Wall Street bounced around the flat line today, a day after optimism that Greece was nearing a bailout deal with its creditors propelled global markets higher.
The S&P 500 (INDEXSP:.INX) rose 0.1 percent to 2,124.50 at 3:44 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) rose 0.1 percent to 18,142.59, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) dropped 0.1 percent to 5,160.16.
Greece’s creditors suggested for the first time that a deal to avoid the country’s bankruptcy was in sight. Today, Pierre Moscovici, European commissioner for economic and financial affairs, told French radio France Inter that he expected a deal this week.
Investors have been closely monitoring negotiations between Greece and its creditors amid worries that without a bailout agreement, the country may default on its debt and possibly leave the eurozone.
As talks have made some progress this week, investors have become more optimistic that this scenario, which potentially could roil financial markets across the region, will not occur.
FED SPEAKERS:
Federal Reserve Governor Jerome Powell said today that chances are about 50-50 that the U.S. economy will improve enough for the central bank to raise interest rates in September, as the job market improves and signs of wage growth emerge.
DATA:
A report today showed purchases of new homes increased more than forecast in May to the highest level in seven years. That added to data Monday showing sales of previously owned homes climbed to their highest level since 2009, boosted by more first-time buyers.
A separate report today said orders for business equipment gained in May for just the second time this year. Orders for all durable goods declined 1.8 percent, reflecting a drop in the volatile aircraft category.
MOVERS:
Darden Restaurants (NYSE:DRI) gained 0.7 percent to $69.85 after the operator of restaurant brands including Olive Garden, LongHorn Steakhouse and Bahama Breeze announced plans to separate a portion of its real estate assets to a new real estate investment trust (REIT).
BlackBerry (NASDAQ:BBRY) fell 3.6 percent to $8.86 after the embattled Canadian smartphone maker reported disappointing results in its fiscal first quarter.
AT&T (NYSE:T) advanced 3 percent to $36.08. The stock was upgraded to "overweight" from "neutral" at Barclays, which cited the potential positive effects of AT&T's purchase of DirecTV.
Molson Coors (NYSE:TAP) fell 2.1 percent to $72.31 as the beer brewer was downgraded to "neutral" from "buy" at Nomura, which said the U.S. beer market is weakening and that the potential for a buyout of the company's MillerCoors unit is dropping.
Sonic (NASDAQ:SONC) slumped 10.3 percent to $30.70. The restaurant chain reported adjusted quarterly profit of $0.36 per share, matching estimates. Revenue slightly beat forecasts, but Sonic's full-year outlook is below Street forecasts.
Fitbit (NYSE:FIT) rose 1.7 percent to $37.68, extending gains into its fourth day of trading after jumping more than 50 percent on its debut last Thursday.
ADRs of Momo (NASDAQ:MOMO) jumped 10 percent to $17.23 after reporting it has received a buyout offer from its chief executive, the latest Chinese company to receive such a proposal.
IHS (NYSE:IHS) rose 2.5 percent to $131.80 after saying fiscal second-quarter earnings rose to $1.50 a share, beating forecasts of $1.45 a share.
Green Dot (NYSE:GDOT) surged 39.7 percent on news that its contract to manage and issue Wal-Mart Stores’ MoneyCard debit cards was extended for another five years. Separately, Green Dot announced a $150 stock-repurchase program.
Vical (NASDAQ:VICL) fell 43 percent to $0.809 after saying its genital herpes vaccine didn’t meet the primary endpoint of reducing viral shedding in a Phase 1/Phase 2 clinical trial.
COMMODITIES:
August gold fell 0.6 percent to settle at $1,176.60 an ounce on Comex that was the lowest finish since June 8.
August crude tacked on 1 percent to $61.01 a barrel on the New York Mercantile Exchange. It had traded as low as $59.55 earlier.
OTHER MARKETS:
Greek stocks rose 6.1 percent while France’s CAC 40 gained 1.2 percent and Germany’s DAX added 0.7 percent.