US stock futures higher after trade deals with Japan, Philippines
U.S. stock futures are higher after a rally on trade deals, but some megacap tech companies are due to report quarterly results and could swing sentiment.
After the regular session market close, Google-parent Alphabet and electric vehicle giant Tesla will be the first two of the so-called Magnificent Seven to report earnings.
Magnificent Seven stocks are megacap tech stocks that have a strong influence on the market. They also include Apple, Microsoft, Nvidia, Meta and Amazon. In 2024, they accounted for about one-third of the S&P 500's total market capitalization.
When Tesla and Alphabet report, investors will scour their reports and comments for any signs of weakness in artificial intelligence spending or effects of tariffs to extend the rally begun by trade deals announced by President Donald Trump.
The U.S. and Japan agreed to a trade deal that included Japan's investing $550 billion in the U.S. and a 15% tariff on Japanese goods entering the U.S. That includes auto tariffs, which will be lowered to 15% from the current 25%, according to reports.
Additionally, Trump said the U.S. struck a trade deal with the Philippines that includes a 19% tariff on goods imported from the southeast Asian country and no tariffs on U.S. goods entering the Phillippines. The two countries will also work togther militarily, he said.
Final talks with Indonesia on its trade deal are also underway, the White House said. The framework includes will no tariffs on U.S. goods, while Indonesian goods entering the U.S. will be taxed at 19%.
At 6 a.m. ET, futures tied to the blue-chip Dow rose 0.50%, while broad S&P 500 futures gained 0.39% and tech-heavy Nasdaq futures added 0.18%.
Before the market opens, toy maker Hasbro, AT&T, Boston Scientific and Hilton are among the companies expected to report earnings.
Corporate news
- Texas Instruments' second-quarter results topped Wall Street estimates, but the lower range of its current quarter guidance missed.
- CoStar Group reported better-than-expected results for the second quarter.
- Cal-Maine Foods results in the company's last three months of its fiscal year beat analysts' expectations, helped by egg prices.
- Enphase Energy's second-quarter earnings topped anlaysts' expectations, but current-quarter revenue forecast was mostly below forecasts.
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.