The S&P 500 futures are up three points (0.1%), the Nasdaq 100 futures are up 11 points (0.1%), and the Dow Jones Industrial Average futures are down five points.
Stock futures are steady ahead of a busy week. Earnings reports will increase, especially in retail and tech. Fed Chair Powell will speak in Jackson Hole. The market awaits the July 30-31 FOMC meeting minutes on Wednesday.
The 10-year note yield is down to 3.87%, and the 2-year note yield is down to 4.05%.
Today's economic data includes the July Leading Indicators Index at 10:00 ET.
In corporate news:
Today's News
Advanced Micro Devices (AMD, Financial) is acquiring AI infrastructure provider ZT Systems in a cash and stock deal worth about $4.9 billion. The acquisition, which includes a contingent payment of up to $400 million based on certain post-closing milestones, will help AMD expand its data center and AI systems capabilities. AMD noted that ZT Systems' expertise in designing and optimizing cloud computing solutions will accelerate the deployment of AMD-powered AI infrastructure at scale.
FuboTV (FUBO, Financial) shares surged as much as 13% in premarket trading on Monday, building on Friday's 17% gain, after a federal judge temporarily blocked the launch of a competing sports streaming service. The halted service, backed by Fox, Warner Bros. Discovery, and Walt Disney, was set to debut next week but faced a lawsuit filed by FuboTV alleging anti-competitive practices.
S&P Global Ratings upgraded Uber Technologies (UBER, Financial) credit profile to BBB- from BB+, pushing the company to investment grade from its prior high-yield classification. This upgrade is expected to lower borrowing costs for Uber. The rating agency highlighted that Uber is on track to generate about $5.9 billion in EBITDA in 2024, and $7.6 billion in 2025, supported by economies of scale in its core mobility and delivery businesses and newer strategies such as grocery and higher-margin advertising.
United Auto Workers President Shawn Fain criticized Stellantis (STLA, Financial) CEO Carlos Tavares for alleged price gouging and attempting to renege on commitments made in the company's last labor contract. Fain accused Tavares of increasing his own pay by 56% while the company’s sales and profits have declined. The union leader claimed that Stellantis' strategy of selling fewer cars at higher prices is harming the company’s sales.
Marriott International (MAR, Financial) announced a long-term licensing agreement with Sonder Holdings (SOND, Financial), expected to add over 9,000 rooms to Marriott's portfolio by the end of the year. The agreement will integrate Sonder's apartment-style accommodations into Marriott’s system under a new collection called "Sonder by Marriott Bonvoy." This move is anticipated to boost Marriott's net rooms growth to 6% to 6.5% for 2024.
Estee Lauder Companies (EL, Financial) fell in early trading on Monday after setting guidance below expectations due to weak sentiment among Chinese consumers. The company reported a 2% year-over-year decline in sales to $15.91 billion for the fiscal year ending June 30. The decrease was primarily due to ongoing softness in overall prestige beauty in mainland China and a decline in Asia travel retail.
Apple (AAPL, Financial) received a Neutral rating and a $211 price target from MoffettNathanson, which compared the upcoming AI-driven iPhone upgrade cycle to the 5G upgrade cycle. The analysts noted that regulatory hurdles and geopolitical considerations outside the U.S. could restrain Apple's AI roll-out and adoption. They also highlighted that higher interest rates mean growth rates will need to be significantly higher this time to warrant a similar multiple.
Accenture (ACN, Financial) announced a strategic investment in Earli, a biotechnology company specializing in early cancer detection. The investment aims to expand collaborations with global health and pharma companies to use Earli’s technology for more rapid and accurate cancer detection and treatment. Terms of the investment were not disclosed.
