Equities close lower as earnings weigh; Fed statement on tap
A host of Dow components reported earnings, with UnitedHealth (UNH.N), opens new tab, Boeing (BA.N), opens new tab and Merck (MRK.N), opens new tab all trading lower after their quarterly results.
Health insurer UnitedHealth was the biggest drag on the Dow after a disappointing profit forecast, while Boeing declined despite reporting a smaller second-quarter loss.
Merck dipped after the drugmaker reported quarterly results and said it was extending its pause on shipments of HPV vaccine Gardasil to China until at least the end of 2025 due to persistent weakness in demand.
"Earnings have been a bit of a mix. Economic data has been somewhat mixed too, but not enough to move the needle in terms of the Fed," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
"The next two days, you have Microsoft, Meta, Apple, Amazon - those are big companies, and they will move markets depending on how the earnings are and how the outlooks are."
Earnings from megacaps Meta (META.O), opens new tab, Microsoft (MSFT.O), opens new tab, Amazon (AMZN.O), opens new tab and Apple (AAPL.O), opens new tab are due this week and are likely to have a strong influence on market direction due to their large market weightings.
According to preliminary data, the S&P 500 (.SPX), opens new tab lost 18.43 points, or 0.29%, to end at 6,371.34 points, while the Nasdaq Composite (.IXIC), opens new tab lost 74.98 points, or 0.35%, to 21,103.61. The Dow Jones Industrial Average (.DJI), opens new tab fell 193.87 points, or 0.45%, to 44,643.69.
United Parcel Service (UPS.N), opens new tab shares plunged as the package delivery company posted earnings and again declined to issue annual revenue and margin forecasts, deepening concerns that U.S. President Donald Trump's continually changing trade policy is weighing on the company.
That dragged the Dow Jones Transport average (.DJT), opens new tab down and it suffered its biggest daily percentage decline since late May.
Likewise, Whirlpool (WHR.N), opens new tab plummeted after the home appliances maker slashed its annual earnings forecast and dividend, as the appliance maker cited pressure from a pull-forward in imports by rivals ahead of Trump's tariffs.
Procter & Gamble (PG.N), opens new tab shares also fell, as the maker of consumer goods such as dish soap and toilet paper forecast annual results below estimates and said it would raise prices on some products to offset the tariff impact.
Nearly 200 S&P 500 components have reported earnings and are posting results 6.4% above expectations, according to LSEG data, compared with an average of 6.3% over the last four quarters.
On the economic front, consumer confidence in July increased more than expected to 97.2. In June, U.S. job openings and hiring, or JOLTS data, had decreased, pointing to a further slowdown in labor market activity.
The JOLTS report was the first in a string of data on the labor market this week, culminating in Friday's government payrolls report.
The Fed is expected to leave rates unchanged at its policy announcement on Wednesday and remarks by Fed Chair Jerome Powell will be closely monitored to gauge the timing of any potential rate cuts.
Key negotiations between the U.S. and China completed their second day in Stockholm as the world's two leading economies aim to resolve their trade conflict, with Trump saying he was told by Treasury Secretary Scott Bessent that he had a very good meeting with Chinese officials.
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Reuters
an hour ago
- Reuters
India to maintain Russian oil imports despite Trump threats, government sources say
NEW DELHI, Aug 2 (Reuters) - India will keep purchasing oil from Russia despite U.S. President Donald Trump's threats of penalties, two Indian government sources told Reuters on Saturday, not wishing to be identified due to the sensitivity of the matter. On top of a new 25% tariff on India's exports to the U.S., Trump indicated in a Truth Social post last month that India would face additional penalties for purchases of Russian arms and oil. On Friday, Trump told reporters he had heard that India would no longer be buying oil from Russia. But the sources said there would be no immediate changes. "These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight." Justifying India's oil purchases from Russia, a second source said India's imports of Russian grades had helped avoid a global surge in oil prices, which have remained subdued despite Western curbs on the Russian oil sector. Unlike Iranian and Venezuelan oil, Russian crude is not subject to direct sanctions, and India is buying it below the current price cap fixed by the European Union, the source said. The New York Times also quoted two unnamed senior Indian officials on Saturday as saying there had been no change in Indian government policy. Indian government authorities did not respond to Reuters' request for official comment on its oil purchasing intentions. However, during a regular press briefing on Friday, foreign ministry spokesperson Randhir Jaiswal said India has a "steady and time-tested partnership" with Russia. "On our energy sourcing requirements ... we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," he said. The White House did not immediately respond to requests for comment. Trump, who has made ending Russia's war in Ukraine a priority of his administration since returning to office this year, has expressed growing impatience with Russian President Vladimir Putin in recent weeks. He has threatened 100% tariffs on U.S. imports from countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the leading supplier to India, the world's third-largest oil importer and consumer, accounting for about 35% of its overall supplies. India imported about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by sources. But while the Indian government may not be deterred by Trump's threats, sources told Reuters this week that Indian state refiners stopped buying Russian oil after July discounts narrowed to their lowest since 2022 - when sanctions were first imposed on Moscow - due to lower Russian exports and steady demand. Indian Oil Corp ( opens new tab, Hindustan Petroleum Corp ( opens new tab, Bharat Petroleum Corp ( opens new tab and Mangalore Refinery Petrochemical Ltd ( opens new tab have not sought Russian crude in the past week or so, four sources told Reuters. Nayara Energy - a refinery majority-owned by Russian entities, including oil major Rosneft ( opens new tab, and major buyer of Russian oil - was recently sanctioned by the EU. Nayara's chief executive resigned following the sanctions, and three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions, Reuters reported last week.
Scottish Sun
an hour ago
- Scottish Sun
Marks & Spencer announces exact date it will close 100-year-old flagship store after ‘never recovering from Covid'
Another M&S store is soon to reopen after an exciting revamp END OF AN ERA Marks & Spencer announces exact date it will close 100-year-old flagship store after 'never recovering from Covid' Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MARKS & Spencer has confirmed its historic flagship store will close in a matter of weeks, after failing to recover from Covid. The popular supermarket has been serving Wolverhampton shoppers since 1929, however it will soon be closing its doors for good. Sign up for Scottish Sun newsletter Sign up 2 M&S has announced the closing date of one of its flagship stores Credit: Google Maps The store is located on Dudley Street, Wolverhampton and will stop trading on September 27. M&S regional manager, Calum Telford, said: "I would like to say a massive thanks to all our customers who have shopped with us over the years and our colleagues, past and present, who have contributed to the store. "We have a proud history in Wolverhampton and are working with the city council to find a suitable alternative food location. "This is part of our wider investment into the Black Country, including modernising our Merry Hill store, and we will keep the local community updated." Mr Telford added: "In the meantime, conversations are continuing with our store colleagues and we will offer them alternative roles at M&S wherever possible." Staff at the Dudley store have also been informed that it has been confirmed by bosses that the business hopes to find a suitable alternative city location to open a new dedicated food store. M&S first announced the store's closure last month after sharing that it had been performing "less well for a long period of time." According to bosses, this is a result of the COVID-19 pandemic, from which the shop "never fully recovered." In a statement made at the time, Mr Telford said: ""Our UK-wide store rotation programme is all about reshaping for growth and making sure every M&S store delivers the best possible shopping experience for our customers. "That's why we have made the tough decision to propose the closure of our Dudley Street store. M&S launches first-of-its-kind store "Sadly, the store has been performing less well for a long period of time and has never fully recovered from the Covid pandemic." This comes after M&S announced in 2022 than it intended to reduce its number of traditional department store openings from 247 to 180, while also opening an additional 100 new food halls by April 2026. Also, earlier this summer company chairman Archie Norman said the firm was looking to exit "struggling town centres" as part of a £500 million plan to update its retail store portfolio nationwide. Meanwhile, Wolverhampton Council has stressed that it has been working alongside M&S to try and find a new location for a food hall in the city. A council spokesperson said: 'It will be sad to see M&S leave the Dudley Street store at the end of September - but they remain committed to Wolverhampton and we are working with them to identify suitable locations that fit their new business model. 'We appreciate how unsettling this is for staff, and the council's Wolves at Work employment support team is connected with M&S to support workers and their families. "We are also keen to see the privately-owned Dudley Street site brought back into use quickly. 'As everyone knows town and city centres across the country are changing and we fully understand M&S's difficult decision was driven by wider, changing market conditions and customer behaviour." In brighter news, M&S is set to launch its revamped food hall at Merry Hill shopping centre this Friday. Wolverhampton Council have said despite the sad news about the department store closure, there are lots of regeneration projects set to create new homes and jobs to look forward to. A spokesperson added: ""The transformation of the city centre includes thousands of new city centre homes at Smithgate and Canalside; better connectivity and safer public spaces; a world-class entertainment venue at the University of Wolverhampton at The Halls; a new independent cinema at the Chubb Building; a growing commercial district at the Interchange and a new £61million City Learning Quarter which opens this autumn and will bring thousands of new visitors to our city centre every week.' Why are retailers closing stores? RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis. High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going. However, additional costs have added further pain to an already struggling sector. The British Retail Consortium has predicted that the Treasury's hike to employer NICs from April will cost the retail sector £2.3billion. At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40. The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year. Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025." It comes after almost 170,000 retail workers lost their jobs in 2024. End-of-year figures compiled by the Centre for Retail Research showed the number of job losses spiked amid the collapse of major chains such as Homebase and Ted Baker. It said its latest analysis showed that a total of 169,395 retail jobs were lost in the 2024 calendar year to date. This was up 49,990 – an increase of 41.9% – compared with 2023. It is the highest annual reading since more than 200,000 jobs were lost in 2020 in the aftermath of the COVID-19 pandemic, which forced retailers to shut their stores during lockdowns. The centre said 38 major retailers went into administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker. Around a third of all retail job losses in 2024, 33% or 55,914 in total, resulted from administrations. Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes. Professor Bamfield has warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.
Daily Mail
an hour ago
- Daily Mail
Florida homeowners rush to make improvements to bag tax credit
In the wake of Donald Trump's 'Big, Beautiful Bill', Florida homeowners are clamoring to add solar panels to their homes before it's too late. Trump 's Big, Beautiful Bill Act was signed into law on July 4. Amongst restrictions to Medicaid and tightening on immigration, it also moved up the deadline for homeowners wishing to receive a tax credit for their solar panels. Now, homeowners who want to conserve energy and earn a 30 percent tax credit must have their solar panels installed by the end of the year. US Representative Kathy Castor told Floridians at a press conference this week: 'Our message today is if you are interested in lower–cost solar for your home or for your business, for your church, synagogue or mosque — you have to act now.' And act they have, but the rush is overwhelming local solar panel companies and creating a dismal future for the industry in Florida as a whole. According to the Solar Energy Industries Association , the appropriately named Sunshine State ranked third in the solar industry. Over 20,000 solar panel systems have been installed, employing 14,000 Floridians. The often sweltering heat and sunny conditions makes low–coast solar a good way to decrease electric bills and promote environmentally-friendly living. Bill Johnson, who runs Brilliant Harvest in Sarasota, Florida told the Tampa Bay Times : 'Within 48 hours of the bill being signed, we had enough contracts to complete the year.' It could take weeks for companies like Johnson's to obtain the proper permits and contracts to even begin installing solar panels. So to get that tax credit homeowners must start immediately. Steve Rutherford, the CEO of Tampa Bay Solar said he can't train enough installers to fulfill every request by the December 31 deadline. But after that deadline has come and gone, solar industry professionals worry what a drastic decline in demand will do to their business. Without the government incentive to install green energy, Tampa businesses could see job losses. Rutherford said that these realizations are 'a bit of a funeral in the industry'. Johnson was a little more optimistic and noted that he'd already had clients create contracts for next year, despite losing out on the tax credit. 'This is a body blow,' he said. Officials worried that losing federal support for solar programs could cause electric bills everywhere to rise, especially amidst the heat waves Tampa had seen this summer. 'As TECO, Duke and FP&L ask for higher rate increases and your electric bills go up, part of the reason is because of the big ugly bill, and taking away the tax credits you were enjoying for cleaner, cheaper energy,' said Castor. According to the United States Department of Energy , solar panels may still be a good thing for your wallet with or without a 30 percent tax cut. Installation can increase the value of a home by an average of $15,000. Depending on a home's location, sunlight exposure, and climate, owners could still save hundreds of dollars a year, per the US Department of Energy .
