Wall Street opened flat on Tuesday, July 7th, as talks between Greece and its creditors resumed. The U.S. trade deficit widened in May, reflecting concerns over weak global demand.
European stocks continue to slide while the euro hit a five-week low against the dollar. In China, the stock market fell again despite the emergency measures by China’s central bank.
Oil lightly recovered some ground after a selloff on Monday that was caused by Greece’s rejection of the terms of a bailout. Moreover, the Chinese stock market turmoil, along with optimism over the deal between Iran and the international community, played their part as well.
The S&P 500 remained flat at 2070.81 at the beginning of the trading session. As of 9:35 a.m. E.T., all the U.S. indices opened flat.
Top Market News Today
Greece Talks Continue
Greece faces its last chance to pump money into its banks as cash runs out. Bank closures have been extended two more days until Wednesday. On the other hand, creditors warned Greek officials to present credible reform proposals.
Oil Prices Plunge
Oil rose slightly after the worst selloff of the year on Tuesday. The trend remains vulnerable as the Chinese stock market continues its wild volatility and Greece may get set to exit the eurozone. Today is the deadline for the Iran nuclear talks, though the talks are expected to extend for a few more days. Analysts fear the end of the country could flood energy markets if sanctions are lifted.
Trade Deficit Widens
Trade deficit widened by nearly three percent in May, as the Department of Commerce reported on Tuesday morning. Exports had the biggest fall in three months due to the stronger dollar and economic uncertainties in the eurozone. Since last year, the dollar has strengthened after the Federal Reserve signaled its plans to raise the federal funds rate. A stronger dollar makes it more expensive for foreigners to buy goods and services from the U.S.
Stocks to Watch
Tesla Motors, Inc. (NASDAQ/TSLA)
The automaker’s shares downgraded from “Buy” to “Hold” by Deutsche Bank, citing it’s still bullish on the development of Tesla’s battery systems technology, but that the shares already reflect that opportunity.
Shake Shack Inc. (NYSE/SHAK)
Morgan Stanley (NYSE/MS) downgraded the burger chain to “underweight” from “equal weight,” saying although execution is doing well in the firm, the level of optimism surrounding the company is not supported by market fundamentals.
Lululemon Athletica Inc. (NASDAQ/LULU)
Analysts at Guggenheim upgraded shares of Lululemon Athletica Inc. (NASDAQ/LULU), saying the popular yoga apparel chain has solid sales momentum and lots of room for expansion.