Stocks Lower as Greece Negotiations Face Roadblocks

U.S. Market
Stocks fell Monday, as Greek PM Alexis Tsipras unexpectedly called for a referendum on whether to accept terms demanded by its international creditors. Meanwhile, a senior Greek government official said that Greece won't make a debt repayment to the International Monetary Fund due Tuesday, according to reports.

The National Association of Realtors said Monday its index of pending home sales increased 0.9% to a seasonally adjusted 112.6, the highest level since April 2006.

The Dow and the S&P 500 were each down around 2%, and the Nasdaq was down 2.4%.

Stocks on the Move
On Monday, the Supreme Court ruled 5-4 on Michigan v. EPA, throwing out the environmental regulator's Mercury and Air Toxics Standards. MATS was intended to regulate mercury and other hazardous air pollutants from power plants, and most significantly had an impact on heavy-emitting coal plants. Shares of several coal companies rose on the news, with Arch Coal Inc (ACI) up 4.5%, Cloud Peak Energy Inc (CLD) up 6.4%, and Peabody Energy Corp (BTU) up 9.6%.

Morningstar analysts are maintaining their fair value estimates and moat ratings for all utilities, as this ruling is not expected to have a material impact on power producers' investment plans or near-term cash flow. "Although we think the Supreme Court ruling will force the EPA to more carefully push future regulation and will make the industry more fervent in its claims of EPA overreach, we caution investors that regulatory risk still remains a key risk to coal stocks," Morningstar equity analyst Kristoffer Inton notes.

Foreign Markets
European shares were sharply lower today as investors digested reports that the negotiations between the Greek government and creditors had reached a roadblock. The FTSE was down 2.0%, while the CAC was down 3.7%, and the DAX was down around 3.6%.

Chinese shares were also lower, with the Shanghai losing 3.3%, the Nikkei falling 2.9%, and the Hang Seng shedding 2.6%.