Stock Market Update

The stock market is poised for a lower opening following a fresh wave of tariff announcements from President Trump.

Most notably, a 35% tariff on Canadian imports was announced, effective August 1.

President Trump also said in a NBC News phone interview that most trading partners will face a 15-20% tariff, and that the EU will get a tariff letter later today. The president also stated that he will make a "major statement" on Russia on Monday.

The S&P 500 futures are currently trading 35 points below fair value, or a decrease of 0.6%.

Treasuries are also down this morning, with the 10-year note yield up four basis points at 4.39%.

In corporate news:

• AeroVironment (AVAV 245.00, +7.43, +3.1%): Department of Defense ordered a fast tracking of drone production, according to Fox News.
• Levi Strauss (LEVI 21.00, +1.27, +6.4%): beat Q2 expectations, raised its guidance for FY25, and announced a dividend hike.
• Toll Brothers (TOL 121.40, -0.98, -0.8%): company named a new CFO.

Reviewing overnight developments:

• Asian markets ended mixed. Japan's Nikkei -0.2%, Hong Kong's Hang Seng +0.5%, China's Shanghai Composite UNCH
  • In economic data:
    • New Zealand's June Business NZ PMI 48.8 (last 47.4)
  • In news:
    • A South Korean official said that the U.S. has demanded that South Korea join an effort to isolate China
    • Japan is aiming to resume beef exports to China
    • A People's Bank of China official has called for $209 bln in stimulus spending to offset the impact of tariffs
• Major European indices trade in the red. Germany's DAX -1.1%, U.K.'s FTSE -0.6%, France's CAC -1.0%
  • In economic data:
    • Germany's June WPI 0.2% m/m, as expected (last -0.3%); 0.9% yr/yr (last 0.4%)
    • U.K.'s May GDP -0.1% m/m (expected 0.1%; last -0.3%); 0.7% yr/yr, as expected (last 1.1%). May Construction Output -0.6% m/m (expected 0.2%; last 0.8%); 1.2% yr/yr (expected 1.7%; last 3.6%). May Industrial Production -0.9% m/m (expected -0.1%; last -0.6%); -0.3% yr/yr (expected 0.1%; last 0.3%). May Manufacturing Production -1.0% m/m (expected -0.1%; last -0.7%); 0.3% yr/yr (expected 0.4%; last 1.3%). May trade deficit GBP21.69 bln (expected deficit of GBP21.10 bln; last deficit of GBP22.42 bln)
    • France's June CPI 0.4% m/m (expected 0.3%; last -0.1%); 1.0% yr/yr (expected 0.9%; last 0.7%)
    • Swiss June SECO Consumer Climate -32 (expected -35; last -37)
  • In news:
    • Expectations for a rate cut from the Bank of England are on the rise after the release of a weak GDP report for May
    • President Trump is reportedly planning weapons sales to NATO allies that would be then forwarded to Ukraine
    • European Central Bank policymakers Schnabel and Panetta said that the central bank is in a good position to wait and see before its next policy move