Tick tock, tick, tock, tick tock.
Time is running out for Greece as the deadline on a loan repayment of 1.6 billion euros ($1.8 billion) expires at midnight. We are sure there will be last minute offers between the European creditors and Greece, as they look to prevent a Greek default and likely exit from the eurozone membership.
The great question facing the markets now is whether the markets would actually rally on an exit, as the news would be out at that point. I don't yet subscribe to that and am concerned over the collateral damage a Greek exit from the EU could cause.
Don't forget Puerto Rico, where on Monday its governor called for the commonwealth to declare bankruptcy (which it is not allowed to under U.S. bankruptcy codes).
Drastic times call for drastic measures and China, which had taken steps to let some froth out of its stock markets, has decided it's time to pony back up to the table as policymakers there try to stop the Shanghai Composite Index's slide.
On Monday evening, the finance and social security ministries in China issued draft rules that would allow the state pension fund to invest a maximum of 30% of its net asset value in securities, freeing up $97 billion to try and shore up the weak tape. The market rallied on that news, closing up 5.6%.
In M&A news, Willis (WSH) and Towers Watson (TW) have agreed to merge in an all-stock deal worth $18 billion. And General Electric (GE) ¿ a holding in the Dividend Stock Advisor portfolio -- agreed to sell its European private equity financing business to Japan's Sumitomo Mitsui Banking Corp for $2.2 billion as the company continues to sell off GE Capital assets.
Some earnings of note today include: ConAgra Foods (CAG), Schnitzer Steel (SCHN), and Aerovironment (AVAV).
Here is today's economic calendar:
At 8:55 a.m., the Redbook weekly sales report is released.
At 9 a.m. we get the ISM Milwaukee, June and the S&P/Case-Shiller 20-City month over month for April, with consensus at 0.8%.
At 9:45 a.m., the June Chicago Purchasing Managers report will be released; expectations at set at 50.0.
At 10 a.m., the June Consumer Confidence Index is released, with consensus at 97.4. And at 4:30 p.m., the API weekly oil inventories will be released.