Investment Commentary – July 1st, 2015
Market Indices as of Market Close July 1st, 2015
Dow 17,758 (-0.36% YTD)
S&P 500 2,077 (0.90% YTD)
NASDAQ 5,013 (5.30% YTD)
10-year Treasury 2.32 % (52 week low 1.64/high 2.69)
Gold 1168 (52 week low $1,135/high $1,347)
Oil 56.95 (52 week low $48.71/high $96.60)

    • “Greece is the word”
      Euro-area finance ministers ruled out further negotiations between Greece and its creditors until a Sunday referendum on austerity, Dutch Finance Minister Jeroen Dijsselbloem said.
      “Given the political situation, the rejection of the previous proposals, the referendum which will take place on Sunday, and the recommendation by the Greek government to vote ‘no,’ we see no grounds for further talks at this point,” Dijsselbloem, who led Wednesday’s conference call among his euro-area counterparts, said in a statement.“Stocks finish higher as data trumps Greek fears”
      Stocks finished higher Wednesday as U.S. economic data overtook concern centered around Greece’s debt woes. The Dow Jones Industrial Average DJIA, +0.79% finished up 138.40 points, or 0.8%, at 17,757.91. The S&P 500 Index SPX, +0.69% closed up 14.32 points, or 0.7%, at 2,077.43. The Nasdaq Composite Index COMP, +0.53% rose 26.26 points, or 0.5%, to close at 5,013.12. All three indexes, however, remained down about 1% for the week to date.
    • “Just what the doctor ordered”
      Healthcare: Strongest segment over past five years. News of mergers among health insurers carried over from the previous week but did little to drive overall performance in the segment. The broader health care sector did get a boost on Thursday from the Supreme Court’s decision to allow subsidies to continue on federal exchanges as part of the Affordable Care Act. Trowe 3rd
    • “Down with the sickness”
      China, Greece and Puerto Rico: Sickly But Not Yet Contagious. Events scattered across three continents serve as a reminder that the global economy remains a treacherous place. A steepening stock market selloff prompted China’s central bank on Saturday to cut interest rates. Greece closed its banks and imposed capital controls on Sunday when negotiations with its international creditors fell apart. And on Monday, Puerto Rico said it could not repay its debts. This is bad news for China, Greece and Puerto Rico. When it comes to the rest of the world, the good news is the channels of contagion are much weaker than when the U.S. mortgage bubble burst in 2007 and Europe’s sovereign debt crisis first erupted in 2009.

The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Disclosures:
http://www.marketwatch.com/story/stocks-finish-higher-as-data-trumps-greek-fears-2015-07-01?dist=afterbell <http://www.marketwatch.com/story/stocks-finish-higher-as-data-trumps-greek-fears-2015-07-01?dist=afterbell>
http://www.bloomberg.com/news/articles/2015-07-01/dijsselbloem-says-no-grounds-for-more-talks-ahead-of-greek-vote-ibl348e5 <http://www.bloomberg.com/news/articles/2015-07-01/dijsselbloem-says-no-grounds-for-more-talks-ahead-of-greek-vote-ibl348e5>
http://www.barchart.com/headlines/story/9089864/greece-s-bailout-expires-country-defaults-on-imf-payment <http://www.barchart.com/headlines/story/9089864/greece-s-bailout-expires-country-defaults-on-imf-payment>
http://individual.troweprice.com/public/Retail/Planning-&-Research/T.-Rowe-Price-Insights/Market-Analysis/Weekly-Wrap-Ups <http://individual.troweprice.com/public/Retail/Planning-&-Research/T.-Rowe-Price-Insights/Market-Analysis/Weekly-Wrap-Ups>
http://blogs.wsj.com/economics/2015/06/30/china-greece-and-puerto-rico-sickly-but-not-yet-contagious/ <http://blogs.wsj.com/economics/2015/06/30/china-greece-and-puerto-rico-sickly-but-not-yet-contagious/>