The DJIA today surged 217 points as Greece reached a tentative bailout agreement with its international creditors. The Greek debt talks extended into the eleventh hour over the weekend, but the nation was able to obtain roughly $95 billion over the next three years.
Shares of Microsoft Corp. (Nasdaq: MSFT) and DuPont Co. (NYSE: DD) pushed Dow blue chips higher. MSFT stock gained 2% on the day, while Dupont shares added 2.1%. The index recovered recent losses to trade about 0.80% higher for the year.
Meanwhile, the Nasdaq was pushed higher as shares of Apple Inc. (Nasdaq: AAPL) added nearly 2%, and biotech stocks broke out of a recent slump. The iShares Nasdaq Biotechnology ETF (Nasdaq: IBB) added 1.7% on the day.
Shares of Netflix Inc. (Nasdaq: NFLX), Facebook Inc. (Nasdaq: FB) and Amazon.com Inc. (Nasdaq: AMZN) hit record highs today. Netflix shares not only hit an intra-day record, but the company will also perform its seven-for-one stock split on Tuesday morning. The S&P 500 Volatility Index (VIX), the market's fear gauge, slipped more than 17% on Monday.
Top Stock Market News Today
Greek Bailout: On Sunday, Greece and its international creditors reached a deal to prevent a default on the nation's debt, defying voter demands to reject bailout provisions. As part of the agreement, Greece will need to enact austerity measures that include pension reform and a value-added tax. Nine of the 10 major S&P 500 sectors ticked higher today.
Oil in Focus: Oil prices continued to decline on Monday as talks between Iran and the West over the former's nuclear program continue to move toward an agreement. WTI crude futures for August ticked dipped 1.1% to hit $52.18 per barrel. Meanwhile, Brent oil prices dipped 1.3% to hit $57.96 per barrel. Falling prices are having an impact on domestic oil production. This afternoon, the Energy Information Administration said that seven major U.S. shale fields are expected to decline total production by at least 91,000 barrels per day in August. The largest play expected to see a decline is the Eagle Ford shale field in South Texas. The EIA expects Eagle Ford to see a daily decline of roughly 55,000 barrels staring next month.
On Tap This Week: On Tuesday, investors will be keeping tabs on the June monthly retail sales report and will weigh in on a speech from Kansas City Federal Reserve Bank President Esther George on monetary policy. Companies reporting earnings on Monday include AAR Corp. (NYSE: AIR), CSX Corp. (NYSE: CSX), Fastenal Co. (Nadsaq: FAST), Johnson & Johnson (NYSE: JNJ), JPMorgan Chase & Co. (NYSE: JPM), Las Vegas Sands Corp. (NYSE: LVS), Wells Fargo & Co. (NYSE: WFC), and Yum! Brands Inc. (NYSE: YUM).
Stocks to Watch: AAPL, AAL, MWE, MPLX, ALNXY
Stocks to Watch No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) added nearly 2% on news that Canaccord Genuity Group Inc. (OTC: CCORF) issued a research report indicating that the tech giant is dominating the global smartphone industry. According to Canaccord's research, Apple earned 92% of all profits generated by the smartphone sector's top eight manufacturers. Meanwhile, the company received an upgrade from "Hold" to "Buy" by investment firm Societe Generale SA (OTCMKTS ADR: SCGLY). The stock also received a secondary boost after a Cantor Fitzgerald analyst reaffirmed his "Buy" rating for Apple stock and dismissed concerns about the impact of China's recent stock slump on the global tech giant.
Stocks to Watch No. 2, UAL: Shares of airline stocks saw big gains today as oil prices slipped and volatility declined. Shares of United Continental (NYSE: UAL) added 1.5%, American Airlines Group Inc. (Nasdaq: AAL) jumped 2.9%, Delta Air Lines Inc. (NYSE: DAL) saw shares rise by 2.1%, and JetBlue Airways Corp. (Nasdaq: JBLU) added 1.2% on the day.
Stocks to Watch No. 3, MWE: Shares of MarkWest Energy Partners LP (NYSE: MWE) jumped more than 13% on news that the company will merge with Marathon Oil Corp.'s (NYSE: MRO) master-limited partnership MPLX Inc. (NYSE: MPLX). The cash-and-stock deal is expected to be worth roughly $16.28 billion. Marathon shares added 1.1% on the day.
Stocks to Watch No. 4, ALNXY: Shares of specialty chemical and engineered materials firm Alent Plc. (OTCMKTS ADR: ALNXY) jumped nearly 30% on news it has accepted a £1.35 billion ($2.1 billion) offer from Platform Specialty Products Corp. (NYSE: PAH), an American firm formed to engage in the acquisitions of specialty chemical companies. Platform Specialty is backed by activist investorBill Ackman and his hedge fund Pershing Square Capital Management. Alent shares traded on the London Stock Exchange gained more than 43% on the day.
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.
