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Last Call: Greek Election Day Draws Near

Greece
Andreas Solaro | AFP | Getty Images
Greece

But fear's the only thing I saw,
And three days later 'twas clear to all,
That nothing is as scary as election day.

“My Dear Country” – Norah Jones

Below – Bankers across the globe are on edge as the Greek election draws near.

Market Musings With CNBC Market Guru Robert Hum

  • Yet another volatile final hour of trading, but stocks end with strong gains
  • Stocks gyrate on report of possible coordinated action from central banks
  • Telecom, Utilities sectors close at multi-year highs, Consumer Staples sector at all-time high
  • Euro back above $1.26, sits at a 3-week high
  • Natural gas settles up 14% in best day in over 1.5 years on bullish storage report

The Word on the Street

CENTRAL BANKS SET TO ACT IF GREECE ROILS MARKETS: REPORT/Reuters w/ CNBC.com: “Central banks from major economies stand ready to stabilize financial markets and prevent a credit squeeze should the outcome of Greek elections on Sunday cause tumultuous trading, G20 officials told Reuters. The Dow Jones Industrial Average initially spiked as high as 200 points, then closed up about 155 points. The S&P 500 and the Nasdaq also closed higher.”

DON'T BE FOOLED BY A FAUX GREEK RALLY: TRADERS/CNBC.com – Lee Brodie: “If investors learned anything on Thursday it’s that the stock market could make a big move, at the drop of a hat.”

EUROPE ON EDGE OVER CRISIS/U.K. Unveils 'New Firepower' to Shield Financial System; Fed Readies 2008 Playbook/WSJ- David Enrich, Jason Douglas, Ainsley Thomson: "The U.K. on Thursday unveiled an extraordinary series of measures designed to insulate the British financial system and economy from the euro zone's deepening crisis. Chancellor of the Exchequer George Osborne and Bank of England Gov. Mervyn King announced plans to flood banks with cheap funds in an attempt to jump-start lending to British households and businesses and to fend off potential financial problems at big U.K. lenders."

U-TURN FOR THE BETTER ON U.K. BANKS/WSJ - Simon Nixon: “Capitulation. There is no other way to describe the screeching U-turns executed by the U.K. government and Bank of England on Thursday. Despite presiding over one of the world's most spectacular financial collapses, U.K. policy makers spent the past four years lecturing other countries on how to overhaul the financial system. They led the charge among global regulators for the toughest capital and liquidity rules and have forged ahead with half-baked proposals to ring-fence domestic retail banking from investment banking and any overseas businesses. The result has been to crush bank lending, killing the U.K. recovery in its tracks.”

JAPAN HAS A PLAN READY IN CASE GREECE FLARES UP/Reuters: "Japan is quietly drawing up contingency plans to protect its economy and financial markets in case this weekend's Greek elections ignite fresh turmoil in the euro zone and a flight of capital from the bloc."

ECB IN LINE TO OVERSEE TOP EUROPEAN BANKS/Reuters: “Spain's EU bank bailout has catalyzed growing German and French support for the European Central Bank to take over responsibility from the European Banking Authority for monitoring Europe's biggest lenders. France is calling for a banking union to help draw a line under the euro zone sovereign debt crisis and try to break the link between fragile banks and indebted governments. Paris wants the ECB to be the critical overseer of the region's banking sector, a position Berlin increasingly supports. The European Commission is also pushing for closer coordination among member countries on overhauling their banking systems and moving towards a banking union, including building on proposals for a unified deposit insurance scheme to protect savers worried about the security of their deposits.”

US RETAIL SALES OF VIDEO GAMES FELL FOR 6TH MONTH/AP: “A new study says U.S. retail sales of video-game hardware, software and accessories fell 28 percent in May to $517 million. It's the sixth-consecutive month of decline. Sales of console and portable software — the video games themselves — fell 32 percent from a year earlier to $255 million, while sales of hardware fell 39 percent to $139 million. That was offset partly by a 7 percent increase in sales of accessories, to $122 million.”

OPEC TO LEAVE PRODUCTION STEADY/NY Times – Andrew Kramer: “The Organization of the Petroleum Exporting Countries left unchanged a ceiling for oil production by its members at a meeting in Vienna on Thursday, despite signs of a slowdown in the global economy and slumping oil prices. Saudi Arabia came to the meeting ready to raise output to stave off the risk of higher oil prices tipping vulnerable economies into recession. The so-called OPEC hawks, Iran and Venezuela, had wanted to lower production to prop up prices. The decision leaves Saudi Arabia, the largest producer in the cartel and a moderate, to decide on its own whether to influence prices by raising or lowering output before the next OPEC meeting.”

UNITED TECH: EUROPE'S DOWNTURN WORSE THAN EXPECTED/Reuters – Scott Malone: “Europe's downturn has gotten worse than United Technologies Corp executives expected coming into the year, and the company is concerned about Greece's troubles spreading, a top executive at the diversified U.S. manufacturer said.”

ALLEN STANFORD SENTENCED TO 110 YEARS FOR PONZI SCHEME/CNBC – Scott Cohn: “Allen Stanford, the former Texas billionaire convicted of a $7 billion Ponzi scheme, was sentenced to 110 years in prison by a U.S. federal judge on Thursday.”

Economic Data

830am et Jun Empire State Survey

900am et Apr TIC data

915am et May Industrial production

915am et May Capacity Utilization

955am et (Jun pre) Consumer sentiment

Earnings

Before the bell:

No significant reports expected.

Key Guests

Toby Cosgrove, The Cleveland Clinic CEO (600a)

Louis V Gerstner, The Carlyle Group Chairman (700a)

William De Vijlder, Fortis Investments Global Chief Investment Officer (730a)

Jack Malvey, BNP Paribas Investment Partners (800a)

Roger Altman, Evercore Partners Chairman (800a)

Donald Marron, Fmr Director Congressional Budget Office (840a)

Donald Marron, Lightyear Capital CEO (840a)

Bill Gurley, Benchmark Capital General Partner (1000a)

Kevin Landis, Firsthand Technology FUnds Co-Founder (1100a)

Jack Caffrey, JPMorgan Private Bank Managing Director (200p)

John Maggs, The Kiplinger Letter Editor (230p)

Michael and Nicky Bronner (250p)

Samuel Allen, John Deere CEO (330p)

Brian Murdock, TD Asset Management CEO (330p)

Chris Cordaro, RegentAtlantic Capital CEO (400p)

Afonso Sugiyama, Alpargatas USA President (450p)

Marc Faber, Gloom Boom & Doom Report (530p)

Ed Lazear, Stanford University (700p)

John McLaughlin, McLaughlin & Associates CEO (700p)

Thomas Lee, JPMorgan Chief U.S. Equity Strategist (700p)

Follow Tom Rotunno on Twitter: @tomrotunno

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