Morning Preview: July 09, 2025
Early Look
U.S. stock futures are showing little change as they hover just below record highs following a day of minimal movement. This comes after President Trump escalated trade tensions with U.S. trading partners during a cabinet meeting. He announced plans for a 50% tariff on copper and threatened 200% duties on pharmaceuticals. Trump also confirmed that the pause on “reciprocal” tariffs, which was established in April, will end on August 1, with no extensions for countries that have not reached agreements by then. This announcement follows a series of letters posted on social media by the President, detailing new tariff rates ranging from 25% to 40% on over a dozen countries, effective August 1.
In response to these developments, the EU Commission is aiming to finalize a trade deal with the U.S. before the August deadline, potentially within the next few days. In Asian markets, the Nikkei Index rose by 132 points to 39,821, while the Shanghai Index fell by 4 points to 3,493, and the Hang Seng Index dropped by 255 points to 23,892. In Europe, the German DAX increased by 252 points to 24,459, and the FTSE 100 rose by 27 points to 8,881. Investors are also anticipating the release of the Federal Reserve’s June meeting minutes, where the FOMC indicated that two rate cuts are likely this year.
Market Closing Prices Yesterday
- S&P 500 Index: -4.46 points, or 0.07%, to 6,225.52
- Dow Jones Industrial Average: -165.60 points, or 0.37%, to 44,240.76
- Nasdaq Composite: +5.95 points, or 0.03%, to 20,418.46
- Russell 2000 Index: +14.51 points, or 0.66%, to 2,228.74
Economic Calendar for Today
- 7:00 AM ET: MBA Mortgage Applications Data
- 10:00 AM ET: Wholesale Inventory M/M for May
- 10:30 AM ET: Weekly DOE Inventory Data
- 1:00 PM ET: U.S. Treasury to sell $39B in 10-year notes
Earnings Calendar
- Earnings Before the Open: PCYO
- Earnings After the Close: AZZ, BSET
Macro Overview
- Nymex: +0.25 to 68.58
- Brent: +0.20 to 70.35
- Gold: -14.40 to 3,302.50
- EUR/USD: -0.0015 to 1.171
- JPY/USD: +0.01 to 146.59
- 10-Year Note: -0.014 to 4.403%
World News
Bank of Japan board member Junko Koeda is monitoring potential second-round effects on inflation due to rising rice prices. She stated that predicting the timing for interest rate hikes is inappropriate given the uncertain economic outlook. Additionally, President Trump has decided to delay the implementation of reciprocal tariffs to August 1, following advice from his advisors, including Treasury Secretary Scott Bessent.
Sector News Breakdown
Consumer
Kura Sushi (KRUS) reported Q3 adjusted EPS of $0.05, exceeding estimates, and raised FY revenue guidance. PVH Corp. (PVH) was downgraded to Hold due to rising inventory and tariff impacts.
Energy, Industrials, and Materials
AES Corp. is considering a sale amid takeover interest. U.S. copper prices surged to an all-time high following Trump's tariff announcement. Several packaging companies were downgraded by Bank of America.
Healthcare
Merck (MRK) confirmed its acquisition of Verona Pharma (VRNA) for $10B. RxSIGHT (RXST) shares fell over 30% after lowering revenue guidance.
Technology, Media & Telecom
Microsoft (MSFT) was upgraded to Outperform, while Mobileye (MBLY) announced a secondary public offering. WPP Group (WPP) shares fell after lowering full-year sales guidance.