Greece Still on the Table: Morning Call

Overseas markets remained relatively unchanged Monday while U.S. markets were closed for the Independence Day holiday. Asian markets were slightly negative in early trading, with the MSCI Asia Pacific down 0.3% after a Moody's Investor Service report said the outlook on Chinese banks could decline, as souring loans to local governments increase. The Stoxx Europe 600 was flat, potentially ending six straight days of gains as European debt concerns persist.

Although the passing of the Greek austerity measure sent markets around the globe soaring last week, over the weekend Standard & Poor's and Fitch said the current ECB plan to roll over Greek debt would still result in a default. The news caused protection of euro debt to rise again.

On Monday, the rating agencies said the default may be temporary, similar to the Uruguay situation of a decade ago. The markets are hoping this could provide Jean-Claude Trichet and the ECB the wiggle room they need to prevent a real Greek default.

The U.S. dollar and Treasuries were positive in early trading ahead of a May factory orders report, as investors still remain concerned over the global growth outlook. Commodities remained positive despite U.S. dollar strength, led by wheat corn and silver all up over 3% in early trading.

Traders will be watching the iShares Silver Trust (SLV) and SPDR GLD Trust (GLD) to see if they can find support.

Google (GOOG) was is up 1% in pre-market trading on an upgrade to "overweight" at Evercore Partners. SanDisk (SNDK) was also upgraded by Deutsche Bank hold to buy. Apple (AAPL) was down slightly after it was found in violation of two patents for a type of chip used to play video games on mobile devices, a U.S. International Trade Commission judge said on July 1.

The company was found not to have infringed two others in a case brought by closely held S3 Graphics. Amazon (AMZN) and Netflix (NFLX) (NFLX) remain leaders in the market, with both trading at or above 52-week highs.

Chinese internet stocks Sina (SINA), Baidu.com (BIDU), Sohu.com (SOHU) and Youku.com (YOKU) all saw big gains last week, but traders may be looking to take profits as they approach technical resistance levels and moving averages.

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