U.S. stocks are starting the day flat to slightly higher as the Greek parliament votes on its aid package and China’s stock market dropped again.
Greece continues to be a mess as the banking system is still closed and looks to be on the verge of collapse. The parliament will debate a bailout deal of 86 billion euros, or $752 billion at current exchange, while the International Monetary Fund has said the debt load for Greece could not be ignored. While the parliament has expressed its displeasure with the deal, it is expected to pass it, as there are no other options.
China’s Shanghai index continued its free fall even after the country said second quarter gross domestic product grew 7 percent. The GDP numbers were better than expected, but that didn’t calm investors anxious to get what money they could out of their investments. Many halted stocks resumed trading and investors took advantage of the moment to get out.
Guess stock is popping in early trading, up over 5 percent after the company named Victor Herrero as the new chief executive officer. Herrero is the first ceo who isn’t a founder. Current ceo Paul Marciano admitted that as a public company, the ceo needs more business acumen than creative. The stock has struggled for the past year, dropping 21 percent in value as investors lost confidence. The change has motivated analysts to take a fresh look, with Telsey Advisory Group upgrading Guess to market perform.
Amazon is prom queen for the day as the company is heavily promoting its Prime Day sale. The sale is only meant for Prime Members and is only for today. However, nonmembers can join for 30 days for free and still shop.
Wal-Mart is fighting back against Amazon’s challenge by also offering a one-day sale, no membership required.
In economic news, the Empire Manufacturing report rose to a plus 3.9 from a negative 2. On a positive note, factories are hiring in New York, but at a slower pace. U.S. factory production was flat in June with furniture output strong.
Looking ahead, eBay reports second quarter earnings after the market close today. Thomson Reuters analysts have estimated the company will deliver revenue of $4.49 billion, an increase of 3 percent from last year, but that would be the company’s fifth quarter of decelerating growth. This is the last quarter before eBay spins off PayPal, the online transaction company founded by Elon Musk.