will negatively impact the U.S. economy.
- Dow Jones Industrial Average (DJIA) – 17,678.70 (+0.03%)
- S&P 500- 2,057.09 (+0.26%)
- NASDAQ- 4,771.76 (+0.29%)
- Russell 2000- 1,200.23 (+0.95%)
- EURO STOXX 50 Price EUR- 3,414.28 (+0.94%)
- FTSE 100 Index- 6,852.40 (+0.29%)
- Deutsche Borse AG German Stock Index DAX- 10,798.33 (+1.40%)
- Nikkei 225- 17,468.52 (-0.25%)
- Hong Kong Hang Seng Index- 24,909.90 (+0.24%)
- Shanghai Shenzhen CSI 300 Index- 3,607.99 (+1.01%)
Stocks in Focus
The stock price of D.R. Horton increased 5.54% today. The largest homebuilder in the United States reported better-than-expected earnings for the first quarter of fiscal 2015. According to the company, its earnings rose 16% to $142.5 million or $0.39 per diluted share. Its revenue increased 40% to $2.1 billion revenue.
Ocwen Financial rose 8.82% to $6.91 per share. The financial services holding company rejected the accusations of an investor group that its practices created defaults on home loans backed by the debt it oversees. Ocwen Financial said the allegations were “groundless.” The company also agreed to pay $2.5 million to settle the investigation of the California Department of Business Oversight. ValueWalk previously reported that the company is poised to lose its mortgage license in the state.
Mattel declined almost 5% to $26.64 per share after the company announced its Chairman abnd CEO Bryan Stockton resigns as it continues to struggle.