An agreement over Iran’s nuclear programme amongst six world powers that will see sanctions lifted on the OPEC member’s oil exports is adding to the recent sharp fall in crude prices. Sealing the deal in Iran is expected to hurt global energy shares including Dow-listed Exxon Mobil Corporation (NYSE:XOM) and Chevron (NYSE:CVX).
Optimism over the agreement over Greece’s next bailout that ran through US markets on Monday looks like it will taper off at Tuesday’s open with only the Nasdaq to open higher. The concern that the deal may not pass Greek parliament and that its harsh terms will just bring Greece to the brink again at a later date is weighing on market sentiment.
Monday was a good day for information technology shares with some of the biggest names putting in strong returns; Google (NASDAQ:GOOGL) was up 3.1%, Apple (NASDAQ:AAPL) rose by 1.9% and Microsoft Corporation (NASDAQ:MSFT) gained 2.1%. Microsoft confirmed the commercial launch of Windows 10 on July 29; its next operating system that it is hoped will see a better reaction than the clunky Windows 8.
Earnings are expected from big banks JP Morgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC) as well as Dow component Johnson & Johnson (NYSE:JNJ). As one of the largest consumer/investment banks, JP Morgan will set the tone for other releases expected this week from the likes of Citigroup (NYSE:C), Goldman Sachs and Bank of America (NYSE:BAC). The housing market has been one of the strongest aspects of the US economy in the first half of 2015 which could well benefit Wells Fargo with the country’s biggest mortgage business.
Retail sales data released for June is expected to show another monthly expansion, though not quite to the same extent as seen last month. The headline number is expected to show growth of 0.3%, down from 1.2% in May while sales excluding autos are expected to gain 0.5% compared with 1% last month.
Futures suggest the:
S&P 500 will open unchanged at 2,099 with the
Dow Jones expected to open 4 points lower at 17,973 and the
Nasdaq 100 5 points higher at 4,499.
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