Wall Street opened higher on Thursday, July 9th as Chinese stocks finally rebounded, while focus remained on efforts to prevent the collapse of Greece.
China’s Shanghai Composite stock index climbed almost six percent after the Chinese government announced some regulatory measures to prevent further selloff. The Shanghai Composite plunged nearly 30% from mid-June.
The S&P 500 was trading higher on the positive news overseas, up 21.64 points or 1.08% to 2069.90 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 Markets Rebound
The Chinese Securities officials banned shareholders from selling large stakes in listed firms to prevent further selloff. The latest massive selloff in Chinese stock markets has sparked fears across the globe about a meltdown in the world’s second-largest economy.
Crucial Deadline for Greece’s Government
Greek Prime Minister Alexis Tsipras has until midnight to offer a new proposal that will convince its creditors to give Athens a three-year loan to rescue it from economic collapse. Without the bail-out, investors fear the over-indebted country will have to leave the eurozone.
U.S. Jobless Claims Rise to Highest Level Since February
Jobless claims climbed in the week ended July 4th, indicating a pause in the pace of labor-market improvement. Initial claims for state unemployment benefits rose 15,000 to a seasonally-adjusted 297,000, as reported by the U.S. Department of Labor on Thursday.
Stocks to Watch
PepsiCo, Inc. (NYSE/PEP)
The giant beverage and snack maker reported its second-quarter earnings before the market opened on Thursday, July 9th. Earnings beat analysts’ estimates and the company raised its full-year profit forecast. However, executives warned a strong U.S. dollar will have a negative impact on its full-year profit.
Netflix, Inc. (NASDAQ/NFLX)
Analysts in Nomura raised their price target on Netflix to $750.00 per share from $600.00, citing stronger-than-expected growth in sales and earnings.
Alcoa Inc. (NYSE/AA)
The aluminum producer reported its earnings on Thursday, July 9th. Its profit was three cents below estimates. Alcoa raised its forecast in spite of a global aluminum supply glut, which has been pressuring prices for nearly a year.
The Procter & Gamble Company (NYSE/PG)
The company is selling its beauty business to Coty Inc. (NYSE/COTY) in a deal that values the division at $12.5 billion.