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Greece Headlines To Weigh on Investor Sentiment Today - Economic Highlights

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Greece headlines are weighing on sentiment today, giving market participants a pause after a few strong sessions this week. Beyond Greece, investors will be looking ahead to greater Fed visibility from next week's FOMC meeting.

The IMF's decision to halt its negotiations with Greece ran counter to the growing hope in the market in recent days that the parties were close to a deal. They are actually poles part, which increases the odds of a Greek default and exit from the currency union. This isn't the first time that the odds of a 'Grexit' have increased this much, but it may finally be for real this time - the country is actually running out of time. Its partners' patience is running thin.

The fact that the markets aren't freaking out about this long-feared development is because it has been so long in the making that all stakeholders have had ample time to prepare and get ready for this eventuality. It is obviously far from certain at this stage that Greece will default and leave the currency union. But if it does, it wouldn't be the "Lehman moment" for the European financial system that it would have been a few years back.

On the data front, this morning's wholesale inflation reading reconfirmed what we have been seeing in other recent economic reports as well - that the U.S. economy is on track to resume normal growth in the current period after the weak showing in the first quarter. The Consumer Sentiment survey coming out a little later is expected to show the improvement we saw in the Retail Sales and other recent readings.

It is this improving economic backdrop that has helped frame the market's Fed expectations, with the first rate hike now widely expected to come in the September meeting. Next week's Fed meeting and the Chairwoman's press conference will likely further crystallize these expectations.

In corporate news, Twitter ( TWTR ) will be in the spotlight today after the company announced a leadership change after Thursday's close. The social network operator has been struggling lately, with investors skeptical of its ability to improve its growth profile. The stock has been flat year to date and down more than 20% since its weak Q1 results, underperforming its peers like Facebook ( FB ) and others. The leadership change is no doubt a good first step towards addressing the issue, though the company's problems are unlikely be fixed soon.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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