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U.S. stock futures rose alongside government bond yields as investors assessed the implications of Saturday’s assassination attempt on former President Donald Trump. Bets on a Trump victory in the November presidential election have increased sharply, putting the “Trump trade” back in focus for investors.
This week, earnings season revs up with results due from Goldman Sachs this morning. Major indexes all climbed on Friday, with investors feeling confident that a rate cut is around the corner.
🚨 Follow our live coverage throughout the day for the latest news affecting markets. Meanwhile, our James Mackintosh ponders whether the megacap trade is over, which could put stock dudes at risk of a market wipeout.
Stocks to Watch ↘️
- Trump Media & Technology Group: Shares of Truth Social's parent company surged nearly 70% premarket following an assassination attempt on former President Donald Trump Saturday.
- Burberry: The British luxury group's shares tumbled more than 15% after the company replaced its chief executive and warned that it expected to report a first-half loss. It also said it would stop paying its dividend.
- Swatch Group: The Swiss watchmaker reported a first-half decline in sales due to waning demand for luxury goods in China and said it expects that market to remain difficult for the rest of the year. Swatch shares fell more than 11%.
- Coinbase Global: Shares of the crypto exchange gained more than 6% in premarket trading amid a rebound in crypto prices. Other Bitcoin-linked stocks including Marathon Digital and MicroStrategy also rallied. Bitcoin traded at around $63,000 early Monday.
- Tesla: The EV maker's shares gained more than 4% premarket, putting the stock on track to extend its climb. Tesla’s stock has risen 25% in July, cutting nearly all its losses for the year.
- Alphabet: Google parent Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion, the Wall Street Journal reported Sunday. Alphabet shares edged higher premarket.
- BlackRock and Goldman Sachs will each report results before markets open.
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Stock Dudes Risk a Market Wipeout By James Mackintosh
Waves break when they reach the shore because the sea floor drags on their base, while the energy at the crest keeps pushing forward—until gravity pulls it down. No, this isn’t a surfing lesson: This was Thursday’s stock market. The wave that broke was the momentum trade, which had pushed the “Magnificent Seven” megacapitalization stocks and anything related to artificial intelligence to dizzying heights, leaving the rest of the market far behind. The question for investors now is whether the breakers will hit the rocks, or merely prove to be white caps far from the shore. Is the megacap trade over? Before weighing the answer, consider just how big a reversal Thursday brought. Everything that worked this year stopped working. Keep reading.
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Charting the Markets
🔎 High interest rates have started to wear on the biggest banks, with deposit costs rising and customers like credit-card and commercial-property borrowers feeling the effects of higher debt payments, writes Heard on the Street's Telis Demos. Advertising and cloud growth have boosted Amazon's margins and lowered the stock’s valuation even as its market capitalization surged past $2 trillion, says Heard on the Street's Dan Gallagher. Investors are racing to get a piece of the stock market's big gains. They poured more than $15 billion into funds tracking U.S. equities at the end of June, the biggest haul in a year.
Must Reads
Over the years, Chinese cities amassed trillions of dollars in off-the-books debt for economic development projects. Today, overgrown construction sites and abandoned tourist attractions make much of the debt-fueled growth that resulted look illusory and suggest China’s future is far from assured. The Supreme Court’s new limits on federal agencies’ regulatory powers are rippling through the tax system. They are poised to tilt some disputes against the government and toward large companies. Tenant evictions look stuck at elevated levels in several corners of the U.S., showing little sign of returning to prepandemic norms.
More: Pork Producer Smithfield Plans U.S. Stock Listing. China’s Lopsided Economy Loses Steam. Battle Over Shareholder Pacts Strains Delaware’s Business Courts
This Day in Markets 📈 On this day in 1916, William Boeing, a Yale-educated aeronautical engineer, incorporated the Pacific Aero Products Co. in Seattle with $100,000 in capital. He kept 998 of the original 1,000 shares of stock for himself. In 1917, he renamed his firm the Boeing Airplane Co.
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