September S&P 500 E-Mini futures (ESU25) are trending up +0.24% this morning, extending yesterday’s gains, while investors shift their focus from recent U.S. trade deals to economic data, a new round of corporate earnings reports, and the start of the Federal Reserve’s two-day policy meeting.
In yesterday’s trading session, Wall Street’s main stock indexes closed mixed, with the S&P 500 and Nasdaq 100 notching new all-time highs. Super Micro Computer (SMCI) surged over +10% and was the top percentage gainer on the S&P 500 amid optimism that demand for its AI servers will remain strong. Also, Advanced Micro Devices (AMD) climbed more than +4% and was the top percentage gainer on the Nasdaq 100 following reports that the chipmaker plans to raise the price of its Instinct MI350 AI accelerator from $15,000 to $25,000. In addition, Nike (NKE) rose over +3% and was the top percentage gainer on the Dow after JPMorgan upgraded the stock to Overweight from Neutral with a price target of $93. On the bearish side, Revvity (RVTY) slumped more than -8% and was among the top percentage losers on the S&P 500 after the health sciences company cut its full-year adjusted EPS guidance.
“This is about as busy as a week can get in the markets,” said Chris Larkin at E*Trade from Morgan Stanley. “This week could make or break that momentum in the near term.”
Meanwhile, U.S. President Donald Trump said on Monday that a blanket 15% to 20% “world tariff” rate would apply to trading partners that fail to strike separate trade deals with the U.S. before August 1st.
The Federal Reserve kicks off its two-day meeting later in the day. The central bank is widely expected to leave the Fed funds rate unchanged in a range of 4.25% to 4.50% on Wednesday. The decision comes amid intense political pressure, evolving trade policy, and economic cross-currents. Investors will closely monitor Chair Jerome Powell’s post-policy meeting press conference for clues on a potential September rate cut.
Second-quarter corporate earnings season is in full swing, with investors looking ahead to new reports from prominent companies today, including Visa (V), Procter & Gamble (PG), UnitedHealth (UNH), Merck & Co. (MRK), Booking (BKNG), Boeing (BA), Starbucks (SBUX), and PayPal (PYPL). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +4.5% increase in quarterly earnings for Q2 compared to the previous year, above the pre-season forecast of +2.8%.
On the economic data front, all eyes are on the U.S. JOLTs Job Openings figures, set to be released in a couple of hours. Economists, on average, forecast that the June JOLTs Job Openings will arrive at 7.510 million, compared to the May figure of 7.769 million.
Investors will also focus on the U.S. Conference Board’s Consumer Confidence Index, which came in at 93.0 in June. Economists expect the July figure to be 95.9.
The U.S. S&P/CS HPI Composite - 20 n.s.a. will be reported today. Economists expect the May figure to ease to +2.9% y/y from +3.4% y/y in April.
U.S. Wholesale Inventories data will be released today as well. Economists forecast the preliminary June figure at -0.1% m/m, compared to -0.3% m/m in May.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.410%, down -0.72%.
The Euro Stoxx 50 Index is up +1.03% this morning as positive earnings news shifted some investors’ attention away from worries over the outcome of tariff talks. Defense stocks rebounded on Tuesday after three consecutive sessions of losses. Preliminary data from the National Statistics Institute released on Tuesday showed that Spain’s economy grew at a faster pace in the second quarter. Separately, a survey from the European Central Bank showed that consumers’ median expectation for inflation over the next 12 months fell to 2.6% in June from 2.8% in May, supporting signs that the latest bout of surging price growth has subsided. Meanwhile, the EU avoided an immediate trade war with the U.S., but the trade deal has faced criticism from numerous voices across the Eurozone. The EU and U.S. will seek to finalize a non-legally binding joint statement by August 1st that will elaborate on certain elements agreed upon over the weekend, according to a senior EU official. Goldman Sachs raised its 2025 economic growth forecast for the Eurozone to 1.1% from 1% following the U.S.-EU trade deal, while projecting that U.S. tariffs will reduce growth by 0.4% through the end of next year, down from its earlier estimate of 0.6%. In corporate news, Kon.Philips N.V. (PHIA.NA) climbed over +9% after the Dutch medical-technology company raised its profitability forecast, saying the impact of the trade war was less severe than it had feared. Also, EssilorLuxottica (EL.FP) rose more than +6% after the company posted a rise in first-half operating profit despite being impacted by tariffs.
Spain’s GDP (preliminary) data was released today.
The Spanish GDP has been reported at +0.7% q/q in the second quarter, stronger than expectations of +0.6% q/q.
Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed up +0.33%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.79%.
China’s Shanghai Composite Index closed higher today as investors awaited the outcome of trade talks between Beijing and Washington and the upcoming Politburo meeting. Healthcare stocks extended their rally on Tuesday. U.S. and Chinese officials on Monday wrapped up the first of two days of talks focused on extending their tariff truce past a mid-August deadline and exploring ways to preserve trade relations while ensuring economic security. Meanwhile, Beijing intensified efforts to tackle deflationary pressures and rein in industrial overcapacity. President Xi Jinping criticized local governments for excessively concentrating investment in sectors like artificial intelligence, computing power, and new energy vehicles, pointing to structural inefficiencies in the economy. In other news, China announced measures to boost the birth rate by offering an annual childcare subsidy of 3,600 yuan (about $500) until age three. However, Nomura Holdings said the subsidy would have only a limited effect on consumption and the birth rate, given its relatively small size. Investor focus this week is also on the country’s Politburo meeting, which will likely focus on curbing excessive competition and addressing overcapacity, while many analysts view major stimulus as unlikely. In corporate news, WuXi AppTec surged over +11% in Hong Kong after the biopharmaceutical firm reported a 102% jump in first-half net profit and raised its full-year revenue guidance.
Japan’s Nikkei 225 Stock Index closed lower today, falling for the third straight session, as uncertainty over the corporate outlook and domestic politics weighed on sentiment. Chip and financial stocks led the declines on Tuesday. Analysts said that investors remain cautious about the corporate outlook, which could be affected by the 15% tariff set to be imposed on Japan’s exports to the U.S. Investors are also concerned that Japan’s weakened government could give in to opposition demands for tax cuts, straining the country’s already stretched fiscal position. Meanwhile, most Japanese government bond yields fell on Tuesday after a two-year sovereign note auction attracted the strongest demand since October, as investors saw the current yield level as appealing amid lingering uncertainties over the Bank of Japan’s rate hike trajectory. Investors await the BOJ’s monetary policy decision on Thursday, with the central bank expected to keep its benchmark rate unchanged at 0.5%. Governor Kazuo Ueda’s reaction to the U.S. trade deal will be in focus after his deputy stated that the agreement increased the chances of economic projections being met, a key condition for an additional rate hike. Japan said on Tuesday that the trade deal with the U.S. removed uncertainties surrounding U.S. trade policies, but added that risks of those policies exerting downward pressure on the Japanese economy still warrant close attention. In corporate news, Nitto Denko slid over -3% after the industrial materials maker reported a 16% drop in Q1 operating profit. At the same time, Nomura Research surged more than +8% after the consulting and IT solutions provider posted a 17% increase in Q1 net profit. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -0.61% to 22.71.
Pre-Market U.S. Stock Movers
Sarepta Therapeutics (SRPT) jumped over +36% in pre-market trading after receiving notification from the Food and Drug Administration that it may lift its voluntary pause on shipments of its gene therapy for ambulatory patients with Duchenne muscular dystrophy.
Cadence Design Systems (CDNS) climbed more than +7% in pre-market trading after the company reported stronger-than-expected Q2 results and raised its full-year guidance.
Whirlpool (WHR) plunged more than -16% in pre-market trading after the appliance maker posted downbeat Q2 results and cut its full-year adjusted EPS guidance.
United Parcel Service (UPS) slid over -4% in pre-market trading after the delivery company reported weaker-than-expected Q2 adjusted EPS and said it would not provide full-year revenue or operating profit guidance due to macroeconomic uncertainty.
UnitedHealth Group (UNH) fell over -3% in pre-market trading after the company reported weaker-than-expected Q2 adjusted EPS and provided below-consensus FY25 guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - July 29th
Visa (V), P&G (PG), UnitedHealth (UNH), Merck & Co. (MRK), Booking (BKNG), Boeing (BA), Spotify Tech (SPOT), Starbucks (SBUX), American Tower (AMT), Royal Caribbean Cruises (RCL), Mondelez (MDLZ), United Parcel Service (UPS), Ecolab (ECL), PayPal (PYPL), Republic Services (RSG), Johnson Controls (JCI), Carrier Global (CARR), Norfolk Southern (NSC), Corning (GLW), CBRE (CBRE), Sysco (SYY), Electronic Arts (EA), Arch Capital (ACGL), Seagate (STX), DTE Energy (DTE), PPG Industries (PPG), Hubbell (HUBB), SoFi Technologies (SOFI), Expand Energy (EXE), Essex Property (ESS), Ares Capital (ARCC), Teradyne (TER), W P Carey Inc (WPC), Logitech (LOGI), Unum (UNM), Banco De Chile (BCH), Incyte (INCY), Houlihan Lokey Inc (HLI), Regency Centers (REG), BXP Inc (BXP), FTAI Aviation (FTAI), Stanley Black Decker (SWK), Nextracker (NXT), Frontier Communications Parent (FYBR), Penumbra Inc (PEN), UMB Financial (UMBF), Lithia Motors (LAD), Qorvo Inc (QRVO), Axis Capital (AXS), PJT Partners Inc (PJT), CommVault (CVLT), Armstrong World Industries (AWI), Avis (CAR), Eagle Materials (EXP), Graphic Packaging (GPK), ExlServices (EXLS), Chemed (CHE), Repligen (RGEN), STAG Industrial (STAG), Zurn Water Solutions (ZWS), Caesars (CZR), Varonis Systems (VRNS), Marathon Digital (MARA), Red Rock Resorts (RRR), GATX (GATX), Landstar (LSTR), Sensata Tech (ST), Asbury Automotive (ABG), Alkermes Plc (ALKS), Franklin Electric (FELE), Herc Holdings (HRI), Freshworks (FRSH), Kadant (KAI), Artisan Partners AM (APAM), Highwoods Properties (HIW), The Cheesecake (CAKE), First Interstate BancSystem (FIBK), WesBanco (WSBC), Brightstar Lottery (BRSL), NMI Holdings (NMIH), Polaris Industries (PII), Titan America (TTAM), Four Corners Property Trust Inc (FCPT), Acadia (AKR), GeneDx Holdings (WGS), Ashland Global (ASH), O-I Glass (OI), Inventrust Properties (IVT), Constellium Nv (CSTM), Kiniksa Pharma (KNSA), Camping World Holdings (CWH), Werner (WERN), First Commonwealth Financial (FCF), JBG SMITH Properties (JBGS), Northwest Bancshares (NWBI), AtriCure (ATRC), JetBlue (JBLU), American Assets (AAT), LendingClub (LC), Teladoc Inc (TDOC), Apollo Commercial RE Finance (ARI), Pebblebrook Hotel (PEB), TriMas (TRS), Cimpress NV (CMPR), CECO Environmental (CECO), Neogen (NEOG), Global Industrial Co (GIC), Expro Holdings NV (XPRO).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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