By Saumya Vaishampayan
U.S. stock futures advanced Monday after the latest package of
proposals from Greece to its creditors fueled hopes that a bailout
deal could be reached.
S&P 500 futures gained 16 points, or 0.8%, to 2114. E-mini
Dow futures jumped 128 points, or 0.7%, to 18039, and e-mini
Nasdaq-100 futures rose 37 points, or 0.8%, to 4537. Changes in
stock futures don't always accurately predict moves in the stock
market after the opening bell.
The Wall Street Journal reported that the Greek government's
latest plan makes a potentially major concession on cutting
deficits in its pension system. The plan was formally submitted to
creditors Monday morning and could be a big step toward ending a
monthslong deadlock that has spurred talk of a potential Greek exit
from the eurozone. Still, eurozone leaders cautioned that an
immediate breakthrough was unlikely.
European stocks rallied, buoyed by optimism that Greece will
eventually reach a deal with creditors. Germany's DAX rallied 2.8%
and France's CAC-40 jumped 2.7%. Greek stocks surged more than
6%.
Asian stocks also rose, with Hong Kong's Hang Seng Index adding
1.2%.
The magnitude of market moves in Europe and the U.S. "speak to
what the overhang has been over the last month or so as the
negotiations continued to deteriorate," said Art Hogan, chief
market strategist at brokerage firm Wunderlich Securities. "The
contemplation of a messy Greek default and exit from the eurozone
and fears of contagion into peripheral countries...may well get
moved aside," he said.
Concerns about Greece's financial situation, as well as worries
about U.S. corporate earnings, elevated stock valuations and an
eventual increase in interest rates have all collided to keep a lid
on stock gains this year. The S&P 500 has added 2.5% in 2015,
through Friday's close, less than the index's 6% gain in 2014
through June 19.
Investors will receive an update on the housing market Monday.
Existing home sales are expected to increase 4.2% in May to an
annual rate of 5.25 million, according to economists surveyed by
The Wall Street Journal.
In commodity markets, gold futures slipped 0.7% to $1193.40 an
ounce. Crude-oil futures added 0.7% to $60.03 a barrel.
Treasury prices fell, pushing the 10-year yield up to 2.331%
from 2.268% on Friday.
In corporate news, natural-gas pipeline giant Williams Cos. has
rejected an unsolicited buyout offer from Energy Transfer Equity
L.P. worth $48 billion but is open to other offers. Williams Cos.
shares jumped 29%, while those of Energy Transfer Equity rose 2.4%
in premarket trading.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com