Trade hope sends Wall Street futures higher; earnings kick into high gear
S&P 500 E-minis rose 15.75 points, or 0.25%, at 7:03 a.m. ET, and Nasdaq 100 E-minis climbed 66.25 points, or 0.29%, hovering near all-time highs hit last week.
Dow E-minis were up 92 points, or 0.21%.
With President Donald Trump's August 1 tariff deadline looming, investors are hopeful that there will soon be signs of fresh trade deals.
The European Union is, however, gearing up with an arsenal of potential counter-measures against the United States, EU diplomats said, as hopes for a breakthrough trade deal with Washington dwindled.
This comes after U.S. Commerce Secretary Howard Lutnick on Sunday expressed confidence over striking a trade deal with the EU.
Trump has sent letters to other trading partners including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% to 50%.
The S&P 500 (.SPX), opens new tab and the Nasdaq (.IXIC), opens new tab notched new records last week as investors shrugged off tariff threats, betting the economic fallout might not be as dire as once feared.
Meanwhile, the blue-chip Dow hovered just 1.64% shy of its all-time high.
Markets delivered a mixed reaction to the earnings season that kicked off last week, showing that even a blockbuster report was not enough to impress investors. Netflix (NFLX.O), opens new tab, for instance, posted its steepest intraday tumble in over three months on Friday despite beating earnings' estimates.
Now, all eyes are on marquee names such as Alphabet (GOOGL.O), opens new tab and Tesla (TSLA.O), opens new tab, whose results this week will kick off the "Magnificent Seven" earnings parade, and could set the tone for Wall Street.
Shares of Tesla and Alphabet were up over 1% each in premarket trading. Verizon (VZ.N), opens new tab gained 4.2% after boosting its annual profit forecast.
Meanwhile, shares of Domino's Pizza rose 5.2% after the world's largest pizza chain surpassed analysts' expectations for second-quarter U.S. same-store sales.
Of the 59 S&P 500 companies that have reported quarterly earnings so far this season, 81.4% have surpassed Wall Street's earnings expectations, compared with a long-term average of 67.1%, according to LSEG I/B/E/S data as of Friday.
The week is light on the economic data front, with only notable indicators being weekly jobless claims figures and the July business activity report expected on Thursday.
Investors will closely analyze Federal Reserve Chair Jerome Powell's remarks on Tuesday for any clues on the central bank's next move, especially after last week's mixed inflation signals.
Traders have largely ruled out a July rate cut, and are now pegging the odds at about 60% for a September reduction, according to CME Group's FedWatch tool.
Ethereum-linked companies Bitmine Immersion Technologies , Gamesquare Holdings (GAME.O), opens new tab, BTCS (BTCS.O), opens new tab and Sharplink Gaming (SBET.O), opens new tab advanced between 5.5% and 6.7% as ether traded near its highest level this year after Trump signed into law a bill regulating stablecoins in the United States.
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Reuters
19 minutes ago
- Reuters
Global equity funds draw weekly inflows on trade deal optimism
July 25 (Reuters) - Inflows into global equity funds picked up again in the week through July 23 as optimism over U.S. trade deals, stronger than expected U.S. economic reports and an encouraging start to the corporate earnings season boosted risk sentiment. Global investors snapped up a net $8.71 billion worth of equity funds during the week, reversing a $4.4 billion net withdrawal in the prior week, data from LSEG Lipper showed. The United States and Japan agreed a deal earlier this week which cut existing import tariffs on Japanese goods to a lower-than-threatened 15%. Investors were also hopeful about the prospects of the U.S. and the European Union settling on U.S. import tariffs of around 15%. Investors took comfort from encouraging initial earnings reports as advanced AI chip maker TSMC ( opens new tab posted a record profit and Gatorade owner PepsiCo (PEP.O), opens new tab upgraded its earnings forecasts. Net European equity fund inflows reached an 11-week high of $8.79 billion, while Asian funds drew a net $1.17 billion. U.S. equity funds lagged, although net outflows eased to $2.68 billion from about $11.67 billion the prior week. The technology sector gained $1.61 billion, reversing the previous week's $576 million net outflow. The financial and industrial sectors also saw $1.13 billion and $1.61 billion net additions, respectively. Net purchases of global bond funds extended into a 14th week as they added $17.94 billion. Investors pumped $4.14 billion into short-term bond funds, the largest amount in 13 weeks. Euro-denominated bond funds and high-yield funds attracted a net $3.89 billion and $2.51 billion, respectively. Gold and precious metals commodity funds recorded a net $1.9 billion worth of purchases, the largest weekly figure since June 18. Global money market funds drew a net $2.09 billion after about $21.78 billion of net sales a week ago. Emerging markets saw a revival in buying interest with investors adding bond funds of $2.19 billion and equity funds of $250 million after net disposals of $1.14 billion and $155 million in the prior week, data for a combined 29,669 funds showed.
BBC News
21 minutes ago
- BBC News
'We lived through hell,' say Venezuelans released from mega-prison in El Salvador
"We lived through hell," says 29-year-old Mervin Yamarte as he steps into his mother's home, wiping away the tears and sweat drenching his face. He is one of four men from the neighbourhood of Los Pescadores in the city of Maracaibo, Venezuela, who were deported from the US to the Center for the Confinement of Terrorism (Cecot), a maximum-security jail in El returning to the White House in January, US President Donald Trump has attempted to ramp up deportations of migrants. Many of them have been sent to Cecot, on allegations of criminality, under an agreement with El Yamarte and his friends - Edwuar Hernández Herrera, Andy Perozo and Ringo Rincón - spent four months in the notorious mega-prison before being released in a prisoner exchange last four have told BBC News Mundo that during their months in captivity they were subjected to beatings and treated "like animals", including being made to eat with their BBC has approached the Salvadorean government for a response to the allegations, but has not yet received a response. Its president, Nayib Bukele, has previously denied such allegations, which have been used by the Venezuelan government to attack him amid an ongoing exchange of accusations. Venezuela is currently facing an investigation by the International Criminal Court (ICC) over allegations similar to those it is levelling at El Salvador. Migrants tortured in El Salvador, Venezuela says As part of the prisoner deal that was struck by the governments of the US, Venezuela and El Salvador, a total of 252 Venezuelans were flown from Cecot to the Venezuelan capital, Venezuelans released from Cecot in El Salvador last week were originally deported from the US under the 1798 Alien Enemies Act - a law that was written to allow the removal of individuals who are not US citizens in times of war or act was controversially invoked earlier this year by Trump as part of a sweeping effort to deport alleged gang US authorities accused the deported individuals of being members of the Venezuelan Tren de Aragua criminal gang, and argued that they were "conducting irregular warfare" in the the four deportees who spoke to BBC News Mundo in Los Pescadores have denied any links with the Tren de said they were arrested in Texas for alleged immigration offenses after mistakenly being identified as gang members because of their tattoos. In their hometown, following their incarceration in Cecot, the return of the four men was celebrated with joyous abandon. When they finally arrived at 16:15 local time on Tuesday, after a 15-hour bus journey from the capital, a noisy caravan of motorbikes sounded their horns to welcome them. "Volver a Casa" (Returning Home), a song which has become an anthem for returning Venezuelan migrants, was also blasting at full Yamarte, who worked in a tortilla factory in Texas when he was detained, was welcomed by his family at his mother's relatives had decorated the place with balloons in the yellow, blue and red of the Venezuelan flag and had bought him an array of presents - including a watch, a couple of bottles of aftershave and chocolates. But as Mr Yamarte entered the home, carrying his six-year-old daughter in his arms, he recalled the physical and psychological abuses he says he suffered at Cecot. "The prison director told us that whoever entered [the prison] would never come out," he Yamarte said the guards forced inmates to eat "like animals", using their hands while sitting on the added that they were hit "frequently" and not given anything to clean themselves Monday, Venezuela's Attorney-General, Tarek William Saab, denounced the use of "systemic torture" at Cecot, which he said included sexual abuse, daily beatings and giving inmates rotten announced Venezuela would investigate President Bukele, as well as Justice Minister Gustavo Villatoro and Head of Prisons Osiris Luna Meza, over the alleged replied on X, writing that "the Maduro regime was satisfied with the prisoner exchange, that's why they accepted it".Referring to the fact that the prisoner exchange included the release of all the US nationals held in Venezuela, Bukele added that "now they shout and are indignant, not because they disagree with the [prisoners'] treatment, but because they realise they are left without any hostages from the most powerful country in the world". Since it was opened in 2023, Cecot has come under repeated and heavy criticism by rights groups over its treatment of inmates, in particular the high number of prisoners per cell and the harsh conditions they are subjected to. Prison officials insist it meets international standards. But that is not the experience Andy Perozo said he had. "Beatings were part of the daily routine," he told BBC News Mundo at his parents' house in Los 30-year-old said he was hit by a rubber bullet near his left eye during his time at Cecot. He alleged that the prison authorities would only feed and clothe the inmates well in the immediate run-up to visits by Red Cross delegates, and in order to "take photos" that would let the prison appear in a good light. Inside El Salvador's secretive mega-prison Mr Hernández Herrera, at 23 the youngest of the four detainees from Los Pescadores, was welcomed home by his mother, Yarelis. She said she spotted her son getting off the plane at Maiquetía airport, outside Caracas, on Friday. About a dozen neighbours had gathered in front of the TV to watch the broadcast of the arrival of the two planes from El Salvador. "It was as if we were watching a football match what with all the crying and shouting," she recalled. "You'd have to be made of stone not to cry."Next to the entrance of her home, hung a poster with Mr Hernández Herrera's photo and the words "Welcome home, my love!".Below the photo, a message for him: "You know, your mother never gave up on you, nor did your family." Inside, sipping a beer, Mr Hernández Herrera said he, too, suffered "torture" inside Cecot, adding that he was "shot at" with rubber bullets four times. "The beds were metal, I didn't know if it was better to sleep or stay awake," he said, adding, "we never saw a lawyer or a judge."Mr Rincón, 39, speaking to BBC Mundo sitting with his mother and children, also said he was the victim of abuse, which he alleged started as soon as they arrived in El Salvador. "They beat us until we bled. We were hit as we were dragged off the plane, made to walk hunched over, tied up with up to five shackles."He told the BBC that he plans to lodge an official complaint about his treatment inside Cecot through the Venezuelan Attorney-General's office. Another Venezuelan man is already taking action against the US government for sending him to his own description of conditions inside the prison, Andy Perozo told BBC Mundo that the Venezuelan inmates rioted twice after finding out that one of their own had been seriously blamed one particular guard, a man the inmates dubbed "Satan", for the majority of the abuse. But when the topic of conversation turned to his children, Andy Perozo smiled. He hugged them as he posed for a group photo. "I hardly recognise them, they're so big now," he jokes. Asked about his plans for the future he said: "Not leave the country again and work."
The Guardian
an hour ago
- The Guardian
Reeves risks missing fiscal targets and should consider tax rises, says IMF
The International Monetary Fund has said the UK government risks being knocked off course in meeting its targets to repair the public finances and urged Rachel Reeves to give herself more leeway through tax or spending measures. In a final version of an annual report on the UK economy, the Washington-based organisation said changes introduced by the chancellor to the government's deficit reduction plans had enhanced the credibility and effectiveness of fiscal policy. 'Risks to this strategy must be carefully managed. In an uncertain global environment and with limited fiscal headroom, fiscal rules could easily be breached if growth disappoints or interest rate shocks materialise,' the IMF said. The Fund also said the risk of overly-frequent changes to tax and spending policy could be reduced by measures including the creation of more fiscal room for manoeuvre by Reeves to meet her targets. 'The first best (option) would be to maintain more headroom under the rules, so that small changes in the outlook do not compromise assessments of rule compliance,' it said. The IMF said that delivering Reeves's plans to increase economic growth 'involves significant challenges given limited fiscal space, the breadth of the reforms, and the volatile external environment' amid US president Donald Trump's trade war. In its May report, the IMF said Reeves should refine her fiscal rules to prevent the need for emergency spending cuts. Since then the government's high-stakes welfare U-turn has put further pressure on the public finances, and Reeves prepares for a tough autumn budget amid mounting speculation over the need for large tax rises. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion In response to Friday's report, Reeves said that the Fund had backed her choices for the UK economy to recover and her plans would 'tackle the deep-rooted economic challenges that we inherited in the face of global headwinds'. Reeves is under pressure to raise taxes later this year to remain on course to meet her budget targets, having already increased social security contributions paid by employers and along with revenue-raising measures in late 2024.
