Wall Street Dips in Premarket but Remains Near Record Highs as Another Raft of Earnings Pours In

Economic

Stocks

Summary:

Wall Street dipped slightly in premarket trading Tuesday but stayed near record highs as earnings reports rolled in. Homebuilders surged on strong results, while GM fell on weak revenue. Global markets were mixed amid trade and political uncertainties.

Wall Street dipped in premarket trading Tuesday, but indexes remained near record highs on another big day for corporate earnings reports.

Futures for the S&P 500 lost 0.1% before the bell, while futures for the Dow Jones Industrial Average and Nasdaq were each off 0.2%.

Homebuilders were the early winners, with D.R. Horton climbing nearly 7% after easily surpassing Wall Street’s third-quarter sales and profit expectations. PulteGroup also topped analysts’ forecasts, rising 1.7%, while Lennar rode the wave of optimism and was up 2.1%.

General Motors shed 3.6% in the early going after the automaker reported that its profit and revenue declined from the previous quarter. GM maintained its full-year guidance from May, however that forecast was cut as the company braced for a potential impact from auto tariffs as high as $5 billion in 2025.

Shares of Coca-Cola Co. were largely unchanged after the soda giant beat Wall Street profit expectations but fell a tad short on revenue projections. Coke said that its pricing rose 6% for the April-June period, making up for the 1% decline in case volumes both globally and in North America.

Elsewhere, in Europe at midday, Germany’s DAX lost 1.1%, the CAC 40 in Paris gave up 0.9% and Britain’s FTSE 100 was nearly unchanged.

In Asian trading, Japan’s benchmark surged and then fell back as it reopened from a holiday Monday following the ruling coalition’s loss of its upper house majority in Sunday’s election.

The Nikkei 225 shed 0.1% to 39,774.92.

Analysts said the market initially climbed as investors were relieved that Prime Minister Shigeru Ishiba vowed to stay in office despite the setback. But the election’s outcome has added to political uncertainty and left his government without the heft needed to push through legislation.

A breakthrough in trade talks with the U.S. might win Ishiba a reprieve, but so far there’s been scant sign of progress in negotiating away the threat of higher tariffs on Japan’s exports to the U.S. beginning Aug. 1.

“Relief may be fleeting. Ishiba’s claim to leadership now rests on political duct tape, and history isn’t on his side. The last three LDP leaders who lost the upper house didn’t last two months,” Stephen Innes of SPI Asset Management said in a commentary.

Elsewhere, Hong Kong’s Hang Seng rose 0.5% to 25,130.03, while the Shanghai Composite index advanced 0.6% to 3,581.86.

South Korea’s Kospi sank 1.3% to 3,169.94, with investors concerned over next week’s deadline for making a deal with U.S. President Donald Trump or facing 25% tariffs on all the country’s exports to the U.S.

Many of Trump’s stiff proposed tariffs are paused after he extended the deadline to Aug. 1 to allow more time to reach potential trade deals that could lower those rates.

Australia’s S&P/ASX 200 added 0.1% to 8,677.20. India’s Sensex was flat.

In Thailand, the SET sank 1.1% after the government named Vitai Ratanakorn as the new future governor of the central bank. He is viewed as likely to be less independent than the current governor, raising concerns about the bank’s independence, analysts said.

In energy trading, U.S. benchmark crude oil lost 61 cents to $65.34 per barrel, while Brent crude, the international standard, gave up 65 cents to $68.56 per barrel.

The U.S. dollar inched up to 147.40 Japanese yen from 147.38 yen. The euro gained to $1.1701 from $1.1696.

Source: AP

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Michelle

Economic

Forex

Thailand is close to an agreement with the US to lower a threatened 36% tariff on its exports ahead of the Aug. 1 deadline, according to Finance Minister Pichai Chunhavajira, who expects trade talks to conclude within days.

The Southeast Asian nation will submit additional clarifications and final details of its proposal to US trade officials in the coming days, Pichai said Tuesday. A deal is expected to be announced before the new tariff rate takes effect, as Thailand has already provided the Washington with “almost everything” requested.

“We’ve completed more than 90% of the negotiation. Today or tomorrow should be the very final stretch. There’s just a little bit left,” said Pichai, who leads Thailand’s team of trade negotiators. “Some requests for explanations and asks came from their side, and I need to review those to make sure everything is truly complete.”

Pichai expects Thailand to get a new tariff rate that’s in line with its neighbors. President Donald Trump previously has announced deals for 20% tariffs on Vietnamese goods and 19% for Indonesia.

Bangkok has sweetened its offers to Washington in a last-stretch bid to lower the punitive tariff and minimise the impact on its export-reliant economy, which has lagged behind regional peers over the last decade. The US was Thailand’s largest export market in 2024, accounting for 18% of total shipments.

Thailand has offered to significantly increase purchases of US goods for which there is domestic demand — including agricultural products, liquefied natural gas and Boeing Co. aircraft — to reduce a trade surplus which stood at $46 billion last year. It has also pledged to invest more in the US, including in the Trump-backed Alaska gas project.

Thai government has widened a list of US products that will be subject to zero tariffs to 90% of all items, up from over 60% previously, according to the Thai Chamber of Commerce, which advises Pichai. The new offers could potentially help cut the trade surplus by 70% within three years and lead to balanced trade within five years, it said.

When asked if the US had made new demands following last week’s ministerial talks, Pichai said: “They’re not exactly asking for more, but they do have a list of expectations— what the policies should look like and how certain issues are handled.” He added that the government is reviewing whether it can meet those expectations.

Thailand’s economic growth is already under strain due to the region’s highest level of household debt and weak domestic consumption. A favorable trade deal would also help ease investor concerns amid political uncertainty. Prime Minister Paetongtarn Shinawatra was recently suspended by the court over alleged misconduct in managing a border dispute with Cambodia.

Thailand’s exports rose about 15% in the first five months of the year, driven largely by front-loading during the 90-day pause to allow tariff talks.

Source: Bloomberg Europe

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Gerik

Economic

Affluent Chinese Mirror Pandemic-Era Economic Gloom Despite Travel Resurgence

China’s wealthiest consumers are again expressing deep pessimism about the economy, with sentiment dipping to levels not seen since the height of the COVID-19 crisis. According to a May 2025 survey by consultancy Oliver Wyman, 22% of affluent Chinese respondents expressed a negative outlook on the economy slightly higher than the 21% recorded in October 2022, just before Beijing began easing its draconian zero-COVID policy.

The findings point to a significant erosion of confidence among high-income earners, particularly younger urban adults aged 18 to 28, whose sentiment saw the steepest monthly decline from April 2024 to May 2025. This demographic remains acutely affected by elevated youth unemployment, which continues to hover in the mid-teens despite a general jobless rate around 5%.

Wealth, Age, and Outlook Divide Generations

Oliver Wyman’s study surveyed 2,000 households earning over 30,000 yuan ($4,180) monthly a segment far above China’s urban average annual income of 54,188 yuan. While younger respondents were most disillusioned, individuals aged 29 to 44 offered the most optimism, buoyed by job stability and accumulated wealth. Consultant Imke Wouters explained that millennials and Gen Xers those aged 30 to 60 hold a nostalgic belief that China’s economic “good old days” might return, cushioning their long-term outlook.

However, across all age and income groups, consumer caution is intensifying. Many are now altering spending behaviors, favoring short-term experiences over traditional investments or luxury purchases. “If you think, ‘I’m not having a good financial situation now,’ your spending and saving patterns will be very different,” Wouters noted. Prolonged pessimism could thus reinforce a cycle of economic contraction as consumption weakens further.

Deflation, Property Woes, and Confidence Crisis

China’s economy continues to grapple with core deflationary pressures, declining retail sales growth, and a crumbling real estate sector. Since housing remains the cornerstone of household wealth, falling property values have intensified uncertainty. Compounding these trends is China’s still-depressed consumer confidence index, which stood at 88 in May barely recovering from its record low of 85 in November 2022, according to data from the National Bureau of Statistics.

A separate long-term survey by academics from Harvard and Stanford highlighted rising dissatisfaction with “unequal opportunity.” In 2023, this concern became the top perceived reason for poverty in China, a significant jump from its sixth-place ranking in 2004.

Rebound in International Travel Amid Domestic Austerity

Despite the gloomy financial sentiment, travel spending is experiencing a surprising boom. Oliver Wyman projects that 37% of affluent Chinese will travel abroad in 2025, surpassing pre-pandemic levels (32% in 2019). Already, 27% have taken international trips, with another 10% planning to do so before year-end.

However, the travel preferences have shifted. Instead of returning to distant luxury destinations like the United States, Chinese tourists are opting for nearby countries such as Japan and Malaysia, both of which have seen travel volumes rebound to 2019 levels. The emotional impulse behind this trend reflects a preference for escapism and emotional fulfillment. “Rather than spend on a luxury product, they would rather spend on something that can make them feel better now,” Wouters said. “You just want to enjoy the moment.”

The disconnect between declining economic confidence and booming overseas travel illustrates a broader behavioral shift among affluent Chinese: while long-term economic outlooks darken, immediate emotional gratification through travel is on the rise. Nonetheless, if youth pessimism, property deflation, and structural employment issues persist, the short-term uplift from travel may do little to stabilize China’s domestic consumption engine in the longer term.

Source: CNBC

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Glendon

Cryptocurrency

Ethereum (ETH) is at the center of institutional attention after spot ETFs saw a record 588,000 ETH inflow last week — a figure 17 times higher than historical norms, according to Glassnode. This surge not only smashed previous records but also signals deepening interest from traditional finance players, reignited by the SEC’s 2024 greenlight for ETH spot ETF trading.

Fueled by this demand, Ethereum’s price rose to $3,689.40 (CoinMarketCap), pushing past key resistance levels. Market analysts, like Netto Patrocínio on X, argue that this momentum could foreshadow a major breakout, especially with $2,500 now acting as support rather than resistance.

Last week, #Ethereum spot ETFs saw inflows of over 588K $ETH – nearly 17x the historical average and more than double the previous record.

On-chain fundamentals remain strong. Staking activity has surged, with over 33.8 million ETH staked, now representing 27.57% of the total supply. Validators are earning ~3.1% APY, per Investopedia, and Ethereum’s upcoming Pectra upgrade is expected to enhance scalability and validator throughput, as noted in Datawallet’s 2025 Ethereum report.

However, rapid ETF growth has sparked debate. A 2023 Journal of Financial Economics study suggests that outsized ETF inflows, if not matched by user adoption or utility, may signal market overheating. Meanwhile, the Ethereum Foundation’s 2024 whitepaper cautions against validator centralization, warning that dominance by a few large stakers could erode Ethereum’s decentralized framework.

The crypto community is split. Influencers like JVE Wealth praise ETFs as bullish fuel, while skeptics — including SAG3.ai — point to flat volatility curves and aggressive retail buying as signs of a potential short-term correction. As Ethereum navigates this pivotal moment, investors are advised to monitor on-chain metrics and technical levels closely. The ETF boom may propel prices higher, but the long-term narrative hinges on maintaining a decentralized backbone.

As Ethereum enters this critical juncture, balancing institutional growth with decentralization is key. Investors should closely track staking distribution, protocol upgrades, and ETF-driven flows. The future looks bright—but not without structural risks.

Source: CryptoSlate

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Warren Takunda

Economic

UK markets were struggling for direction on Tuesday as the FTSE 100 paused at a record high, with elevated bond yields keeping a lid on gains by the midday mark.

After settling above the 9,000 mark for the first time ever on Monday, the UK benchmark index was trading just 0.05% lower by lunchtime at 9,008.

A bigger-than-expected surge in UK public sector borrowing dampened risk appetite in morning trade, sending 10-year Gilt yields up 4.6 basis points to an intraday high of 4.652%.

Russ Mould, investment director at AJ Bell, said weaker bonds/rising yields is "the market’s way of saying it isn’t impressed with the state of public finances". He added: "Soaring debt interest payments haven’t helped and the situation will further stir speculation that the government will have to put up taxes in the Autumn Budget."

UK government borrowing jumped £6.6bn year on year to £20.7bn in June, well above forecasts of £16.5bn. It was the second-highest June borrowing figures since monthly records began in 1993, beaten only by June 2020 amid the height of the Covid-19 pandemic when government spending soared to prop up the economy.

Interest payable on government debt jumped to £16.4bn last month, a rise of £8.4bn on June 2024 and higher than the £14bn forecast by the Office for Budget Responsibility.

Compass gains, housebuilders fall

Food services business Compass Group jumped 5% after upgrading full-year profit guidance due to strong organic growth and a better-than-expected M&A performance. Compass Group also announced it has agreed to acquire Vermaat Groep, a leading premium food services business in Europe, for approximately €1.5bn.

British Gas-owner Centrica was also outperforming after taking a 15% stake in nuclear power station Sizewell C, one of a number of new private investors to inject funds into the £38bn project.

Barratt Redrow, Taylor Wimpey and Vistry were among the day's worst performers as rising bond yields hit the housebuilding sector.

"Housebuilders were knocked by the public sector finance figures as the rise in gilt yields suggests the market believes interest rates could stay higher for longer. Housebuilders are desperately waiting for rates to come down as that could make mortgages more affordable and help more people get on the property ladder," Mould from AJ Bell said.

Drugmaker AstraZeneca was flat as investors gave a lukewarm reaction to plans to invest $50bn in the US for medicines manufacturing and R&D by 2030. AstraZeneca said its investment will support its ambition to reach $80bn in revenues by 2030, with 50% generated in the US.

Kier Group fell on the news that chief executive Andrew Davies is retiring at the end of October, with Stuart Togwell, the building firm's group managing director of construction, named as replacement.

Source: Sharecast

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Michelle

Economic

Stocks

Wall Street futures edged lower on Tuesday as investors braced for a busy day of earnings while navigating uncertainties around U.S. trade negotiations with key partners.

At 05:50 a.m. ET, S&P 500 E-minis were down 7 points, or 0.11%, Nasdaq 100 E-minis were down 60 points, or 0.25%, and Dow E-minis were up 1 point, or 0%.

The cautious moves follow a volatile session on Monday, when the S&P 500 (.SPX), opens new tab and the Nasdaq (.IXIC), opens new tab climbed to record closing highs on strength in megacaps including Alphabet (GOOGL.O), opens new tab ahead of its quarterly results.

Attention will be on defense firms RTX (RTX.N), opens new tab and Lockheed Martin (LMT.N), opens new tab on the day, along with consumer companies Coca-Cola (KO.N), opens new tab and Philip Morris International (PM.N), opens new tab, all set to report before the opening bell.

A solid earnings season and signs of a resilient economy have pushed the main U.S. stock indexes to all-time highs despite concerns about President Donald Trump's shifting tariff policies.

Negotiations appeared to remain deadlocked as the European Union explores a wider array of possible countermeasures against the U.S. Meanwhile, prospects of an interim trade deal between India and the United States have dimmed, Indian government sources said.

U.S. Treasury Secretary Scott Bessent denied any urgency to strike deals just to meet Trump's August 1 deadline.

Still, positive earnings surprises kept markets near peaks. Analysts on average expect S&P 500 companies to report a 6.7% increase in earnings for the second quarter, with Big Tech driving much of that gain, according to data compiled by LSEG.

Google-parent Alphabet and EV-maker Tesla (TSLA.O), opens new tab will inaugurate quarterly results for the "Magnificent Seven" stocks on Wednesday, setting the tone for Wall Street.

Shares of Tesla were down 0.56% in premarket trading, having fallen about 19% so far in 2025 amid CEO Elon Musk's political involvement and the challenges its core business faces.

U.S. Federal Reserve Chair Jerome Powell's speech at 8:30 a.m. ET will be closely watched for clues about the central bank's next policy move.

After a slew of mixed economic data last week, traders have ruled out the possibility of an interest-rate cut next week and see a 56.3% chance of a reduction in September, according to the CME FedWatch tool.

The Fed's reluctance to cut borrowing costs has drawn criticism from the Trump administration, sparking speculation the central bank's independence is threatened and that Powell will be replaced. Bessent claimed on Monday he wanted to review the Fed's performance as an institution.

Among other movers, U.S. coal miners Peabody Energy (BTU.N), opens new tab and Warrior Met Coal (HCC.N), opens new tab were up 4.8% and 4.1%, respectively, as China's coking coal prices surged amid market speculation about government inspections in major production hubs.

Source: Reuters

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Gerik

Economic

Multinational Earnings Shine as Dollar Weakens, but Investor Skepticism Lingers

The recent downturn in the U.S. dollar has emerged as a welcome counterbalance to mounting cost pressures from new tariffs, helping bolster second-quarter earnings for several U.S. multinational companies. As President Donald Trump’s aggressive tariff policies continue to ripple through global supply chains, the greenback’s depreciation now down roughly 10% year-to-date has amplified foreign revenue and lifted overall profit margins.

A weaker dollar improves the translated value of overseas earnings and enhances the global competitiveness of U.S. exports. Companies with significant international exposure have begun reporting favorable currency effects in their latest financial disclosures. PepsiCo, which draws about 40% of its revenue from abroad, raised its annual forecast, attributing the revision partly to foreign exchange benefits.

Likewise, Levi Strauss, Netflix, Garmin, 3M, and others have cited FX gains as contributing to either earnings beats or improved guidance. Garmin notably raised its full-year revenue growth guidance to 15%, and 3M posted Q2 earnings per share of $2.16 versus an expected $2.01, in part thanks to the weaker dollar.

Forex Effect and S&P 500 Performance

According to data from LSEG, every 1% depreciation in the dollar historically translates to an approximate 0.6 percentage point increase in S&P 500 earnings-per-share (EPS) growth. Given that nearly 38% of S&P 500 revenues are sourced internationally, sectors such as technology, consumer discretionary, industrials, and healthcare stand to benefit the most.

Edward Lifesciences CFO Scott Ullem acknowledged the reversal of prior assumptions: “We originally expected over $100 million of headwinds from a strengthening dollar and the reverse has happened.”

Temporary Gains or Structural Growth?

Despite these upbeat headlines, analysts remain cautious. Goldman Sachs strategists highlight that investors tend to value constant-currency sales growth more than FX-driven surprises, regarding the latter as less sustainable. Michael Arone of State Street Global Advisors emphasized that these tailwinds might be viewed as "transitory," warning that gains based purely on currency movements lack the resilience of organic demand-driven growth.

Netflix’s recent earnings call serves as a case in point. Despite raising revenue forecasts due to dollar-related tailwinds, the company’s shares fell more than 4% as investors focused on tepid subscriber growth and questioned the underlying strength of demand.

Key Beneficiaries of the Dollar Slide

A roundup of firms reporting meaningful FX impacts in their latest results includes:

3M: Beat Q2 profit estimates due in part to a favorable dollar.

BlackRock: FX contributed positively despite a YoY decline in assets under management.

Garmin: Raised guidance thanks to FX shifts.

Omnicom: Saw a 1.1% revenue boost from currency translation.

Concentrix: Projected a 140 bps FX benefit for Q3.

BNY Mellon: FX tailwinds aided a 13% increase in custody assets.

As the dollar’s depreciation unfolds against a backdrop of economic and fiscal strain including deficits swelling from Trump’s new tax law foreign earnings may continue to inflate near-term corporate results. But investors remain focused on long-term fundamentals, wary of over-assigning value to currency-driven windfalls in an increasingly volatile global trade environment.