Investors focus on economic data and look beyond Greece
U.S. stocks finished higher on Wednesday, 01 July 2015 as investors looked beyond the latest developments in Greece and focused on economic data. Equities surged out of the gate amid reports from Europe indicating Greece is now ready to accept all conditions in order to secure a bailout. The report sparked a rush to risk assets, but the Greek offer was met with a cool reception from Eurozone leaders.
The Dow Jones Industrial Average finished up 138.40 points, or 0.8%, at 17,757.91. The Nasdaq Composite gained 26.26 points, or 0.7% to close at 5,013.12. The S&P closed up 14.31 points, or 0.7%, at 2,077.42.
The main indexes pared early morning gains, aided by a sharp drop in energy stocks. Financials led the gains on the benchmark index, while energy stocksthe only sector trading lowerfell following a sharp drop in oil prices.
U.S. equities climbed Wednesday. Data Showed that private-sector hiring rose to the fastest pace in half a year in June. U.S. manufacturers also grew in June at the fastest rate since the start of 2015, a survey of executives found.
The U.S. ICE dollar index also rose following the ADP employment report.
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As expected, the Greece government did not make a 1.5 billion Euro debt payment Tuesday and is now in default on its loans from the International Monetary Fund and European Union. However, investor risk appetite was on the upswing Wednesday as there were reports Greece and the IMF/EU are again close to an agreement on a debt restructuring and financial aid package that will keep Greece in the EU.
The Greece news overshadowed some downbeat economic data coming out of China Wednesday. China's official manufacturing purchasing managers' index came in at 50.2 in June from the same reading in May. A slight rise in the PMI was expected. A reading above 50.0 suggests expansion in the sector. Last weekend China eased its monetary policy in an effort to stimulate domestic economic growth.
Traders and investors are awaiting Thursday morning's U.S. employment report for June from the Labor Departmentreleased one day early due to the U.S. Independence Day holiday on Friday. The key non-farm payrolls number of the report is expected to come in at up around 230,000.
Earlier, futures got a lift after the Financial Times reported Greek Prime Minister Alexis Tsipras is ready to accept nearly all of the conditions to a new bailout deal that its international lenders proposed over the weekend. But subsequent reports on the debt talks threw cold water on the idea of a new deal being accepted.
Bullion prices ended lower at Comex on Wednesday, 01 July 2015 at Comex. Gold futures on Wednesday logged their lowest settlement in nearly a month, extending losses from a day earlier as an upbeat report on U.S. private-sector hiring and strength in the U.S. dollar and stock market dulled the metal's haven appeal.
Gold for August delivery fell $2.50, or 0.2%, to settle at $1,169.30 an ounce on Comex. September silver fell less than half a cent to $15.577 an ounce.
Oil futures settled lower on Wednesday, 01 July 2015 with U.S. prices marking their lowest settlement in about 10 weeks after U.S. government data revealed an unexpected increase in weekly crude supplies. Indications that the Organization of the Petroleum Exporting Countries, or OPEC, continued to ramp up production in June also pressured prices.
August crude fell $2.51, or 4.2%, to settle at $56.96 a barrel on the New York Mercantile Exchange.
Early Wednesday, the U.S. Energy Information Administration reported an unexpected increase of 2.4 million barrels in crude supplies for the week ended June 26. Market had forecast a crude-stock fall of 1.3 million barrels, while the American Petroleum Institute late Tuesday reported a rise of 1.9 million barrels.
Gasoline supplies fell by 1.8 million barrels and distillate stockpiles rose by 400,000 barrels last week, according to the EIA. Analysts polled by Platts were looking for an increase of 300,000 barrels for gasoline and a climb of 1.1 million barrels for distillates, which include heating oil.
Today's participation was ahead of average as more than 840 million shares changed hands at the NYSE floor.
Tomorrow, weekly Initial Claims (consensus 273K) and June Nonfarm Payrolls (consensus 230K) will both be reported at 8:30 ET while the Factory Orders report for May (consensus -0.5%) will cross the wires at 10:00 ET.
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