The US reaches trade contracts and sets tariff rates at 15%
President Donald Trump said Japan will pay a 15% tariff rate. This is lower than his initial threat of 24% tariffs.
US stock futures are mixed in more revenue reports, including from two influential megacup technology stocks from the so-called Magnificent Seven.
Electric car giant Tesla and Google’s parent-Alphabet were the first two of the epic seven to report revenues after the end. In the split decision, Tesla missed its sales estimate, but the alphabet surpassed forecasts.
At 6:10am on ET, futures tied to the Blue Chip Dow were 0.31%, while the S&P 500 futures added 0.12%, while the high-tech Nasdaq futures rose 0.36%.
Investors are looking for strong returns from seven particularly influential, spectacular stocks as a reason to increase stock market profits. The S&P 500 and NASDAQ hit highs during the usual session on a combination of trade deal optimism and strong quarterly outcomes.
The US and Japan have reached a trade agreement that slaps a 15% tax that has Directly threatened a 15% tax on Japanese imports, and the contract with the European Union is expected to reflect that.
Dow, Honeywell, American Airlines, Blackstone, Nasdaq and Union Pacific are among the companies that plan to report revenue before opening bells.
Trump continues to put pressure on Powell
According to the White House schedule, Trump is scheduled to visit the Federal Reserve at 4pm. This visit will mark the first time in nearly 20 years when the US president has officially traveled to the central bank.
The extraordinary move is seen as either Powell resigning or resigning from low interest rates or as part of Trump’s pressure campaign.
Corporate News
- IBM’s second quarter revenue missed expectations.
- ServiceNow has boosted its subscription revenue outlook.
- Chipotle Mexican Grill has lowered the same store sales guidance for the whole year.
- Mattel has revived its full-year sales growth outlook, but is lower than earlier this year. Additionally, annual revenue per share is lower than annual forecasts. Second quarter sales missed expectations, but adjusted earnings per share.
- T-Mobile has raised its year-round outlook. It attracted more wireless and internet subscribers than expected Wall Street in the second quarter. The results for the quarter also increased their forecasts.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
