Stock Market Update

Equity futures are modestly higher amid a relatively busy morning of earnings reports following yesterday's trade that saw the S&P 500 and Nasdaq Composite set new record highs.

Yesterday's action was fueled by the Sunday announcement of a trade deal between the U.S. and EU that features a 15% tariff rate and carveouts for certain goods. While the market responded positively to the announcement, The New York Times reports that French President Emmanuel Macron lamented the trade agreement, calling it "a dark day" for the EU.

Elsewhere on the trade front, Commerce Secretary Howard Lutnick said in an interview that he expects the U.S. and China will agree to a 90-day tariff extension as trade talks continue today, according to Bloomberg.

In addition to a sizable batch of earnings reports, the market will digest several economic data releases today.

Advance Economic Indicators for June releases at 8:30 ET, followed by the S&P Case-Shiller Home Price Index and FHFA Housing Price Index for May at 9:00 ET, and Consumer Confidence and JOLTS job openings at 10:00 ET.

In corporate news:

• Boeing (BA 242.00, +5.59, +2.4%) beats EPS expectations by $0.16, beats on revenues, sees increased production rates.
• Corning (GLW 58.25, +2.84, +5.1%) beats EPS expectations by $0.03, beats on revs; guides Q3 EPS above consensus and revenues above consensus.
• Jetblue Airways (JBLU 4.44, +0.08, +1.8%) beat EPS expectations by $0.17 and beats on revenues.
• Merck (MRK 81.09, -2.97, -3.5%) beat EPS expectations by $0.11, reports revenues in-line, guides FY25 EPS above consensus and FY25 revenues in-line
• Paypal (PYPL 77.98, -0.24. -0.3%) beats EPS expectations by $0.10, beats on revenues, guides Q3 EPS in-line, and raised FY25 EPS guidance.
• Procter & Gamble (PG 158.32, +1.21, +0.8%) beats EPS expectations by $0.06, reports revenues in-line, guides FY26 EPS and revenues in-line.
• UnitedHealth (UNH 280.11, -2.01, -0.7%) misses EPS expectaions by $0.40, reports revenues in-line, guides FY25 EPS below consensus, with FY25 revenues also below consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific ended Tuesday on a mostly higher note. Japan's Nikkei: -0.8%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: +0.3%, India's Sensex: +0.6%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: UNCH.

In news:

• Officials from China and the U.S. met in Stockholm for the second day in a row, but the meeting did not produce any headlines.
• Australian press reported that President Trump threatened to double the baseline tariff that is being charged for Australian imports into the U.S. A South Korean trade delegation is expected to visit Washington in the coming days.

No economic data today

Major European indices trade in the green. STOXX Europe 600: +0.7%, Germany's DAX: +1.3%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +1.3%, Italy's FTSE MIB: +1.3%, Spain's IBEX 35: +1.1%.

In news:

• Deutsche Bank no longer expects more cuts from the European Central Bank and it sees a rate hike in late 2026 as the next likely move.
• Barclays reported mixed results for Q2 while Phillips raised its guidance.
• Stellantis reported weak results but reinstated its guidance for the year.
• The EU noted that it can't guarantee that $600 bln will be invested in the U.S. since the money would come entirely from the private sector.

In economic data:

• U.K.'s June BoE Consumer Credit GBP1.417 bln (expected GBP1.200 bln; last GBP920 mln), June Mortgage Approvals 64,170 (expected 63,000; last 63,290), and June Net Lending to Individuals GBP6.757 bln (expected GBP3.700 bln; last GBP2.900 bln)
• Spain's flash Q2 GDP 0.7% qtr/qtr (expected 0.6%; last 0.6%); 2.8% yr/yr (last 2.8%). June Retail Sales 6.2% yr/yr (last 5.0%)