9:00am (EST)
Greece was the word that the bulls heard in their sleep last night as the futures market was already pricing in today’s big drop at the open. We checked on the futures at 2am (EST) this morning and we were surprised but not stunned to see the Dow futures were off by a whopping 59 points. The S&P 500 and Nasdaq futures were off by 8 and 12, respectively.
Volatility has become the common theme over the last few weeks and triple-digit swings on the Dow are becoming the norm. On Wednesday, the Dow finished with a gain of 92 points and settled at 10,374 following Tuesday’s 100-point drop.
The S&P 500 tacked on 10 points to settle at 1,105 and climbed back above the 1,100 level while the Nasdaq chugged a double-deuce (up 22 points) to close at 2,235.
Greece now plans to issue a 10-year bond next week after their government announced a package of between $2.7 billion and $3.4 billion that it hopes to raise for the troubled country. S&P warned it could downgrade Greece by one or two notches within the next month, which could put the country’s long-term rating on the brink of junk territory.
As a result, futures have gotten worse as Wall Street worries. The Dow futures are off by 87 points to 10,269 while the S&P 500 futures are lower by 11 to 1,093. Meanwhile, the Nasdaq 100 futures are down 16 points to 1,798.
We continue to feel the current volatility is pointing towards a big move for the market and Greece’s debt is not NEW news. It’s hard to imagine the bulls giving up here and today’s open will be nasty. However, we think there is one more move higher before the Dow fades, and it will be interesting to see how well the bulls battle back this morning.
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