The press reports from the G-8 meeting indicate that no country leaders favor recession. Apparently, all favor "growth."
What policies produce growth over the long term appears not to be a matter for discussion. The growth argument simply implies more government spending. Now. And, of course, more government borrowing. Or perhaps simply an increase in the supply of Euros by central bank debt purchase or issuance. For now, there are no decisions as to what action will be taken.
S&P futures suggest a modest bounce at the open. This was the case several times last week prior to the market ending lower on the day. It is therefore hard to place much emphasis on the uptick in the futures. It doesn't signal any underlying shift in sentiment.
There are no economic releases today. Campbell Soup and Lowe's reported earnings ahead of expectations but Lowe's stock is lower on concerns over the outlook. Neither will have broad market impact.
That takes us back to everything Europe. European stock exchanges are mostly higher, while the Euro is little changed. On Friday, Spain announced that its budget deficit will be 8.9% of GDP rather than the previously expected 8.5%. We haven't taken the time to see how much of that is a larger deficit, and how much a lower GDP. Neither is good.
Greek elections will be held June 17 and recent polls suggest some improvement for the pro-European parties. There will be almost daily political updates from Greece for another month. For now, the country is muddling through with a caretaker government.
Facebook is trading at $37 a share pre-market, $1 below the Friday issuance price. Not exactly a blowout IPO quite yet. JP Morgan Chase stock, which remains volatile due to concerns about potential further trading losses, is up $0.19 pre-market to $33.68 a share. It is being closely watched intra-day.
Market conditions remain difficult and subject to headline-risk from Europe.
Founder and Chairman, Briefing.com