Stock futures were steady Tuesday as investors remained cautious ahead of
inflation data and developments in the Middle East.
Brent extended the previous session's gains, trading at nearly $90 a barrel, as talks to reopen the crucial Strait of Hormuz waterway hit an impasse.
President Trump responded yesterday with new demands for Iran, writing on social media that the country should pay compensation for people who have been killed in conflict and protests.
"Markets found a darker cloud in the inflation outlook yesterday, as oil prices rose again amid the absence of a deal to reopen the Strait of Hormuz," said Deutsche Bank. Monday's moves "pushed things in a more hawkish direction."
Markets are pricing an increased chance that the Federal Reserve will raise interest rates in September in response to higher oil prices. LSEG data shows the probability back above 50% after being scaled back briefly following Friday's weaker-than-expected U.S. nonfarm payrolls report.
Investors are also awaiting upcoming CPI data for more cues on the interest-rate outlook.
"The Fed problem is becoming more awkward," Tickmill Group said. "Labour-market cooling can justify patience, but energy-driven inflation can undermine that patience if it lifts headline CPI, gasoline prices and household inflation expectations."
Stocks to watch
Intel increased the size of its stock offering to $20 billion, up from $15 billion announced previously. Shares ticked down slightly in premarket trading. On Holdings is set to report earnings ahead of the opening bell.
Riot Platforms surged more than 22% in premarket trading following a Bloomberg report that the bitcoin miner secured a $9.1 billion cloud deal with Anthropic.
Rocket Lab tumbled more than 8% premarket, falling despite narrowing year-over-year losses and reporting rising revenue.
Super Micro Computer, CoreWeave: Both AI infrastructure companies are set to report their earnings after markets close.
Trump Media & Technology posted a 10-fold increase in losses in the second quarter in its earnings after Monday's close, driven by declines in the valuation of its digital assets. Shares ticked down in premarket trading after shedding 8% yesterday.
Watch For:
U.S. Existing Home Sales for July
Today's Top Headlines/Must Reads:
- Anthropic Tries to Shore Up Investor Confidence Ahead of Blockbuster IPO
- Healthcare Investing Is Now an AI Short in Disguise
- See How a Tesla-SpaceX Merger Gives Musk a Shortcut to His $1 Trillion Payday
MARKET WRAPS Forex:
The dollar traded steady. The greenback is at risk of falling given the lack of confidence in how the Federal Reserve will respond to the energy-price shock driven by the Middle East conflict, MUFG said.
The euro fell. Realized volatility in the euro versus the dollar is likely to remain low in the near term, ING said.
Bonds:
Treasury yields rose as negotiations to reopen the Strait of Hormuz appear to have stalled.
Energy:
Brent extended a four-day rally as tougher U.S. and Iranian demands slow progress toward an agreement that could resume normal shipping through the Strait of Hormuz, MUFG said.
In early European trading, Brent crude was up 2.1%, while WTI futures rose 2.2% after settling 5% higher on Monday.
Metals:
Gold prices were broadly flat as investors awaited upcoming inflation data.
Gold chart
Comex gold futures' bullish setup remained intact, based on a daily chart, RHB Retail Research said. The relative strength index continued moving upward, reaffirming bullish momentum was in play.
Copper
Copper prices were higher in early trade, supported by tight near-term supply and expectations of constrained mine output. The market remains broadly bullish, driven by a weaker dollar and firm supply fundamentals, Baocheng Futures said.
Iron ore
Iron ore prices were higher in early trade amid potential supply disruptions. More workers have joined a strike at the Port Hedland iron ore export hub in Western Australia, ANZ Research said.
TODAY'S TOP HEADLINES
Anthropic Tries to Shore Up Investor Confidence Ahead of Blockbuster IPO
Anthropic is meeting with potential investors to shore up confidence in what could be the largest IPO of all time, offering assurances about its rapid pace of growth and strategies it expects will help address a growing public backlash against AI.
The $965 billion artificial-intelligence juggernaut is staring down a host of fresh challenges that are leading investors to take a more critical look at the company's business, including the recent popularity of cheaper AI systems made in China, tensions with the Trump administration and a growing backlash to data-center construction across the U.S.
Intel Increases Size of Stock Offering to Raise $20 Billion
Intel plans to raise $20 billion by way of an underwritten public offering of 210.5 million shares priced at $95 each.
The chip maker's offering was upsized to $20 billion from the $15 billion size it had previously announced, it said Tuesday. The offering is expected to close Aug. 12.
Samsung SDI Buys GM's Stake in U.S. Battery JV
Samsung SDI has acquired General Motors' 49.99% stake in SynergyCells, a $3.5 billion battery joint venture in the U.S., ending that joint venture amid sluggish electric-vehicle demand.
The South Korean battery maker said Tuesday it would use the SynergyCells plant in New Carlisle, Ind., which has been under construction since 2024, to make batteries for energy storage systems and other high-tech applications.
See How a Tesla-SpaceX Merger Gives Musk a Shortcut to His $1 Trillion Payday
Deep in a $1 trillion pay package approved by Tesla's shareholders is an escape clause that could pay off for Elon Musk in several ways if he folds the automaker into his SpaceX empire.
That kind of cars-and-rockets tie-up-the subject of widespread speculation among investors, and hinted at by Musk himself-would likely give him the tighter control he has long sought at Tesla. A hefty-enough price would also, in an instant, wipe away key performance targets standing between Musk and billions of dollars in shares.
Why the Real Oil Squeeze Is Happening in Refineries
Oil prices are dominating headlines as geopolitical tensions strain the flow of crude through key global chokepoints. Yet the bigger squeeze in energy markets is unfolding further downstream in the world's refineries, where crude is converted into the fuels that power the global economy.
A series of disruptions-from the Iran war and Ukrainian attacks on Russian energy infrastructure to China's restrictions on fuel exports-has taken millions of barrels of refined products off global markets and left customers scrambling to locate alternative supplies.
Healthcare Investing Is Now an AI Short in Disguise
Forget drug pipelines and clinical trials. These days, every healthcare trader has to be a part-time AI specialist just to keep up. That's because what matters most to large-cap pharma and health insurance stocks right now is the momentum of the artificial-intelligence boom.
For years, healthcare and semiconductor stocks weren't particularly tied to each other. They would sometimes drift in the same direction, but the relationship was loose. That changed in recent months, with the VanEck Semiconductor Exchange-Traded Fund $(SMH)$ and the State Street Health Care Exchange-Traded Fund $(XLV)$ moving into negative correlation, according to FactSet data. In other words, they increasingly go in opposite directions: when chips sell off, healthcare has tended to catch a bid.
China's Auto Market Weakens Further on Subdued Domestic Demand
China's auto market remained under pressure in July, as higher oil prices and a weak macro environment weighed on demand.
Retail sales of passenger cars fell 20.9% in July from a year earlier to 1.46 million units, the China Passenger Car Association said Tuesday. Sales fell 8.8% compared with June.
Water Groups Push Washington for Cyber Rules After Hacking Spree
Water associations renewed calls for Washington to set minimum cybersecurity standards, arguing a string of disruptive attacks has exposed the limits of voluntary federal guidance.
The American Water Works Association, whose members supply roughly 80% of U.S. drinking water, urged congressional leaders last week to advance legislation creating an independent organization to develop cybersecurity requirements for water and wastewater systems.
Gulf States Accept a New Normal in Hormuz: Iran Is in Control
DUBAI-Persian Gulf energy producers are concluding that Iran's control over the Strait of Hormuz will become permanent, disrupting their oil and gas exports and global energy supplies indefinitely.
The problem is they worry the alternative-going back to war-would be worse.
Trump Shifts to Economic Pressure, Again, as Iran Won't Meet His Demands
WASHINGTON-President Trump has settled on an old strategy in hopes of a new result in the Iran war, U.S. officials said: economic pressure.
Reluctant to resume all-out war and wary of diplomatic negotiations, Trump has adopted a wait-and-see approach that would give financial sanctions and a U.S. naval blockade of Iranian ports more time to inflict economic harm, U.S. officials said.
Trump Signs Order to Reduce Childhood Vaccines, Repeats Unfounded Autism Link
WASHINGTON-President Trump signed a new executive order Monday calling for most children to receive fewer vaccines and made some of his most extensive comments yet linking childhood shots and autism-a connection that scientists have said is unfounded.
The document Trump signed Monday is similar to a previous executive order to decrease the number of vaccines children receive. It also urges parents to spread out vaccines in more visits to pediatricians' offices and encourages states to mandate fewer vaccines for school attendance. It calls for the measles, mumps and rubella vaccination to be given in separate shots rather than the combination shot commonly given in the U.S.
Write to priscila.barrera@wsj.com
TODAY IN CANADA Earnings:
Cineplex Inc. 2Q Cipher Pharms Inc. 2Q Computer Modelling Grp Ltd. 1Q Constellation Software Inc. 2Q Denison Mines Corp. 2Q Elemental Royalty Corp. 2Q Exchange Income Corp. 2Q Fennec Pharms Inc. 2Q Firm Capital Mortgage Invest Corp. 2Q Franco-Nevada Corp. 2Q Hemlo Mining Corp 2Q kneat.com Inc. 2Q Lithium Argentina AG 2Q Neo Performance Materials Inc. 2Q Organigram Global Inc. 3Q Pason Syss Inc. 2Q Pet Valu Hldgs Ltd. 2Q Stingray Grp Inc. 1Q Sylogist Ltd. 2Q Westport Fuel Syss Inc. 2Q
Economic Indicators $(ET)$:
Nothing major scheduled. Stocks to Watch:
AGT Food & Ingredients 2Q EPS C$0.14; 2Q Adj EPS $0.12; 2Q Net C$9.62M; 2Q Rev C$634.2M; Correct: 2Q Adj EPS C$0.12
Altius Minerals 2Q Adj EBITDA CAD 23.3M; 2Q Net Income CAD 8.6M; 2Q Adj Net Income CAD 7.6M; 2Q Adj EPS CAD 0.14; FactSet Est. CAD 0.20; 2Q Adj EPS Misses Estimates; Reports Q2 2026 Attributable Royalty Revenue of $30.0M and Adjusted Earnings(1) of $7.6M
Anaergia 2Q Gross Profit CAD 14.5M; 2Q Adj EBITDA CAD 1.9M; 2Q Net Loss CAD 2.1M; 2Q Revenue CAD 63.9M; FactSet Est. CAD 59M; 2Q Revenue Beats Estimates
Bank of Montreal, Royal Bank of Canada to Sell Moneris Solutions to Francisco Partners for C$2B; Bank of Montreal, Royal Bank of Canada to Enter Into New Exclusive, Long-Term Referral Arrangements With Moneris; Sees After-Tax Gain C$600M on Closing of Deal
Cargojet 2Q Adj EPS CAD 0.67; FactSet Est. CAD 0.82; 2Q Adj Net Income CAD 10M; 2Q EPS CAD 0.47; 2Q Net Income CAD 7M; 2Q Adj EBITDA CAD 87.3M; 2Q Adj EBITDA Margin 31.7%; 2Q Revenue CAD 275.8M; FactSet Est. CAD 261.4M; 2Q Free Cash Flow CAD 56.2M
CT REIT 2Q EPS C$0.45; 2Q Net C$126.2M; 2Q Net Operating Income CAD 124.7M; 2Q Adj FFO CAD 78M; 2Q FFO CAD 84.3M; 2Q Net Income CAD 126.2M; 2Q EPS CAD 0.451; 2Q Property Revenue CAD 156.7M; Reports 2Q EPS of CAD 0.451
DATA Communications Management 2Q Loss/Shr CAD 0.02; 2Q Adj EBITDA CAD 14.2M; 2Q Pretax Loss CAD 0.66M; 2Q Gross Profit CAD 28.2M; 2Q Revenue CAD 110.9M; FactSet Est. CAD 111.3M; Reports 2Q Revenue of CAD 110.9 Million, Compared With FactSet Estimates of CAD 111.3 Million
Finning Announces Pricing of $300M of 4.231% Senior Unsecured Notes; Closing of the Offering of the Notes Is Expected to Occur on or About Aug 12
GreenFirst Forest Products 2Q Sales CAD 96.1M; 2Q Net Income CAD 5.5M; 2Q EPS CAD 0.24; 2Q Adj EBITDA CAD 11.8M; Reports 2Q EPS of CAD 0.24; 2Q EPS C$0.24; 2Q Sales C$96.1M; Outlook for the North Amer Lumber Industry Reflects Ongoing Macroeconomic Uncertainty, But Long-Term Demand Fundamentals Remain Supportive; Longer-Term Demand Outlook for Lumber Remains Positive and Is Supported by Structural Housing Market Dynamics
I-80 Gold 2Q Rev $24.3M; 2Q Loss/Shr 6c; 2Q Adj Loss/Shr 5c
Medexus Pharmaceuticals 1Q Adj EBITDA $4.68M; 1Q Revenue $28.6M; FactSet Est. $25.2M; 1Q Net Income $0.54M; 1Q Revenue Beats Estimates
Nexus Industrial REIT 2Q FFO Per Share CAD 0.178; 2Q FFO CAD 17.3M; 2Q Net Loss CAD 12.8M; Reports 2Q FFO of CAD 17.3 Million
Onex Partners And Co-Investors Complete Acquisition Of AirSprint
Royal Bank of Canada Sees After-Tax Gain About C$475M From Deal
Sherritt International Confirming Receipt of an Unsolicited, Non-Binding Proposal From a Consortium; Consortium Comprised of Kyma Cap, Glencore Ltd. and a United States Anchor Investor; Consortium's Proposal Is Non-Binding, Conditional and Is Not Currently Executable
Silvercorp 1Q Adj Net Income $53.9M; 1Q Adj EPS $0.24; FactSet Est. $0.24; 1Q Net Income $59.4M; 1Q EPS $0.27; FactSet Est. $0.21 (2 Est.); 1Q EPS Beats Estimates
Expected Major Events for Tuesday 08:00/ITA: Jun Foreign Trade EU
10:00/US: Jul NFIB Index of Small Business Optimism
12:55/US: 08/08 Johnson Redbook Retail Sales Index
14:00/US: Jul Existing Home Sales
20:30/US: API Weekly Statistical Bulletin
23:01/UK: Jul UK Nations and Regions Growth Tracker
23:50/JPN: Jul Money Stock, Broadly-defined Liquidity
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Expected Earnings for Tuesday 908 Devices Inc (MASS) is expected to report $-0.19 for 2Q.
ACCESS Newswire Inc $(ACCS)$ is expected to report $-0.13 for 2Q.
Amentum Holdings Inc $(AMTM)$ is expected to report for 3Q.
Anavex Life Sciences Corp (AVXL) is expected to report $-0.17 for 3Q.
Aprea Therapeutics Inc $(APRE)$ is expected to report $-0.16 for 2Q.
$Aramark(ARMK-W)$ $(ARMK)$ is expected to report $0.43 for 3Q.
Aura Biosciences Inc (AURA) is expected to report $-0.37 for 2Q.
Big Sky Industrial Inc (BSIN) is expected to report $-0.04 for 2Q.
Broadwind Inc $(BWEN)$ is expected to report $-0.02 for 2Q.
Cardinal Health Inc $(CAH)$ is expected to report $1.85 for 4Q.
Chicago Atlantic Real Estate Finance Inc (REFI) is expected to report $0.43 for 2Q.
Cineplex Inc (CGX.T,CPXGF) is expected to report for 2Q.
Curis Inc $(CRIS)$ is expected to report for 2Q.
DarioHealth Corp (DRIO) is expected to report for 2Q.
Dominari Holdings Inc (DOMH) is expected to report for 2Q.
Enviri Corp $(NVRI)$ is expected to report for 2Q.
Flowco Holdings Inc $(FLOC)$ is expected to report for 2Q.
Greystone Housing Impact Investors LP (GHI) is expected to report $-0.08 for 2Q.
Harvard Bioscience Inc $(HBIO)$ is expected to report for 2Q.
Immunic Inc $(IMUX)$ is expected to report for 2Q.
Imunon Inc $(IMNN)$ is expected to report for 2Q.
Janus International Group Inc (JBI) is expected to report $0.11 for 2Q.
Legend Biotech Corp - ADR $(LEGN)$ is expected to report $0.06 for 2Q.
Lithium Argentina AG (LAR.T) is expected to report for 2Q.
LiveWorld Inc $(LVWD)$ is expected to report for 2Q.
Middleby Corp $(MIDD)$ is expected to report $1.85 for 2Q.
Monopar Therapeutics Inc (MNPR) is expected to report for 2Q.
Neuronetics Inc $(STIM)$ is expected to report $-0.13 for 2Q.
Perma-Fix Environmental Services Inc $(PESI)$ is expected to report $-0.31 for 2Q.
Pet Valu Holdings Ltd (PET.T) is expected to report for 2Q.
Silicon Laboratories Inc $(SLAB)$ is expected to report $-0.25 for 2Q.
Smithfield Foods Inc (SFD) is expected to report for 2Q.
Sypris Solutions Inc (SYPR) is expected to report for 2Q.
TScan Therapeutics Inc $(TCRX)$ is expected to report $-0.25 for 2Q.
Tango Therapeutics Inc $(TNGX)$ is expected to report $-0.32 for 2Q.
Venture Global Inc (VG) is expected to report for 2Q.
Vera Therapeutics Inc $(VERA)$ is expected to report $-1.55 for 2Q.
Vestis Corp $(VSTS)$ is expected to report $0.04 for 3Q.
Xtant Medical Holdings Inc (XTNT) is expected to report $-0.02 for 2Q.
Zenas BioPharma Inc $(ZBIO)$ is expected to report for 2Q.
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ANALYST RATINGS ACTIONS Akamai Technologies Cut to Hold From Buy by HSBC
Apple Cut to Underperform From Hold by Jefferies
Arko Cut to Outperform From Strong Buy by Raymond James
Beazer Homes Cut to Perform From Outperform by Oppenheimer
BioLife Solutions Cut to Hold From Buy by Benchmark
BlackRock TCP Capital Raised to Market Perform From Underperform by Keefe, Bruyette & Woods
Chemours Cut to Neutral From Buy by UBS
Cognex Cut to Hold From Buy by HSBC
Compass Minerals Cut to Underweight From Neutral by JP Morgan
Dick's Sporting Goods Raised to Overweight From Equal-Weight by Wells Fargo
Domino's Pizza Cut to Hold From Buy by Loop Capital
Doximity Cut to Underweight From Equal-Weight by Wells Fargo
Everpure Raised to Overweight From Equal-Weight by Morgan Stanley
Everpure Raised to Positive From Neutral by Susquehanna
FirstCash Holdings Raised to Buy From Hold by Loop Capital
Hewlett Packard Ent Raised to Overweight From Equal-Weight by Morgan Stanley
i3 Verticals Cut to Hold From Buy by Benchmark
Interparfums Cut to Hold From Buy by TD Cowen
Interparfums Cut to Neutral From Buy by Goldman Sachs
Kennametal Cut to Underweight From Equal-Weight by Morgan Stanley
Lincoln Electric Raised to Equal-Weight From Underweight by Morgan Stanley
LSB Industries Raised to Outperform From Sector Perform by RBC Capital
MapLight Therapeutics Cut to Neutral From Buy by UBS
NetApp Raised to Equal-Weight From Underweight by Morgan Stanley
Protagonist Therapeutics Raised to Buy From Neutral by Goldman Sachs
Samsara Cut to Neutral From Overweight by Piper Sandler
Sandisk Raised to Buy From Hold by Argus Research
Sezzle Raised to Buy From Hold by TD Cowen
Spectrum Brands Cut to Sector Perform From Outperform by RBC Capital
Tenax Therapeutics Cut to Market Perform From Outperform by William Blair
Teradata Cut to Equal-Weight From Overweight by Morgan Stanley
Trade Desk Cut to Neutral From Buy by DA Davidson
Trade Desk Cut to Reduce From Hold by HSBC
Varex Imaging Cut to Neutral From Buy by Sidoti & Co.
This article is a text version of a Wall Street Journal newsletter published earlier today.
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