Top 5 Things To Know In The Market On Monday

Jul 30, 2018

Here are the top five things you need to know in financial markets on Monday, July 30:

1. Dollar Dips At Start Of Busy Week For Central Banks, Data

The U.S. dollar was a shade lower against its peers, as market participants awaited key central bank meetings this week that could set the near-term course for currencies.

Central banks in focus include the Bank of Japan, which ends a two-day meeting on Tuesday, and the Federal Reserve, which concludes its policy meeting on Wednesday. The Bank of England also makes a policy decision on Thursday.

There's also a gusher of economic reports in the coming week, as the calendar rolls to August from July, with data on U.S. inflation and payrolls in the spotlight.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.15% at 94.34, after dipping slightly on Friday, when upbeat second quarter U.S. gross domestic product data failed to lift the greenback, as markets had mostly priced in strong figures.

Elsewhere, in the bond market, U.S. Treasury prices edged lower, pushing yields higher across the curve, with the benchmark 10-year yield ticking up to around 2.98%, while the Fed-sensitive 2-year note was near a two-decade high of 2.68%.

2. Another Big Week Of Earnings Kicks Off

More than 140 companies listed on the S&P 500 are set to report corporate results in what will be the last big week of the second-quarter earnings season.

Monday sees Caterpillar (NYSE:CAT), Loews (NYSE:L), Bloomin' Brands (NASDAQ:BLMN), Booz Allen Hamilton (NYSE:BAH), Diamond Offshore (NYSE:DO), and Seagate Technology (NASDAQ:STX) report ahead of the opening bell.

AK Steel (NYSE:AKS), Denny’s (NASDAQ:DENN), Rent-A-Center (NASDAQ:RCII), Transocean (NYSE:RIG), Illumina (NASDAQ:ILMN), and KLA-Tencor (NASDAQ:KLAC) are due after the bell.

But Apple (NASDAQ:AAPL) will get the most attention when it reports Tuesday after hours. The iPhone-maker's results will be closely watched after disappointing forecasts from Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR) last week shook investor belief in tech resilience.

Some of other high-profile tech names reporting this week are Procter & Gamble (NYSE:PG), Pfizer (NYSE:PFE), Baidu (NASDAQ:BIDU), Sprint (NYSE:S), Tesla (NASDAQ:TSLA), Square (NYSE:SQ), Wynn Resorts (NASDAQ:WYNN), CBS (NYSE:CBS), Teva Pharma (NYSE:TEVA), DowDuPont (NYSE:DWDP), Shake Shack (NYSE:SHAK), Kraft Heinz (NASDAQ:KHC), and Warren Buffet's Berkshire Hathaway (NYSE:BRKa).

3. U.S. Stock Futures Point To Lower Open

U.S. stock futures looked set to kick off the week on a downbeat note, with the major indices on track to open with modest losses, as investors focused on the latest batch of corporate earnings.

At 5:10AM ET, the tech-heavy NASDAQ 100 futures indicated a loss of 7 points, or about 0.1%, at the open. The blue-chip Dow futures and S&P 500 futures also indicated a slightly lower start to their respective trading sessions.

Wall Street fell on Friday, as disappointing results from Intel (NASDAQ:INTC) and Twitter soured the mood on the Nasdaq.

Elsewhere, in Europe, most of the region's major bourses traded lower, with almost every sector in the red. Earlier, Asian stocks closed in negative territory, as markets took cues from declines in Wall Street's last session.

4. Oil Prices Edge Higher

In commodity markets, oil prices edged higher, with U.S. benchmark WTI outperforming thanks to recent upbeat news on the U.S. economy, but gains were limited as the fallout from trade tensions weighed on markets.

U.S. crude jumped 81 cents, or 1.2%, to $69.50 a barrel, while Brent, the global benchmark, tacked on 45 cents, or 0.6%, to $75.21.

The U.S. economy grew at its fastest pace in nearly four years in the second quarter, but trade tensions remain high between Washington and Beijing despite an easing between the U.S. and the European Union.

5. Trump Threatens Government Shutdown

U.S. President Donald Trump called on Congress to enact sweeping immigration reform, including a border wall, and threatened a federal government shutdown if Democrats refused to back his proposals.

In a series of early Sunday morning posts on Twitter, the president lambasted Congress over immigration reform. He then threatened to shut down the government if Congress didn't move U.S. laws "based on MERIT!"

Trump has threatened a shutdown several times since taking office in a bid to get immigration priorities in congressional spending bills, especially funding for a wall along the southern U.S. border. Trump has asked for $25 billion to build the wall.

Congress must agree on a spending measure to fund the government by a Sept. 30 deadline.