Yesterday (Monday), the DJIA added nearly 104 points as investors held out hope that Greece will resolve debt negotiations with its creditors at the International Monetary Fund. Merger and acquisition activity in the healthcare sector continued as a handful of deals and rumors hit Wall Street, sending stocks higher. Companies continue to exploit record-low interest rates in anticipation of the U.S. Federal Reserve tightening monetary policy later this year.
Also yesterday, the Nasdaq Composite Index hit a new record high, while the S&P 500 is now just five points off from its all-time record.
Top News in the Stock Market Today
The Stock Market Today: This morning, investors will continue to monitor the situation in Greece and await the monthly domestic report on durable goods orders. In addition, housing stocks will be in focus as the May new home sales report drops. Yesterday, the National Association of Realtors said home resales jumped 5.1% in May, with sales hitting their strongest pace in five and a half years. New homeowners continue to jump into the market. Home sales have been surging as buyers aim to exploit low interest rates before the Federal Reserve hikes them in 2015.
Oil Outlook: Domestic oil prices dripped below $60 per barrel as increased supply offset hopes for the Greek economy. WTI crude futures for July fell 0.9% to hit $59.86 per barrel. Meanwhile, Brent oil fell 0.3% to hit $63.12 per barrel.
Earnings Reports: Companies reporting earnings include HB Fuller Co. (NYSE: FUL), IHS Inc. (NYSE: HIS), Lindsay Corp. (NYSE: LNN), OMNOVA Solutions Inc. (NYSE: OMN), Carnival Corp. (NYSE: CCL), and Darden Restaurants Inc. (NYSE: DRI).
Pre-Market Movers in the Stock Market Today: DRI, BBRY, T
Pre-Market Movers No. 1, DRI: Shares of Darden Restaurants Inc. (NYSE: DRI) rose more than 4.4% in pre-market trading on news that the company beat quarterly profit estimates by $0.15. The owner and operator of Olive Garden, LongHorn Steakhouse, and Bahama Breeze reported profits of $1.08 per share. The company also announced plans to spin off its real estate assets into a REIT later this year.
Pre-Market Movers No. 2, BBRY: Shares of BlackBerry Ltd. (Nasdaq: BBRY) were up more than 1.6% this morning on news that the company reported weak fiscal first-quarter results, but announced it has signed a long-term patent cross-licensing agreement with tech giant Cisco Systems Inc. (Nasdaq: CSCO).
Pre-Market Movers No. 3, T: Shares of AT&T Inc. (NYSE: T) were up nearly 1.7% this morning on news that Barclays Plc. (NYSE ADR: BCS) upgraded the telecom giant from "neutral" to "overweight." The investment bank's optimism stemmed from positive momentum for the company in the process of its acquisition of DirecTV (Nasdaq: DTV).
Stocks to Watch Today: GDOT, GCI
Stocks to Watch No. 1, GDOT: Shares of Green Dot Corp. (Nasdaq: GDOT) are in focus today on news that the company has won a contract with Wal-Mart Stores Inc. (NYSE: WMT) to manage the retail giant's MoneyCard debit program for another five years. The news came on the same day that Green Dot's board of directors authorized a $150 million buyback program.
Stocks to Watch No. 2, GCI: Shares of Gannett Co. (NYSE: GCI) are in focus on news that the company will start a three-year stock buyback program for up to $150 million after its publishing company is spun off from its broadcast division.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.