S&P, Nasdaq futures edge up amid earnings, UnitedHealth pressures Dow
At 06:50 a.m. ET, S&P 500 E-minis were up 17.75 points, or 0.28%, and Nasdaq 100 E-minis were up 110.75 points, or 0.47%.
Dow E-minis rose 0.04%, but the gains were capped as healthcare conglomerate UnitedHealth (UNH.N), opens new tab dropped 4.7% in premarket trading following a disappointing profit forecast.
Meanwhile, out of 168 S&P 500 companies that have reported, nearly 80% have beaten earnings expectations, according to Friday's LSEG data. But caution lingers, as some of Wall Street's giants feel the sting of U.S. President Donald Trump's sweeping tariffs.
United Parcel Service (UPS.N), opens new tab became the latest victim of the tariffs, falling 4% after the delivery company reported lower-than-expected second-quarter profit.
On Monday, the S&P 500 and the Nasdaq scored fresh record closes amid volatile trading, buoyed by a U.S.-EU trade deal that halved tariffs to 15% and stoked hopes of further global agreements ahead of Trump's looming August 1 deadline.
The President has also floated a potential "world tariff" of 15-20% for non-negotiating countries.
U.S. and Chinese officials on Tuesday kicked off a second day of high-stakes talks in Stockholm, aiming to cool tensions and avert a deepening trade war between the world's two largest economies. Negotiators are eyeing a possible 90-day extension to the fragile tariff truce brokered in May.
Earnings from tech heavyweights Meta (META.O), opens new tab, Microsoft (MSFT.O), opens new tab, Amazon (AMZN.O), opens new tab and Apple (AAPL.O), opens new tab are scheduled for later this week, which could test Wall Street's record run.
"The easiest gains (on Wall St) have now happened, and any further rise is likely to happen much more slowly," said Thomas Mathews, head of Markets at Capital Economics.
"The narrowness of the rally means it may depend especially heavily on "big tech" profit results continuing to paint a positive picture."
Spotify (SPOT.N), opens new tab tumbled 6.5% after the company forecast third-quarter profit below estimates.
The U.S. central bank is set to begin its two-day policy meeting later in the day. While the Fed is expected to leave rates unchanged on Wednesday, traders will closely analyze policymakers' remarks to gauge the timing of future moves.
According to the CME FedWatch tool, markets are pricing in a 61.7% chance of a rate cut in September.
The meetings come amid the White House's campaign on the central bank to lower borrowing costs, including Trump's persistent criticism of Fed Chair Jerome Powell and occasional suggestions to remove him from his position.
Investors are now focused on the latest Job Openings and Labor Turnover Survey (JOLTS) and consumer confidence reports for more clues on the U.S. economy, which continues to show signs of labor market strength—even as some inflationary pressures from tariffs begin to surface.
Analysts urge patience, as they await more data before sounding any alarms.
Among other earnings-related moves, Cadence Design (CDNS.O), opens new tab jumped 7.7% in premarket trading after the chip design software provider raised its annual sales and profit forecast.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
29 minutes ago
- The Independent
Trump's tariffs are not only making cars more expensive, but insurance as well
While the price of car insurance has risen in recent years, President Donald Trump's tariff polices look set to raise it further. An analysis by Insurify found that the cost of full-coverage car insurance could rise as much as seven percent to an average of $2,472 annually by the end of this year if tariffs lead to major losses for insurers. Without the effect of tariffs, drivers are still set to see a rate increase of four percent in the second half of 2025, according to the insurance comparison site. In a number of states, such as Rhode Island, Michigan, Maine, and Delaware, costs could rise more than 12 percent by the end of the year. Insurify noted that in the first half of this year, car insurance rates held steady across the country and decreased in as many as 27 states, a trend now set to end because of inflation and tariffs. 'The U.S. has imposed several rounds of tariffs that raise the cost of auto parts, thus increasing the cost of repair claims for insurers,' Insurify said. The company added that insurers 'could raise premiums to align their rates with this additional financial risk.' The firm also found that between June 2022 and June 2024, annual insurance costs rose by more than 40 percent, or $700. Rising labor costs, more expensive parts, vehicles with advanced technology, and extreme weather conditions have all contributed to the rise in prices. According to the industry trade group Insurance Information Institute, the average cost of a claim has also risen. In 2023, the average claim for property damage was $6,551, compared with $4,689 in 2020. Over the same period, collision claims rose by a similar amount, roughly 40 percent. However, it's not certain that tariffs will push up the cost of car insurance, as regulators may deter increases, and some insurers have already included the impact of tariffs in their rates. The uncertainty partly comes from the unpredictability of the tariffs. Trump recently revealed deals with South Korea, Japan, and the European Union to cut auto tariffs from 25 to 15 percent. In its 2024 study, AAA found that it now costs roughly $12,297 each year to operate a new car. According to Insurify, inflation and insurer losses could mean rising rates in all but four states by the end of the year. Maryland has overtaken New York as the most expensive state in which to get car insurance. The state is now seeing average rates of $4,093, a rise of 20 percent compared to last summer. In New York, the average annual cost is $3,724, Delaware comes in third at $3,366, and Rhode Island is in fourth place with an average cost of $3,331. Washington, D.C., which is not a state, has an average annual cost of $3,780. While Florida is the priciest state for auto insurers, it's the ninth most expensive for drivers. In June, the average annual premium in the state was $3,250. In June, the average cost of full-coverage car insurance in the country as a whole was $2,310 annually.
The Independent
29 minutes ago
- The Independent
Is there a Trump side deal or not? New Paramount chief doesn't want to talk about it
David Ellison made one thing abundantly clear on his first official day as the owner of the new Paramount – he did not want to get into whether a side deal was reached as part of the pre-merger $16 million lawsuit settlement paid to Donald Trump. After a grueling and politically tainted 13-month process, Skydance Media's $8.4 billion merger with Paramount Global officially closed Thursday. Weeks before Trump's Federal Communications Commission finally approved the deal, however, Paramount – then led by Shari Redstone – agreed to settle with the president in his 'meritless' complaint about a 60 Minutes interview with Kamala Harris. Settling with Trump, which has long been a fraught topic in CBS hallways and sparked the resignations of several news leaders, prompted accusations of 'bribery' from lawmakers and free press advocates. Those allegations only grew louder after the president boasted just before the merger was approved that he had reached a separate agreement with Ellison to air up to $20 million of pro-Trump advertisements on CBS programming once Skydance took over. While the previous leadership of Paramount denied any knowledge of a secret handshake deal, Ellison – whose dad is pro-Trump Oracle founder Larry Ellison – had remained mum on the matter. However, with Thursday marking his first day as head of the newly minted Paramount Skydance, Ellison found himself pressed repeatedly on the issue at a press event heralding the merger. Having spent his morning making a symbolic first stop at the CBS News offices, where he 'said all the right things' while assuring the staff of his commitment to the news division, Ellison and his senior leadership team held a Q&A session at the company's headquarters in Times Square. While he was there to put forward his vision for the new Paramount's future, a number of media reporters were more interested in the recent past. 'We were not involved in the settlement in any way,' Ellison said when asked about the Trump payoff, adding that 'we complied with all laws including anti-bribery laws.' He then cited a recent letter sent to Democratic senators who inquired about the side deal and Paramount's cancellation of the longtime CBS late-night show hosted by Trump critic Stephen Colbert, which occurred just days before the administration approved the merger. That letter, which was from Skydance's general counsel, said the company was 'not involved' in the Colbert decision but didn't directly address the 'side deal' question. 'Skydance was neither a party to the lawsuit nor to Paramount's settlement of its litigation with the President,' the Skydance lawyer wrote. 'We're focused on the future… We are not going to politicize anything today,' Ellison responded when asked another time about the president's claims about free advertising. 'We want to entertain first.' Ellison would continue to double down on that message, specifically when asked about FCC chair Brendan Carr saying that Skydance had promised to 'root out the bias that has undermined the trust in national news media' once it took over Paramount. 'I do not want to politicize our company in any way shape or form, we want to obviously speak to the biggest audience possible,' he declared when pressed about any examples of bias he would intend to fix. Shortly before the merger's approval, Skydance told the FCC that it would hire an ombudsman to address 'complaints of bias' at CBS News once it took over Paramount. Asked whether he was concerned that the FCC could take action based on the ombudsman's findings, Ellison shrugged it off. 'I don't think it'll get to that,' he said. 'We want to be a path-based and truth-based news organization. That's what we're about. That's the legacy of CBS.' With Ellison also declining to answer questions about reports that he's in talks with Bari Weiss to possibly purchase her anti-woke outlet, The Free Press ,and install her in a senior role at CBS News, saying he doesn't want to address rumors, he continued down the same path time and time again. 'We're ready to move past the noise,' he proclaimed.
Reuters
30 minutes ago
- Reuters
Trump targets banks with order barring discriminatory 'debanking'
WASHINGTON, Aug 7 (Reuters) - U.S. President Donald Trump stepped up pressure on large banks and their regulators on Thursday, signing an executive order requiring the banking industry to ensure it is not refusing financial services to anyone based on political or religious beliefs, a practice frequently described as "debanking." The order directed regulators to review all banks they supervise for any current or past practices that would effectively bar customers based on political or religious beliefs, and levy fines or other disciplinary measures as needed. It said regulators may refer certain cases to the Justice Department for potential civil action and also directed regulators themselves to purge any policies or practices that may discourage banks from providing services based on non-financial reasons. The executive order is the latest in a growing pressure campaign against the financial sector by U.S. conservatives, who argue they have been unfairly deprived of services on the basis of their political beliefs. Trump claimed in a CNBC interview on Tuesday that he personally was discriminated against by banks, asserting without evidence that JPMorgan Chase and Bank of America refused to take his deposits following his first term in office. JPMorgan said on Tuesday it does not close accounts for political reasons. Bank of America said it does not comment on client matters, and would welcome clearer rules from bank regulators on how to conduct its activities. The executive order said some financial institutions participated in "government-directed surveillance programs" against conservatives following the attack on the U.S. Capitol on January 6, 2021, by Trump supporters. "Such practices are incompatible with a free society and the principle that the provision of banking services should be based on material, measurable, and justifiable risks," the executive order said. Large banks have consistently said they do not reject customers on political or other belief-based grounds. Instead, they have argued that overzealous bank regulators and supervisors have discouraged them from engaging with certain sectors and have called for clearer guidelines. In a joint statement, major banking groups thanked the Trump administration for efforts to rein in "runaway regulations" and said the new order may provide sought-after clarity for lenders. "It's in banks' best interest to take deposits, lend to and support as many customers as possible. Unfortunately, regulatory overreach, supervisory discretion and a maze of obscure rules have stood in the way," said a joint statement from the Bank Policy Institute, American Bankers Association, Consumer Bankers Association and Financial Services Forum. Trump-led regulators have already taken steps to loosen regulations, with all three federal bank regulators announcing this year they would no longer police banks on so-called "reputational risk," wherein supervisors could sanction institutions for activities that are not strictly prohibited but could expose the bank to negative publicity or costly litigation. The executive order directed all regulators to stop using that standard within 180 days. Banks increasingly complained the reputational risk standard was too subjective and vague, allowing bank supervisors to effectively bar firms from providing services to some people or sectors. The industry has also argued regulators need to update anti-money laundering rules, which frequently can force banks to shut down suspicious accounts without providing a reason.
