Morning Preview: July 11, 2025

Early Look

U.S. futures are trending lower as of July 11, 2025, following President Trump's announcement of a significant increase in tariffs on Canadian imports and other trading partners. The Dow, S&P 500, and Nasdaq are all expected to see declines, with the Dow potentially ending its three-week winning streak.

Futures Overview

• Dow: -320.00 points (-0.71%) at 44,587
• S&P 500: -42.25 points (-0.68%) at 6,281
• Nasdaq: -138.50 points (-0.60%) at 22,874

Market Context

President Trump has announced a 35% tariff on Canadian imports, up from 25%, effective August 1, with potential increases if Canada retaliates. He also plans to impose blanket tariffs of 15% or 20% on other trading partners. This news comes after the S&P 500 and Nasdaq reached record highs the previous day. Bitcoin has also seen a surge, reaching new highs above $118,000.

Global Market Performance

In Asian markets, the Nikkei Index fell by 76 points, while the Hang Seng Index rose by 111 points. In Europe, the German DAX and FTSE 100 both experienced declines.

Stock News

Drone-related companies saw a rise in shares after reports of increased production and deployment of drones by the U.S. Defense Secretary. Levi Strauss reported better-than-expected earnings, while Performance Food Group is in talks for a potential merger with US Foods.

Market Closing Prices from Previous Day

• S&P 500: +17.20 points (0.27%) at 6,280.46
• Dow Jones: +192.34 points (0.43%) at 44,650.64
• Nasdaq: +19.33 points (0.09%) at 20,630.67
• Russell 2000: +10.92 points (0.48%) at 2,263.41

Economic Calendar

• 12:00 PM ET: WASDE crop report for July
• 1:00 PM ET: Baker Hughes Weekly rig count data

Macro Indicators

• Nymex: $67.03 (+0.46)
• Brent: $68.99 (+0.35)
• Gold: $3,357.70 (+32.00)
• EUR/USD: 1.1692 (-0.0008)
• JPY/USD: 146.80 (+0.55)
• 10-Year Note: 4.386% (+0.039)

World News

Britain's economy has contracted for the second consecutive month, with a GDP decline of 0.1% in May following a 0.3% drop in April.

Sector News Breakdown

Consumer Sector

Flutter Entertainment is acquiring Boyd Gaming's stake in FanDuel for $1.76 billion, giving it full ownership. Levi Strauss reported strong earnings, raising its FY25 EPS outlook.

Energy, Industrials, and Materials

Albemarle has been downgraded by UBS, while Diamondback Energy anticipates losses in Q2. Drone manufacturers are expected to be active following regulatory changes.

Financials

Several asset management firms reported increases in assets under management, driven by market appreciation and net inflows.

Healthcare

Capricor Therapeutics faced a setback as the FDA declined to approve its cell therapy for a heart condition, while Pfizer and BioNTech are appealing a court ruling regarding their COVID-19 vaccine patent dispute with Moderna.