Morning Preview: July 08, 2025
Early Look
U.S. equity trading markets showed little change this morning after a subdued overnight session, following tariff news that caused major averages to retreat from all-time highs. President Trump sent letters to 14 global trading partners, including Japan and South Korea, detailing tariff rates that would be imposed if trade deals are not reached. The implementation date for these tariffs has been extended to August 1, providing additional time for negotiations, which helped mitigate the immediate impact of the tariff announcements.
Trump threatened to impose 25% tariffs on goods from Japan and South Korea, while emerging-market currencies weakened after he announced 25% tariffs on Malaysia and Kazakhstan, a 30% tariff on South Africa, and 40% tariffs on Laos and Myanmar. Additional tariffs were also mentioned for Tunisia, Indonesia, Bangladesh, Bosnia, Serbia, Cambodia, and Thailand, with rates ranging from 25% to 36%.
In Asian markets, the Nikkei Index rose by 101 points to 39,688, the Shanghai Index gained 24 points to 3,497, and the Hang Seng Index increased by 260 points to 24,148. In Europe, the German DAX was up 87 points to 24,161, while the FTSE 100 rose by 16 points to 8,822. The Japanese yen struggled against the dollar due to the tariff announcements, while the Australian dollar strengthened after the Reserve Bank of Australia kept interest rates steady at 3.85%.
Market Closing Prices Yesterday
- S&P 500 Index: -49.37 points, or -0.79%, to 6,229.98
- Dow Jones Industrial Average: -422.17 points, or -0.94%, to 44,406.36
- Nasdaq Composite: -188.59 points, or -0.92%, to 20,412.52
- Russell 2000 Index: -34.80 points, or -1.55%, to 2,212.23
Economic Calendar for Today
- 6:00 AM ET: NFIB Small Business Optimism for June
- 7:45 AM ET: ICSC Weekly Retail Sales
- 8:55 AM ET: Johnson/Redbook Weekly Sales
- 1:00 PM ET: U.S. Treasury to sell $58B in 3-year notes
- 3:00 PM ET: Consumer Credit for May
- 4:30 PM ET: API Weekly Inventory Data
Earnings Calendar
No earnings are scheduled before the market opens, but KRUS, PENG, and SAR are set to report after the close.
Other Key Events
China's CPI and PPI data for June will also be released today.
Macro Overview
- Nymex: -0.12 to 69.46
- Brent: -0.27 to 67.66
- Gold: -7.80 to 3,335.00
- EUR/USD: +0.0018 to 1.1725
- JPY/USD: +0.33 to 146.35
- 10-Year Note: +0.022 to 4.417%
World News
Ukraine has requested the global chemical weapons watchdog to investigate the alleged use of banned toxic munitions by Russia against its forces.
Sector News Breakdown
Consumer
Amazon's Prime Day event starts today, expected to generate a record $12.9 billion in the U.S., a 53% increase from last year. TopBuild has agreed to acquire Progressive Roofing for $810 million in cash. Uber Technologies closed at a record high of $96.68, up 3.3%.
Energy, Industrials, and Materials
ExxonMobil anticipates a significant impact on Q2 results due to changes in liquids and gas prices. Vistra Energy received approval to extend the operation of its Perry Nuclear Power Plant through 2046. Solar stocks fell after the White House announced a faster termination of clean-electricity tax credits.
Financials
Bancorp Inc. increased its share repurchase program to $500 million. Several banks received upgrades and downgrades from analysts, including KeyCorp and PNC Financial. Robinhood is launching its own crypto tokens to enhance liquidity for retail investors.
Healthcare
Biogen expects a significant R&D expense charge for Q2. Merit Medical anticipates revenue growth, while Merck will present new data on HIV prevention at an upcoming conference.
Technology, Media & Telecom
Ciena and Datadog were downgraded by analysts, while Samsung Electronics expects a significant drop in quarterly operating profit due to U.S. trade restrictions on China.