The major U.S.
index futures are pointing to a higher opening on Monday, signaling a
notably positive opening amid euphoria over a conditional agreement reached
between Greece and its creditors. After what was termed as laborious
negotiations by EU officials that went on for about 17 hours, Greece
capitulated to very tough reforms proposed by its creditors. These proposals
should now be vetted by the Greek Parliament before a bailout agreement could
be finalized. Reports have emerged that the leftist party in Greece has already
began to protest against these measures, casting clouds on smooth passage of
the bill regarding these proposals and its enactment. That said, some relief
could be expressed by the markets, as Greek Prime Minister Alexis Tsipras was
tamed to surrender to the proposals.
U.S. stocks closed mixed in the week ended July 10th, as markets reacted
to the volatility in the Chinese markets and the developments on the
Greek debt crisis.
Last Monday, the major averages closed moderately lower, weighed down by Greek debt
worries. The negative sentiment came despite the release of an in line service
sector reading. Although the Greek preoccupation pressured stocks early on
Tuesday, the averages reversed course as the day progressed and ended higher
for the session.
Selling resumed on Wednesday, as the extended sell-off in the Chinese markets
and the ongoing concerns about Greece sapped risk appetite. The major averages
rose modestly on Thursday, as the sell-off in the Chinese market stalled and
Greece worked towards a deal. Optimism concerning a Greek deal and dovish
comments from Federal Reserve Chair Janet Yellen helped the major U.S. averages
extend their gains on Friday.
For the week ended July 10th, the Dow Industrials rose 0.17 percent,
while the S&P 500 Index and the Nasdaq Composite slipped 0.01
percent and 0.23 percent, respectively.
Among the sectors, the NYSE Arca Gold Bugs Index and the Philadelphia
Semiconductor Index fell 4.84 percent and 3.88 percent, respectively.
Additionally, the Philadelphia Oil Service Index and the NYSE Arca
Oil Index lost 2.88 percent and 1.76 percent, respectively. On the other
hand, the NYSE Arca Airline Index jumped 2.78 percent and the Dow Jones
Transportation Average and the Philadelphia Housing Sector Index
gained over 1 percent each.