Hello friends and Fortune readers.
This week, the performance of European stocks will be in focus as traders watch events involving Greece. Euro zone leaders reached a deal with the debt-stricken country at the end of a marathon night of talks, making Greece surrender much of its sovereignty to outside supervision in return for agreeing to talks on an 86 billion euro bailout. Also this week, Federal Reserve chair Janet Yellen will meet with Congress to discuss monetary policy and the economy as investors hope for some clarity on the impending interest rate hike. Meanwhile, corporate earnings season is back in full swing with a bumper crop of bank earnings as well as quarterly results for some high-profile tech firms.
Here’s what else you need to know this week.
1. Another Greek bailout
World markets gave a weary cheer on Monday as euro zone leaders emerged from-all night talks in Brussels with a deal to keep Greece afloat and part of the euro currency union. Euro zone leaders made Greece surrender much of its sovereignty to outside supervision in return for agreeing to talks on an 86 billion euros ($95 billion) bailout to keep the near-bankrupt country in the single currency. European Council President Donald Tusk announced just as European trading started that after months of tortuous negotiations, marathon overnight discussions had produced the third bailout deal in five years for Greece.
2. Yellen’s congressional testimony
The Federal Reserve chair will offer her semi-annual testimony to the House Financial Services Committee in Washington. Yellen will discuss monetary policy and the U.S. economy at a time when the central bank is on the verge of a much-anticipated interest rate hike. However, investors looking for some insight into the timing of the rate hike will likely need to wait until after the next Federal Open Market Committee meeting in a couple of weeks.
3. Tech earnings
Earnings season is back in full force and a handful of major technology companies will report their latest quarterly results this week. Google (GOOG) is expected to report second-quarter numbers on Thursday that fall short of Wall Street’s expectations after the strong U.S. dollar weighed down overseas revenue. EBay (EBAY) also reports second-quarter results on Thursday, but the online marketplace is expected to show disappointing sales figures due to increased competition from rivals such as Amazon (AMZN). Netflix (NFLX) is expected to reveal a better-than-expected bump in online subscribers when it reports second-quarter figures on Wednesday.
4. Bank earnings
JPMorgan & Chase (JPM) and Goldman Sachs (GS) both report second-quarter results this week, with the latter expected to see a decline in quarterly profit. CitiGroup’s (C) second-quarter profits are expected to see a healthy jump year-over-year after the bank took a hit from legal costs during the same period in 2014. Other financial institutions reporting earnings this week include Bank of America (BAC), Wells Fargo (WFC), BlackRock (BLK), and Charles Scwhab (SCHW).
5. Economic indicators
On Friday, the Labor Department will release the Consumer Price Index for June, when the index is expected to have climbed at a slower pace than in May. The Fed releases its report on June industrial output on Wednesday, while Tuesday will bring the Commerce Department’s report on June retail sales, which are expected to have increased by only 0.3% last month after a 1.2% bump in May.
—Reuters contributed to this report.
