US Market - Monday, 13 July 2015

Source: ADVFN Newsdesk <newsdesk@advfn.co.uk>

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The major U.S. index futures are pointing to a higher opening on Monday, signaling a notably positive opening amid euphoria over a conditional agreement reached between Greece and its creditors. After what was termed as laborious negotiations by EU officials that went on for about 17 hours, Greece capitulated to very tough reforms proposed by its creditors. These proposals should now be vetted by the Greek Parliament before a bailout agreement could be finalized. Reports have emerged that the leftist party in Greece has already began to protest against these measures, casting clouds on smooth passage of the bill regarding these proposals and its enactment. That said, some relief could be expressed by the markets, as Greek Prime Minister Alexis Tsipras was tamed to surrender to the proposals.

U.S. stocks closed mixed in the week ended July 10th, as markets reacted to the volatility in the Chinese markets and the developments on the Greek debt crisis.

Last Monday, the major averages closed moderately lower, weighed down by Greek debt worries. The negative sentiment came despite the release of an in line service sector reading. Although the Greek preoccupation pressured stocks early on Tuesday, the averages reversed course as the day progressed and ended higher for the session.

Selling resumed on Wednesday, as the extended sell-off in the Chinese markets and the ongoing concerns about Greece sapped risk appetite. The major averages rose modestly on Thursday, as the sell-off in the Chinese market stalled and Greece worked towards a deal. Optimism concerning a Greek deal and dovish comments from Federal Reserve Chair Janet Yellen helped the major U.S. averages extend their gains on Friday.

For the week ended July 10th, the Dow Industrials rose 0.17 percent, while the S&P 500 Index and the Nasdaq Composite slipped 0.01 percent and 0.23 percent, respectively.

Among the sectors, the NYSE Arca Gold Bugs Index and the Philadelphia Semiconductor Index fell 4.84 percent and 3.88 percent, respectively. Additionally, the Philadelphia Oil Service Index and the NYSE Arca Oil Index lost 2.88 percent and 1.76 percent, respectively. On the other hand, the NYSE Arca Airline Index jumped 2.78 percent and the Dow Jones Transportation Average and the Philadelphia Housing Sector Indexgained over 1 percent each.