The major US equities are trading in the red, though not as deeply as at the open. Once again, the uncertainties surrounding Greece’s fate (a potential shortage of food and medicine) is the culprit behind this volatile session. Speaking of volatility, China is trying to address its own. During the month of June, the Shanghai Composite Index faded approximately 30% after hitting all-time highs. Approximately 21 of China’s largest securities firms are working to develop a $19.3 billion fund with the goal of stabilizing the Chinese capital market. Also, Germany saw factory orders decline by 0.20% month-over-month in May after rising 2.2% in April. Domestically, the markets did attempt to break-even and traded in the green briefly after a positive non-manufacturing (or services) Purchasing Managers’ Index (PMI) report from the Institute of Supply Management (ISM).

The ISM reported that during the month of June, PMI rose to a reading of 56 from 55.7 in May. This was driven by a 2% rise in business activity to 61.5. Contrary to the ADP Payrolls report issued earlier this month where it was estimated that 225,000 services jobs were added to the market, ISM saw the employment index fall by 2.6% month-over-month to a reading of 52.7. The prices paid index also decreased, falling 2.9% month-over-month to 53. On a positive note, supplier deliveries are slowly increasing, rising 1.5% to 51.5. Backlog orders are up a significant 2.0%. Respondents to ISM’s survey are rather hopeful as inventory sentiment rose a significant 6% to 65 with retailers noting a strong overall business outlook. Though there were many positives during the month of June from the services industry, we do not believe that this is enough fuel for the Feds to raise rates just yet.