4:15pm: Stocks slip
The Nasdaq led Wall Street lower at Monday’s close, down 0.3% at 26,605 points. The Dow Jones was down 0.1% at 53,975 points, and the S&P 500 fell 4 points to 7,753 points. Meanwhile, oil prices surged more than 5% as speculation continues about the potential reopening of the Strait of Hormuz.
3:45pm: Proactive news headlines
- Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) updated the branding for its next-generation graphene battery technology being developed with the University of Queensland, Rio Tinto and the Battery Innovation Center of Indiana to emphasize safety, fast charging, performance and cycle life.
- American Resources Corp (NASDAQ:AREC) CEO Mark Jensen attended a US mining industry roundtable hosted by President Donald Trump and Secretary of State Marco Rubio focused on strengthening domestic and allied critical mineral supply chains.
- Varon Corp (OTCID:OZSC) joint venture Ballislife Drink signed Detroit Pistons center Jalen Duren as a brand ambassador and equity partner as it expands its NBA athlete partnerships and prepares to launch a signature sports drink can.
- TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) said the Los Azules copper project in Argentina is advancing toward a final investment decision, with operator McEwen Copper reporting that about 27% of the planned FID work program was complete as of June 30.
- Grey Matters Health (CSE:GREY, OTCQB:AGNPD, FRA:AGW0) appointed radiologist Dr Jayson Lord as medical director of its flagship NovaScan Neuroimaging Clinics location in Davie, Florida, which is expected to open in September.
- Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF, FRA:3XS0) CEO Craig Hallworth attended a US critical minerals roundtable hosted by President Donald Trump and senior officials focused on boosting domestic mining and processing capacity and reducing reliance on foreign supplies.
- First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY, NASDAQ:PHOS) began trading its American Depositary Receipts on the Nasdaq Global Market under the ticker PHOS after upgrading its ADR program to a Level 2 listing, with each ADR representing 10 common shares.
2:35pm: Market movers
- Intel Corp (NASDAQ:INTC, XETRA:INL) shares fell about 3% after the chipmaker announced a $15 billion public stock offering to fund capital expenditures, working capital and other corporate purposes while supporting growth and maintaining its balance sheet.
- Berkshire Hathaway Inc (NYSE:BRK.A) shares gained about 2.5% after the conglomerate reported better-than-expected second-quarter revenue of about $101.8 billion and increased capital deployment under CEO Greg Abel.
- Archer Aviation shares jumped 16% after agreeing to acquire Boeing’s Wisk Aero, SkyGrid and Insitu subsidiaries, expanding its capabilities across eVTOL aircraft, autonomous flight, unmanned systems and air traffic management.
- Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) updated the branding for its next-generation graphene battery technology being developed with the University of Queensland, Rio Tinto and the Battery Innovation Center of Indiana, highlighting safety, fast charging and improved performance.
- monday.com shares fell about 6% after its third-quarter revenue outlook of $368 million to $370 million came in below Wall Street expectations despite the software company beating estimates for second-quarter earnings and revenue.
- Barrick Gold Corp. (TSX:ABX, NYSE:GOLD) shares fell 8% after second-quarter adjusted earnings of $0.82 per share missed the $0.84 analyst consensus despite strong year-over-year growth.
1:30pm: Labor market 'topsy-turvy'
The U.S. labor market is sending conflicting signals, according to UBS, with some leading indicators improving while broader employment measures are edging back toward recessionary territory.
UBS said its leading indicator rose to 38% in July from 31% in June, suggesting conditions have improved over the past six months. However, the June reading was revised down from 44%.
At the same time, the bank’s broader “other” indicator worsened to 49% from 39% in June, reversing much of the improvement seen since February.
UBS said the data paint a “topsy-turvy” picture of the labor market. "Overall, the state of the labor market seen through the lens of these indicators looks topsy-turvy, as the coal mine canaries regain strength just as the bulk of the components appears to teeter around recessionary levels," analysts concluded.
12:05pm: Zuckerberg's AI vision
Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) (Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB), Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB), Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB)) CEO Mark Zuckerberg outlined a vision for artificial intelligence centered on making so-called superintelligence broadly available to individuals, arguing that the technology should expand human capabilities rather than primarily replace workers.
In a 6,500-word essay titled “The Future is for Everyone: The Path to a Positive AI Future,” published on Monday, Zuckerberg said advanced AI could create opportunities in entrepreneurship, scientific research, education and personal productivity.
“We propose a philosophy based on individual empowerment as the source of prosperity, invention as the primary purpose of superintelligence, and balance of power as the foundation of safety,” Zuckerberg wrote.
Zuckerberg argued that concentrating advanced AI among a small number of companies, governments or individuals could create risks by placing too much economic and political power in limited hands. Instead, he said Meta wants to distribute AI capabilities widely and give individuals greater control over how the technology is used.
11:10am: Week ahead
After a strong run for US stocks, the week ahead could ultimately come down to one question: Is inflation cooling fast enough to give the Fed room to ease, or will stubborn price pressures keep higher rates on the table?
The main event comes Wednesday with the release of the US Consumer Price Index for July, followed by the Producer Price Index on Thursday and retail sales on Friday. Economists expect headline CPI to ease to around 3.4% annually, while core inflation is expected to moderate to about 2.5%.
The inflation readings take on added importance after last week’s weaker-than-expected jobs report. July payrolls fell by 23,000, while previous months were revised sharply lower, raising questions about the strength of the labor market. At the same time, the unemployment rate dipped to 4.1%, leaving the Federal Reserve with a complicated picture as it weighs its next move.
Thursday’s PPI report will provide another piece of the inflation puzzle, then comes Friday’s retail sales report, offering the first real look at consumer spending in the third quarter.
10:00am: Quiet start
Markets were little changed Monday morning as investors took a cautious stance ahead of this week’s key inflation data, with the July jobs report continuing to shape expectations for the Federal Reserve.
The Dow fell 68 points, or 0.1%, to 53,969, while the S&P 500 was essentially flat at 7,761. The Nasdaq slipped 28 points, or 0.1%, to 26,662.
Investor sentiment remains supported by last week’s surprisingly weak jobs report, which showed US payrolls contracted by 23,000 in July. The softer labour-market data has eased concerns about near-term Fed rate hikes, with futures now pricing in no more than a 45% chance of a September hike, down from above 60% before the jobs report.
Now, attention turns to inflation. The consumer price index is due Wednesday, followed by the producer price index on Thursday. Investors will be watching closely for signs that inflation is cooling enough to give the Fed room to keep rates lower.
“As usual, the reasoning is that a stronger-than-expected inflation report will increase expectations of higher Fed rates and could send yields higher and equities lower,” said Ipek Ozkardeskaya, senior analyst at Swissquote. “A softer-than-expected figure, on the other hand, would soothe hawkish Fed expectations and keep the market mood in a sweet spot.”
The two-year Treasury yield has been easing from its July peak, while the US dollar has come under pressure as expectations for a more dovish Fed build.
There was plenty of company-specific action to keep investors busy as well. Intel shares sank about 5% after the chipmaker announced plans for a $15 billion common stock offering, while Apple fell nearly 2% after Jefferies downgraded the stock to underperform and said it believes the company may have scrapped plans for an all-glass iPhone.
Berkshire Hathaway was also in focus after reporting that second-quarter profit more than doubled, helped by gains on its stock investments.
Meanwhile, oil prices climbed as markets remained wary that a new deal between the US and Iran has yet to materialize, leaving uncertainty around efforts to reopen the Strait of Hormuz.
With inflation data looming, investors appear content to wait for the next major clue on the Fed before making a bigger move.
Ahead of the bell
Wall Street is easing into the week rather than charging at it, with futures barely moving despite the major indexes sitting within touching distance of record highs.
Dow futures slipped 0.1%, while the S&P 500 and Nasdaq 100 contracts nudged higher after a winning week.
The hesitancy is understandable given what is coming.
Wednesday brings the consumer price index, the reading that could settle an argument the Federal Reserve is still having with itself over whether to raise rates as the Middle East oil shock feeds through to prices.
Friday's weak jobs report took some heat out of that debate, though policymakers have made clear a hot inflation print would put a rise back on the table.
Brent is trading around $84 a barrel amid another round of will-they, won't-they over the Strait of Hormuz, with Tehran teasing that a deal is very close.
Earnings are thinner now, but CoreWeave, Nebius, Cerebras and Super Micro will all report on the state of the AI build-out.