Morning Moneybeat: Fed Chair Yellen Headlines Busy Day for Markets

        By Kristen Scholer
        Morning MoneyBeat is the Journal's pre-market primer packed with market updates, insights and must-read news links. To receive this morning newsletter via email, click here: http://on.wsj.com/MoneyBeatUSSignup
        MARKET SNAP: At 6.20 a.m. ET, S&P 500 futures up 0.08%. Treasury yield lower at 2.40%. Nymex down 0.96% to $52.54; gold 0.05% higher at $1154.1. In Europe, FTSE 100 up 0.04%, DAX up 0.08% and CAC up 0.10%. In Asia, Nikkei 225 up 0.38% and Hang Seng down 0.26%.
        WATCH FOR: 8:30 a.m. EDT. June PPI. [Expected 0.2% vs. 0.5% in May.]; 8:30 a.m. EDT. July Empire State Manufacturing Survey. [Expected 3 vs. -1.98 in June.]; 9:15 a.m. EDT. June Industrial Production. [Expected 0.2% vs. -0.2% in May.]; 2 p.m. EDT Federal Reserve Beige Book.
        THE BREAKFAST BRIEFING
        Fed Chair Janet Yellen headlines what could be an eventful day for the markets Wednesday.
        Ms. Yellen testifies before the House Financial Services Committee at 10 a.m. EDT, fielding questions from lawmakers on what's likely to cover a broad range of topics, such as liftoff, global currents and financial-stability issues. A copy of her prepared remarks will be available at 8:30 a.m. EDT.
        Ahead of that, markets are digesting better-than-expected second-quarter GDP data out of China, and they await the outcome of a Greek parliamentary vote about its future in the eurozone.
        All this comes at a time when investors are trying to connect the dots between data and tumult abroad, wondering what it means for rate liftoff.
        "The template for the testimony will likely be the Chairwoman's July 10 speech," said Drew Matus, an economist at UBS.
        In Ms. Yellen's speech last Friday, she said based on her outlook, it will be appropriate to raise short-term borrowing costs at some point later this year.
        Still, she cautioned that the "course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate this first step."
        Of course, liftoff depends on the data improving. And recent economic reports haven't been all that stellar. Tuesday June retail sales disappointed, but major indexes rose anyway amid the sentiment that lackluster data could push out a rate rise. June's employment report released at the beginning of the month also missed consensus.
        A stock market plunge in China, the threat of Greece leaving the eurozone and possible default in Puerto Rico have had U.S. stocks on edge the past few weeks and sparked questions about whether global turbulence may alter the Fed's path.
        Turmoil abroad looked like it was easing earlier this week, with China's stock market staging a fleeting recovery and Greece's agreement on a deal with creditors to keep it in the single-currency bloc. Still, those situations are fluid: Stocks in China fell Wednesday, and the IMF has warned that Greece may not be able to deliver on overhauls. That means Ms. Yellen could well be pressed Wednesday on how events overseas may affect policy at home.
        As the first rate rise in nearly a decade looms, traders will continue to look for hints on liftoff when the Fed Chair speaks given the cross currents out there.
        Morning MoneyBeat Daily Factoid: On this day in 1964, Arizona Sen. Barry Goldwater was nominated by the Republican Party to run for President, facing off against incumbent Lyndon B. Johnson.
        - By Kristen Scholer
        STOCKS TO WATCH
        Financial reports from the banking sector continue on Wednesday, with Bank of America forecast to report second-quarter earnings of 36 cents a share ahead of the bell, according to analysts polled by FactSet. The bank is among the stocks that Morgan Stanley is upbeat on ahead of its earnings report.
        Also premarket, Delta Air Lines is projected to report second-quarter earnings of $1.21 a share, up from $1.04 a share a year ago, while BlackRock is forecast to report second-quarter earnings of $4.80 a share, down from $4.89 a share a year earlier.
        And after the market closes, Intel and Netflix are slated to report.
        MUST READS (LINKS)
        5 Things to Watch in Yellen's Congressional Testimony: Fed Chairwoman Janet Yellen testifies this week before House and Senate committees.
        IMF Says Greece Needs Far More Debt Relief: The IMF questioned the ability of Greece to deliver on promised bailout overhauls and warned in its starkest language yet that Europe must commit to debt relief to ensure the program will work.
        Eurozone Scrambles for Greek Bridge Loans: Eurozone governments were racing to find a way to get Greece some desperately needed short-term financing within the next few days, but legal and political obstacles were complicating the effort, European officials said.
        China Surprises With 7% Growth: China's growth remained at 7% in the second quarter, a level economists had deemed unlikely, amid broad signs that Beijing's policies to jump-start the economy had yet to take hold.
        China Stocks Tumble as Investors Doubt Beijing's Help: Stocks in China fell a second straight day, with a government-engineered recovery proving fleeting and surprisingly strong growth data dimming hopes for more stimulus.
        Stock-Market Hoaxes, From 'Napoleon Is Dead' to 'Twitter for Sale' : Ever since a shadowy figure showed up at an inn on the coast of England in 1814 wearing a British officer's uniform, and informed the locals that Napoleon was dead, there have been hoaxes designed to manipulate the stock market. The only difference in the Internet Age is that the news travels much, much faster.
        Brace for More Days of Extreme Volatility, Icap's Chief Says: As the U.S. Federal Reserve moves toward its first rate increase in nine years, and banks bow to regulatory pressure, the world's largest currencies broker is bracing for more days of market turbulence.
        Investors Wary of Swiss Franc Bets: Six months after the Swiss franc's sudden surge rocked financial markets around the globe, investors are largely steering clear of a currency they once considered to be among the safest in the world.
        Ukraine Steps Up Efforts for Debt Deal: Ukrainian Finance Minister Natalie Jaresko is set to meet with the country's bondholders in a down-to-the-wire effort to reach a restructuring deal before a July 24 deadline passes.
        (END) Dow Jones Newswires

        July 15, 2015 06:36 ET (10:36 GMT)

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