The DJIA today fell 46 points as traders braced for the consequences of Greek voters' decision to reject European austerity measures that would allow them to access much-needed financial assistance. Greece Finance Minister Yanis Varoufakis resigned from his position, stating that his absence in the future could potentially enable Prime Minister Alexis Tsipras to reach a deal with creditors. The European Central Bank, however, decided that it was not going to expand emergency funding for this debt-ridden nation, which has ignited fears that it could go bankrupt.
Top Stock Market News Today
Stock Market News: All 10 S&P sectors were in the red this afternoon, led by energy and basic materials. Investors appear optimistic that a deal could still be struck between Greece and its international creditors. The markets opened down 0.5%, but quickly pared losses and even turned positive for a while on news that the International Monetary Fund may attempt to salvage the nation's fate in the coming days. Meanwhile, the U.S. economy got a shot in the arm on news that its U.S. services sector showed positive gains for the month of June.
Energy Woes: Oil prices collapsed on global economic concerns ranging from Greece's debt woes to China's ongoing efforts to prevent an all-out crash in its stock markets. WTI crude futures for August slumped 7.4% this morning to hit $52.81 per barrel. Brent oil prices fell 5.8% to hit $56.78 per barrel. The declines punished oil producers. Shares of Chevron Corp. (NYSE: CVX) slipped 1.1%, while Exxon Mobil Corp. (NYSE: XOM) dipped 0.7%. The energy sector's biggest loser today was Comstock Resources Inc. (NYSE: CRK), which slipped more than 13%.
On Tap Tomorrow: On Tuesday, the United States will announce its global trade figures and the JOLTS report. Companies reporting earnings tomorrow morning include CHS Inc. (Nasdaq: CHSCP) and Container Store Group Inc. (NYSE: TCS).
Stocks to Watch: AET, WTW, DLTR, KHC, MYL
Stocks to Watch No. 1, AET: Shares of health insurer Aetna Inc. (NYSE: AET) slipped more than 6.5% on news that it will purchase rival Humana Inc. (NYSE: HUM) for roughly $37 billion. This represents the largest deal in the history of the insurance industry. The deal allows Aetna to challenge rival Anthem Inc. (NYSE: ANTM) to become the second-largest insurance company by membership. Humana shares were up nearly 1%.
Stocks to Watch No. 2, WTW: Shares of Weight Watchers International Inc. (NYSE: WTW) jumped more than 8% on news that the firm is being considered by an activist hedge fund as a possible takeover candidate. The company's stock has fallen more than 85% since December 2014, but the New York Post reports it could receive a buyout offer in the range of $2 billion.
Stocks to Watch No. 3, DLTR: Shares of Dollar Tree Inc. (Nasdaq: DLTR) slipped more than 0.5% intraday on news the discount retailer has received final permission from the Federal Trade Commission to purchase Family Dollar Stores Inc. (NYSE: FDO). Under its agreement with the government, Dollar Tree's $8.5 billion deal will require the newly combined company to close 330 stores over the next 150 days.
Stocks to Watch No. 4, KHC: During its first official day of trading, the new food conglomerate Kraft Heinz Inc. (NYSE: KHC) jumped nearly 2.75% after analysts at Stifel began coverage and issued a "Buy" rating. The deal is a boon for Warren Buffett, whose stake is now worth $24 billion. The deal, which was announced in March, makes Kraft Heinz the world's fifth-largest food company.
Stocks to Watch No 5, MYL: Shares of Mylan NV (Nasdaq: MYL) were up nearly 2% intraday on news that Teva Pharmaceutical Industries Ltd. (NYSE ADR: TEVA) may be preparing to raise its bid another $2 billion. The new deal, which could be worth $43 billion, might come as early as this week.
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.