Stock futures are rising after President Donald Trump announced a trade deal with Japan; Tesla (TSLA) and Google parent Alphabet (GOOGL) are set to release quarterly earnings reports later today; digital payments provider Block (XYZ) is set to join the S&P 500; and GoPro (GPRO) and Krispy Kreme (DNUT) are surging as traders pile into the latest meme stocks. Here's what investors need to know today.
1. Stock Futures Gain After U.S. Trade Deal With Japan
Stock futures are moving higher after President Trump announced a trade deal with Japan, with S&P 500 futures up 0.3% after a streak of record highs. Dow Jones Industrial Average futures are higher by 0.5% in premarket trading, while Nasdaq futures climb 0.2%. The price of Bitcoin (BTCUSD) is slightly lower, trading near $118,700. The yield on the 10-year Treasury note is up slightly at 4.36%. Oil and gold futures are edging lower.
2. Trump Announces Japan Trade Deal Setting Tariffs at 15%
President Trump announced a trade deal with Japan that would set tariffs on exports from that country to the U.S. at 15%, in a reprieve from the 25% tariffs Trump threatened ahead of an Aug. 1 deadline. Under the deal, Japan will invest $550 billion in the U.S., and Japan will “open” its country to U.S.-made products, including automobiles and agricultural products like rice, Trump said. Shares of Japanese automakers surged on the news, with U.S.-listed shares of Toyota (TM) higher by more than 12% in premarket trading.
3. Investors Watch for Tesla, Google Earnings
Investors will be watching for earnings reports from Tesla (TSLA) and Google parent Alphabet (GOOGL) after markets close today. Analyst estimates compiled by Visible Alpha showed that Tesla is expected to report an over 10% decline in quarterly revenue after the EV maker’s quarterly delivery numbers came in below estimates, while Alphabet is projected to report growing revenue and profits. Tesla and Alphabet shares were little changed in premarket trading.
4. Block Is Set to Join the S&P 500
Digital payments provider Block (XYZ) is set to join the S&P 500 today, making it the second blockchain company to join the S&P 500 after cryptocurrency exchange Coinbase Global (COIN) was added earlier this year. Block will replace Hess (HES) in the index as Chevron (CVX) completes its acquisition of the company. Shares of Block are up 2% in premarket trading, after surging on the news of its inclusion in the index last week.
5. GoPro, Krispy Kreme Surge Amid Meme Stock Hype
Shares of camera maker GoPro (GPRO) and donut maker Krispy Kreme (DNUT) are soaring in premarket trading as investors pile into the latest meme stocks. GoPro shares are higher by almost 50% in early trading, while Krispy Kreme is rising over 30%, despite little significant news around the companies. The surge comes as other meme stocks have taken off recently, including Kohl’s (KSS), and Opendoor Technology (OPEN).
