Watch For:

U.S. ISM Report on Business Manufacturing for July; Canada markets closed for civic holiday.

Opening Call:

Stock futures rose, signaling gains for major indexes at the start of August as investors cheer strong earnings growth.

Investors are upbeat that the economic expansion will boost corporate profits and enable stocks to keep rising, albeit at a slower pace. Some are cautious that the highly contagious Delta strain of coronavirus, a prolonged spell of inflation and China's efforts to rein in tech firms could lead to bouts of volatility.

"There are a few good reasons why the economy will continue to grow at above normal rates," said Edward Smith, co-chief investment officer at U.K. investment firm Rathbone Investment Management. Consumers are spending freely, companies plan to invest in their businesses and firms are restocking inventories, he said.

"That should enable earnings momentum to stay strong, carrying through to the end of the year," Mr. Smith said.

Among individual stocks, Square dropped 4.9% ahead of the opening bell. The payments company agreed to buy Australia's Afterpay-which allows users to pay for goods in interest-free installments-in an all-stock deal valued at around $29 billion.

Investors said sentiment in broader markets was given a boost by comments from the Chinese securities regulator. The China Securities Regulatory Commission said it would cooperate with Washington on U.S. listings, after the Securities and Exchange Commission said it would increase scrutiny of Chinese companies that aim to sell shares in the U.S.

"Chinese and U.S. regulators shall continue to enhance communication with the principle of mutual respect and cooperation, and properly address the issues related to the supervision of China-based companies listed in the U.S.," a spokesperson for the CSRC told reporters, according to a transcript posted on the regulator's website Sunday.

The comments appear to have buoyed Asian markets after a turbulent few weeks.

The Stoxx Europe 600 rose, led by shares of retailers and makers of cars and car parts.

Among individual stocks, HSBC rose 0.8% in London after the British lender unveiled a forecast-beating quarterly profit of $3.4 billion and said it would resume paying dividends.

U.K. engineering firm Meggitt, which specializes in the aerospace, defense and energy industries, shot up 58% after agreeing to a GBP6.3 billion takeover, equivalent to around $8.8 billion, by Parker Hannifin.


The dollar is unlikely to weaken further in coming days due to expected strong U.S. economic data and global recovery concerns supporting safe haven assets, ING said.

"This week's data should, on balance, keep investors upbeat on the U.S. recovery and ultimately help cement the view that the Federal Reserve will soon announce more details on its tapering program (we think this could happen at the Jackson Hole conference) and keep fuelling speculations around a 2022 rate hike," ING analysts said.

Combined with worries about the fast-spreading Delta coronavirus variant derailing the global recovery and the U.S.-China regulatory spat, the dollar won't extend its depreciating trend this week, they said.

The July U.S. nonfarm payrolls report on Friday could provide "new directional momentum" for the euro-dollar exchange rate as the Federal Reserve wants substantial further progress in the labor market before reducing stimulus, Commerzbank said.

The surprisingly positive U.S. economic growth over the past few quarters hasn't been reflected in employment in a satisfactory manner yet, Commerzbank currency analyst Esther Reichelt said.

"From the Fed's point of view this seems to be the restraining factor for U.S. monetary policy so that new information on the situation on the labor market is most likely to trigger significant moves in the USD exchange rates for now."

The Swiss franc will likely stay strong against the euro in the near-term as coronavirus concerns support safe-haven assets and the European Central Bank maintains its loose monetary policy measures, Commerzbank said.

While the Swiss National Bank will keep its easy policy measures in place and use currency interventions to curb excessive franc gains, the ECB is unlikely to lift the euro by scaling back stimulus for the time being, Commerzbank currency analyst Esther Reichelt said.

"Hence, upward pressure on the franc is only likely to ease when the pandemic-related risks are slowly priced out in the coming months, thereby reducing demand for the franc as a safe-haven currency."


In the bond market, the yield on 10-year Treasury notes ticked up to 1.243% from 1.239% Friday.

Forward rates on the EUR money market signal that market participants have again begun pricing in a certain tendency on the part of the ECB to cut interest rates once more, LBBW said but believes that the market is overinterpreting the ECB's dovish signals.

"At this point, we believe the market is overinterpreting the dovish signals given by the ECB in its forward guidance," LBBW's senior fixed-income analyst Elmar Voelker said.

Absent any severe economic setbacks in the coming months, "our view is that it seems unlikely there will be any renewed loosening of monetary policy from the current perspective," he said.


Oil prices were lower after both benchmarks closed out July roughly flat for the month. But the market has come under pressure early Monday with "concerns over the spread of the Delta variant in China," ING's Warren Patterson said.

While the number of cases in China remains low, partial lockdowns and travel restrictions have been imposed in the affected cities, and other countries in Asia like Thailand and the Philippines have made similar moves.

In a signal that Delta concerns aren't as intense as they were a few weeks ago, Brent traders increased bets on rising prices in the most recent reporting week.

LME three-month copper futures rose 0.7% to $9,786 a metric ton, recouping some of last week's losses that came with a stronger dollar.

Supply fears are helping drive copper higher, said ING's Warren Patterson, after the union representing workers at Chile's La Escondida copper mine said its members voted to reject the mine owner's most recent contract offer and go on strike. Codelco's Andina mine, also in Chile, could also strike.

Meanwhile, Shanghai warehouse stocks of copper are falling, and New York traders last week pushed their bets on rising prices to a ten-week high.

London gold prices slipped following the dollar's recent strength.



HSBC's Profit Rises as Pandemic Provisions Recede

HSBC Holdings PLC's net profit rose in the second quarter as the London-based lender reduced provisions for bad loans caused by the economic fallout from the coronavirus pandemic.

The banking giant, which is sharpening its focus on lucrative Asian markets, unveiled a forecast-beating quarterly profit of $3.4 billion and said it would resume paying dividends-a key focus for many investors in the sector.


Square Agrees to Acquire Afterpay for $29 Billion in All-Stock Deal

SYDNEY-Square Inc. has agreed to acquire Afterpay Ltd. in an all-stock deal worth around $29 billion, illustrating how financial technology companies are seeking scale to challenge banks for a bigger slice of the payments industry.

Square said a key attraction of the deal was a growing wariness toward traditional credit among younger consumers, a group particularly hard hit by the Covid-19 pandemic, as lockdowns crushed many hospitality and casual jobs.


Succession Drama Grips Scholastic: CEO's Sudden Death, an Office Romance and a Surprise Will

The longtime head of Scholastic Corp., M. Richard Robinson Jr., died suddenly in June on a walk in Martha's Vineyard. He left behind a surprising succession plan.

He didn't give control of the $1.2 billion publisher to either of his two sons, or his siblings, or his ex-wife, with whom he had rekindled a friendship during the pandemic. Instead, control went to Iole Lucchese, Scholastic's chief strategy officer. She also inherited all his personal possessions.


Meggitt Agrees to $8.76 Bln Parker-Hannifin Takeover, Shares Rise

Shares in Meggitt PLC rose on Monday after the company said that it has agreed to a 6.3 billion pounds ($8.76 billion) takeover by Parker Hannifin Corp., a deal that is expected to double the size of Parker's Aerospace Systems segment.

Shares in Meggitt at 0820 GMT were up 273.70 pence, or 58%, at 742 pence.


Chile Workers at World's Biggest Copper Mine Vote to Strike

The union representing workers at Chile's La Escondida copper mine said its members voted to reject the most recent contract offer from the mine's owner and go on strike, potentially risking disruptions to the supply of a key metal as the world's economy continues to recover from the impact of the coronavirus pandemic.

BHP Group Ltd.-controlled Minera Escondida, located in Chile's northern Atacama Desert, is the world's largest copper mine, producing almost 5% of the world's supply of the metal, which is used to make electrical wiring and motors and in construction, among many other applications.


Samsung Takes Intel's Chip-Seller Crown, but Bigger Showdown Looms

Intel Corp. aspires to chip-technology supremacy within four years. But for now, it has fallen from the industry's top spot by one key measure.

In the second quarter, Samsung Electronics Co. overtook Intel as the world's top chip maker by revenue. Given divergent outlooks for their core businesses, the positioning is likely to stay that way in the near future, industry analysts say.


Oil Search Intends to Recommend New Santos Takeover Proposal

Oil Search Ltd. said it intends to recommend a new takeover proposal from Santos Ltd. to create an energy company with a market value of more than 22 billion Australian dollars (US$16 billion).

Santos is offering 0.6275 of its own shares in exchange for each Oil Search share. A deal would lead to Santos shareholders owning 61.5% of the combined company, with Oil Search investors holding the remaining stock.


China Caixin Manufacturing PMI Drops to 16-Month Low

A private gauge of China's manufacturing activity in July fell to a post-Covid-19 low as heavy floods, a resurgence in Covid cases and power shortages in some cities weighed on output and new orders.

The Caixin China purchasing managers index dropped to 50.3 in July from 51.3 in June, Caixin Media Co. and researcher Markit said Monday. July's reading was the lowest in the past 16 months, but still held above the 50 mark that separates expansion from contraction.


Senators Push to Wrap Up Bipartisan Infrastructure Bill This Week

WASHINGTON-Senators wrapped up the construction of a roughly $1 trillion infrastructure bill, racing to pass it through the chamber by the end of the week and send it to the House, where its fate is intertwined with a $3.5 trillion package of Democratic priorities.

Senate Majority Leader Chuck Schumer (D., N.Y.) kept the Senate open through the weekend in a bid to begin considerations of the bipartisan infrastructure package, $550 billion of which is in addition to expected future federal investments in roads, bridges, broadband, and other infrastructure projects. But lawmakers took much of the weekend to complete the text of the bill, finishing the final text Sunday night. Completion of the text will allow lawmakers to begin the amendment process and move to final passage in the coming days.


European Bonds Rally on Bets on Weak Growth, Inflation

Government bonds in the eurozone have rallied in recent weeks as investors bet on a growing divergence in economic fortunes between slowgrowing Europe and the rest of the world-especially the U.S.

The yield on the benchmark 10-year German bund, slipped to minus 0.454% Monday, near its lowest level in over five months. In May, it had climbed as high as minus 0.108%, according to Tradeweb. Bond yields fall as prices rise.


Economy Week Ahead: Factories, Trade, Employment

The U.S. employment report for July is the focus of this week's economic indicators.


Germany Retail Sales Rise

Retail sales in Germany increased in June beating forecasts thanks to the easing of coronavirus-related lockdown restrictions.

Retail sales increased 4.2% on month in June in calendar and seasonally-adjusted terms, data from the country's statistics agency Destatis showed Monday. This increase beats the forecast of 1.8% from economists polled by The Wall Street Journal.


Heavyweight Companies Enjoy Outsize Rewards as Economy Rebounds

Big companies raced ahead during the Covid-19 pandemic, leveraging the changes driven by the deepest business disruption in decades to grab a larger slice of the economic pie.

Now, as the rich world bounces back from the shock, the heavyweights are extending that lead, spending more on investments and acquisitions, snapping up talent, employing big data and leveraging new technologies.


Inflation Is Hot Now, but Investors Are Betting That Won't Last

Investors are betting the inflationary streak that has sent prices of everything from used cars to lumber soaring will fade in the coming years, a reassuring sign for markets struggling to find direction.

Few issues have vexed money managers more this year than inflation. As the global economy has regained its footing, prices for goods and services have risen-in many cases far faster than economists had anticipated. Labor shortages and supply-chain disruptions snarling the global shipping industry have added to inflationary pressures.


Reduction in Fed's Asset Purchases Might Not Spark 'Taper Tantrum'

WASHINGTON-Investors barely reacted last week when Federal Reserve officials signaled they could announce plans to start reducing their bond buying later this year. That was a relief for policy makers eager to avoid a repeat of the market turmoil that erupted in 2013 when the Fed made a similar announcement.

The Fed's next test will come when it outlines a concrete plan for when and how it will scale back, or taper, the asset purchases.


Anthony Fauci Warns on Covid-19 That 'Things Are Going to Get Worse'

The Biden administration's chief medical adviser said he didn't believe the U.S. would return to lockdowns but warned that "things are going to get worse" as a more contagious variant of the coronavirus has led to a surge of new cases.

"We are looking, not I believe, to lockdown but we are looking to some pain and suffering in the future because we are seeing the cases go up," Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said Sunday on ABC's "This Week." He added, "The solution to this is, get vaccinated."


Simone Biles Will Make Dramatic Return to Tokyo Olympics on Balance Beam

TOKYO-Simone Biles will compete in the balance beam final on Tuesday, her sports federation said here, making a high-stakes return a week after she pulled herself out of competition because she didn't feel mentally able to perform safely.

The 24-year-old gymnast, widely regarded as the greatest of all time, has not competed since she withdrew from the team final after a shaky vault in the team final last Tuesday. She has withdrawn from four other finals in the days since then. The balance beam final represents her last chance to come back to competition in the Tokyo Olympics, and to take an individual medal of any color.


U.S. Blames Iran for Drone Attack on Israeli-Linked Tanker

The U.S. joined the U.K. and Israel Sunday in blaming Iran for a fatal drone strike last week on an Israeli-linked tanker near the coast of Oman in the Arabian Sea, and the U.S. said it would work with allies to develop a response to the incident.

The statement from Secretary of State Antony Blinken marked unusually blunt language from the Biden administration, particularly as it is also seeking to revive a nuclear deal with Iran.


Myanmar Rulers Extend State of Emergency

Myanmar's junta leader has pledged to hold democratic elections within two years, extending a state of emergency imposed by the military when it overthrew the country's elected government in February.

Speaking in a televised address on Sunday, Gen. Min Aung Hlaing said his State Administration Council is "working as quickly as possible" to prepare for fresh elections after voiding the results of a 2020 vote that dealt a landslide victory to the party of civilian leader Aung San Suu Kyi.


Write to



Viemed HC. Inc (VMD.T) 2Q

Economic Indicators (ET):

Nothing major scheduled

Stocks to Watch:

No items published

Other News:

No items published

Market Talk:

No items published


Expected Major Events for Monday

00:30/JPN: Jul Japan Manufacturing PMI

05:00/JPN: Jul Consumer Confidence Survey

05:00/JPN: Jul Auto sales

06:00/GER: Jun Retail Trade

06:00/RUS: Jul Russian Manufacturing PMI

07:45/ITA: Jul Italy Manufacturing PMI

07:50/FRA: Jul France Manufacturing PMI

07:55/GER: Jul Germany Manufacturing PMI

08:30/UK: Jul CIPS / Markit Manufacturing PMI

13:45/US: Jul US Manufacturing PMI

14:00/US: Jul ISM Report On Business Manufacturing PMI

14:00/US: Jun Construction Spending - Construction Put in Place

15:00/US: Jul Global Manufacturing PMI

23:30/JPN: Jul CPI (Tokyo), CPI ex-Food (Tokyo)

23:50/JPN: Jul Monetary Base

All times in GMT. Powered by Kantar Media and Dow Jones.


Expected Earnings for Monday

Aerojet Rocketdyne Holdings (AJRD) is expected to report $0.48 for 2Q.

Alexander's Inc (ALX) is expected to report for 2Q.

Amrep Corp (AXR) is expected to report for 4Q.

ArcBest Corp (ARCB) is expected to report $1.61 for 2Q.

BlackRock TCP Capital Corp (TCPC) is expected to report $0.33 for 2Q.

Brixmor Property Group Inc (BRX) is expected to report $0.14 for 2Q.

CNA Financial Corp (CNA) is expected to report $1.12 for 2Q.

Coastal Financial Corp (CCB) is expected to report $0.44 for 2Q.

Columbia Sportswear Company (COLM) is expected to report $-0.06 for 2Q.

DSP Group Inc (DSPG) is expected to report $-0.03 for 2Q.

Eagle Financial Services (EFSI) is expected to report for 2Q.

Electrovaya (EFL.T) is expected to report for 3Q.

FNCB Bancorp Inc (FNCB) is expected to report for 2Q.

FRP Holdings Inc (FRPH) is expected to report for 2Q.

First Bancshares Inc (FBMS) is expected to report $0.76 for 2Q.

Gladstone Investment Corp (GAIN) is expected to report $0.29 for 1Q.

Global Payments Inc (GPN) is expected to report $0.87 for 2Q.

Green Plains Inc (GPRE) is expected to report $-0.21 for 2Q.

Hayward Holdings Inc (HAYW) is expected to report for 2Q.

Intevac Inc (IVAC) is expected to report $-0.26 for 2Q.

Jeld-Wen Holding Inc (JELD) is expected to report $0.56 for 2Q.

KnowBe4 Inc (KNBE) is expected to report for 2Q.

Loews Corp (L) is expected to report $0.72 for 2Q.

Minerva Neurosciences Inc (NERV) is expected to report $-0.18 for 2Q.

ON Semiconductor Corp (ON) is expected to report $0.34 for 2Q.

ONE Gas Inc (OGS) is expected to report $0.53 for 2Q.

Protara Therapeutics Inc (TARA) is expected to report for 2Q.

Sanmina Corp (SANM) is expected to report $0.38 for 3Q.

Sino-Global Shipping Amer (SINO) is expected to report for 3Q.

Square Inc (SQ) is expected to report $-0.05 for 2Q.

Stellus Capital Invest (SCM) is expected to report $0.28 for 2Q.

Sterling Bancorp Inc (SBT) is expected to report $0.06 for 2Q.

TG Therapeutics (TGTX) is expected to report $-0.55 for 2Q.

Timken Co (TKR) is expected to report $1.43 for 2Q.

Transocean Ltd (RIG,RIGN.EB) is expected to report $-0.15 for 2Q.

U.S. Gold Corp (USAU) is expected to report for 4Q.

Ultra Clean Holdings Inc (UCTT) is expected to report $0.60 for 2Q.

Ultragenyx Pharmaceutical Inc (RARE) is expected to report $-1.31 for 2Q.

Universal Health Realty (UHT) is expected to report for 2Q.

Vornado Realty Trust (VNO) is expected to report $0.26 for 2Q.

Powered by Kantar Media and Dow Jones.



There are no actions to report from the last 24 hours.

This article is a text version of a Wall Street Journal newsletter published earlier today.


(END) Dow Jones Newswires

August 02, 2021 06:09 ET (10:09 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.