Following up a Friday sell-off that limited gains to 0.36% and 0.43% last week, the Dow Jones Industrial Average
The crux of this morning's weakness, Europe, has hidden behind the veil of U.S. corporate earnings in recent weeks, only to return to haunt markets on Friday. The primary culprit is Spain -- the eurozone's fourth largest economy -- and the growing likelihood that it will require a full-fledged sovereign bailout. Today, Spanish 10-year bond yields are hitting euro-era records of more than 7.5% following a dismal monthly economic report from Madrid. Reports surfaced that as many as six of Spain's 17 regions could require aid from the central government. Tensions will also be high in Greece, which receives a visit from creditors this week to determine its progress, or lack thereof, in meeting the commitments of its own bailout.
Domestic economic data may take a back seat to Europe and earnings this week, but nonetheless a few important reports are due out. On Wednesday, data on June new-home sales are released, with expectations for a slight increase in purchase activity. Thursday is a big day for data, with weekly jobless claims and a reading on durable-goods orders released ahead of the market's open. On Friday, investors will receive an initial reading on second-quarter GDP growth, which is forecast to have expanded at a 1.5% annual rate.
High-profile names in consumer technology are set to report earnings this week, with Netflix
Apple's revenue and earnings are estimated to grow about 30% for the quarter as investors anticipate the release of its newest iPhone later this year. To receive a full take on Apple ahead of the release, be sure to check out our new premium research report on the company. In it, our top technology analyst walks through the key aspects of the Apple story, including both opportunities and risks facing the company.
For Facebook, analysts are calling for earnings per share of $0.12, though the company's first public earnings call is likely to garner the majority of attention. Facebook has a lot to prove following its botched IPO in May. The company still trades at a premium valuation despite what appear to be glaring flaws in its ability to monetize its user base. In our new special free report, entitled "Forget Facebook -- Here's the Tech IPO You Should Be Buying," we outline those problems, as well as an alternative online player that deserves more attention that it receives. Click here to claim you free copy.
Brenton Flynn owns shares of Netflix and Amazon. The Motley Fool owns shares of Apple, Netflix, and Facebook. Motley Fool newsletter services have recommended buying shares of Apple and Netflix. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.