OPENING CALL
Stock futures traded higher on Tuesday, after some record highs Monday and before Jerome Powell heads to Capitol Hill to deliver his twice-yearly report on the economy.
Powell, whose two-day testimony begins at 10 a.m. ET, might offer some indication about when rate cuts will start, Commerzbank said.
Investors are more confident that the Fed will cut soon, with markets pricing in the first cut in September.
Recent data, including last week's jobs report for June, has indicated the economy is cooling off at a gradual pace.
Inflation data out Thursday will provide the next major test of investor confidence.
Overseas Markets
Japan's Nikkei 225 rallied to a record high. In Europe, France's CAC 40 and Germany's Dax fell.
Postmarket Movers:
Helios Technologies' board put the company's chief executive on leave while it conducts an investigation. Shares fell 6.5%.
Kymera Therapeutics on Monday said Sanofi intends to expand its ongoing Hidradenitis Suppurativa and Atopic Dermatitis Phase 2 trials. Shares rose 10%.
Premarket Movers:
U.S.-listed shares of BP declined 3.7% after it said it expects an impairment of up to $2 billion in the second quarter and said "significantly lower realized refining margins" would lead to a hit of up to $700 million to its oil trading earnings.
Corning extended gains, rising 1.3% after jumping on Monday after it raised its guidance for the second quarter, saying the "outperformance was primarily driven by the strong adoption of our new optical connectivity products for Generative AI."
Chip stocks gained. Intel climbed 4.3%, while Nvidia and Micron Technology also gained.
Tesla dipped 0.3%. The stock closed higher Monday for a ninth-consecutive session, the longest streak for shares of the electric-vehicle maker since June 13, 2023.
Today's Headlines/Must Reads:
- How Biden and Trump's Tariffs Could Kill an Already Sick Steel Industry
- Bitcoin Gains. What's Driving the Crypto Market.
- Pro Take: Housing Inflation Sticks, While Prices for What Fills a House Fall
MARKET WRAPS
Forex:
The dollar traded steady ahead of Powell's testimony.
The euro has limited scope to rise in the near term as a rewidening of French-German bond-yield differentials remains a tangible risk after French elections, ING said.
The most market-friendly scenario would likely require the exclusion of the most left-wing factions of the New Popular Front party, and the spectrum of less market-friendly options is rather wide and intricate.
"For now, it is likely that negotiations will prove anything but easy for President Emmanuel Macron, and markets may grow impatient."
Energy:
Oil prices edged lower as fears over Hurricane Beryl's disruptions to energy infrastructure eased.
"Early indications suggest that most energy infrastructure has come through unscathed," ING said.
Investors await Powell's testimony later, and reports from the EIA, OPEC and the IEA this week.
French and U.K. election results provide fresh hope for renewable energy companies and nuclear operators, and could weigh on oil and gas producers.
Metals:
Gold futures rose, consolidating after having slumped around 1.4% in Monday's trade.
This fall seems somewhat extreme when compared with the moves in the dollar or bond markets, Pepperstone said.
It might have been traders flushing out their long positions after the precious metal's recent rally, but is also likely part of a wider sell-off of commodities over the day.
Meanwhile, China's central bank didn't add to its gold reserves for a second consecutive month in June.
Before May, the People's Bank of China had an 18-month buying spree that helped drive record high gold prices, ING said.
Iron Ore
"The onset of new low--cost supply from Brazil, Australia and Guinea underpins our view of lower iron-ore prices by the end of the decade, especially with China's steel output showing signs of plateauing at current levels," the Commonwealth Bank of Australia said.
TODAY'S TOP HEADLINES
New Hollywood Mogul David Ellison Tackles Daunting To-Do List After Paramount Deal
David Ellison mastered flying planes in his teens. Now, Hollywood's newest mogul has to avoid a hard landing in merging his Skydance Media and Paramount Global.
Hours after the merger was announced, Ellison on Monday made the kind of cautious remarks one would expect from someone seeking to win over skeptics from across the entertainment industry, on Wall Street and among Paramount executives.
Purdue Pharma Backs Creditor Lawsuit Against Sacklers for Shifting Assets
Bankrupt opioid maker Purdue Pharma is backing an effort by its top creditors to sue members of the Sackler family who own the company over allegations that they illegally transferred billions of dollars to private trusts before Purdue's 2019 bankruptcy filing.
The official committee of Purdue's creditors filed a proposed complaint against the Sacklers on Monday after the Supreme Court last month rejected a $6 billion settlement agreement to resolve the mass opioid-related lawsuits against the company's family owners.
America's Biggest Nonalcoholic Beer Brand Doubles Its Valuation
Athletic Brewing continues to ride the wave of Americans drinking less alcohol.
The biggest nonalcoholic beer brand in the U.S. has closed a new financing round that values it at around $800 million, people familiar with the matter said. That is roughly double its valuation from just two years ago.
NATO Summit Puts Biden's Fitness Under a Microscope
WASHINGTON-The White House once hoped the NATO summit that opens Tuesday would showcase President Biden's leadership of the trans-Atlantic alliance and his differences with Donald Trump. Instead it has become a pivotal test of his fitness for a second term.
A solid performance during the three-day gathering of North Atlantic Treaty Organization leaders could help shore up his candidacy, reminding voters of his support for the 75-year-old military partnership that his predecessor regularly attacked. Another stumble like his debate against Trump last month could only intensify calls for the 81-year-old commander in chief to exit from the presidential race.
Write to clare.kinloch@wsj.com
TODAY IN CANADA
Earnings:
Nothing major scheduled
Economic Indicators $(ET)$:
Nothing major scheduled
Stocks to Watch:
Rupert Resources: Unable to Reach Agreement to Acquire 100% of the Fingold JV, Continues to Advance Ikkari Project in Finland
Expected Major Events for Tuesday
06:00/JPN: Jun Preliminary Machine Tool Orders
10:00/FRA: May OECD CPI
10:00/US: Jun NFIB Index of Small Business Optimism
10:00/FRA: 1Q OECD Quarterly Labour Market Situation
10:00/FRA: May OECD Harmonised Unemployment Rates
12:55/US: 07/06 Johnson Redbook Retail Sales Index
20:30/US: API Weekly Statistical Bulletin
23:50/JPN: Jun Corporate Goods Price Index
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Tuesday
BowFlex Inc (BFXXQ) is expected to report $-0.06 for 4Q.
Byrna Technologies Inc (BYRN,BYRN-L) is expected to report $-0.01 for 2Q.
Drive Shack Inc (DSHK) is expected to report $-0.06 for 1Q.
Ford Motor Co $(F)$ is expected to report.
Franklin Resources Inc $(BEN)$ is expected to report.
Fresh Tracks Therapeutics Inc (FRTX) is expected to report $-0.19 for 1Q.
Invitae Corp $(NVTAQ)$ is expected to report $-0.45 for 1Q.
Kura Sushi USA Inc $(KRUS)$ is expected to report $0.01 for 3Q.
SMART Global Holdings Inc $(SGH)$ is expected to report $-0.03 for 3Q.
Saratoga Investment Corp $(SAR)$ is expected to report $0.93 for 1Q.
Valeura Energy Inc (PNWRF,VLE.T) is expected to report for 2Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
ACELYRIN Raised to Overweight From Equal-Weight by Wells Fargo
Allegiant Travel Cut to Hold From Buy by Deutsche Bank
Ally Financial Inc Raised to Neutral From Underweight by JP Morgan
Arhaus Cut to Hold From Buy by Jefferies
Blue Owl Capital Cut to Hold From Buy by TD Cowen
Bumble Cut to Equal-Weight From Overweight by Wells Fargo
Charles Schwab Corp Raised to Outperform From Market Perform by KBW
Cinemark Raised to Buy From Neutral by B. Riley Securities
Clearwater Analytics Raised to Outperform From Perform by Oppenheimer
Columbia Sportswear Raised to Buy From Hold by Stifel
CSX Corp Cut to Neutral From Buy by B of A Securities
Desktop Metal Cut to Neutral From Overweight by Cantor Fitzgerald
Domino's Pizza Raised to Outperform From Neutral by Baird
Ecolab Raised to Buy From Hold by Stifel
Enlink Midstream Raised to Overweight From Equal-Weight by Wells Fargo
Fortive Raised to Buy From Hold by TD Cowen
Gilead Sciences Raised to Outperform From Market Perform by Raymond James
HilleVax Cut to Neutral From Buy by Guggenheim
HilleVax Cut to Neutral From Overweight by JP Morgan
Intapp Cut to Perform From Outperform by Oppenheimer
KeyCorp Cut to Neutral From Buy by UBS
Malibu Boats Cut to Hold From Buy by Truist Securities
PNC Financial Raised to Buy From Neutral by UBS
Raymond James Cut to Peer Perform From Outperform by Wolfe Research
ServiceNow Cut to Sell From Neutral by Guggenheim
Silgan Holdings Raised to Buy From Neutral by Citigroup
Spirit Aerosystems Cut to Market Perform From Outperform by Bernstein
Spirit Aerosystems Cut to Neutral From Overweight by JP Morgan
Spirit Airlines Cut to Sell From Hold by Deutsche Bank
State Street Cut to Underperform From Peer Perform by Wolfe Research
Stifel Financial Cut to Hold From Buy by TD Cowen
Zuora Cut to Hold From Buy by Craig-Hallum
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
July 09, 2024 06:08 ET (10:08 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments