Reassured by the agreement on Greece, Wall Street finished in the green – Le Point

Reassured by the prospect of keeping Greece in the euro zone before and trusting corporate earnings, Wall Street ended the session on a new sharply higher Monday: Dow Jones took 1.22% and Nasdaq 1.48%. According to final results, the index Featured Dow Jones Industrial Average gained 217.27 points 17 977.68 points and the Nasdaq, dominated by technology, 73.82 points 5 071.51 points. The S & amp; P 500, a broader index that many investors consider more representative, was up 1.11%, or 22.98 points to 2 099.60 points.Rassurée by the prospect of keeping Greece Euro area before and trusting corporate earnings, Wall Street ended the session on a new net higher Monday: Dow Jones took 1.22% and the Nasdaq 1.48%. According to final results, the index Featured Dow Jones Industrial Average gained 217.27 points 17 977.68 points and the Nasdaq, dominated by technology, 73.82 points 5 071.51 points. The S & amp;. P 500, a broader index that many investors consider more representative, was up 1.11%, or 22.98 points to 099.60 point 2

“This increase represents relief (investors) after the agreement on Greece, “commented Brent Schutte, BMO Private Bank. “This is somewhat moderate mid-day when we saw rumors that the deal could not go to the Greek Parliament, but now there are rumors that Tsipras has widespread support, so Gains are increasing, “he said.

In line with European bourses

Wall Street has followed the movement of European stock markets, which posted their optimism Monday without succumbing either to euphoria given the many steps remain to be taken to achieve this compromise. Paris took 1.94%, 1.49% and Frankfurt 0.97% London.

But some analysts questioned whether the relief expressed by investors was really justified. “Investors are content with a new short-term solution to a long term problem that was not solved significantly,” has noted Patrick O’Hare at Briefing.com. Alan Skrainka, at Cornerstone Wealth Management, the main virtue of the agreement is that it seems counter the risk of a political contagion. “If Greece leaves the euro area, the question of who becomes the next” European country to risk expulsion from the euro zone, or “nobody wants to see falling dominoes, Spain, Italy etc. . “

More generally, the agreement” removes the fear of the unknown, “said Mr. Schutte, or” a hidden risk that investors have made an error of judgment and that ( the Greek case) can grow (…), even if we did not see a huge drop in recent weeks “when the outlook appeared to agree to leave. Now, Wall Street can turn the page, “the business results will be a welcome distraction, Wall Street expects them to be correct,” especially for JPMorgan Chase banks (1.55%) and Wells Fargo (1.18%). They should both announce their second quarter performance before the opening of Tuesday, and “this should bring the market a little higher”, says Schutte.

M & A Series

The market was also supported Monday by a series of M & A announcements. The US oil company Marathon Petroleum jumped 7.87% to 58.78 dollars after announcing the action purchasing MarkWest Energy Partners (+ 13.96% to 68.09 dollars), second natural gas processor in the country, for about $ 15.8 billion. In chemistry, the American Specialty Products Platform gained 1.55% to 25.53 dollars after an agreement to purchase, subject to a very high gain, its British competitor alent (44.21%) 1.35 billion pounds, or about $ 2.1 billion.

The maker of consumer products Jarden gained 4.72% to 54.78 dollars after announcing it was buying from a specialist disposable tableware, Waddington Group, so far property fund Olympus Partners for about $ 1.35 billion. The drugmaker Depomed took just 1.23% to 30.51 dollars after announcing it had taken steps to better resist the bid for its competitor Horizon Pharma (-2.70%), which in offered $ 1.75 billion in shares.

The Starbucks coffee chain, which with JPMorgan Chase and a dozen other companies participating in an initiative to hire some 100,000 young people by 2018, took 2.07% to 55.70 dollars. Microsoft (2.08%) and Walmart (1.04%), among others, have joined this idea. The bond market has slightly decreased. The yield on ten-year Treasury rose to 2.440% against 2.400% Friday night, and that good for 30 years at 3.218% against 3.191% previously.