The stock markets in the United States climbed driven by the strengthening optimism that a bailout agreement would be reached between Greece and its international creditors.
Greek Prime Minister Alexis Tsipras expressed his willingness to accept many of the terms in the financial aid package offered by its international creditors.
Reputed short-seller Spruce Point Capital Management released its latest short report this week. The firm is shorting Canadian dairy and grocery manufacturer Saputo. Spruce Point chief Ben Axler believes the company is entering a phase of declining growth and highlights the financial stress and growing challenges he sees it facing, not only in Canada but Read More
In a letter to the European Commission (EC), European Central Bank (EC) and International Monetary Fund (IMF), Prime Minister Tsipras said Greece is prepared to accept the agreement offered by the creditors. He also proposed changes to some of the sticking points of their disagreements such as the VAT reform, structural fiscal measures, pensions and labor markets.
Commenting on the situation, Phil Orlando, chief market strategist at Federated Investors told Bloomberg, “There was a lot of euphoria overnight thinking that the Greeks had capitulated.”
“I think as we’ve had a chance to study the situation a little more closely, and as a result of the fact that we don’t have a deal, we’ve seen some backsliding in the S&P over the course of the day,” added Orlando.
Meanwhile, ADP Research Institute in collaboration with Moody’s Analytics reported that American companies created 237,000 jobs in June, a sign the labor market continues to improve.
Mark Zandi, chief economist at Moody’s Analytics said, “The U.S. job machine remains in high gear. The current robust pace of job growth is double that needed to absorb the growth in the working-age population.”
- Dow Jones Industrial Average (DJIA) – 17,757.91 (+0.79%)
- S&P 500- 2,077.42 (+0.69%)
- NASDAQ- 5,013.12 (+0.53%)
- Russell 2000- 1,256.39 (+0.20%)
- EURO STOXX 50 Price EUR- 3,496.28 (+2.10%)
- FTSE 100 Index- 6,608.59 (+1.34%)
- Deutsche Borse AG German Stock Index DAX- 11,180.50 (+2.15%)
- Nikkei 225- 20,329.32 (+0.46%)
- Hong Kong Hang Seng Index- 26,250.03 (+1.09%)
- Shanghai Shenzhen CSI 300 Index- 4,253.02 (-4.92%)
Stocks in Focus
The stock price of Chubb increased nearly 27% to $120.77 per share. The company’s board of directors approved its definitive agreement to be acquired b ACE Limited for $28.3 billion. The board of directors of ACE Limited also approved the deal.
Hartford Financial Services Group gained more than 6% to $44.19 per share. Zacks Equity Research recently issued a Hold rating on the stock while seven brokerage firms have a Strong Buy recommendation.
SeaSpine Holdings Corporation declined more than 20% to $19.11 per share, the biggest loser among the companies listed on NASDAQ today. Integra LifeSciencessubmitted a regulatory filing indicating its intention to spin-off SeaSpine.