OPENING CALL
Stock futures pointed to a mostly lower open Wednesday as both the dollar and oil lost ground and with Treasury rates little changed.
It comes as Trump indicated Tuesday evening the U.S. would soon impose tariffs higher than 10% on a group of minor trading partners.
Investors await more inflation-related data as producer price figures for June are due.
Stocks to Watch
Advanced Micro Devices fell 1.7%, losing some of the ground gained in the prior session after getting approval to resume shipments of chips to China.
ASML tumbled 7.9% after the company said it couldn't guarantee growth in 2026.
Brighthouse Financial jumped 7.4% after The Wall Street Journal reported Aquarian Holdings was in exclusive talks to acquire the company.
Global Payments rose 6.8%. The Financial Times reported Elliott Management established a large stake in the company.
J.B. Hunt Transport Services declined 1.1% after second-quarter earnings declined.
Johnson & Johnson rose 0.3% ahead of its second-quarter print.
Nvidia was down 0.8% after rising Tuesday.
Watch For:
U.S. Industrial Production and Capacity Utilization for June; EIA Weekly Petroleum Status Report; U.S. Federal Reserve Beige Book; 2Q earnings from Bank of America; Goldman Sachs; Johnson & Johnson; Morgan Stanley
Today's Top Headlines/Must Reads:
- Oracle Is No Longer AI's Dark Horse
- EU Exports to U.S. Cool as Trans-Atlantic Trade Faces Tariff Test
- After a Mayor's Mysterious Death, a Land Dispute Divides Republicans in Tennessee
MARKET WRAPS
Forex:
The dollar fell slightly against a basket of currencies. Short-term gains in the U.S. dollar were possible but likely limited, Commerzbank said. Prospects of interest-rate cuts by the Federal Reserve should curtail any recovery.
The dollar reversed some of its strong gains after annual CPI inflation picked up. The strong inflation data could make it hard to justify an interest-rate cut by the Federal Reserve in September, ING said.
The euro gained against the dollar and UBS expects the dollar to remain under pressure into next year, adding that the euro remains the preferred alternative.
Sterling climbed against the euro and against the dollar after U.K. CPI inflation rose to 3.6% in June.
Bonds:
The 10-year Treasury yield fell as inflation accelerated in June. Capital Economics said a rebound in inflation remained a headwind to U.S. stock and bond markets this year.
The T reasury was expected to scale up its buyback program, Barclays said, adding that this should come a quarter earlier than prior expectations.
Metals:
Gold futures edged higher as investors digested U.S. consumer price data and global trade negotiations.
Energy:
Oil prices edged lower and remained in a tight range as traders weighed signals of short-term market tightness and persistent uncertainty over U.S. trade talks.
TODAY'S TOP HEADLINES
ASML Shares Slump as Tariff Uncertainty Prompts Growth Warning
ASML Holding shares slid after the Dutch supplier of chip-making equipment said it could no longer guarantee growth in 2026 amid increasing uncertainty from President Trump's tariffs.
The warning comes days after Trump sent a letter to the European Union threatening 30% tariffs on imports from the bloc beginning Aug. 1 as trade talks between Brussels and Washington continue.
Renault Shares Plunge on Guidance Downgrade
Renault shares plunged in early trade Wednesday as investors digested a downgrade to full-year guidance and preliminary first-half numbers that came in below expectations.
Shares opened 16% lower after trading was initially halted.
Stellantis Scraps Hydrogen Vehicle Program
Stellantis said it would discontinue its hydrogen fuel-cell technology development program because it doesn't expect the adoption of hydrogen-powered light commercial vehicles before the end of the decade.
The Jeep parent cited limited availability of hydrogen-refueling infrastructure, high capital requirements, and the need for stronger consumer purchasing incentives.
Cartier Parent Richemont Posts Sales Growth Despite Luxury Slowdown
Cartier owner Richemont reported an increase in sales for its fiscal first quarter, as jewelry demand allowed the group to defy a downturn that is hurting most of its luxury rivals.
Growth at Richemont's key jewelry division, which houses heavyweight brands Cartier and Van Cleef & Arpels, has buoyed the Swiss company's sales in recent quarters and offset declines at its specialist watchmakers business.
Trump Effect Starts to Show Up in Economy
A chaotic rollout of tariffs is starting to filter through to price tags on store shelves. An immigration crackdown is beginning to weigh on jobs growth, measured by federal surveys. Taken together, the impact of President Trump's whirlwind six months back in office is showing up in the economy.
The effect isn't yet enough to derail the economy, which by many measures has weathered Trump's trade wars much better than many on Wall Street and in Washington feared. Economists see less risk of a recession now than three months ago, a Wall Street Journal survey found.
U.K. Inflation Heats Up as Bank of England Stays Cautious on New Rate Cuts
Inflation unexpectedly rose in the U.K., likely keeping policymakers at the Bank of England cautious despite a limping economy.
The rate of annual inflation was 3.6% in June, up from 3.4% in May, figures from the Office for National Statistics showed Wednesday. That contrasted with the expectations of economists polled by The Wall Street Journal, who had estimated the rate of inflation would hold steady.
GOP Senators Narrowly Advance Package of Spending Cuts Sparing AIDS Funding
WASHINGTON-Senate Republicans narrowly advanced Tuesday night a slimmed-down $9 billion package of spending cuts that preserves funding for AIDS treatments in Africa, after reaching an agreement with the White House on a key concern for a group of GOP lawmakers.
The revised proposal maintains $400 million for the Pepfar HIV/AIDS relief program that had been targeted by the White House for cuts. Russ Vought, the director of the White House Office of Management and Budget, discussed the proposal during a closed-door luncheon with GOP senators. He said after the meeting he was confident the measure-meant to write into law cuts identified by President Trump's Department of Government Efficiency push-could garner at least 50 votes.
The European Charm Offensive That Helped Turn Trump Against Putin
BERLIN-After seeing footage of Russian airstrikes on Ukrainian cities late on July 11, President Trump called German Chancellor Friedrich Merz on his cellphone to express frustration over Vladimir Putin's continued assault on his smaller neighbor, according to two people familiar with the conversation.Merz was surprised, these people said, but quickly realized Trump had lost patience with the Russian president. Trump said he was now ready to accept an offer Merz had made days earlier: to use German funds to buy U.S.-made weapons for Ukraine, the two officials said.
"President Trump has expressed his frustration with Putin in public and in private," White House spokeswoman Anna Kelly said. "He wants to stop the killing and end this brutal war, which is why he is selling American-made weapons to NATO members."
Mamdani Clarifies 'Globalize the Intifada' Stance in Meeting With Business Elites
Zohran Mamdani said he would discourage the use of the slogan "globalize the intifada" in a roughly hourlong meeting with some of New York City's most powerful executives on Tuesday, seeking to defuse an issue that has prompted a backlash from the business community and beyond.
Mamdani, the Democratic nominee for New York City mayor, was questioned by a room of more than 100 executives at an event hosted by the Partnership for New York City, an influential business group. The audience included finance and real-estate executives, high-powered lawyers and a handful of billionaires.
Through Trial and Error, Iran Found Gaps in Israel's Storied Air Defenses
Israel's recent war with Iran served as a cautionary tale for countries with sophisticated missile defenses and those that seek to have them. Over 12 days, Iran pierced Israel's defenses with increasing success, showing that even the world's most advanced systems can be penetrated.
While most of Iran's missiles and drones were knocked down, Tehran changed tactics and found gaps in Israel's armor through trial and error.
Write to pierre.bertrand@wsj.com
TODAY IN CANADA
Earnings:
Nothing major scheduled
Economic Indicators (ET):
0815 Housing Starts for June
Stocks to Watch:
Algoma Steel: Total Steel Shipments for 2Q Expected to Be Approximately 472,000 Tons
Aura Minerals' 8.1M-Share U.S. Initial Offering Prices at $24.25 a Share
Cogeco 3Q Rev C$758.5M; Cogeco 3Q Adj EPS C$2.40; Cogeco 3Q EPS C$2.13
Other News:
Rio Tinto 2Q Pilbara Iron Ore Output Highest Since 2018; Flags $300M in Tariff Costs
Canada PM Carney Signals U.S. Tariffs May Be Here to Stay
Market Talk:
Canada CPI Data Fuel Rate-Prediction Revisions
Expected Major Events for Wednesday
06:00/UK: Jun SUSPENDED: UK producer prices
06:00/UK: Jun CPI
08:00/ITA: Jun CPI
08:30/UK: May UK House Price Index
09:00/ITA: May Foreign Trade EU
11:00/US: 07/11 MBA Weekly Mortgage Applications Survey
12:15/CAN: Jun Housing Starts
12:30/US: Jun PPI
13:15/US: Jun Industrial Production and Capacity Utilization
14:00/US: Jun Online Help Wanted Index
14:30/US: 07/11 EIA Weekly Petroleum Status Report
18:00/US: U.S. Federal Reserve Beige Book
23:50/JPN: Jun Provisional Trade Statistics for the Month
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday
AAR Corp (AIR) is expected to report $0.95 for 4Q.
Acutus Medical Inc (AFIB) is expected to report for 1Q.
(MORE TO FOLLOW) Dow Jones Newswires
07-16-25 0626ET
