Here is what you need to know.
Greece voted for the bailout. Greece’s parliament on Wednesday night approved the bailout presented by its creditors, with 229 of a possible 300 members voting in favour of the package. The debt-ridden government must now implement a series of reforms and target specific budget surpluses to unlock funding. So far, the European Central Bank has opted to keep Emergency Liquidity Assistance funding for Greek banks unchanged. Greece’s two-year yield is up 63 basis points at 26.86%.
Germany thinks Greece should leave the euro. Germany’s finance minister, Wolfgang Schaeuble, suggested that debt relief was not possible for a country inside the euro and that perhaps Greece would be better off temporarily leaving the single currency. The euro is at a one-month low, down 0.5% at 1.0890.
Puerto Rico missed a debt payment. Puerto Rico’s Public Finance Corporation, a financing unit of the government, failed to make a $US93.7 million debt payment. The bonds, which are backed by legislative promise cash will be appropriated by the government to make the payment, are considered more risky than general obligation bonds, according to The New York Times. Puerto Rico has more than $US400 million in payments due by the end of September.
Intel beat on the top and bottom lines. The chipmaker earned $US0.55 per share, topping the $US0.50 that analysts were expecting. Revenue slumped 4.6% to $US13.2 billion, better than the $US13.04 billion that was anticipated. A bright spot in the report was the Data Center Group, which saw revenue climb 10% versus last year to $US3.9 billion. The stock was up by as much as 8% in the extended session.
Netflix earnings beat. The video-streaming service announced earnings of $US0.06 per share, topping the $US0.04 that Wall Street was expecting. Revenue surged 22.8% to $US1.64 billion, which was right in line with estimates. According to the release, Netflix added 3.3 million subscribers, increasing its total number of subscribers to 65.55 million. The stock was up by as much as 11% in after-hours trade.
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Banks continue to report. Goldman Sachs is set to release its quarterly results at 7:30 a.m. ET. Wall Street is looking for adjusted earnings of $US3.96 per share on revenue of $US8.78 billion. Also, Citigroup’s earnings are scheduled for 8 a.m. ET. The Wall Street consensus is for adjusted earnings of $US1.34 per share on revenue of $US19.17 billion.
Carl Icahn calls BlackRock ‘dangerous.’ Speaking at CNBC/Institutional Investor conference, activist investor Carl Icahn said, “I think BlackRock is an extremely dangerous company.” “Not that Larry is dangerous,” he added, referring to CEO Larry Fink. “What BlackRock is doing … What is happening is very dangerous in our markets today.” Specifically, Icahn was speaking about BlackRock’s involvement in the ETF space, suggesting the products are both “overpriced” and “extremely illiquid.”
Janet Yellen testifies for a 2nd day. The Fed chairwoman takes her testimony to the Senate Banking Committee after Wednesday’s appearance before the House Financial Services Committee. Yellen’s prepared remarks will be the same as Wednesday’s, but the follow-up Q&A session garners attention.
Stock markets around the world are higher. Japan’s Nikkei (+0.7%) paced the gains in Asia, and Germany’s DAX (+1.5%) leads the way higher in Europe. S&P 500 futures are higher by 6.25 points at 2,110.25.
US economic data flows. Initial and continuing claims are due out at 8:30 a.m. ET and are followed by Philadelphia Fed and the NAHB Housing Market Index at 10 a.m. ET. Natural-gas inventories cross the wires at 10:30 a.m. ET and data concludes with net long-term TIC flows at 4 p.m. ET. The US 10-year yield is up 3 basis points at 2.38%.