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Rally seen pausing today ahead of shortened trading week

IN THE NEWS TODAY

U.S. futures are pointing to a lower open as traders return from the July 4th holiday, following a four-day win streak that has seen the Dow and S&P 500 recover more than 90 percent of their Brexit-related losses.

Oil prices were down about 2 percent as concerns about global economic growth outweighed outages in Nigeria and elsewhere.

Stocks in Asia were mostly lower, though China's mainland markets were higher following data that showed the fastest growth in a measure of Chinese services sector activity in 11 months.

European stocks came off lows on Tuesday after the Bank of England announced it would take action to soften the blow of the Brexit vote. (CNBC)

The Bank of England on Tuesday cut the counter cyclical capital buffer rate for U.K. banks, a move that reduces regulatory buffers and raises their capacity to lend to households and businesses. (CNBC)

Italian banking stocks are under pressure amid concerns about the nation's financial sector. Italy is reportedly planning to pump billions into its troubled banking sector, in defiance of new EU rules meant to avoid taxpayer-funded bank bail outs. (CNBC/FT)

Standard Life has blocked retail investors from selling out of its 2.9-billion pound commercial property fund, one of Britain's largest, as fears of falling real estate prices sparked rapid outflows following the Brexit vote. (FT)

Prominent Brexit supporter Nigel Farage stepped down as head of the U.K. Independence Party on Monday, saying he had done his bit and never wanted to be a career politician. (CNBC)

Donald Trump defended himself after tweeting an image of a six-sided star set against a backdrop of $100 bills accompanying an image of Hillary Clinton that called her "corrupt." The image, which appeared weeks earlier on a Twitter feed with racist content, was widely seen as referencing the Jewish Star of David and criticized as anti-Semitic.

The FBI questioned Hillary Clinton on Saturday as part of an investigation into whether the former secretary of state mishandled classified information routed through her private email server. (NBC News)

Suicide bombings rocked three cities in Saudi Arabia and included an attack at Islam's second holiest site in Medina. The bombings followed attacks in Istanbul, Turkey; Dhaka, Bangladesh; and Baghdad, Iraq seemingly timed to Eid al-Fitr, the end of the Muslim holy month of Ramadan. (Reuters)

Goldman Sachs (GS) has ordered staff at its asset management business, GSAM, to curtail spending following 15 straight months of outflows from its mutual funds and underperformance in its flagship bond fund, according to the Financial Times. (FT)

The parent company of infidelity website Ashley Madison is under investigation by the U.S. Federal Trade Commission, senior executives told Reuters in their first interview since a cyber attack compromised millions of their customers' personal details last year. (Reuters)

NASA's Juno spacecraft successfully entered orbit around Jupiter overnight, completing a five-year journey and kicking off a 20-month mission to explore the solar system's largest planet. (Reuters)

BY THE NUMBERS

Though the fate of Britain in the EU remains a focus, investors are now turning their attention to the June jobs report, due out Friday morning.

It's a light day for economic numbers, with only June factory orders on the schedule. The 10 a.m. ET release is expected to show a 0.8 percent drop, following a 1.9 percent increase in May.

New York Federal Reserve President William Dudley will participate in a 2:30 p.m. ET roundtable discussion in Binghamton, NY, although monetary policy is not specifically among the topics to be discussed.

There are no earnings reports of note due out today. Later in the week, we'll get quarterly numbers from Walgreens Boots Alliance (WBA) and PepsiCo (PEP).

STOCKS TO WATCH

Ford (FM), General Motors (GM), and other auto stocks are on the watch list today, after Autodata's monthly numbers showed the June annual U.S. sales rate at a less-than-expected 16.66 million units.

Tesla (TSLA) delivered 14,370 vehicles during the second quarter, short of its target of 17,000 vehicles. Tesla said an unusually large number of vehicles are still in transit to customers, but analysts say the numbers suggest Tesla hasn't fully solved its production issues as it seeks to ramp up volume.

UBS (UBS) has been ordered by tax authorities in Switzerland to provide France with tax information. UBS had maintained the legality of the request was "ambiguous" at best, but anticipates other countries making similar requests following the Swiss ruling.

Bank of America (BAC), Citigroup (C), Morgan Stanley (MS), Goldman Sachs (GS) and other financials are among the market's best bargains, according to a Barron's article which notes the underperformance of those stocks this year and the positive capital return implications following the recent stress test results.

Southwest Airlines (LUV) also got a positive Barron's mention, highlighting its lack of Brexit-related exposure, a solid dividend, and a cleaner balance sheet than most competitors, among other factors.

WATERCOOLER

Joey Chestnut took the belt at the annual 4th of July competitive eating contest in Coney Island, Brooklyn after scarfing down a personal best 70 hot dogs. (AP)

Pixar's "Finding Dory" spent a third weekend atop the U.S. box office, beating a trio of new releases including "The Legend of Tarzan," Steven Spielberg's "The BFG," and "The Purge: Election Year." (Reuters)