U.S. stocks gain as Greece ready to talk

Airline stocks tumbled after the United States Department of Justice said it was investigating whether some carriers were colluding to keep ticket prices high.

For followers of the chaotic events in Europe in recent weeks, Benoit Coeure’s remarks that Greece could leave the euro may have sounded like a statement of the obvious.

Even though the stand-off in Greece was far removed from the U.S, the global nature of financial markets will ensure that any ripple effects will be felt across the Atlantic, said Mike Ryan, chief investment strategist at UBS Wealth Management Americas. The S&P 500 Index has felt the weight of turmoil in Greece; it finished the second quarter lower by 0.2%, snapping a nine-quarter winning streak (http://www.marketwatch.com/story/us-stocks-eye-higher-open-after-greek-led-selloff-2015-06-30). Hong Kong’s Hang Seng gained 0.1 percent and China’s Shanghai Composite slumped 3.5 percent.

Progress Software Corp. (PRGS) surged Wednesday evening after the business-software company raised its outlook for the year following better-than-expected earnings. Investors are concerned about the fallout in financial markets if Greece defaults on its debts and leaves the euro currency.

George Osborne has said the United Kingdom needs to prepare for the worst and protect itself after Greece defaulted on a major debt repayment.

Despite the intense interest in Greece’s situation, the country accounts for only a small fraction of Europe’s economy.

In the US, investors got two encouraging reports on the economy.

United States private employers added 237,000 jobs in June, the biggest gain since December, while construction spending rose in May to its highest level in just over 6-1/2 years. An S&P Capital IQ analysis of the last 70 years of market shocks – including ones like the 2010 Flash Crash and September 11 terror attacks – shows that the US stock market has a knack for weathering most storms that come its way.

“With all the Greek furor, it’s hard to believe that a month has passed and nonfarm payrolls will be released tomorrow”, Brenda Kelly, head analyst at London Capital Group, wrote early Wednesday.

Stocks powered through a volatile session caused by uncertainty over Greece, closing higher ahead of Thursday’s jobs report. Britain’s FTSE 100 was up 1.3 percent to 6,607.79 and France’s CAC 40 jumped 2 percent to 4,885.45.

MBIA dropped 58 cents, or 9.1 percent, to $5.53.

The price of oil rose for the first time in a week as negotiations with Iran over its nuclear program were extended, potentially delaying a return of Iranian crude to the market.

The S&P energy sector fell 1.3 per cent, the only S&P sector in the red on Wednesday.

At the close, crude for August delivery fell $2.51, or 4.2%, to land at $56.96 per barrel – its lowest finish since late April.

CURRENCIES AND BONDS: The euro fell to $1.1056 while the dollar rose to 123.17 yen. The yield on the 10-year Treasury note edged up to 2.35% from 2.33% a day earlier. “The European Union treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable”. Instead, corrections will be made in a blog post or in an article.

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