Good morning. Happy Friday. Happy Employment Numbers Day.
The Asian/Pacific markets were mixed. China, Hong Kong and India did well; Indonesia and the Philippines were weak. Europe, Africa and the Middle East are currently mixed. Poland, Turkey, the UAE, Russia, Greece, Norway and Hungary are up; the UK, Denmark, Germany, South Africa, Switzerland and Italy are down. Futures in the States point toward a positive open for the cash market, but this will change when the unemployment numbers are released.
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The dollar is up slighty. Oil is up; copper is down. Gold and silver are down. Bonds are up.
Stories/News from Seeking Alpha…
Bottled-in-Bond
There’s an interesting story playing out in the bond market, and while the narrative may be hard to identify, it’s easy to spot some themes with yields hitting fresh 2023 highs. Things began escalating a week ago following the Bank of Japan’s policy tweak, but since then, Fitch downgraded America’s debt and the Treasury increased the size of longer-term debt sales to address mounting borrowing needs. It comes as hedge funds have been shorting Treasuries en masse, prompting Bill Ackman to bet against the 30-year bond, though others like Warren Buffett have since said this is “one thing” that investors do not need to “worry about.”
Snapshot: The resilience of the labor market is another area that’s being eyed by bond watchers, with the possibility that the data-dependent Fed will need to continue raising its policy rate as it responds to strong readings. Wednesday’s private sector ADP jobs report was another blowout, and while that doesn’t necessarily convey what the government’s monthly figure will show, investors are paying extra attention to today’s nonfarm payrolls release at 8:30 AM ET.
Economists expect 200K new jobs were added in July, down modestly from the 209K reported in June, while the unemployment rate is seen staying at 3.6%. Also watch for the Labor Department’s revisions to June and May numbers, as well as average hourly earnings growth, which is forecast to cool to 4.2% Y/Y compared with 4.4% in June. If there is any slowdown on that front, it can suggest that the central bank’s rate hikes are having their intended effect on the economy, while helping the Fed take its foot off the accelerator in its fight against inflation.
SA commentary: “Cognitive bias is a pernicious aspect of human thought that can make even the best among us unknowing victims,” writes analyst Christopher Robb in July Jobs Report Likely Bolsters Soft Landing Narrative. “Wall Street is a ‘tribe’ in some ways, like any other industry or group. It has an orthodoxy on monetary policy and inflation that has blinded many in finance and resulted in spurious conclusions. Properly navigating economic cycles is difficult in the first place – even more so when you throw in simultaneous demand and supply shocks of an intensity never experienced. Accepting that many correlations that have traditionally provided insight may no longer be functional is essential to navigating today’s markets.”
Sales slowdown
Apple (AAPL) shares slipped 2.1% in after-hours trading on Thursday as the tech giant saw its sales decline for the third consecutive quarter. Pressures are expected to continue into Q4, with CFO Luca Maestri forecasting a double-digit decline in iPad and Mac sales due to tough comparisons with the prior year. On the positive side, iPhone sales are expected to improve sequentially, while Services revenue reached an all-time high of $21.2B driven by more than a billion subscriptions to offerings like iCloud, Apple Music, News, TV+ and more. Reports also suggest that Apple may be gearing up to unveil its new iPhone on September 13. (161 comments)
Watch the cloud
Helped by cost optimization efforts and the fastest delivery speeds it has ever recorded, Amazon (AMZN) rose 8.7% AH as its Q2 revenue handily beat estimates. The e-commerce giant also set ambitious Q3 targets and related that every one of its businesses has multiple ongoing generative AI initiatives. CFO Brian Olsavsky further confirmed on an earnings call that AWS – which saw slowing sales as customers cut back on spending – is now stabilizing and cost optimizations are moderating, with Q2 trends continuing into July. Following the report, SA analyst Tradevestor said Amazon’s ecosystem is enough reason to remain bullish long-term, while Bill Maurer warned against buying the stock, given potential headwinds expected later this year. (60 comments)
Cuts could deepen
Crude is headed for its sixth weekly gain after Saudi Arabia extended its unilateral 1M bbl/day oil production cut by another month, and said it could be prolonged or even deepened. The move adds to other voluntary reductions by some OPEC members, while Russia will continue to reduce its crude supply into September. An OPEC+ panel is also scheduled to meet today amid growing concerns about oil supplies, but no policy changes are expected. With crude prices expected to rise further, Investing Group Leader Avi Gilburt is expecting a “sizable rally” over the coming years, but is not convinced that all charts have bottomed. (20 comments)
Today’s Economic Calendar
8:30 Non-farm payrolls
1:00 PM Baker Hughes Rig Count
What else is happening…
Bank of England raises interest rates again, Brazil first to cut.
Moderna (MRNA) ups COVID jab sales outlook despite Q2 drop.
KKR (KKR) in talks to buy Paramount’s Simon & Schuster for $1.65B.
Warner Bros. Discovery’s (WBD) earnings miss, but cash flow impresses.
Tupperware (TUP) surges 51% before the bell on debt restructuring deal.
AstraZeneca (AZN), Sanofi (SNY) RSV drug endorsed by CDC panel.
Upbeat guidance as Airbnb (ABNB) results and bookings top estimates.
Block (SQ) boosts outlook; Q2 gross payment volume disappoints.
CoreWeave raises $2.3B in debt backed by Nvidia’s (NVDA) AI chips.
ConocoPhillips (COP) slips after miss, raises production outlook.
AB InBev (BUD) rallies after recording 7% revenue growth in Q2.
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Good morning. Happy Thursday.
The Asian/Pacific markets were mostly weak. China and Indonesia did well, but Japan, India, South Korea, Taiwan, Australia, Singapore, Thailand and the Philippines posted losses. Europe, Africa and the Middle East are currently mostly down. Turkey and Russia are up, but the UK, France, Germany, the UAE, Finland, Switzerland, the Netherlands, Italy, Sweden and Saudi Arabia are down. Futures in the States point toward a down open for the cash market.
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The dollar is up slighty. Oil is flat; copper is up. Gold and silver are down. Bonds are down.
Stories/News from Seeking Alpha…
Big Tech – Part 2
Last week saw the first round of results from the Big Tech giants, with accelerating growth at Google (GOOG, GOOGL), Meta’s (META) focus on artificial intelligence, and worries about capex at Microsoft (MSFT). Up next are the quarterly numbers from Apple (AAPL) and Amazon (AMZN), which will arrive after today’s closing bell. Investors and economists alike will be eyeing the figures of the two companies that have a global workforce in the millions, consumer and business revenues in the billions, and market caps that keep going further into the trillions.
Apple: The stock is already up 54% this year and the firm’s view on many of its business verticals will provide a broader economic picture. Services results, like the cloud, App Store, Apple Music, Apple Pay, etc. will be closely monitored, as will levels of iPhone shipments and price hikes of Pro models. Also listen to the conference call for mentions of artificial intelligence, the new VR headset, status in overseas markets like India, and the potential impact of an escalating semiconductor war between the U.S. and China.
Amazon: The e-commerce behemoth has similarly had a big rebound YTD, with shares soaring nearly 50% over the course of 2023. Amazon is coming off its Prime Day in July, which was the single largest sales day in its history, while its pushes into pharmacy and grocery will likely be discussed. However, the most important metrics will likely be the outlook for Amazon Web Services, the company’s cloud computing platform, as well as whether strength in streaming and advertising will be offset by slowing consumer and enterprise spending.
SA commentary: “AMZN shares are attractively valued for continued accumulation, though one can never know what the market will do as earnings approach,” writes SA analyst Wealth Insights. Meanwhile, Business Quant sees Amazon poised for a Q2 beat and Jamie Galvin says growth and margins are among the 3 Key Items To Watch in the results. With regards to Apple (AAPL), Tradevestor also gives a preview of the iPhone giant that explores valuation, technical strength and recent revisions. (12 comments)
Downgrade reaction
The market reaction to Fitch’s downgrade of U.S. debt reflects puzzlement over its timing, but indicates confidence that government securities and the dollar will remain safe havens. “We expect that after the initial negative reaction in markets, investors will largely disregard this move,” said 22V Research’s Kim Wallace, as there is no threat to the dollar reserve currency status and no roadblock to servicing debt. That could explain why the market isn’t taking the downgrade as badly as it did when S&P cut its U.S. rating in 2011. Treasury Secretary Janet Yellen called the downgrade “arbitrary,” while JPMorgan (JPM) CEO Jamie Dimon said it was “ridiculous.” (13 comments)
Going short
Billionaire investor Bill Ackman is betting against 30-year U.S. Treasuries, calling it a hedge on the impact of higher long-term rates on stocks as well as a “high probability” standalone bet. “There are many times in history where the bond market reprices the long end of the curve in a matter of weeks, and this seems like one of those times,” he projected. Ackman also noted that if long-term inflation is 3% instead of 2%, the 30-year Treasury yield (US30Y) could reach 5.5% soon. Ackman is not alone, as hedge funds have been shorting Treasuries en masse, while the Treasury just increased the size of longer-term debt sales to address mounting borrowing needs. (12 comments)
High-yield savings
In a new milestone, the Apple Card’s (AAPL) high-yield savings account offered by Goldman Sachs (GS) has reached more than $10B in deposits. The savings account offers Apple Card users an APY of 4.15%, and since the launch in April, 97% of Savings customers chose to have their Daily Cash automatically deposited into their account. Goldman won the Apple Card account in 2019, when it sought to build itself into a consumer finance powerhouse, but has since scaled back its consumer business amid mounting losses. While Goldman seems committed to Apple Card for now, the bank has reportedly started talks with American Express (AXP) to offload the credit card deal. (11 comments)
Today’s Economic Calendar
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
8:30 Productivity and Costs
9:45 PMI Composite Final
10:00 Factory Orders
10:00 ISM Service Index
10:30 EIA Natural Gas Inventory
4:30 PM Fed Balance Sheet
What else is happening…
Salesforce (CRM) lays off more employees after January’s purge.
WWE (WWE) in choppy trade after Q2 beat; McMahon subpoenaed.
Cruise stocks fall as Norwegian Cruise’s (NCLH) outlook disappoints.
Chip watch: Qualcomm (QCOM) stumbles on weak Q4 guidance.
Shopify (SHOP) beats on Q2 sales; stock fluctuates after-hours.
Cryptocurrencies dip as DOJ mulls fraud charges against Binance.
AB InBev (BUD) volumes decline as Bud Light drama weighs.
PayPal (PYPL) slides amid in-line earnings, fewer active accounts.
Q2 miss recorded at Occidental (OXY), but production guidance raised.
CVS Health (CVS) in restructuring mode amid hit to Q2 bottom line.
DoorDash (DASH) rallies after tallying record number of orders.
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Good morning. Happy Wednesday.
The Asian/Pacific markets got hit hard. Japan, China, South Korea, Hong Kong, India, Taiwan, Australia, Singapore and the Philippines all posted big losses. Europe, Africa and the Middle East are currently down big. Turkey is up, but the UK, Denmark, Poland, Germany, Greece, South Africa, Finland, Spain, Austria and Sweden are down more than 1%. Futures in the States point toward a moderate down open for the cash market.
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The dollar is up. Oil is up; copper is down. Gold and silver are up. Bonds are down.
Stories/News from Seeking Alpha…
Full faith and credit
A deal over the debt ceiling was reached just over two months ago, but the political dysfunction in Washington and the growing debt burden still seems to be a concern. Fitch Ratings has downgraded the United States’ long-term rating to AA+ from AAA, echoing a move made by S&P Global Ratings, which cut its rating for the U.S. in 2011 after a different government standoff. Fitch had placed America’s sovereign status on watch negative back in May, but the bipartisan agreement to suspend the debt limit until January 2025 wasn’t enough to calm its fears. Why credit ratings and agencies matter to investors.
Key rating drivers: “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” according to Fitch. “In addition, the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process [and] the GG (General Government) debt-to-GDP ratio is projected to rise over the forecast period, reaching 118.4% by 2025. These factors, along with several economic shocks as well as tax cuts and new spending initiatives, have contributed to successive debt increases over the last decade.” How much is too much for the U.S. national debt?
Treasury Secretary Janet Yellen said she “strongly” disagreed with the downgrade, calling it “arbitrary” and saying that Fitch relied on “outdated” data. Many of the measures that the ratings company uses, “including those related to governance,” have “shown improvement over the course of the administration, with the passage of bipartisan legislation to address the debt limit, invest in infrastructure, and make other investments in America’s competitiveness,” she declared. Stock futures declined following Fitch’s decision, while the yields were volatile as investors assess the outlook for the $25T global Treasury market. Is the debt ceiling constitutional and has the U.S. ever defaulted?
What to watch: It was only two weeks ago that President Biden created a team to assess ways to avert future standoffs over the country’s debt limit. “Now that the latest debt ceiling crisis is behind us, it is necessary to explore all legal and policy options to prevent Congress from ever again holding hostage the full faith and credit of the United States,” the White House statement said at the time. The working group, consisting of administration officials and no Republican members, is being led by White House Counsel Stuart Delery and National Economic Council Director Lael Brainard. (67 comments)
JOLTS
The U.S. labor market appears to be cooling – albeit at a slow pace – as wage pressures subside, which could bode well for the Federal Reserve’s fight against inflation. Job openings fell to 9.582M in June, compared to the 9.650M expected, marking the lowest level in over two years. The hires rate was little changed at 3.8%, the lowest since the pandemic started, while the quits rate slipped to 2.4%. On the other hand, ISM Manufacturing PMI remained in the contraction territory for the ninth straight month. “This is not supportive of a reacceleration in earnings growth that many equity investors are anticipating,” said Interactive Brokers Senior Economist Jose Torres, adding that today’s ADP jobs data and Friday’s nonfarm payrolls report will provide a clearer picture. (5 comments)
Road to profit
Uber (UBER) has finally reported its first-ever quarterly operating profit, but its stock fell 5.7% AH on Tuesday as concerns over the ride-hailing company’s growth lingered. While gross bookings rose in Q2 and monthly active platform expanded substantially, Uber CEO Dara Khosrowshahi warned that rival Lyft (LYFT) was competing effectively on prices on an earnings call. “We think the U.S. is going to be a two-player market for some periods to come,” he cautioned. Nevertheless, SA analyst Daan Rijnberk remains bullish, given Uber’s “stellar” long-term outlook and large market share. That’s despite the steep valuation of the stock, which has climbed 84% YTD. (28 comments)
Emergency reserves
The U.S. government has withdrawn its offer to buy 6M barrels of oil for the Strategic Petroleum Reserve as crude prices continue to rise amid tighter supplies. The Biden administration had released a record 180M barrels from the SPR in 2022 to rein in surging gas prices, and said it would replenish the reserve once prices are at or below $67-$72 per barrel. But U.S. crude prices just saw their best monthly gain in over a year and will likely rise further on account of fresh production cuts by Saudi Arabia and Russia. Moreover, the latest data showed a draw of 15.4M barrels of oil in U.S. commercial stockpiles for the week ending July 28. (5 comments)
Today’s Economic Calendar
Auto Sales
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
8:30 Treasury Refunding Announcement
10:30 EIA Petroleum Inventories
What else is happening…
Caterpillar (CAT) jumps to record high after profit beats estimates.
BP (BP) CEO denies overpaying for German offshore wind leases.
Merck (MRK) raises guidance despite buyout impact on bottom line.
Pfizer (PFE) reports 54% contraction in Q2 sales amid COVID cliff.
Yellow Corp. (YELL) rallies as Apollo (APO) nears deal for bankruptcy loan.
Starbucks (SBUX) comp sales disappoint as North America demand stalls.
Altria (MO) sees profits rise even as U.S. cigarette demand wanes.
AMD (AMD) earnings call: Execution on track, AI engagements surging.
Pinterest (PINS) beats expectations for Q2 revenue, user growth.
SPAC DWAC on watch amid auditor resignation and latest Trump indictment.
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Good morning. Happy Tuesday.
The Asian/Pacific markets were mixed. Japan, South Korea and Australia did well while China, Hong Kong, New Zealand and Malaysia were weak. Europe, Africa and the Middle East are currently very weak. Russia is up, but Denmark, Poland, France Germany, Spain, the Netherlands, Israel and Saudi Arabia are down. Futures in the States point toward a down open for the cash market.
————— Online Course: Jason Leavitt’s Masterclass in Trading —————
The dollar is up. Oil and copper are down. Gold and silver are down. Bonds are down.
Stories/News from Seeking Alpha…
Rally on
Stocks are beginning August with some major gains, with the benchmark S&P 500 Index (SP500) soaring 20% so far in 2023. That’s the best seven months to start a year since 1997, with markets expecting the Fed to soon turn the corner on its fight against inflation. The tech rebound and AI frenzy have helped to further underpin the big gains, with the Nasdaq Composite (COMP.IND) ahead by 37% to record its best first seven months to a year since 1975, while the Dow Jones Industrial Average (DJI) has also been on a serious winning streak since early July.
Coming up: One of the biggest weeks of earnings season is on tap, with 170 S&P 500 companies, including four DJIA components, scheduled to publish Q2 results. Among those reporting will be tech giants Apple (AAPL) and Amazon (AMZN), as well as healthcare juggernauts Merck (MRK) and Pfizer (PFE), industrial powerhouse Caterpillar (CAT), energy players like BP (BP) and ConocoPhillips (COP), and consumer plays AB InBev (BUD) and Starbucks (SBUX). General market direction could be disconnected from the Q2 earnings season at this point, but some of the numbers have been coming in better than expected.
“EPS beats: almost half way through the season and 81% of firms have beaten estimates on EPS, the highest figure since 3Q21 or the past seven quarters,” Societe Generale wrote in a research note, outlining seven stats to know about earnings season so far. Inflation has been another major topic that’s been guiding the markets. This week’s WSB survey on the Fed’s fight is still open and the results are coming in fast, with already 1,350 respondents to the poll.
Throwing in the towel: Morgan Stanley strategist Mike Wilson, who has been bearish on equities through the 2023 rally, now sees a late-cycle rally driven by monetary policy. “In our view, the positive policy impact has been supported by a very strong fiscal impulse, a still supportive global liquidity backdrop and optimism that the Fed can now transition to easier monetary policy given the falling inflation data. These developments fostered a robust rally [in 2019] that was driven almost exclusively by multiple and not earnings, as has been the case this year.” (32 comments)
EV pivot
Reports suggest that Exxon Mobil (XOM) is in early-stage talks with automakers including Tesla (TSLA), Ford (F) and Volkswagen (OTCPK:VWAGY) for supplying lithium for electric vehicles. Albemarle (ALB) is said to be among the lithium producers in discussions with the energy giant, helping boost the former company’s shares. Previously, Exxon was said to be planning to build one of the world’s largest lithium processing facilities in Arkansas and has so far partnered with Tetra Technologies (TTI) to develop more than 6.1K lithium-rich acres in the state. Talking about the investment, Investing Group Leader JR Research noted that Exxon’s moves could open up a high-margin growth opportunity to mitigate the structural decline in its oil and gas business. (67 comments)
Tighter credit
Given a more uncertain economic outlook, U.S. banks tightened lending standards across loan categories during Q2 and plan to further toughen up conditions this year. Respondents to the Fed’s Senior Loan Officer Opinion Survey (SLOOS) reported tighter standards and weaker demand for commercial and industrial loans, as well as commercial real estate loan categories. Demand also weakened in residential real estate, home equity lines of credit, auto and other consumer loans, but demand was unchanged for loans linked to credit cards. ING’s James Knightley said the report “makes it more likely that the Fed won’t need to hike rates further as further credit contraction will naturally take the heat out of the economy.” (1 comment)
Last hurdle
The U.K.’s antitrust regulator is seeking public input on whether it should clear Microsoft’s (MSFT) $69B acquisition of Activision Blizzard (ATVI), raising the odds of the biggest-ever gaming deal crossing its last regulatory hurdle. This follows Microsoft’s submission of a “material change of circumstance” to the Competition and Markets Authority based on its licensing deal with Sony (SONY) and other factors. The CMA said while such submissions are “very rare,” it will consider Microsoft’s arguments. Public comments should reach the CMA by August 4 – after which it will issue its final order by the end of the month – while the deadline for closing the merger had been extended to October 18. (3 comments)
Today’s Economic Calendar
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:00 Job Openings and Labor Turnover Survey
What else is happening…
SoFi (SOFI) Q2 revenue beats consensus on higher loan originations.
‘Barbie,’ ‘Oppenheimer’ continue rule with strong second weekend.
Texas power use hits another record as heatwave bakes the state.
Disney (DIS) gains with former execs Mayer, Staggs back in fold.
Uber (UBER) preview: Mobility tailwinds expected to boost results.
CVS Health (CVS) to shed 5K jobs as part of cost-cutting efforts.
On the move: Tupperware (TUP) cements meme stock status.
Pfizer (PFE) Q2 sales likely to drop as COVID jab demand wanes.
Palantir (PLTR) pops on heavy volume, leads AI-focused stocks higher.
Archer Aviation (ACHR) inks $142M in new contracts with U.S. Air Force.
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Good morning. Happy Monday. Hope you had a great weekend.
The Asian/Pacific markets closed mostly up. Japan, China, Hong Kong, South Korea, India, New Zealand, Malaysia and Thailand did well, while Taiwan and the Philippines were weak. Europe, Africa and the Middle East are currently doing well. Denmark, Turkey, Russia, Greece, Norway, Italy, Austria and the Czech Republic are up; Saudi Arabia is down. Futures in the States point toward a positive open for the cash market.
————— Online Course: Jason Leavitt’s Masterclass in Trading —————
The dollar is up. Oil and copper are up. Gold is down; silver is flat. Bonds are down slightly.
Stories/News from Seeking Alpha…
Is it over?
The mega rally on Wall Street in 2023 hasn’t been the only thing that many economists and analysts have gotten wrong. The staggering drop in inflation has confounded many market watchers, with the Consumer Price Index falling to 3%, from a high of over 9% seen last summer, as well as the central bank’s favored inflation gauge – the core personal consumption expenditures price index. Data on Friday showed the figure to have moderated on a M/M and Y/Y basis, inching closer to the Fed’s key 2% target that is needed for stable prices in the U.S. economy.
Fool me once? Following an infamous “transitory” call from 2021, Jay Powell and Co. made a serious policy U-turn, ratcheting up rates from near zero to 5.5% in the span of 16 months. A technical recession ensued in the first half of 2022, but the U.S. economy has been resilient since then, with quarterly GDP recently growing at a 2.4% annualized rate, or almost a full percentage point stronger than the 1.5% expected. Inflation numbers have also routinely come in better than anticipated, prompting many investors to consider whether the central bank continues to be overly cautious in its fight against inflation to compensate for criticism that it had been late (really late) to the game.
“Inflation has moderated somewhat since the middle of last year, nonetheless the process of getting inflation back down to 2% has a long way to go,” Powell said at his press conference last week. “We’d really want to be sure that inflation is coming down in a sustainable [way]. It’s hard to make – I’m not going to try to make – a numerical assessment of when and where that would be. So we intend, again, to keep policy restrictive until we’re confident that inflation is coming down sustainably.”
What to watch: As mentioned previously, Powell did shift his tone especially with regards to the outlook for the U.S. economy, with Fed staff no longer predicting a recession. However, the debate still rages on over whether disinflation will be able to find a permanent footing, as well as the impact of additional rate hikes. “Some Fed officials are not yet convinced they’ve done enough – and don’t want inflation to resurge on their watch,” noted the American Institute For Economic Research. “If disinflation continues over the next few months, such a hike could prove devastating – not merely wiping out inflation, but economic growth and employment as well.” Take the WSB survey.
58 MPG
Seeking to cut greenhouse gas emissions, the Biden administration has issued a proposal directing automakers to raise the fuel economy of their vehicles to a fleet-wide average of 58 miles per gallon by 2032. The proposed rules by the National Highway Traffic Safety Administration would be applicable starting in model year 2027, while new fuel efficiency standards for heavy-duty pickup trucks and vans would rise 10% annually. The NHTSA also said it would try to align regulations with the Environmental Protection Agency’s proposed vehicle emissions reductions. Many U.S. automakers are already in the middle of electrifying their fleets, but any changes could impact the plans of Ford (F), General Motors (GM) and Stellantis (STLA). (357 comments)
War escalation
Ukrainian drones damaged two office buildings close to the Kremlin and a pig breeding complex on Sunday, marking the third such strike over the past week. While Ukrainian officials didn’t acknowledge the attacks, President Volodymyr Zelenskyy said: “Gradually, the war is returning to the territory of Russia.” Meanwhile, African leaders met with Vladimir Putin to discuss resuming the Black Sea grain deal in the wake of attacks on Ukrainian ports, though Russia seems to be preparing for an even bigger and longer war, in light of recent changes made to military conscription and the Kremlin’s overflowing war chest. Former President Dmitry Medvedev also said Moscow would be forced to use a nuclear weapon if Kyiv’s counteroffensive turned out to be successful. (14 comments)
Only Bitcoin
The SEC asked Coinbase Global (COIN) to halt trading in all cryptocurrencies except Bitcoin (BTC-USD) before suing the exchange in early June, according to the exchange’s CEO Brian Armstrong. The request indicates the SEC’s intent to expand its oversight of the crypto industry, at a time when U.S. regulatory authorities are still vying for control. “Delisting every asset other than BTC would’ve essentially meant the end of the crypto industry in the U.S.,” Armstrong declared. Investing Group Leader Dilantha De Silva also highlighted the intensifying battle, saying, “The watchdog is very likely to come hard at Coinbase to establish its relevance, given that Coinbase argues the SEC does not have sufficient jurisdiction.” (6 comments)
Today’s Economic Calendar
9:45 Chicago PMI
10:30 Dallas Fed Manufacturing Survey
What else is happening…
Yellow (YELL) shuts down operations, plans to file for bankruptcy.
Walmart (WMT) pays $1.4B to raise stake in Indian e-commerce giant.
China manufacturing activity shrinks for fourth straight month in July.
Credit card delinquencies tick up, net charge-offs fall in June.
Disaster-prone areas turn haven for those seeking cheaper homes.
J&J’s (JNJ) bankruptcy plan to handle talc lawsuits is rejected again.
Biogen (BIIB) to buy Reata (RETA) at enterprise value of $7.3B.
RSV treatment market to surge past $9B by 2029 from $1B today.
Assessing the impact of proposed Basel III endgame rules on banks.
What does Oddity Tech (ODD) signal about AI’s future on Wall Street?
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