Morning Preview: July 14, 2025
Early Look
U.S. stock futures experienced a decline overnight following President Donald Trump's announcement of potential new 30% tariffs on imports from Mexico and the European Union. This threat adds to the existing tariffs that could be implemented by August 1st if trade deals are not reached sooner. In response, the European Union has decided to suspend retaliatory tariffs on U.S. goods that were set to take effect, aiming for a trade agreement with the Trump administration by the end of the month.
On the previous Friday, the S&P 500 index pulled back from its all-time high, closing lower and marking minor losses for the week.
Upcoming Economic Data
This week is significant for economic data releases, particularly the June Consumer Price Index (CPI) data scheduled for Tuesday. The last four months have shown a steady decline in inflation, despite tariff threats. Analysts expect the headline CPI to rise by 2.6% year-over-year in June, compared to 2.4% the previous month, while core CPI is anticipated to increase to 2.9% from 2.8%.
Global Market Overview
In Asian markets, the Nikkei Index fell by 110 points to 39,459, while the Shanghai Index rose by 9 points to 3,519, and the Hang Seng Index gained 63 points to 24,203. In Europe, the German DAX decreased by 217 points to 24,037, whereas the FTSE 100 increased by 37 points to 8,978. Oil prices saw an uptick, with WTI rising by 1% to over $69 a barrel, and spot gold climbed $10 to around $3,365 per ounce. Bitcoin reached a new record above $122,000.
Market Closing Prices
- S&P 500 Index: -20.71 points, or 0.33%, to 6,259.75
- Dow Jones Industrial Average: -279.13 points, or 0.63%, to 44,371.51
- Nasdaq Composite: -45.14 points, or 0.22%, to 20,585.53
- Russell 2000 Index: -28.58 points, or 1.26%, to 2,234.83
Economic Calendar for Today
2:00 PM ET: Federal Budget for June
Earnings Calendar
Earnings Before the Open: FAST
Earnings After the Close: EQBK, FBK, SLP
Other Key Events
China House Prices Y/Y, Retail Sales for June, and Q2 GDP
Macro Overview
- Nymex: 1.06, Last: 69.51
- Brent: 1.02, Last: 71.38
- Gold: 17.70, Last: 3,381.70
- EUR/USD: -0.000, Last: 1.1689
- JPY/USD: -0.15, Last: 147.25
- 10-Year Note: +0.0, Last: 4.423%
World News
China's June Trade Balance reported a surplus of $114.77 billion, exceeding the $109 billion consensus. Exports grew by 5.8% year-over-year, while imports increased by 1.1%. In Japan, May Machinery Orders fell by 0.6% month-over-month, but were up 4.4% year-over-year.
Sector News Breakdown
Consumer
Amazon's Prime Day sale significantly boosted online spending across U.S. retailers by 30.3% to $24.1 billion. General Motors is pausing production at a pickup truck plant in Mexico, and Rivian has been downgraded to Neutral from Buy at Guggenheim.
Energy, Industrials, and Materials
China's coal imports fell to their lowest level in over two years, while crude oil imports rebounded, reaching the highest daily rate since August 2023. Mizuho has made notable changes in the alternative energy sector, highlighting President Trump's new policy direction.
Financials
Ally Financial and Synchrony have been upgraded by BTIG. Shares of U.S. payment companies dropped following news of JPMorgan Chase planning to impose fees on fintech companies.
Healthcare
GSK's application for Arexvy has been accepted for review by the FDA. Kenvue announced a change in leadership, and Oscar Health was downgraded by Piper Sandler.
Technology, Media & Telecom
Alphabet's Google has acquired talent and licensing rights from AI startup Windsurf for $2.4 billion. Synopsys' acquisition of Ansys has received conditional approval from China's market regulator.