OPENING CALL
Stock futures were mostly higher on Tuesday as sentiment was boosted by Trump's three-week extension of tariff negotiations .
Trade uncertainty remained front and center on the minds of investors, however, as the White House was expected to notify more countries of the tariff rate they would pay if no deal were reached by Aug. 1.
Trump sent letters to 14 countries Monday, including to South Korea and Japan.
China criticized the U.S.'s tariffs and said it would respond against countries that strike agreements with the U.S. at the expense of its interests.
It comes as Capital Economics said Asian countries would likely make concessions to avoid punitive U.S. tariffs.
"While we still expect most countries to reach agreements in time, the risk of tariffs being imposed remains elevated."
Nomura said it expected India to strike a favorable trade deal soon, while talks continued for Thailand, Malaysia and Indonesia.
Meanwhile, Tesla shares gained ground , pointing to a reversal of Monday's losses on the back of Musk announcing a new U.S. political party.
Stocks to Watch
Amazon.com rose 0.4% as a members-only sales event could generate more than $21 billion in gross merchandise value, up 60% from last year.
Exxon Mobil declined 0.4% after warning second-quarter earnings would reflect lower oil and gas prices.
Nvidia shares gained 1% recovering ground lost in Monday's session.
Tesla was up 1.4% after the shares fell 6.8% on Monday.
Uber Technologies was up 0.6%, building on Monday's rise.
Watch For:
U.S. NFIB Index of Small Business Optimism for June
Today's Top Headlines/Must Reads:
- U.S.'s Biggest Asian Allies Ready Last-Ditch Trade Appeal to Trump
- NYC Real Estate Execs Throw Money Behind Adams to Counter Rise of Mamdani
- There's More Information Than Ever on ESG Investing, but It Isn't Helping
MARKET WRAPS
Forex:
The dollar fell against a basket of currencies after Trump increased trade policy uncertainty in outlining tariffs on Japan, South Korea, South Africa, Laos and Myanmar.
The euro rose, lifted by hopes the EU could soon secure a trade deal with Washington.
The yen fell against the dollar as tariff uncertainty will add to the Bank of Japan's caution regarding interest-rates, MUFG Bank said.
Bitcoin rose slightly after Trump confirmed a three-week extension to negotiate trade agreements.
The extension provided some support to the digital currency, but continued uncertainty limited gains, according to Trade Nation.
Bonds:
The 10-year Treasury yield fell. BNP Paribas said the Federal Reserve's reluctance to cut interest rates could cause Treasury yields to remain elevated.
"It is also possible that a sustained rise in oil prices, which drives up inflation, could push up bond yields," it said.
Eurozone government bond yields rose after Trump extended the deadline for the introduction of tariffs.
European government bonds offered a compelling story from a yield pickup perspective, Mizuho said, adding that political uncertainty will likely weigh on market players.
Energy:
Crude oil futures edged lower and prices are likely to be less affected by geopolitical tensions going forward, according to HSBC, adding that focus has returned to fundamentals.
Metals:
Gold futures were flat amid trade uncertainty and remained up 1.1% on week on persistent safe-haven demand.
The precious metal stabilized after reversing losses in the prior session, MUFG analysts said.
Spot gold edged lower and Comex gold futures looked likely to consolidate as bullish momentum appeared to be slowing, RHB Retail Research said.
TODAY'S TOP HEADLINES
Samsung Flags Operating Profit Plunge Amid U.S. Trade Curbs, AI Chip Delays
Samsung Electronics expects its second-quarter operating profit to more than halve from a year earlier, a much sharper drop than market consensus, hurt by U.S. trade curbs on China and delayed sales of advanced artificial-intelligence chips to Nvidia.
The South Korean technology giant attributed its downbeat earnings guidance partly to its one-off recognition of inventory value losses stemming from U.S. export controls limiting sales of advanced chips to key-market China. Analysts said some of the weakness was due to a delay in supplying advanced high-bandwidth-memory products to Nvidia, which weighed on the company's DRAM segment.
Meta Hires Top Apple AI Expert, Continuing Zuckerberg's Recruitment Push
Mark Zuckerberg added another big name to Meta Platforms' new "Superintelligence" AI division, hiring a top Apple AI researcher as part of a weekslong recruitment push, according to a person familiar with the hire.
Ruoming Pang is the first big name from Apple to jump over to Meta's Superintelligence Lab, a blow to the iPhone maker, which is working to improve its own AI products. Pang, who led Apple's foundation model team, is set to receive a pay package from Meta in the tens of millions of dollars, said the person.
MicroStrategy didn't buy more bitcoin - for the first time in three months
It is now bigger news when MicroStrategy Inc. doesn't buy any bitcoin than when it does.
The self-proclaimed largest bitcoin treasury company, which is technically still a software company MSTR, disclosed Monday that it didn't acquire any bitcoin during the week of June 30 to July 6.
Dow increases layoffs to more than 2,000 as demand for building materials remains weak
Shares of Dow Inc. took a dive Monday, after the chemical and plastics company said cost cuts are deepening, as it will close plants and lay off more people in response to continued weak demand.
The announcement comes about three months after the company said it identified three plants in Europe that would require "action," and about six months after the company announced a $1 billion cost-cutting plan in response to a slower-than-expected economy.
Asian Stocks Rise, U.S. Futures Flat as Markets Weigh Latest Tariff Developments
Asian stocks were higher while European stocks and U.S. futures were mostly flat as markets focus on the latest trade developments after President Trump announced a three-week extension to the tariff deadline to Aug. 1.
Trump started sending letters to those countries that haven't as yet agreed deals with the U.S. and announced increased tariffs on goods from Japan and Malaysia to 25% from the 24% set in April, while setting 30% tariffs on South Africa from Aug. 1.
German Exports Fall Again as Tariffs Drag on Economy
Germany's exports fell for a second straight month in May in response to higher U.S. tariffs as Europe's largest economy looks set for another year of little or no growth.
Goods exports declined 1.4% on month, dragged by exports to the U.S. that slumped 7.7%, Germany's statistics agency Destatis said Tuesday.
Trump Steps Up His Fight With Brics Nations
President Trump's threat to put new tariffs on countries embracing the policies of the Brics group has added fresh uncertainty to global trade and prompted pushback from Moscow and Beijing.
Trump posted on social media that countries aligning themselves with "the Anti-American policies of Brics, will be charged an ADDITIONAL 10% Tariff." The threat appeared to be a response to a statement put out by the group of emerging economies-whose members include Brazil, Russia, India, China, South Africa and others-that took a swipe at Trump's policies.
Trump to Resume Sending Weapons to Ukraine
WASHINGTON-President Trump said Monday the U.S. would resume providing Ukraine with arms to help it withstand Russian attacks after months of trying without success to draw Moscow into negotiations on ending the war.
"We have to, they have to be able to defend themselves," Trump said of aiding Kyiv during a meeting with Israeli Prime Minister Benjamin Netanyahu. "They are getting hit very hard. Now they are getting hit very hard. We're gonna have to send more weapons."
How a Flash Flood Turned Camp Mystic Into a Disaster Zone
It was a Monday afternoon, June 30, and Dick and Tweety Eastland were in their customary place at this time of year: welcoming another crop of girls to the summer camp in Hunt, Texas, that their family has presided over for most of its 99 years.
The previous day, girls had reached Camp Mystic's main campus for the start of the summer's second term. Now it was opening day at its sister campus just down the road, Camp Mystic Cypress Lake.
TSA to Allow Shoes to Stay On for Airport Security Screening
After nearly 20 years of passengers having to take off their shoes while going through airport security, they might soon get a break.
The Transportation Security Administration is rolling out new procedures to allow passengers to keep shoes on while passing through standard airport screening checkpoints, according to people familiar with the matter.
Write to pierre.bertrand@wsj.com
TODAY IN CANADA
Earnings:
Nothing major scheduled
Economic Indicators (ET):
1000am Ivey Purchasing Managers Index for June
Stocks to Watch:
Montage Gold Announces Appointment of Jeremy Langford to the Bd of Directors
Aura Announces Launch of U.S. Public Offering
Stingray Group Bd Announces Nominees for 2025 Annual General Meeting Include Jean Charest as a New Director Candidate
Expected Major Events for Tuesday
04:30/JPN: Jun Corporate Insolvencies
05:00/JPN: Jun Economy Watchers Survey
06:00/GER: May Foreign Trade
06:45/FRA: May Foreign trade
06:45/FRA: May Balance of payments
10:00/US: Jun NFIB Index of Small Business Optimism
12:55/US: 07/05 Johnson Redbook Retail Sales Index
14:00/CAN: Jun Ivey Purchasing Managers Index
19:00/US: May Consumer Credit
20:30/US: API Weekly Statistical Bulletin
23:50/JPN: Jun Money Stock, Broadly-defined Liquidity
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Tuesday
Aehr Test Systems (AEHR) is expected to report for 4Q.
(MORE TO FOLLOW) Dow Jones Newswires
07-08-25 0624ET
