Stocks Inch Higher While Waiting on Greece Deal

Stocks finished slightly higher once again on Wednesday in another relatively quiet session of trading. Major indices started the day with a bit of momentum as expectations for a near-term agreement on a second Greek bailout package led stocks higher early on.

However, optimism would fade about an hour after the open as progress surrounding the talks slowed. Additional reports cited that the ECB was split on whether or not to take a hit on its Greek bonds and contribute to a restructuring of Greek debt. This led stocks to selloff in the morning, with major indices reaching intraday lows around ~11:45 EST.

Wednesday’s session would pan out much like Monday and Tuesday’s, with a quick turnaround from intraday lows to sustained rallying. A headline by Standard & Poor’s saying the ratings agency could raise Greece’s debt rating up from “selective default” if the deal goes through seemed to be the catalyst.

The bulls pushed the S&P 500 from ~1342 at 11:45am EST to ~1350 by the closing bell. Wednesday was another “waiting around for a deal out of Greece” day, and trading was relatively quiet. Though Greece did not get a deal pushed through, the bulls stood their ground once again in the intraday battle and pushed major indices back up into the green, thus avoiding a solid down day, which looked very plausible early on.

Up ahead this week we have a speech from ECB President Draghi and Weekly Jobless Claims on Thursday at 8:30am EST, followed shortly after by Wholesale Inventories at 10:00am EST. Friday looks relatively quiet, though traders have been following the Michigan Consumer Sentiment report, which is due for a 7:55am EST release.

Close Recap: S&P 500 +0.22%, NASDAQ +0.41%, DJIA +0.04%, Midcaps +0.12%.

Have a pleasant evening.

 

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