US Index Futures and European markets were lower on Monday morning after weaker data from China added to pressure for stimulus on the Asian giant.

By 6:57 AM, Dow Jones (DOWI:DJI) futures were down 70 points, or -0.20%. S&P 500 futures were down -0.12%, while Nasdaq-100 futures were down -0.02%. The 10-year Treasury yield is at 3.781%.

In the second quarter, China recorded Gross Domestic Product (GDP) growth of 6.3%, below analyst expectations of 7.3%. However, there was a positive variation in industrial production (+4.4%), surpassing forecasts. Retail sales, in turn, had a positive change of 3.1% in June on the same basis of comparison, against a forecast of 3.2%. These weaker GDP and retail sales data put pressure on the Chinese market, leading to expectations of additional stimulus by the government.

In Europe, markets are also falling due to the slowdown of the Chinese economy and the impact on the commodity sectors, as China is a major consumer of base metals.

On Monday’s American economic agenda, the Empire State Manufacturing Index data for May will be released at 8:30 am. The highlight of the week will be retail sales data, industrial production and weekly jobless claims, in addition to the earnings season, which picks up steam this week.

In commodities markets, West Texas Intermediate crude for August is down -1.42% to settle at $74.35 a barrel. Brent crude for September is down -1.44% near $78.72 a barrel. Iron ore futures traded in Dalian, China, fell 0.89% to $115.95 a tonne, reverberating the weaker data from the Chinese economy.

By Friday’s close, the Dow was up 113.89 points, or 0.33%, to 34,509.03 points. The S&P 500 fell 4.62 points, or 0.10%, to 4,505.42 points. The Nasdaq Composite dropped 24.87 points, or 0.18%, to 14,113.70 points. American stock markets recorded continuous gains boosted by the positive results disclosed by important banks, such as Citigroup, JP Morgan Chase, BlackRock and Wells Fargo. These numbers exceeded market expectations, standing out as the main indicators of the day. In addition, Michigan’s confidence index also surprised positively, reinforcing the idea of ​​a “soft landing” in the US economy, that is, a greater probability that the Federal Reserve (Fed) will be able to control inflation without causing major damage.

In front of Monday’s corporate results, the earnings of Guaranty Trust Bank (USOTC:GUAA), First Bank (Hamilton) (NASDAQ:FRBA), Equity LifeStyle Properties (NYSE:ELS) and Home Bancorp (NASDAQ:HBCP) will be released.

On Tuesday, Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Lockheed Martin (NYSE:LMT) and Prologis (NYSE:PLD) will be the highlights of the day.

On Wednesday, the most anticipated reports will be Tesla (NASDAQ:TSLA), Goldman Sachs (NYSE:GS), IBM (NYSE:IBM), Netflix (NASDAQ:NFLX) and United Airlines (NASDAQ:UAL).

Thursday will bring results from Taiwan Semiconductor Manufacturing (NYSE:TSM), Johnson & Johnson (NYSE:JNJ), Newmont (NYSE:NEM) and American Airlines Group (NASDAQ:AAL).

American Express (NYSE:AXP) will end the week on Friday.

Wall Street Corporate Highlights for Today

Microsoft (NASDAQ:MSFT) – Microsoft has reached an agreement to keep Call of Duty on PlayStation following its acquisition of Activision Blizzard (NASDAQ:ATVI). This is aimed at alleviating concerns about the merger’s impact on competition, with Microsoft pledging to keep the game available on multiple platforms. In other news, Microsoft claimed that Chinese hackers stole one of its digital keys and exploited a flaw in the code to steal emails from US government agencies. The company is evaluating the incident and new security models, in response to the criticism received.

Amazon (NASDAQ:AMZN) – Amazon Prime members spent a record $12.7 billion during the two-day event, including purchases for goods and services such as food delivery, travel and healthcare. The expansion into services demonstrates Amazon’s attempt to add more value and strengthen its advertising business.

United Parcel Service (NYSE:UPS) – UPS said Friday that it is committed to reaching an agreement with the truck drivers’ union before Aug. 1.

Intel (NASDAQ:INTC), Qualcomm (NASDAQ:QCOM) – The CEOs of Intel and Qualcomm plan to visit Washington this week to discuss China policy. They will meet with US officials to address issues such as market conditions and export controls. Other semiconductor industry CEOs may also be in attendance. Possible tightening of export rules would hurt companies, which rely on sales to China for research and development.

JPMorgan Chase (NYSE:JPM) – According to strategists at JPMorgan Chase, it is too early to buy eurozone stocks relative to US stocks. They expect further weakness in the region, due to declining growth policy and the possibility of disappointments in economic activity. The team also cited lower bond yields and falling earnings expectations as possible downside factors. In addition, the weakness of the Chinese economy and concerns about stimulus are also cited as obstacles for Europe.

UBS (NYSE:UBS) – The committee responsible for disputes in the CDS (Credit Default Swaps) market has determined that UBS will be the successor to Credit Suisse after the banks merge. This implies that UBS will become the new benchmark entity for outstanding CDSs without major market impacts unless new credit events occur. In other news, UBS Group has decided to retain EY as an external auditor, expanding its role to include Credit Suisse accounts from 2024. PwC will continue to audit Credit Suisse accounts until 2023.

Santander (NYSE:SAN) – Santander is accelerating the growth of its investment banking by hiring at least 50 bankers, mainly in the US. The aim is to become a relevant player in the sector, focusing on leveraged finance and corporate services for multinational companies. The bank is seeking to reduce its reliance on subprime car loans in the US.

Charles Schwab (NYSE:SCHW) – Charles Schwab is expanding its services to retail customers with account balances in excess of $1 million. These clients will now have access to a dedicated financial advisor at no additional cost, along with additional benefits such as special offers at Schwab Bank, expanded lending options and access to experts in tax planning, trusts and estate planning. This change is intended to prevent Schwab’s high-net-worth clients from being lured away by competing full-service financial advisors.

Coinbase (NASDAQ:COIN) – Coinbase said in a blog post on Friday that retail customers in four US states – California, New Jersey, South Carolina and Wisconsin – will not be able to pledge new cryptocurrencies for the staking program. This is due to proceedings initiated by states contesting the service. However, cryptocurrencies already staked prior to orders issued on June 6 will not be affected. In June, ten states accused Coinbase of violating state securities laws through its staking program. In other news, ARK Invest, led by Cathie Wood, took profits on the recent rally in Coinbase Global shares, a record 24.5% surge in Coinbase shares last Thursday, selling nearly half a million shares. However,

Tesla (NASDAQ:TSLA) – Tesla has finally built its first Cybertruck at its Austin, Texas factory after two years of delays. The launch of the electric vehicle will allow Tesla to compete in the lucrative electric truck market in the US alongside Ford (NYSE:F) and Rivian (NASDAQ:RIVN). In other news, Tesla skeptics are rethinking their stance after its impressive $500 billion gain this year. Bloomberg’s MLIV Pulse conducted a survey that found that 53.7% of respondents expressed concerns about competition from rival EV makers over the next two years. 25.6% of respondents pointed to Elon Musk’s unpredictable behavior as a risk to Tesla shareholders.

General Electric (NYSE:GE) – Toshiba (USOTC:TOSYY) plans to establish a domestic supply chain for offshore wind in partnership with General Electric. Japan is expanding its renewable energy capacity, with plans to install up to 45 GW of offshore wind power by 2040. The supply chain will involve around 100 small and medium-sized enterprises. Production is expected to start in 2026.

Nikola (NASDAQ:NKLA) – Shares in Nikola Corp rose 14% on Friday after a short squeeze boosted the electric truck maker’s share prices. Nikola’s recent deal to sell electric vehicles and buy low-carbon hydrogen has increased investor interest, resulting in record stock trading. The company also saw an increase in EV sales in the second quarter, indicating a positive sign for the startup.

Chevron (NYSE:CVX) – Chevron is comfortable buying liquefied natural gas (LNG) from the US on long-term contracts rather than building its own export facility. The company has signed agreements with Cheniere Energy (AMEX:LNG) and Venture Global LNG to diversify its risk and provide an outlet for natural gas coming from its Permian holdings. Chevron balances LNG investments with other drilling opportunities and projects in the Eastern Mediterranean, Argentina and West Africa. The company is not overly concerned about Venture Global LNG’s startup issues.

American Airlines (NASDAQ:AAL), Jetblue (NASDAQ:JBLU) – American Airlines and JetBlue Airways announced on Friday that they will begin the shutdown of their Northeast Alliance on July 21, following a court order in May. The two airlines are working to minimize customer disruption and allow customers to accumulate frequent flyer credits for already booked travel.

United Airlines (NASDAQ:UAL) – United Airlines and its pilots have reached a labor agreement, resulting in a significant pay increase for pilots. The four-year contract includes cumulative increases of 34.5% to 40.2% in salaries, reflecting the pilot shortage in the industry. Demand for pilots in the United States is expected to outstrip supply by 2027.

MoonLake Immunotherapeutics (NASDAQ:MLTX) – MoonLake Immunotherapeutics, a developer of treatments for inflammatory skin conditions, is considering a sale. The company is at an early stage of talks with drug makers interested in a possible acquisition. If successful, MoonLake will break into a market dominated by larger peers such as Novartis AG (NYSE:NVS) and AbbVie Inc (NYSE:ABBV). No deal has been confirmed so far. On Friday’s news, MoonLake stock ended up 8.4% at $54.27, bringing the company’s market value to $3.3 billion.

Pfizer (NYSE:PFE) – The United States Federal Trade Commission (FTC) has requested additional information and documents relating to Pfizer’s proposed acquisition of Seagen (NASDAQ:SGEN). Pfizer closed a $43 billion deal to acquire Seagen, but recent antitrust scrutiny has investors on edge. Seagen still expects to complete the merger in late 2023 or early 2024.

Eli Lilly (NYSE:LLY) – Eli Lilly announced the acquisition of Versanis for up to $1.93 billion to strengthen its position in the weight loss treatments market. The deal gives Eli Lilly access to an experimental obesity drug being jointly tested with rival Novo Nordisk (NYSE:NVO).  The weight loss drug market is expected to reach $100 billion within a decade. Versanis’ drug, bimagrumab, acts directly on adipose cells without reducing appetite or causing loss of lean body mass, and is also in the early stages of testing for a potential treatment of heart failure in obesity.

Frontier Communications (NASDAQ:FYBR) – Frontier Communications is moving toward its goal of connecting 10 million locations with fiber optics, after a tumultuous period that included bankruptcy and pressure on older technologies. The company has a new management team and an updated balance sheet. Frontier is building a high-speed network and cutting costs, aiming for market penetration of at least 45%.

Chipotle Mexican Grill (NYSE:CMG) – Chipotle Mexican Grill is testing a new collaborative robot called Autocado to cut and peel avocados, making guacamole faster. The company is also developing the Chippy robot to make tortilla chips.

Market view

AT&T (NYSE:T),  Telephone and Data Systems (NYSE:TDS),  Frontier Communications (NASDAQ:FYBR) – AT&T, Frontier Communications and Telephone and Data Systems have been downgraded to a “Neutral” rating of “Buy” by Citigroup, due to potential risks exposure to legacy lead-sheathed cable.

Ericsson (NASDAQ:ERIC) – Barclays downgraded Ericsson’s “Equal Weight” rating to “Overweight” and maintained its “Equal weight” rating for Nokia (NOK, NOKI34), following warnings from both companies.

Chewy (NYSE:CHWY) – Shares in Chewy rose 5,3% in premarket trade to reach $40,00. Analysts at Goldman Sachs upgraded the online pet retailer’s stock rating from “Neutral” to “Buy” and also raised the price target to $50 from $39.

Netflix (NASDAQ:NFLX) – UBS analyst John Hodulik recently raised his price target for Netflix stock from $390 to $525, suggesting an additional upside potential of nearly 20%. Hodulik is confident that the second quarter results, to be released on Wednesday, will exceed the company’s expectations.

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