Wall Street opened sharply higher on Friday July 10th, as investors cheered the Chinese rebound and felt optimistic over the new submitted proposal by Greece to creditors to win new funds and avert bankruptcy.
Chinese stocks rose sharply for the second day on Friday, with the Shanghai Composite Index closing up 4.5% higher. International stock markets in Asia and Europe rose one percent and the euro rose sharply after the probability of Greece exiting the eurozone decreased.
The S&P 500 climbed higher on the positive news overseas, up 18.29 points or 0.88% to 2,070.34 at the beginning of the trading session. As of 9:35 a.m. E.T., all the U.S. indices were trading nearly one percent higher from the previous close.
Top Market News Today
Chinese Stocks Jumped
Chinese stocks soared after authorities cut interest rates for the second time in the last few weeks. In recent days, regulators have suspended all initial public offerings (IPOs) and relaxed margin lending rules.
France Hails Greece’s New Proposal
Greek Prime Minister Alexis Tsipras appealed to Greece’s parliament to win their support for his latest proposal that won praise from France. Greece asked for $59.0 billion to cover its debt until 2018 in exchange for tough financial reforms.
Federal Reserve Economic Outlook
Janet Yellen will discuss the U.S. economic outlook at 12:30 p.m. E.T. The Fed is expected to raise the interest rate this year where September seems to be the most likely timeline.
Stocks to Watch
Costco Wholesale Corporation (NASDAQ/COST)
Analysts at Oppenheimer upgraded the giant warehouse retailer to “outperform” from “perform,” citing that current levels represent an attractive entry point given a potential rise in membership fees and the end of a recent increase in IT spending by the company.
Gap, Inc. (NYSE/GPS)
In its June same-store sales, the company announced a one percent drop in sales as the company is in the process of overhauling its operations. Analysts at UBS have now downgraded Gap to “neutral” from “buy” as a result, saying they don’t see sustainable sales improvement until early in 2016.
United Continental Holdings, Inc. (NYSE/UAL)
The airline company lowered its profit margin outlook for the second quarter due to a stronger dollar hurting its foreigners demand.