S&P 500: Stocks Open flat on Greece, China
The S&P 500 is set to be flat on Friday, June 26th, as investors are keeping an eye on a deal to avert a Greek default on a proposal from its creditors and China’s stock market continues to sell off.
Although there was some encouraging news earlier this week about the Greece deal with its creditors, the differences between sides stretched the negotiations into the weekend. European Union leaders made clear to Greek Prime Minister Alexis Tsipras at a summit on Thursday evening that their patience is exhausted and decisions should be made by the Greek government.
S&P 500 futures are ticking higher, up 0.1% as of 8:35 a.m. E.T. The broad-based Dow Jones Industrial Average and technology-heavy NASDAQ Composite Index are also up slightly.
Top Market News Today
Stock Market Crash
China’s stock market tumbled as one of the best performing markets last year, nearing bear territory. The sharp drop came in after a year of strong gains as investors are questioning the sustainability of the market. The Shanghai Composite Index fell 7.4% on Friday to 4192.87, after a 13% loss last week
Greek Debt Talks Continue
Tsipras has 48 hours to make a decision that will decide the fate of its country. After five months in power, the prime minister is yet in intense negotiations with its county’s creditors. If both sides failed to reach a deal, it is likely that Greece will exit the eurozone.
Stocks to Watch
Bank of Montreal (NYSE/BMO) downgraded the giant retailers shares to “market perform” from “outperform,” citing the uncertainties surrounding the management shakeup tactics.
The shoe and apparel manufacturerreported its earnings on Thursday evening. The report suggests that Nike, Inc. (NASDAQ/NIKE) earned a profit of 98 cents per share, beating estimates by 15 cents per share. The giant athletic shoe and apparel maker increased its prices and was able to deliver higher profits to its shareholders.
Zoetis Inc. (NYSE/ZTS)
Shares of the healthcare stock soared on rumorsthat Canadian drug maker Valeant Pharmaceuticals International, Inc. (NYSE/VRX) is interested in buying the company.
Shares of Humana Inc. (MYSE/HUM) are in play today. On Thursday, June 25th, rival Aetna Inc. (NYSE/AET) announced a takeover offer for the health insurer. The acquisition is just another example of the rapid consolidation of the health insurance industry following the passage of the Affordable Care Act.
Finish Line Inc. (NASDAQ/FINL)
Finish Line Inc. (NASDAQ/FINL) is another athletic shoe and apparel company whose earnings surprised analysts. The company earned 30 cents per share—six cents more than what analysts were looking for.