US stock futures mixed amid more earnings reports
US-Japan reach trade deal, setting tariff rate at 15%
President Donald Trump said Japan will pay a tariff rate of 15%, which is lower than his initial threat of a 24% tariff.
U.S stock futures are mixed amid more earnings reports, including from two of the so-called Magnificent Seven, which are the top influential megacap technology stocks.
Electric vehicle giant Tesla and Google parent Alphabet were the first two of the Magnificent Seven to report earnings after the close. In a split decision, Tesla missed sales estimates but Alphabet topped forecasts.
At 6:10 a.m. ET, futures tied to the blue-chip Dow fell-0.31%, while S&P 500 futures added 0.12% and tech-laden Nasdaq futures rose 0.36%.
Investors are looking for strong earnings, especially from the influential Magnificient Seven stocks, as a reason to add to stock market gains. The S&P 500 and Nasdaq notched record highs during the regular session on a combination of trade deal optimism and strong quarterly results.
The U.S. and Japan reached a trade deal that would slap a lower-than-originally threatened 15% tax on Japanese imports, and a deal with the European Union is expected to mirror that, reports said.
Dow, Honeywell, American Airlines, Blackstone, Nasdaq and Union Pacific are among the companies set to report earnings before the opening bell.
Trump continues to pressure Powell
Trump plans to visit the Federal Reserve at 4 p.m. ET, according to the White House schedule. The visit would mark the first time in nearly two decades that an American president has made an official trip to the central bank, whose independence from elected officials is a hallmark of the Fed.
The unusual move is seen as part of Trump’s pressure campaign for Powell to resign or lower interest rates.
Corporate news
- IBM’s second-quarter revenue missed expectations.
- ServiceNow boosted its subscription revenue outlook.
- Chipotle Mexican Grill lowered its full-year same-store sales guidance.
- Mattel reinstated its full-year sales growth outlook, but it’s lower than it was at the beginning of the year. It also sees annual earnings per share lower than its forecast at the start of the year. Its second-quarter sales missed expectations but adjusted earnings per share beat.
- T-Mobile raised its full year outlook. It gained more wireless and internet subscribers than Wall Street expected in the second quarter. Its quarterly results also topped forecasts.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
