U.S. markets, which opened Monday amid news of a conditional bailout deal for Greece, sustained the stock rally that followed the announcement from Europe and closed significantly higher, a welcome development for the recreational boating industry.
The Dow Jones Industrial Average rose 1.22 percent to 17,977.68, the S&P 500 gained 1.11 percent to 2,099.60 and the Nasdaq Composite Index climbed 1.48 percent to 5,071.51.
Boatbuilders, other marine manufacturers and dealers have made steady progress in the years since the Great Recession and don’t want to see a lingering international economic crisis that could hurt stock prices and diminish the investment wealth that helps to fuel boat purchases.
Still, the agreement in Europe to start negotiations on a new $95 billion bailout for Greece first requires the country to enact significant economic reforms, including sales tax increases and pension changes, by Wednesday and be closely supervised by its creditors. It will be a bitter pill for the Greek Parliament to swallow.
"Clearly the Europe of austerity has won," Greece reform minister George Katrougalos told the BBC in remarks quoted in a Reuters report. "Either we are going to accept these draconian measures or it is the sudden death of our economy through the continuation of the closure of the banks. So it is an agreement that is practically forced upon us."
In the United States, Fed Chairman Janet Yellen will deliver her semiannual testimony on monetary policy and the economic outlook to the House Financial Services Committee in Washington on Wednesday and Thursday.
Lawmakers and the markets will watch for remarks about the Greek deal and what it may mean for U.S. interest rates. Her appearance comes two weeks before the next Federal Open Market Committee meeting, although the Fed is not expected to raise rates until at least its September meeting.
"If you look at what Janet Yellen was saying on Friday, she said that Greece was one thing that was unresolved in the global economy. She explicitly talked about it as something that could delay or accelerate the pace of Fed fund hikes," Jim Leaviss, head of retail fixed income at M&G, told CNBC.
"Now that we do have a deal and you could argue that Greece is no longer unresolved and we could get this memorandum of understanding passed later this week, then this is no longer an overhang on the global economy — and it probably gives Yellen and the Fed the go ahead to start hiking this year.”
Meanwhile, businesses and investors will see U.S. reports today on June retail sales and business inventories for May. Wednesday will bring data on the Producer Price Index for June and industrial production for the same month. On Friday there will be June reports on housing starts and building permits, the Consumer Price Index and the preliminary reading on the University of Michigan consumer sentiment index for July.
Business Insider reports that economists estimate retail sales increased by 0.3 percent in June, or 0.5 percent, excluding autos and gas, and that producer prices climbed 0.2 percent month-over-month in June while falling 0.9 percent year-over-year.
Business Insider also said economists estimate that the pace of housing starts jumped 7 percent, to an annualized rate of 1.109 million units in June, as the pace of building permits fell 8 percent, to 1.150 million, and that the University of Michigan’s confidence index slipped slightly, to 96.0 in July, from 96.1 in June.