U.S. Equity Futures showed mixed trading as market participants shifted their attention from political developments to the ramp up earnings and beginning of big tech reports. Notably, tech giants Tesla Inc. and Alphabet Inc. are set to release their earnings reports later Tuesday, which could significantly influence market sentiment. Additionally, traders are keeping a close eye on economic indicators, with key data on nonmanufacturing activities and existing home sales expected to be released on Tuesday morning.

Europe’s Stoxx 600 Index experienced fluctuations as gains in technology and travel company shares were counterbalanced by declines in the chemicals and mining sectors. Investors are also anticipating Hungary’s latest interest rate decision, which could influence market dynamics. Additionally, upcoming data releases on Dutch and Irish consumer confidence.

China’s CSI 300 Index led declines in Asia amid mixed trading across the region. Market participants are also closely watching India, which is set to unveil its first budget under Prime Minister Narendra Modi’s third five-year term, a significant event that could shape economic policies and investor sentiment. Meanwhile, Singapore’s consumer price index for June rose by 2.4% year-on-year, surpassing Reuters’ expectations of a 2.7% increase, indicating a slightly slower pace of inflation than anticipated.

Economic Calendar

Earnings Calendar

Notable reports for Tuesday before the bell include AOS, ACI, AVY, BANC, KO, CBU, CSTM, DHR, FDP, FELE, FCX, GATX, GE, GM, GPC, HCA, HRI, IVZ, KMB, LMT, MCO, MSCI, NWBI, ONB, PCAR, PNR, PM, PII, PHM, DGX, SHW, SPOT, UPS, & WBS.  After the bell include APHM, BDN, CALM, CNI, AOF, CB, CSGP, EWBC, EGP, ENVA, ENPH, EQT, FCF, GOOGL, MTDR, MAT, NBR, PKG, PFSI, RRC, RRR, RNST, ROIC, STX, TSLA, TXN, TRMK, VBTX, VIXR, V, & WFG.

News & Technicals’

Wiz has decided to walk away from a $23 billion acquisition deal with Google, which would have marked the search giant’s largest-ever acquisition. Instead, Wiz informed its employees that it will proceed with its initial plan to pursue an IPO. A person familiar with the company’s decision-making process cited concerns over antitrust issues and investor apprehensions as key factors in abandoning the potential deal. This move highlights the growing scrutiny of large tech acquisitions, and the strategic considerations companies must weigh in such high-stakes decisions.

Six senators have urged the Justice Department and the Federal Communications Commission to challenge a deal that would permit T-Mobile to utilize part of U.S. Cellular wireless spectrum. In a new letter, the lawmakers expressed concerns that such a deal could lead to higher costs for consumers, as it might result in the combination of lower-priced carriers with higher-priced ones, potentially charging consumers billions more. Additionally, the senators have requested that the Justice Department consider unwinding the merger between T-Mobile and Sprint, highlighting ongoing apprehensions about market competition and consumer pricing.

Best Buy unveiled a comprehensive strategy on Tuesday aimed at reigniting sales growth. This plan includes dedicating staff to key areas within its stores, producing more engaging videos to spark customer interest, and launching a new marketing campaign. The consumer electronics retailer is looking to capitalize on the anticipated replacement cycle of pandemic-era purchases and a surge of new innovations. In an interview with CNBC, CEO Corie Barry emphasized the company’s focus on reintroducing fresh and exciting products to attract customers and drive sales.

Shares in automaker Porsche declined on Tuesday following the company’s announcement of a reduced outlook for 2024. Porsche attributed this adjustment to a shortage of special aluminum alloys affecting several of its suppliers. This shortage is expected to impact production, potentially leading to shutdowns for certain Porsche vehicle series. The company’s revised forecast has raised concerns among investors about the potential disruptions in its manufacturing processes.

Traders will temporarily set aside political uncertainty to focus earnings, specifically the big tech reports from GOOG and TSLA coming after the bell today. Plan on high drama with these massively anticipated reports and be prepared for wild price gyrations and big morning gaps to challenge even the most experienced trader.  Plan your risk carefully.

Trade Wisely,

Doug