Market Recap 6/26/15:
Markets closed the week on a mixed but choppy note as a lack of any noteworthy news did little to move the markets significantly in a particular direction. Though there was added volume near the end of the day because of the Russell index’s mid-year rebalancing, the pause in negotiations gave investors some respite from the ups and downs of the week. Trading, particularly in the short term, has primarily been focused on headline news. The Greek debt negotiations experienced a rollercoaster ride during the past five days and took the market along with it. Not even some positive economic developments on the domestic front were enough to shake attention away from the debt situation. Optimism ruled the talks during the first two days of the week with the markets gaining on that sentiment. Wednesday, however, brought news of significant divisions left between the two sides and that hitch began what would be a three day losing streak for most of the major averages. At the end of the week, all four of the major averages closed with losses. The S&P, Dow, and Russell 2000 all fell by .4% while the Nasdaq lagged and declined by .7%. Losses among the S&P sectors were similarly broad-based though Telecom, Consumer Discretionary, and Healthcare managed to post gains on the week.
Though the upcoming trading week will be a shortened one due to Friday’s holiday observance, it is nonetheless shaping up to be a volatile few days of trading. Though there are a few things on the domestic front to anticipate including Thursday’s all important jobs report, it is clear that Greek has the world’s attention after talks between Greek officials and its creditors failed over the weekend. With creditors rejecting Greece’s last bailout extension proposal, Greek Prime Minister Alexis Tsipras has called for a referendum on July 5th to vote on the bailout extension proposal as dictated by Greece’s creditors. A proposal that Tsipras and the Greek government felt was unacceptable. In plain terms, the ramifications of that vote in six days are this; a yes vote would accept the bailout deal and the austerity measures its brings while a no vote rejects the deal and possibly begins a path that might eventually lead to Greece leaving the euro. Our President, Oliver Pursche, will be on CNBC live from the New York Stock Exchange this Tuesday afternoon at 3:45 PM to discuss the latest from Europe and our Third Quarter market outlook. And as always, make sure to listen to Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic and market analysis. Visit our website www.ggfs.com for details.
This Week’s Market Moving Events:
Monday: Pending Home Sales
Tuesday: Case-Shiller Home Price Index, Consumer Confidence Index
Wednesday: ADP Employment Change, ISM Manufacturing
Thursday: Jobs Report, Initial Jobless Claims, Factory Orders