Greece’s new bailout, and J.C. Penney sales — 5 things to know today
Hello friends and Fortune readers.
Wall Street stock futures are looking lower Friday following news that Greece’s parliament has approved a third bailout for the country after an all-night session, but said it still must be approved by fellow euro zone countries that have problems trusting Athens.
Today’s must-read story is from Fortune‘s Leigh Gallagher and it features an exclusive interview with Maren Kate Donovan, founder and CEO of virtual assistant startup Zirtual, who talked about flawed financial projections and what caused her company to lay off 400 people earlier this week before announcing that Zirtual will be acquired by Startups.co.
Here’s what else you need to know to start your day.
1. Greece’s new bailout
Greece’s parliament voted to approve a new bailout for the country after lawmakers bickered through the night, leaving Prime Minister Alexis Tsipras confronting a widening rebellion within his leftist party. It’s the country’s third financial rescue by foreign creditors in five years. Tsipras still faces a confidence vote later this month. “The fact that the Greek parliament has signed off on this package, this far-reaching package for Greece, is good news but the Eurogroup must also agree with it,” said Eurogroup President Jeroen Dijsselbloem.
2. Market watches for more economic data
At this point, pretty much any economic data report is of interest to U.S. markets, with the Federal Reserve watching closely for evidence of a sustained economic recovery before it finally implements its long-awaited interest rate hike. Following Thursday’s unexpected bump in weekly jobless claims, today brings reports on consumer sentiment as well as industrial output. Economists expect the University of Michigan’s monthly survey to show a preliminary increase in U.S. consumer sentiment for the month of August, while industrial production is expected to have increased by 0.3% in July. Meanwhile, the Producer Price Index likely improved by only 0.1% in July, indicating that inflation remains in check.
3. Tesla raises more cash
Electric carmaker Tesla (TSLA) said it was looking to raise about $642.5 million through a share sale, above the $500 million it announced on Thursday. The company said on Friday it would offer about 2.7 million shares at $242 per share, a slight discount to Thursday’s close of $242.51. The company’s shares were up on the news. Chief Executive Elon Musk will maintain his investment of $20 million in the offering, Tesla said.
4. Penney’s reports dollars and cents
Department store operator J.C. Penney (JCP) reports its second-quarter financial results today and the company is expected to beat Wall Street’s profit forecasts. Earlier this year, J.C. Penney posted strong first-quarter sales figures that showed the once troubled retailer regaining market share from rivals like Macy’s (M). Investors will be interested to hear about the company’s CEO swap from Myron Ullman, who led J.C. Penney’s revival, to former Home Depot executive Marvin Ellison, who took over as chief executive at the start of August.
5. Money men show their hands
Some of the biggest names in investing will reveal what they got up to in the second quarter. Money managers including Warren Buffett’s Berkshire Hathaway (BRK) and William Ackman’s Pershing Square Capital Management will file reports with the SEC that show what stocks they held as of the end of the second quarter. The reports often shed light on investment trends and potential activity in certain industries. The most recent quarter’s investment activity could provide insight into how the world’s biggest investors are approaching their portfolios ahead of the Fed’s impending rate hike.
— Reuters contributed to this report.