The stock markets in the United States gained driven by investors’ optimism regarding the resolution of the debt crisis in Greece. The equity markets in Europe and other parts of the world also rallied today.
Investors are now focusing their attention on the global growth prospects. They are speculating that central banks will implement necessary measures to support growth. Mario Draghi, the president of the European Central Bank (ECB), vowed to use “all instruments available” if signs of weakness appear.
Seth Klarman Tells His Investors: Central Banks Are Treating Investors Like “Foolish Children”
"Surreal doesn't even begin to describe this moment," Seth Klarman noted in his second-quarter letter to the Baupost Group investors. Commenting on the market developments over the past six months, the value investor stated that events, which would typically occur over an extended time frame, had been compressed into just a few months. He noted Read More
On the other hand, Federal Reserve Chairperson Janet Yellen expresses a positive message regarding the status of the U.S. economy.
In a telephone interview with Bloomberg, Rick Fier, director of equity trading at Conifer Securities commented, “It’s a tough market to get bearish on given what we just went through without really getting knocked down all that much.”
Fier also commented that investors get the perception that “betting against the market is a foolish bet” given the fact that the stocks of Intel, Netflix, and Microsoft are up today. According to him, “We’re going to start getting into the thick of earnings this week.”
Ron Anari, senior vice president of trading at ICAP Plc said, “It looks like the equity market likes the Greek settlement. We’re going to see a hike sometime in September, and the equity market understands that. It’s expecting more positive economic news.”
- Dow Jones Industrial Average (DJIA) – 18,120.25 (+0.39%)
- S&P 500- 2,124.29 (+0.80%)
- NASDAQ- 5,163.18 (+1.26%)
- Russell 2000- 1,264.62 (-0.68%)
- EURO STOXX 50 Price EUR- 3,676.41 (+1.45%)
- FTSE 100 Index- 6,796.45 (+0.63%)
- Deutsche Borse AG German Stock Index DAX- 11,716.76- (+1.53%)
- Nikkei 225- 20,600.12 (+0.67%)
- Hong Kong Hang Seng Index- 25,162.78 (+0.43%)
- Shanghai Shenzhen CSI 300 Index- 3,997.36 (+0.77%)
Stocks in Focus
The stock price of Netflix surged 18% to $115.78 per share. The online video streaming company reported that the number of its subscribers reached 65 million in the second quarter. Netflix posted earnings of $26.3 million or $0.06 per share on $1.64 billion in revenue. The company beat the $0.05 in earnings per share on $1.6 billion revenue expected by analysts.
eBay gained more than 3% to $65.59 per share. The company delivered better-than-expected earnings of the second quarter. eBay posted adjusted earnings of $0.76 per share on $4.6 billion revenue. Analysts expected the company to report $0.72 in earnings per share on $4.4 billion revenue.
The stock value of Aceto Corporation increased more than 15% to $26.76 per share. Craig-Hallum initiated coverage on the shares of Aceto with a Buy rating and a $30 price target.