BY THE NUMBERS
Dow futures indicated a roughly 70-point gain at the opening bell, ahead of a blockbuster Big Tech congressional hearing, a Fed policy statement and another batch of corporate earnings reports. S&P 500 and Nasdaq futures also were mildly higher. The Dow on Tuesday fell about 205 points, or .77%. The S&P 500 gave up .65% while the tech-heavy Nasdaq Composite sank 1.27%.
The Dow, S&P 500 and Nasdaq have fallen in three of the past four trading days, although all remain on course for solid July gains. The Dow begins the new day at a more than two-week low, coming off its lowest close since July 13.
*Treasury yields edge higher ahead of Fed interest rate decision (CNBC)
The Federal Reserve's Open Market Committee will issue its latest policy statement at 2:00 p.m. ET, followed by Fed Chairman Jerome Powell's virtual news conference 30 minutes later.
General Electric (GE), Boeing (BA), and General Motors (GM) lead a long list of morning earnings reports; streaming service Spotify (SPOT) also reports. After the bell, PayPal (PYPL), Qualcomm (QCOM) and Yum China (YUMC) are scheduled to post quarterly earnings.
*GM swings to a loss as coronavirus shuttered factories and devastated sales (CNBC)*GE reports quarterly loss as coronavirus pandemic hits hard (Reuters)*Boeing posts net loss of $2.4 billion and slows aircraft production amid coronavirus-weakened demand (CNBC)
Total mortgage application volume fell 0.8% last week from the previous week, according to theMortgage Bankers Association's latest report.Mortgage applications to buy a home were down 2% last week compared to the prior week but 21% higher annually. (CNBC)
The CEOs of Amazon, Apple, Google-parent Alphabet and Facebookare set to testify in front the House Antitrust Subcommittee later today. The blockbuster virtual hearing will be Amazon chief executive Jeff Bezos' first congressional testimony. It comes as part of the House Judiciary Committee's investigation into Big Tech and potential anti-competitive practices. Mark Zuckerberg is expected to defend Facebook's acquisitions of Instagram and WhatsApp, portraying them as key to creating better services for both users and advertisers. (CNBC)
*Jeff Bezos will testify about how Amazon is the quintessential American company (CNBC)*Google CEO Sundar Pichai plans to tell Congress the company faces plenty of competition (CNBC)*Tim Cook will testify that Apple is in fierce competition with Google and Huawei (CNBC)
Biotech firm Moderna (MRNA) is planning to price its potential coronavirus vaccine at $50 to $60 per course for high-income countries, according to a Financial Times report. The price for the two-dose vaccine comes in higher than the proposed price from Pfizer(PFE) and German-based BioNTech, according to Reuters, based on the companies' $1.95 billion deal with the U.S. government to produce and deliver 100 million doses. The price for Moderna's vaccine, which entered late-stage human trials earlier this week, is not finalized, Reuters reported. (FT)
Hong Kong is increasing its restrictions to curb the spread of Covid-19 as local officials warn the city is at risk of a large-scale virus outbreak. There's been an "upsurge" in local infections, said Chief ExecutiveCarrie Lam, who warned of overrunning the health-care system. The government is banning gatherings of more than two people, suspending indoor dining at restaurants and requiring face masks in public. (Reuters)
*Europe scrambles to avoid a second coronavirus wave, as infections rise (Washington Post)
The U.S. Senate will not pass a coronavirus relief bill that does not have liability shields for businesses and universities, Majority LeaderMitch McConnelltold CNBC. The Kentucky Republican said Tuesday on "Closing Bell" that the GOP was "not negotiating over liability protection," but he added the party was open to compromise with Democrats on other issues. Senate Republicans released their roughly $1 trillion legislative proposal on Monday. (CNBC)
*Most swing state voters support extending $600 weekly unemployment benefit, CNBC/Change Research poll finds(CNBC)
The Trump administration has started negotiations with the office of Oregon's governor over the presence of federal agents in Portland, according to the Associated Press, expressing a willingness to scale back if the state increases its own enforcement in the city, which has seen nearly two months of nightly protests in the wake of George Floyd's death. The talks are still in the early stages and no agreement is in place, the wire service reported. (AP)
*Portland protests bring early-morning clash with feds after more than 1,000 turn out Tuesday (The Oregonian)* Attorney General Barr, grilled by House Democrats, defends aggressive federal response in Portland (LA Times)
In a historic move,AMC Theaters(AMC) and Comcast-ownedUniversal Picturesinked an agreement to shorten the theatrical release window for Universal's movies, allowing them to head to digital streaming just 17 days after their debut on the big screen. Theaters previously would have the exclusive rights to films for about 90 days. AMC will share in some of the new revenue from the digital on-demand rentals. Comcast is parent company of CNBC and NBCUniversal. (CNBC)
Starbucks (SBUX) exceeded Wall Street expectations in its earnings report and raised its adjusted earnings outlook for the fiscal fourth quarter, sending its stock up more than 5% in premarket trading. The coffee chain expressed optimism about its recovery from the coronavirus in the U.S. and China, although it saw global same-store sales plunge 40% in the quarter. (CNBC)
*Restaurant transactions plateau as coronavirus cases surge (CNBC)
The American Federation of Teachers, one of the largest teachers' unions in the U.S., will support any of its local chapters that decide to strike if they feel school reopening plans are not safe enough. The federation, which represents 1.7 million school employees, said in its Tuesday resolution that striking should be the last option, but it called for reopening plans to include social distancing measures and mask requirements. It also said buildings should only reopen in places where coronavirus transmission rates are low. (USA Today)
Visa (V) came in 4 cents above estimates with quarterly earnings of $1.07 per share, with revenue above estimates as well. The payments processor did say that payment volume was down 10% during the quarter with profit dropping 23%, as consumer spending was hit by rising unemployment.
Mondelez (MDLZ) reported adjusted quarterly profit of 63 cents per share, 7 cents above estimates, with the snack maker's revenue slightly above Wall Street forecasts. Strong demand for its snacks in North America helped offset other declines, and Mondelez also announced an 11% dividend increase.
FireEye (FEYE) surprised analysts who had expected a loss by reporting an adjusted profit of 9 cents per share with revenue above estimates as well. The cybersecurity company benefited from the shift to cloud-based work amid the pandemic.
Avis Budget (CAR) reported a quarterly loss of $5.60 per share, slightly smaller than the loss of $5.68 that analysts were expecting. The car rental's revenue beat estimates, with a recovering used car market and increased leisure rentals helping results.
L Brands (LB) is cutting 15% of its corporate staff, amounting to 850 jobs. The parent of Victoria's Secret and Bath & Body Works also projected a smaller than expected current quarter sales decline.
Spirit Airlines (SAVE) will tell its unions to be prepared for possible October furloughs of 20 to 30% of workers, according to a memo sent to employees and first reported by Reuters.
Advanced Micro Devices (AMD) beat estimates by 2 cents with adjusted quarterly profit of 18 cents per share, with the chip maker's revenue above estimates as well. AMD also raised its full-year forecast, as the surge in the number of employees working from home raises demands for its chips.
EBay (EBAY) reported adjusted quarterly earnings of $1.08 per share, 2 cents above estimates, with the e-commerce company's revenue also beating forecasts. It also raised its full-year outlook, amid more online shopping by people staying indoors during the coronavirus pandemic.
Amgen (AMGN) earned an adjusted $4.25 per share for its latest quarter, compared to a $3.82 consensus estimate, with revenue above forecasts as well. The biotech company was helped by stronger sales of its newer drugs.
Budweiser has unveiled its newest beer with a twist. It has no alcohol. The 50-calorie Bud Zero is now going out nationwide and was created with the help of former NBA star Dwyane Wade. The new drink gives Anheuser Busch Inbev (BUD) further exposure to the non-alcoholic beer category, which has been growing fast this year. (USA Today)
Read more:
What to watch today: Dow to open higher ahead of Big Tech hearing and Fed policy decision - CNBC
- Stocks Close Higher With Amazon and Netflix Making Big Gains - Barron's - July 8th, 2020 [July 8th, 2020]
- Samsung needs a splashy product for its splashy product launch - The Verge - July 8th, 2020 [July 8th, 2020]
- Big Tech's Washington hearing will be a spectacle for the ages - Financial Post - July 8th, 2020 [July 8th, 2020]
- Dow gains more than 400 points after big tech rally, Amazon and Netflix hit records - CNBC - July 8th, 2020 [July 8th, 2020]
- Here Come the 4 Horsemen of the Techopolypse - The New York Times - July 8th, 2020 [July 8th, 2020]
- New records show 5,000+ contracts between big tech and the Pentagon - Business Insider - Business Insider - July 8th, 2020 [July 8th, 2020]
- Stock market rising on the indispensable companies - Minneapolis Star Tribune - July 12th, 2020 [July 12th, 2020]
- Tech Stocks Have Been the Markets Stars. Are They Overbought? - Barron's - July 12th, 2020 [July 12th, 2020]
- Tech Stocks Are Getting Scary. Why Theres No Way to Escape Them. - Barron's - July 12th, 2020 [July 12th, 2020]
- Big Tech companies have got universities in their sights - Telegraph.co.uk - July 12th, 2020 [July 12th, 2020]
- The National Research Cloud: Big Tech And Academic Research - Seeking Alpha - July 12th, 2020 [July 12th, 2020]
- Nasdaq At Record as Investors Bet on Big Tech to Weather Virus Storm; Dow Falls - Yahoo Finance - July 12th, 2020 [July 12th, 2020]
- Big Tech saved the day. We still dont trust them. - BetaBoston - July 12th, 2020 [July 12th, 2020]
- Big tech, even bigger heart, provides shields to Hatzalah - The Riverdale Press - July 12th, 2020 [July 12th, 2020]
- Cramer's earnings watch: 'If the banks get hammered, things could get ugly' - CNBC - July 13th, 2020 [July 13th, 2020]
- Big Tech joins fight against Trump's restrictions on international students - The Logic - July 13th, 2020 [July 13th, 2020]
- Pittsburgh Big tech companies are flocking to Pittsburgh. The foundation was laid over decades - Technical.ly Pittsburgh - Technical.ly - July 13th, 2020 [July 13th, 2020]
- Ask the Rational Investor: Is big tech too large? - Massillon Independent - July 13th, 2020 [July 13th, 2020]
- Big Tech went from growth stocks to Wall Street's Treasury bond substitute during the coronavirus - CNBC - July 13th, 2020 [July 13th, 2020]
- Thousands of contracts highlight quiet ties between Big Tech and U.S. military - NBC News - July 13th, 2020 [July 13th, 2020]
- The Information's Takeover Target List - The Information - July 18th, 2020 [July 18th, 2020]
- The Tension Between Competition and Tech Are Gaining Global Attention - JD Supra - July 18th, 2020 [July 18th, 2020]
- Cloudflare DNS goes down, taking a large piece of the internet with it - TechCrunch - July 19th, 2020 [July 19th, 2020]
- As the Revolving Door Swings - The American Prospect - July 19th, 2020 [July 19th, 2020]
- Big Tech is Poised to Pounce on Banking - Global Banking And Finance Review - July 19th, 2020 [July 19th, 2020]
- The Biggest Problem With Investing in Teladoc - The Motley Fool - July 19th, 2020 [July 19th, 2020]
- How Palantir and Peter Thiel might lead the biggest tech IPO of the year - Vox.com - July 19th, 2020 [July 19th, 2020]
- Here's what happened to the stock market on Monday - CNBC - July 19th, 2020 [July 19th, 2020]
- 'Big Tech' Pullback Explains Why Bitcoin Rally Has Paused in Q3 | NewsBTC - newsBTC - July 19th, 2020 [July 19th, 2020]
- Advertiser alliance, media companies, and Big Tech to collude and create a definition of hate speech - Reclaim The Net - July 19th, 2020 [July 19th, 2020]
- Congress has the legal power to investigate Silicon Valley. Let's make it count - The Guardian - July 19th, 2020 [July 19th, 2020]
- The Problem with Big Ideas (and Some Ramblings on Virtual Desktops & Tech's Blurred Lines) - www.waterstechnology.com - July 19th, 2020 [July 19th, 2020]
- Here are all the battlefronts TikTok is currently fighting on - KTVZ - July 19th, 2020 [July 19th, 2020]
- Exxon has topped North Texas' biggest-companies list for 3 decades. Now there's a challenger to the throne - The Dallas Morning News - July 19th, 2020 [July 19th, 2020]
- G20 Finance Officials Eye Solution to Digital Tax Row This Year - The New York Times - July 19th, 2020 [July 19th, 2020]
- Earnings and fiscal debate could be catalysts for stocks in the week ahead - CNBC - July 19th, 2020 [July 19th, 2020]
- Big Tech firms back suing Trump administration over rule that could drive out foreign students - Axios - July 19th, 2020 [July 19th, 2020]
- Big Techs latest reckoning is coming as it continues to rack up record valuations - MarketWatch - July 19th, 2020 [July 19th, 2020]
- Here's a new reason to invest in Europe - WICZ - July 21st, 2020 [July 21st, 2020]
- Recovery from Covid-19 will be threatened if we don't learn to control big tech - The Guardian - July 21st, 2020 [July 21st, 2020]
- Tech watchdog calls on Facebook Oversight Board members to demand real power or resign - TechCrunch - July 21st, 2020 [July 21st, 2020]
- Roku Is A Strong Gatekeeper In Streaming, But Could Be Crushed By Big Tech Analyst - Deadline - July 22nd, 2020 [July 22nd, 2020]
- The Conservative Inc. to Big Tech Pipeline - The American Conservative - July 22nd, 2020 [July 22nd, 2020]
- Are Facebook and Alexa really listening? 6 common tech myths debunked - USA TODAY - July 23rd, 2020 [July 23rd, 2020]
- New Emails Reveal Warm Relationship Between Kamala Harris And Big Tech - HuffPost - July 23rd, 2020 [July 23rd, 2020]
- Amazon-led rally boosts Jeff Bezos and Big tech"s billionaire boys - Proactive Investors USA & Canada - July 23rd, 2020 [July 23rd, 2020]
- Twitter CEO Jack Dorsey Invited To Testify In Congressional Big Tech Hearing - The Federalist - July 23rd, 2020 [July 23rd, 2020]
- EU-wide digital tax on big tech touted as best resource - EURACTIV - July 24th, 2020 [July 24th, 2020]
- Cramer says this tech stock rally is not like 1999 but here is what could stop it - CNBC - July 24th, 2020 [July 24th, 2020]
- Report Doorcast: Big Tech antitrust hearing preview and the Xbox Games Showcase breakdown - Report Door - July 24th, 2020 [July 24th, 2020]
- The one big thing each tech CEO will tell Congress - Axios - July 24th, 2020 [July 24th, 2020]
- Big Tech Unmasked as Anti-conservative by Project Veritas - Newsmax - July 24th, 2020 [July 24th, 2020]
- Antitrust Hearing Involving Apple Chief Tim Cook and Other Big Tech CEOs Reportedly Postponed - MacRumors - July 24th, 2020 [July 24th, 2020]
- Amazon To Invest In Reliance Retail: Is Big Tech Joining Hands To Conquer India? - Inc42 Media - July 26th, 2020 [July 26th, 2020]
- Zuckerberg, Bezos, other tech CEOs to testify at anti-trust hearing - Toronto Star - July 26th, 2020 [July 26th, 2020]
- Lily Allen says she feels sad and calls out big tech amid Wiley antisemitism row - The Independent - July 27th, 2020 [July 27th, 2020]
- Big Tech feels the heat from Washington and small agency leaders dish: Tuesday Wake-Up Call - AdAge.com - July 27th, 2020 [July 27th, 2020]
- Overzealous government officials should stay out of big tech's way - Washington Times - July 27th, 2020 [July 27th, 2020]
- Mint Lite | India covid tally, protests across globe, big tech CEOs & other news - Livemint - July 27th, 2020 [July 27th, 2020]
- Big tech antitrust probe report from US Congress likely by early fall - Times Now - July 27th, 2020 [July 27th, 2020]
- Antitrust Hearing Involving Apple Chief Tim Cook and Other Big Tech CEOs Reportedly Postponed [Update:... - MacRumors - July 27th, 2020 [July 27th, 2020]
- Congressional antitrust probe of Big Tech expected by early fall - The Globe and Mail - July 27th, 2020 [July 27th, 2020]
- Big Tech chiefs get brief reprieve from govt hearing into their growing power - ARNnet - July 27th, 2020 [July 27th, 2020]
- Lawmakers keen to break up 'big tech' like Amazon and Google need to realize the world has changed a lot since Microsoft and Standard Oil - Fairfield... - July 29th, 2020 [July 29th, 2020]
- Stock futures are flat ahead of Fed decision and Big Tech testimony - CNBC - July 29th, 2020 [July 29th, 2020]
- Ahead of hearing with big tech CEOs, Cicilline says a Biden presidency would lead to regulation next year - Yahoo News - July 29th, 2020 [July 29th, 2020]
- Democrats hurt small business when they attack Big Tech | TheHill - The Hill - July 29th, 2020 [July 29th, 2020]
- Tech leads stocks higher as CEOs testify and Fed keeps rates near zero - Fox Business - July 29th, 2020 [July 29th, 2020]
- WATCH LIVE: Heads Of Amazon, Apple, Facebook And Google Testify On Big Tech's Power - NPR - July 29th, 2020 [July 29th, 2020]
- Big Tech to Testify: What Jim Cramer Is Watching - TheStreet - July 29th, 2020 [July 29th, 2020]
- Apple, Google, Amazon, other Big Tech companies have a climate problem; now being forced to clean up - Firstpost - July 29th, 2020 [July 29th, 2020]
- Commentary: Big Tech is engaged in a hostile takeover of our country - TheBlaze.com - July 29th, 2020 [July 29th, 2020]
- Slog AM: Big Tech's Anti-Trust Hearing, COVID-19 Goes to College, Boeing Is Boned - TheStranger.com - July 29th, 2020 [July 29th, 2020]
- Big tech antitrust probe report from Congress likely by early fall - Reuters - July 30th, 2020 [July 30th, 2020]
- Vergecast: Big Tech antitrust hearing preview and the Xbox Games Showcase breakdown - The Verge - July 30th, 2020 [July 30th, 2020]
- Biased Big Tech algorithms limit our lives and choices. Stop the online discrimination. - USA TODAY - July 30th, 2020 [July 30th, 2020]
- Big 5 Tech Stocks Have Trounced the Market. So Have Their Fundamentals. - Barron's - July 30th, 2020 [July 30th, 2020]
- Top antitrust Democrat opens hearing by comparing big tech firms to past monopolies | TheHill - The Hill - July 30th, 2020 [July 30th, 2020]
- Big Tech antitrust hearing could be colossal or mere theater - Roll Call - July 30th, 2020 [July 30th, 2020]
- Stop with the egg metaphor in discussing Big Tech break-ups | TheHill - The Hill - July 30th, 2020 [July 30th, 2020]