Three things to watch on Monday
Well, we kick off the things you need to know by taking a look at where the US futures stand. And as you can see, it's all looking pretty positive this morning, as investors are clearly feeling more confident following the trade deal struck between the US and EU on Sunday.
Well, the first thing you need to know before the opening bell rings is what an important week this is for the markets. Why?
Firstly, there's a slew of economic data set for release, including the jobs report, inflation numbers, consumer confidence data, and Q2 GDP numbers, the broadest measure of how the economy is actually doing.
But perhaps most importantly, the Federal Reserve will decide whether to cut rates or hold steady one more time.
On top of all of that, four of the MAG 7 stocks report earnings this week: Microsoft, Meta, Amazon, and Apple.
But that's not all. We also have the August 1st trade deadline.
And that brings us on to the next thing you need to know before the opening bell rings: and the trade deal that the US and EU struck on Sunday.
President Trump and European Commission president Ursula von der Leyen announced the deal from one of President Trump's golf courses in Scotland.
So we have good news.
Uh, we've reached a deal.
It's a, uh, good deal for everybody, I believe.
And, uh,
it's, I think you were saying this is probably the biggest deal ever reached
in any capacity trade or beyond trade.
It is.
Well, the framework of a trade deal has been agreed that will include a baseline tariff of 15% on EU goods imported into the US.
On Friday, the president said that letters dictating tariff rates for over 200 countries would go out soon, while his administration works to clinch deals with larger trade partners including India and Canada, though Trump conceded he hasn't had a lot of luck with the latter.
But the next biggest deal the US can now strike is with China.
And that brings us on to the last thing you need to know before that opening bell rings. According to the South China Morning Post, Beijing and Washington are expected to extend their tariff truce by another three months, as trade talks that kick off today in Stockholm.
And according to the Financial Times, the US has frozen restrictions on technology exports to China to avoid hurting trade talks with China and help President Trump secure a meeting with President Xi this year.
The talks between Chinese and US officials in Sweden will be the third round of negotiations for the superpowers. Remember that earlier this year, President Trump looked like he was set to restrict technology exports to China. In April, his team told Nvidia it would block the export of its H20 chip, which was designed for the Chinese market after the Biden administration restricted more advanced chips. But after direct lobbying from Nvidia's CEO, Jensen Huang, President Trump reversed that decision.
Okay, it's time to look in more detail at those big corporate results out later this week.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
What if the dollar has bottomed?
-- A recent rebound in the U.S. dollar may mark the end of its year-to-date slide, potentially easing pressure on European equities and resetting key assumptions across global markets. The dollar, down around 10% from January highs, has recently bounced following U.S. trade agreements with Japan and the EU. Barclays analysts say this move could reflect the early stages of a broader shift, particularly as speculative positioning against the dollar looks stretched and U.S. earnings and macro data remain firm. The rally in the euro, driven more by capital flows than interest rate differentials, has been a drag on European earnings, especially for exporters. Barclays' FX strategists expect the euro to weaken gradually, forecasting EUR/USD to fall toward 1.13. That shift would reverse some of the eurozone's year-to-date 'exorbitant benefit' from dollar weakness, which had exacerbated the impact of deteriorating terms of trade due to tariffs. European stocks have lagged U.S. peers in part due to this FX dynamic. Barclays says the stronger euro has hit corporate earnings harder than tariffs, contributing to a wave of EPS downgrades in export-heavy sectors. But a dollar turnaround may offer some relief, with the potential to put a floor under European earnings estimates. Medium-term risks remain. Concerns around Federal Reserve independence and potential rate convergence in 2026, especially if German or EU growth surprises to the upside — could limit sustained dollar strength. Still, Barclays concludes that FX is no longer a one-way bet. If the dollar has in fact bottomed, it would mark a meaningful shift in global equity drivers, the brokerage said. Related articles What if the dollar has bottomed? After soaring 149%, this stock is back in our AI's favor - & already +25% in July If Powell goes, does Fed trust go with him?
Yahoo
6 minutes ago
- Yahoo
Trump Media brings Truth token plans into the open in latest SEC filing
Trump Media has formally disclosed plans for a Truth-branded utility token and digital wallet in its latest Securities and Exchange Commission filing, months after first teasing the concept in a shareholder letter. The filing describes the token as part of a 'larger rewards program' integrated into a 'Truth digital wallet,' initially allowing users to pay for Truth+ subscriptions. Over time, the token could be applied to other products and services 'in the Truth ecosphere,' hinting at a broader platform-wide utility. While the company doesn't explicitly call it a cryptocurrency, the language suggests blockchain-based infrastructure is likely. The Q2 filing marks the first time the initiative has been included in public financial documents, indicating the project is now being treated as a core component of Trump Media's crypto strategy. It comes amid an aggressive and broadening digital asset pivot. In July, Trump Media deployed $2 billion into Bitcoin and Bitcoin-related securities, making it the fifth-largest public holder of the top cryptocurrency globally. The firm said it raised $2.4 billion in May via a private placement backed by institutional investors, with $1 billion now sitting in restricted cash as collateral for convertible notes, according to the filing. The company also filed for several crypto exchange-traded funds under its fintech division, including funds tied to Bitcoin, Ethereum, and a 'Crypto Blue Chip' index. Trump Media posted $2.3 million in operating cash flow, its first positive quarter, but still recorded a net loss of $20 million, driven by stock-based compensation and lingering legal fees from its 2024 SPAC merger. CEO Devin Nunes has framed the company's crypto exposure as a safeguard against what he calls 'debanking and other acts of political discrimination' by the traditional financial system. Crypto market movers Bitcoin has gained 0.1% in the past 24 hours and is trading at $113,700. Ethereum is down 0.4% in the same period to $3,470. What we're reading UK lifts ban on crypto-linked notes for retail investors after 5 years — DL News Can be dethroned? — Milk Road By Not Staying Chain-Agnostic With Base, Could Coinbase Make a Wrong Bet? — Unchained Bitcoin and Ethereum ETFs suffer second-worst day of 2025 in 'odd end' to landmark week for crypto — DL News Kyle Baird is DL News' Weekend Editor. Got a tip? Email at kbaird@ Sign in to access your portfolio
Miami Herald
7 minutes ago
- Miami Herald
Stocks will try to recover their mojo this week
So after Friday, when the all the stocks in the Standard & Poor's 500 fell an average 1% and the major averages fell more than 2% in a week, it's understandable to ask, "OK, now what?" Don't miss the move: Subscribe to TheStreet's free daily newsletter Well, there are 1,382 earnings reports to think about. There's the economy, too. And all the tariff negotiations to consider. Will there be a deal with China? Can Canada kiss and make up with the Trump administration? How about we think about only a few earnings (we'll get to them shortly) and some of the forces that may well affect markets more than we expect now. Related: Warren Buffett's stock still struggling since May peak The Standard & Poor's 500 Index managed to hit five straight new closing highs between July 21 and July 28. The index then closed lower each day for the next four days ending with Friday's bust, with the S&P 500 off 1.6% for the day. The question is if those four days of selling were one-offs. Let's look at four realities. The indexes and many stocks have been giving off signals for weeks that it was getting to be overbought. Multiples have expanded until something triggered professional money managers to decide to wait for better prices. You saw it Thursday when the Federal Reserve held rates steady and wouldn't say when a rate is coming. You saw it Friday after reports from (AMZN) and Coinbase Global (COIN) disappointed investors. Not so much because the jobs created came in less than expected. It was the huge revisions for May and June that enraged President Trump enough to fire the head of the Bureau of Labor Statistics, accusing her of cooking the data to make him look bad. (Without evidence) This is a month, which, the Stock Traders Almanac tells us, is the worst month of the year for the Dow Jones Industrial Average and second worst month for the S&P 500 and Nasdaq Composite Index. Related: Veteran trader takes hard look at Microsoft Q4 report and sends a warning They're doing back-to-school shopping. They're worried about wild fires in the West. Along the southern Atlantic and Gulf coasts, they're watching for hurricanes. China, Mexico and Canada negotiations are moving slowly. And they're starting to be a problem for many companies that can't absorb higher costs. Listen carefully when Walmart (WMT) reports earnings on Aug. 21. Last week's selloff pushed bond yields lower. Especially the 10-year Treasury note, the key determinant of mortgage rates. The rate on a 30-year mortgage was pushing toward 6.6%. Enough to save a home buyer upwards of $1,200 a year if buying a $300,000 home with 15% down. That assumes buyers and sellers can agree on prices that make sense. Did it affect stocks last week? It sure did. Shares of D.R. Horton (DHI) jumped 5.2% to $150.30 on Friday as bond yields came down. Horton, Pultegroup (PHM) , Lennar (LEN) and (NVR) were all sharply higher Friday and led the S&P 500's Consumer Discretionary Sector. The sector index was down 3.6%, partly because of Amazon's 8.3% tumble. Michael M. Santiago/Getty Images Start with Palantir (PLTR) , which reports after Monday's close. The stock fell 2.9% last week, but it is up 13.2% this quarter and 104% this year. This an artificial intelligence play. It takes lots and lots of data and makes sense of it for military and big corporate clients. Revenue estimate: Earnings of 12 cents a share, up 33%. Revenue of $939 million would be up 38%. It is a pricey stock: Its simple price earnings ratio is 674. Its forward p/e ratio is 328. More Palantir Veteran trader surprises with Palantir price target and commentsMusk moves xAI, Grok onto Palantir turfVeteran analyst sends bold message on Palantir stock targetPalantir makes surprise move into weather On the AI vein, chipmaker Advanced Micro Devices (AMD) reports after Tuesday's close. The revenue estimate is $7.4 billion, up 27.2%. Earnings are projected at 40 cents, but down 42%. Eaton Corp (ETN) , maker of important gear used in AI applications, also reports Tuesday. Related: A country is ready to scrap all visas for Americans Wednesday brings in consumer stocks, especially McDonald's (MCD) and Walt Disney Co. (DIS) . Both should have lots to say about what consumers are telling them. Neither is expected to report big earnings and revenue gains. Eli Lilly (LLY) and Gilead Sciences (GILD) lead the Thursday earnings. The former has a big weight drug Zepound with more in the pipeline. Also reporting Uber Technologies (UBER) , DoorDash (DASH) , Shopify (SHOP) and Airbnb (ABNB) . Related: Costco has a serious credit card problem The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
