- Asian Stocks Pressured After Big Tech Disappoints: Markets Wrap
(Bloomberg) — Asian equities declined, following an unimpressive start to the earnings reports from the “Magnificent Seven” mega cap technology companies. Stocks in Japan, South Korea and Australia declined, following US shares as traders assessed earnings after the closing bell from Corporate America’s largest businesses including Tesla Inc. and Alphabet Inc. - Hudson Bay Joins Hedge Funds Locking Up Investor Cash for Longer
(Bloomberg) — Hudson Bay Capital Management is the latest hedge fund locking up investor capital for longer, according to people with knowledge of the matter. Sander Gerber’s firm in April transitioned clients in its flagship fund to a 12.5% quarterly investor gate level, down from 25% meaning it will now take two years to fully exit the fund instead of one. - Oil Snaps Three-Day Drop as Report Points to US Stockpile Draw
(Bloomberg) — Oil rose, snapping a run of losses, after an industry report indicated that US crude inventories fell for a fourth week. Brent crude rose above $81 a barrel after shedding almost 5% over the previous three sessions, with US benchmark West Texas Intermediate near $77. The industry-funded American Petroleum Institute reported stockpiles shrank by 3.86 million. - Gold gains ground as investors eye U.S. data for Fed clues
Gold prices edged up on Tuesday, set to break a four-day losing streak, as investors awaited U.S. economic data due later this week for more clarity on the timing of the Federal Reserve’s expected rate cut this year. Spot gold was up 0.2% at $2,402.39 per ounce at 1415 GMT. U.S. gold futures gained 0.4% to $2,403.40. - Boeing Resumes China 737 Max Deliveries After Two-Month Halt
(Bloomberg) — Boeing Co. said it has resumed deliveries of its cash-cow 737 Max aircraft to airlines in China, a much-needed boost for the beleaguered manufacturer and its strained finances. The green light comes after a roughly two-month pause imposed by aviation regulators in China to review additional information about batteries used in cockpit voice recorders. - Stocks close slightly lower as Wall Street gears up for major tech earnings
The S&P 500 hovered near the flatline Tuesday as traders readied for earnings reports from major technology behemoths. The broad index dipped 0.16% to close at 5,555.74 a day after it notched its best performance in more than a month, while the Nasdaq Composite inched down 0.06% to finish at 17,997.35. The Dow Jones Industrial Average lost 57.35 points, or 0.14%, to end at 40,358.09. - Musk Asks X Followers If Tesla Should Sink $5 Billion Into xAI
(Bloomberg) — Elon Musk is asking his X followers whether Tesla Inc. should invest $5 billion into his own AI startup, saying he was “testing the waters” for a potential deal. The billionaire posted the one-line question on his X handle shortly after Tesla reported a fourth straight quarter of disappointing profit. - OneStream’s IPO Prices Above Range to Raise $490 Million
(Bloomberg) — OneStream Inc. and a group of shareholders including KKR & Co. raised about $490 million in a US initial public offering, pricing its shares above a marketed range. The software company and its shareholders sold 24.5 million shares Tuesday for $20 apiece, according to a statement confirming an earlier report by Bloomberg News. - Most BOJ Watchers See July Rate Hike Risk with Bond-Buying Cut
(Bloomberg) — While only about 30% of Bank of Japan watchers say authorities will hike interest rates when they gather next week, more than 90% see the risk of such a move, according to a Bloomberg survey. Some 14 of 48 economists predict Governor Kazuo Ueda’s board will raise its policy rate from the current range of 0 to 0.1% at the July 31 conclusion of next week’s. - How Japan’s Data Set Stage for BOJ Rate Hike in July: Economics
(Bloomberg Economics) — Governor Kazuo Ueda in June said the macro data would determine whether the Bank of Japan raises interest rates at its July meeting. Ueda signalled the BOJ particularly wanted to see wage growth fuelling service prices and bolstering long-term inflation. It looks like the data have met his expectations. - Musk Says Plans for Mexico Plant Will Depend on US Election
(Bloomberg) — Elon Musk said Tesla Inc. won’t invest further in its planned Mexico factory until after the US election, citing too much political risk from Republican nominee Donald Trump’s pledges to impose more tariffs on Mexico-made goods. “I think we need to see just where things stand after the election,” Musk said during Tesla’s earnings call on Tuesday. - Democrats Finalize Plan for Virtual Roll Call to Nominate Harris
(Bloomberg) — A panel of Democratic stalwarts will meet Wednesday to complete a rule change to allow Vice President Kamala Harris to accept her party’s nomination for president weeks in advance of the party’s convention in Chicago. - BGC Boosts Yen Derivatives Trading Bet Amid BOJ Policy Shake-Up
(Bloomberg) — BGC Group Inc. is ramping up its push into yen interest-rate derivatives as the Bank of Japan’s policy shift fuels a trading boom. The company is hiring in Tokyo for the interest-rate swaps business it launched in January and plans to recruit for a new swaptions desk that it’s looking to set up, said executives at the Nasdaq-listed broker’s Japanese. - Private Equity Irks Clients by Trying to Shuffle Assets Around
(Bloomberg) — Private equity firms are using a form of financial engineering to buy more time for wringing returns from their under-achieving investments. Increasingly, their biggest clients are saying “no thanks.” Ares Management Corp. weighed the idea, known as a continuation fund, but investors snubbed it earlier this year. - Capital One Provisions Soar on Loss of Walmart Program
(Bloomberg) — Capital One Financial Corp. set aside much more money to cover loan losses than expected in the second quarter, after ending a program to issue credit cards exclusively for Walmart Inc. The end of a loss-sharing agreement tied to that program meant that Capital One’s provisions spiked 57% year-over-year, to $3.9 billion. - Harris in First Rally Vows to Put Her Record Against Trump’s
(Bloomberg) — Vice President Kamala Harris assailed Republican Donald Trump in her first rally since launching her bid for the White House, characterizing their contest as a choice between two starkly divergent agendas for the US economy. Harris said Americans faced “two different visions for our nation, one where we are focused on the future. - Medical Supply Giant Medline Is Said to Explore IPO in 2025
(Bloomberg) — Medline Industries Inc. is exploring an initial public offering that could value the medical supplies giant at as much as $50 billion, people familiar with the matter said. The Northfield, Illinois-based company and its private equity owners are in early-stage talks with banks about a potential listing as soon as the spring of 2025. - Mattel CEO, Day After Takeover Report, Says Share Price Too Low
(Bloomberg) — Mattel Inc. Chief Executive Officer Ynon Kreiz is confident the toymaker will achieve a higher market value if it continues on its path as an independent company. His comments follow a report Monday that said Mattel has received a takeover approach from L Catterton, the private equity firm backed by LVMH Moet Hennessy. - Market Chatter: Pfizer Opens SG$1 billion Pharmaceutical Ingredient Facility in Singapore
Pfizer has launched a SG$1 billion active pharmaceutical ingredient plant in Tuas Biomedical Park, Singapore, The Singapore Business Review reported Tuesday. The 429,000-square-foot facility will produce APIs for oncology, pain, and antibiotic medicines, creating over 250 jobs, the report said. - Alphabet meets earnings expectations but misses on YouTube ad revenue
Google parent company Alphabet reported earnings after the bell. Alphabet’s revenue was up 14% year over year, driven by search as well as cloud, which surpassed $10 billion in quarterly revenues and $1 billion in operating profit for the first time. The company reported ad revenue of $64.62 billion up from $58.14 billion last year, showing that Google’s advertising business continues to grow after rising inflation and interest rates tightened marketing budgets in 2022 and 2023. - Deutsche Bank snaps 15-quarter profit streak on Postbank lawsuit provision
Germany’s largest lender Deutsche Bank reported its first quarterly loss in four years, but the size of the loss was slightly smaller than forecast in an LSEG poll. Net loss attributable to shareholders came in at 143 million euros ($155.1 million). Revenue at its investment bank division jumped 10% year-on-year to 2.6 billion euros. - Coca-Cola tops earnings estimates, hikes full-year outlook as global demand rises
Coca-Cola beat second-quarter earnings estimates and raised its full-year outlook. Unit case volume grew globally, but dipped slightly in North America. The results come after Coke’s rival PepsiCo reported weaker U.S. consumer demand. - GM Q2 earnings: GM beats, raises full-year guidance for 2nd straight quarter on the back of robust sales
GM (GM) once again posted strong second quarter results and boosted its guidance for a second time this year as customers continue buying the Detroit-based automaker’s gas-powered vehicles, trucks and even EVs. For the quarter, GM reported record revenue of $47.97 billion versus $45.51 billion estimated (Bloomberg consensus), which represents a 7.2% jump compared to a year ago ($44.75 billion). GM reported adjusted EPS of $3.06, compared to estimates of $2.70, with GM also reporting adjusted EBIT (earnings before interest and taxes) of $4.438 billion, easily topping estimates of $3.88 billion. - Visa’s stock falls as volume growth slows, but exec says trends are stable
Visa Inc. shares fell about 3% in Tuesday’s extended session after the payment-technology company showed a slight slowdown in volumes during its latest quarter. Payment’s volume rose by 7%, while processed transactions increased 10% in the fiscal third quarter. That compared with 8% growth in overall payments volume and 11% growth in processed transactions during the March quarter. Cross-border volume for Visa V -1.09% was up 14% in the most recent period, relative to a year before. - Tesla reports 7% drop in auto revenue as earnings fall short of Wall Street estimates
Tesla reported weaker-than-expected earnings for the second quarter as automotive sales dropped for a second straight period. The stock slid more than 8% in extended trading. Earnings per share: 52 cents adjusted vs 62 cents expected, per LSEG consensus estimates. Revenue: $25.50 billion vs. $24.77 billion expected by LSEG Revenue increased 2% from $24.93 billion a year earlier, Tesla said in an investor deck on Tuesday. But automotive revenue dropped 7% to $19.9 billion from $21.27 billion in the same quarter a year ago. Auto revenue included regulatory credits of $890 million, more than triple the figure from last year. - Harris neck and neck with Trump in polls, as Wisconsin rally draws 3,000 supporters
U.S. Vice President Kamala Harris hit the campaign trail today for the first time since President Joe Biden announced that he would end his re-election campaign and endorsed Harris for president. Harris was in the battleground city of Milwaukee, Wisconsin, where Republicans Donald Trump and Sen. JD Vance were nominated by their party at a massive convention last week. Three high-quality new polls now show Harris running essentially even with Trump, signalling that the dynamics of the presidential race could be shifting. - How CrowdStrike caused a global IT meltdown and what comes next
Last week, an update from cybersecurity firm CrowdStrike caused the Windows operating system to crash in what was perhaps the largest IT failure in history. Industries across the board were hit, with airlines cancelling flights, broadcasters not able to go on air and shops not being able to open. In the latest episode of CNBC Tech’s “Beyond the Valley” podcast, CNBC’s Arjun Kharpal and Tom Chitty discuss the IT failure and whether it might happen again. - Major global chip equipment makers’ China revenue share has doubled since U.S. imposed export controls
Four of the world’s largest chip equipment manufacturers have more than doubled the share of their China revenue since late 2022, Bank of America analysts said. “China accelerated its purchase of semi manufacturing equipment since the U.S. imposed tighter export restrictions in October 2022, aiming to develop its own semi manufacturing capability,” the report said. The research found the companies’ China revenue more than doubled from 17% of total revenue in the fourth quarter of 2022 to 41% in the first quarter of 2024. - Trump 2.0 could go ‘nuclear’ on China trade, while economists say Harris would remain tough
Taking on trade with China was a major priority of Trump’s first term and he appears ready to double down if elected to a second term. If he wins the White House in November, Trump is expected to ramp up the trade war and accelerate a trend of decoupling. Meanwhile Kamala Harris would be expected to continue the Biden administration’s multilateral, more targeted approach to trade policy.
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