The Dow futures almost flat, U.S. market news July 10th

The Dow Futures contract was unchanged, the S&P 500 Futures were down 6 points, or 0.1%, and the Nasdaq 100 Futures were down 44 points, or 0.3%. At 06:50 ET (10:50 GMT).

Today’s main U.S. market news-

1. What’s driving markets: China deflation fears are growing as U.S. CPI and bank data loom.
2. Futures decline ahead of inflation data, and China data increases concerns about demand
3. Chinese stocks listed in the United States decline following June CPI data.
4. According to Citi, Nvidia will hold a market share of 90% or more of AI chips.
5. Evercore estimates that Threads might bring in $8B in income for Meta by 2025 when the number of users surpasses 100M.
6. Rate increases by the Bank of Canada are anticipated to be quarter points in order to combat persistent inflation.
7. Due to “set for a pullback” mega cap growth, Citi downgrades U.S. equities to Neutral.
8. The Starbucks union wants to organise pickets with the help of its patrons.
9. Alibaba stock rises following news that it would sell shares to Ant
10. Dollar recovers from Friday’s steep losses; attention is focused on the U.S. CPI
11. Standard Chartered increases its $120,000 bitcoin prediction.
12. After VW discounts, GM lowers the price of the Lyriq EV by 14% in China.
13. Uptick in Dow futures as CPI numbers come into spotlight
14. SVB Financial sues the US FDIC in an effort to recoup $1.93 billion.
15. 40% ownership of Credit Suisse was rejected by Saudi National Bank, according to a report.
16. Shares of Alibaba and Tencent are up as bets increase China’s technological purge has ended.
17. Canadian port strike talks are resuming with federal mediators’ assistance.
18. Sarah Silverman accuses Meta and OpenAI of violating her copyright.
19. WSJ: TPG will pay $2.45 billion to purchase the Forcepoint unit from Francisco Partners.

GLOBAL NEWS 

1. India’s markets were up at the close of trading, with the Nifty 50 up 0.12%.
2. S&P/ASX 200 is down 0.54% at market close, reflecting a decline in Australian stocks.
3. Japanese stocks fell at the closing of trading; the Nikkei 225 fell by 0.61%.
4. Gains in oil shares outweighed China worries to keep European stocks stable.
5. June saw a 2.9% decline in China’s car sales due to weak big-ticket expenditure.
6. Euro zone investor sentiment declined more than anticipated in July.
7. In the first half of 2023, China’s IPO applications decline by a third.
8. India’s delicate inflation balance could be upset by rising vegetable costs, according to analysts.
9. Exclusive: South Korea requests $4 billion from banks to support credit unions, according to sources
10. Deflation pressure in China is intensifying as consumer prices decline.
11. China’s disinflation is a drag on Asia’s stock market gains.
12. European market futures decline as economic concerns are raised by Chinese inflation data.
13. China’s factory gate prices are declining at their fastest rate in seven years.
14. Shares of Alibaba and Tencent are up as bets increase China’s technological purge has ended.
15. China mutual funds have lower costs as the government seeks the $3.7 trillion market.
16. Kering, the owner of Gucci, paid $3.8 billion for the French fragrance company Creed – FT.
17. The Australian dollar and yuan are hurt by the dismal China inflation figures as the dollar recovers its losses.
18. As the trade gap closes, Japan records a current account surplus for the fourth month.
19. Canadian port strike talks are resuming with federal mediators’ assistance.
20. Alibaba stock rises following news that it would sell shares to Ant
21. PepsiCo’s appeal against the cancellation of the potato patent is rejected by an Indian court.

Economic Data

June Nonfarm payrolls increased by +209K, missing estimates of +225K and +306K, respectively, for May (from 339K) and April (to +217K from +294K). Private payroll growth was +149K vs. an expected +200K, and government employment growth was +60K. All private workers’ average hourly wages increased by 0.4% from May (consensus + 0.3%), while the unemployment rate decreased to 3.6%, as predicted.

Global Economic data

Goldman Sachs noted: 2Q 2023 earnings season begins next week and consensus forecasts a 9% year/year decrease in S&P 500 EPS due to flat sales growth and margin compression. Companies should fulfill consensus’s modest bar. Revision sentiment has improved as 2023 and 2024 EPS revisions have bottomed out.

Goldman Sachs notes: Key areas of focus this quarter include: (1) ability of enterprises to retain margins as inflation recedes, (2) impact of bank stress on credit and lending, (3) possible uses of AI, and (4) US consumer position.

After a strong first half, Citigroup is skeptical of Wall Street stocks. Analysts downgraded U.S. stocks to neutral from overweight last quarter. U.S. equities strategist Scott Chronert warned Monday that mega cap growth is ready for a slowdown, while recession risks might still strike.

Economic Calendar

•    10:00 AM ET                Employment Trends for June
•    10:00 AM ET                Wholesale Inventory M/M for May
•    10:00 AM ET                Fed’s Barr Speaks on Bank Supervision and Capital Rules
•    11:00 AM ET                Fed’s Daly to Discuss Inflation, Banking
•    11:00 AM ET                Fed’s Mester Speaks on Economic and Policy Outlook
•    12:00 PM ET                Fed’s Bostic Speaks on US, Atlanta Economies
•    3:00 PM ET                   Consumer Credit for May

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