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Stocks End Volatile Session Higher Ahead of Jobs Report

Strategic Insights

— 2 min read

Market volatility was fueled by uncertainty over Greece's economic future and the upcoming referendum on austerity measures, but stocks ultimately ended the session higher ahead of the highly anticipated June jobs report. Greece's Prime Minister Alexis Tsipras urged citizens to reject austerity proposals in Sunday's referendum, citing the need to "open a new bright page in our history." However, creditors may not be open to budging on pension obligations, which could exacerbate Greece's deficit. Meanwhile, U.S. investors turned their attention to Thursday's jobs report, with economists surveyed by Econoday expecting a 230,000 nonfarm payroll increase.

Key Takeaways:

  • The S&P 500 rose 0.70%, the Dow Jones Industrial Average gained 0.70%, and the Nasdaq increased 0.53% in a volatile session driven by uncertainty over Greece's economic future.
  • Greece's Prime Minister Alexis Tsipras urged citizens to reject austerity proposals in Sunday's referendum, citing the need to "open a new bright page in our history," but warned that a "no" vote will not provide a solution to the country's economic issues.
  • Greece's creditors may not be open to budging on pension obligations, which could increase the country's deficit and make it difficult for Greece to meet its debt obligations in July.
  • Peter Sanfey, regional economist for South East Europe at the European Bank for Reconstruction and Development, noted that a "no" vote in the referendum will not solve Greece's economic problems and that the country will need to negotiate with creditors regardless of the outcome.
  • Shares of National Bank of Greece rose 8.6% on hopes that the country will make concessions to appease creditors.
  • The U.S. jobs report is expected to show a 230,000 nonfarm payroll increase, according to economists surveyed by Econoday.
  • The ISM Manufacturing Index increased to 53.5 in June, up from 52.8 in May, indicating a gradual improvement in economic activity and supporting the possibility of a September rate hike.
  • The euro lost 0.82% against the dollar, while gold prices fell 0.36% to $1167.60 per ounce, and crude prices declined 4.12% to $57.02 a barrel following a larger-than-expected increase in U.S. crude inventories.
  • Analysts were looking for a 2 million barrel decline in oil reserves.

Statistics:

  • S&P 500: 0.70% increase
  • Dow Jones Industrial Average: 0.70% gain
  • Nasdaq: 0.53% increase
  • Greece's Prime Minister Alexis Tsipras' approval rating: not specified
  • Greece's deficit: could increase due to creditors' unwillingness to budge on pension obligations
  • July 20 payment to the ECB: $3.2 billion (not specified)
  • U.S. jobs report: 230,000 nonfarm payroll increase (according to economists surveyed by Econoday)
  • ISM Manufacturing Index: 53.5 (June)
  • ISM Manufacturing Index: 52.8 (May)
  • Euro against the dollar: 0.82% decline
  • Gold prices: $1167.60 per ounce (declined 0.36%)
  • Crude prices: $57.02 a barrel (declined 4.12%)

Sources:

  • TheStreet TV
  • European Bank for Reconstruction and Development
  • Econoday
  • Associated Press
  • Department of Justice's Antitrust Division
  • National Bank of Greece
  • Centers for Disease Control and Prevention
  • Department of Commerce

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