The Breakfast Briefing: U.S. Stock Futures Muted As Investors Await Earnings

Ted

FYI: U.S. stock index futures were mixed Tuesday morning ahead of earnings reports from a slew of major American companies.

At around 4.20 a.m. ET, Dow futures were 4 points higher but indicated an implied negative open of around 5 points, while the S&P 500 and Nasdaq were seen edging into positive territory.

Earnings season gets underway in earnest Tuesday with banking giants Goldman Sachs, J.P. Morgan Chase, Wells Fargo and Charles Schwab all set to report earnings before the bell, along with other big names such as Johnson & Johnson and Domino’s Pizza. Both United Airlines and CSX are due to report after the bell.

Burberry Group was among the biggest risers in European markets Tuesday, jumping 6% after the British coat maker said sales were in line with its forecast of double growth for fiscal 2020.

Elsewhere Bayer rose 2% after the German chemicals group won a huge cut in damages awarded in a U.S. case tieing its roundup weedkiller to cancer. A federal judge on Monday cut the $75 million in punitive damages awarded to a man in Northern California by $55 million.

European equities opened flat with little news to give the market direction. In China, stocks in Shenzhen were fractionally lower, while Hong Kong’s Hang Seng was fractionally higher.

Government bond yields were also little changed with U.S. 10-year Treasury yields at 2.099%, up from 2.093% Monday. In Germany, 10-year bund yields were down 0.003% to minus 0.255%.

In commodities, Brent crude oil was down 0.2% at $66.38 per barrel and gold was up 0.2% at $1,416.10 an ounce.
Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-pause-as-earnings-season-begins-11563264376

Bloomberg
https://www.bloomberg.com/news/articles/2019-07-15/asian-stocks-to-trade-mixed-treasuries-advance-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-stock-market-rally-navigate-earnings-season/

CNBC:
https://www.cnbc.com/2019/07/16/us-stock-futures-higher-investors-await-earnings.html

Reuters:
https://uk.reuters.com/article/uk-usa-trade-mexico-canada/trump-presses-for-usmca-passage-as-lighthizer-lawmakers-prepare-to-meet-idUKKCN1UA2IM

U.K.
https://uk.reuters.com/article/uk-britain-stocks/burberry-nudges-ftse-100-higher-profit-alert-hits-a-g-barr-idUKKCN1UB0J8

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-flat-bayer-boosted-by-new-roundup-ruling-idUSKCN1UB0J1

Asia:
https://www.marketwatch.com/story/asian-markets-little-changed-as-investors-await-earnings-reports-2019-07-15/print

Bonds:
https://www.cnbc.com/2019/07/15/us-treasury-yields-surge-following-biggest-weekly-climb-in-three-months.html

Currencies:
https://www.cnbc.com/2019/07/16/forex-markets-sterling-brexit-in-focus.html

Oil:
https://www.cnbc.com/2019/07/16/oil-markets-us-gulf-of-mexico-platforms-in-focus.html

Gold:
https://www.cnbc.com/2019/07/16/gold-markets-us-retail-sales-data-in-focus.html

Cuirrent Futures:
https://finviz.com/futures.ashx