The stock markets in the United States rallied today after suffering a significant decline yesterday due to investors’ concerns regarding the potential exit of Greece in the Eurozone.
Commenting on the market movement, Bill Schultz, chief investment officer at McQueen, Ball & Associates told Bloomberg, “We’re getting a little relief from yesterday’s selloff, but investors are still reluctant to commit capital. While people may downplay the contagion effect, there’s still uncertainty out there.”
Today, Greek Prime Minister Alexis Tsipras is requesting the European Stability Mechanism (ESM) to provide a two-year bailout program citing the reason that his country met the conditions provided in Article 3 of the ESM Treaty and Article 2 in the guidelines.
According to Tsipras, Greece will use the loan “exclusively to meet the debt service payments” of the country’s external and internal debt obligations.
The Greek Prime Minister is also asking the ESM to extend its existing bailout program for a short time to ensure that a technical default will not be triggered. According to him, Greece is fully committed to servicing its external debt in a manner that secures the viability of its economy, growth, and social cohesion.
Germany’s Chancellor Angela Merkel dismissed Tsipras request for aid hours prior to the expiration of the bailout program and the deadline for Greece’s payment to the International Monetary Fund (IMF).
Merkel said, “We’ll negotiate about absolutely nothing before the planned referendum is held.”
Tsipras interrupted the final bailout negotiation last Saturday and called for a July 5 referendum whether Greece would accept the terms of the financial aid package offered by its international creditors.
- Dow Jones Industrial Average (DJIA) – 17,619.51 (+0.13%)
- S&P 500- 2,063.12 (+0.27%)
- NASDAQ- 4,986.87 (+0.57%)
- Russell 2000- 1,253.97 (+0.58%)
- EURO STOXX 50 Price EUR- 3,424.30 (-1.29%)
- FTSE 100 Index- 6,520.98 (-1.50%)
- Deutsche Borse AG German Stock Index DAX- 10,944.97 (-1.25%)
- Nikkei 225- 20,235.73 (+0.63%)
- Hong Kong Hang Seng Index- 26,250.03 (+283.05%)
- Shanghai Shenzhen CSI 300 Index- 4,473.00 (+6.71%)
Stocks in Focus
The stock price of Apollo Education Group declined more than 17% to $12.88 per share. The company reported disappointing earnings and declining enrollment. Appolo Education posted $681 million in revenue, down by 14% year-over-year. Its earnings fell 28% to $0.44 per share. Its new degreed enrollment dropped from 33,900 to 29,400.
The stock price of Epizyme increases more than 17% to $24 per share, the largest gainer among the companies listed on NASDAQ today. Epizyme is a clinical-stage biopharmaceutical company. It is focused on developing epigenetic therapies for cancer patients.
Juno Therapeutics gained more than 15% to $53.33 per share. The company entered a $1 billion partnership agreement with Celgene to develop and market advanced immunotherapies targeting cancer and autoimmune diseases. Under the agreement, Celgene would acquire 9.4 million shares of Juno Therapeutics for $93 a share.