Despite a vote that was market negative, U.S. indexes didn’t fall that much after a knee jerk swoosh down overnight. The S&P 500 ended down 0.34% and NASDAQ 0.39%; pretty impressive considering the fear mongering in the media about Greece. Then again it’s been 5 years hearing the same news.
In a Sunday referendum, nearly two-thirds of Greeks voted “no,” rejecting a proposal from international creditors that would have required more austerity reforms for debt relief. Euro zone leaders will meet at an emergency summit on Greece Tuesday. Several reports from global banks and investment firms on Monday predicted the country will have no choice but to exit the euro and issue its own currency to relieve the cash crunch. Greek Finance Minister Yanis Varoufakis resigned, a move investors speculated may aid talks with creditors. Varoufakis said there was “a certain preference” among European creditors that he no longer be involved in negotiations.
“Investors should brace for volatility with probability of a snapback based on ECB and Eurogroup action over the next few days,” said Doug Cote, chief market strategist at Voya Investment Management. “This is not a sell signal.”
Lost in the Greek drama was a pretty good reading on ISM services – any reading over 50 signals expansion:
The Institute for Supply Management’s June service sector survey hit 56.0 in June, versus the 56.2 estimate.