Stock rally could be due for a pause on Wall Street

BY THE NUMBERS

Futures were lower this morning after the Dow’s fifth straight gain and the S&P 500’s fourth advance in five sessions. The Dow has also been up in 12 of the past 14 sessions, while the S&P 500 has closed to within 2 percent of its January all-time high. (CNBC)

The Labor Department is out with its report on initial jobless claims at 8:30 a.m. ET, with consensus forecasts calling for an increase of 6,000 to a total of 220,000 for the week ending July 14. At the same time, the Philadelphia Fed is out with its monthly manufacturing index. (CNBC)

IBM (IBM) shares were nearly 3 percent higher in premarket after it reported adjusted quarterly profit of $3.08 per share, beating consensus estimates by four cents. Revenue also beat forecasts, with the company’s newer businesses making a significant contribution. (CNBC)

Banks are a prominent part of this morning’s earnings calendar, with Bank of New York Mellon (BK), BB&T (BBT), Fifth Third (FITB) and KeyCorp (KEY) all set to report. Microsoft (MSFT) leads today’s list of after-the-bell earnings reports. (CNBC)

IN THE NEWS TODAY

The New York Times reported President Donald Trump had seen highly classified evidence before his inauguration that Russian President Vladimir Putin had “personally ordered complex cyberattacks to sway the 2016 American election."

During a meeting of his Cabinet, Trump said that Russia is no longer targeting the United States with cyber attacks. That conclusion is at odds with the one repeatedly asserted by Trump's own intelligence services. (CNBC)

Despite resistance from industry and discontent in Congress, Trump stood by his threats to levy sweeping tariffs on automobile imports as a way to extract concessions from trading partners. (WSJ)

China’s foreign ministry hit back today at comments made by Trump’s top economic advisor, Larry Kudlow, saying it is clear who is right and who is wrong in an escalating trade row between the world’s two largest economies. (CNBC)

The California Supreme Court pumped the brakes on a plan to split California into three states. They ruled the state-sundering initiative should not appear on the November 2018 ballot, which one group argued should have gone through the legislature first. (Politico)

Anthony Fauci, director at the National Institute of Allergy and Infectious Diseases, said at a news conference that the AIDS epidemic could effectively end if the world could improve access to healthcare, implementing tools we have now. (Axios)

UnitedHealth Group (UNH) is among the possible buyers of Tenet Healthcare’s (THC) health management subsidiary, according to the Wall Street Journal. Tenet had previously said it would make a decision on the sale of that unit.

NASA is plotting a return to the moon within a decade — but this time the astronauts will stay there. NASA plans to partner with companies like Moon Express to send robotic landers carrying scientific instruments to the moon, as soon as next year. (USA Today)

Facebook announced that it would begin removing misinformation that could lead to people being physically harmed. The social network was criticized over the way its platform has been used to spread hate speech and information that prompted violence. (NY Times)

STOCKS TO WATCH

American Express (AXP) beat estimates by two cents with second quarter earnings of $1.84 per share, with revenue very slightly below street forecasts. The shares are being pressured by a rise in quarterly expenses related to the financial services company’s credit card rewards program.

EBay (EBAY) came in two cents ahead of analyst estimates with adjusted quarterly profit of 53 cents per share, with revenue essentially in line. However, the online marketplace operator did give a lighter than expected full-year forecast, amid efforts to revamp its e-commerce platforms.

Cisco Systems (CSCO) shares are getting a boost following a MarketWatch report that Amazon Web Services had no plans to start selling network switching equipment. That counters a report last week that the Amazon (AMZN) unit was planning to enter the switch market.

Unilever (UL) reported lower than expected quarterly sales, with weak pricing a key factor in the miss for the consumer goods maker. However, Unilever did maintain its full-year outlook.

Taiwan Semiconductor (TSMC) cut its full-year revenue forecast as well as its capital spending outlook, with the chip-maker anticipating slower growth in key markets such as smartphones. Taiwan Semiconductor is a key supplier for companies like Apple (AAPL), Qualcomm (QCOM) and Nvidia (NVDA).

WATERCOOLER

Bruce Springsteen will go from Broadway to Netflix (NFLX) to stream "Springsteen on Broadway." The streaming giant's premiere of the performance is scheduled for December 15, the same day Springsteen on Broadway ends its run at the Walter Kerr Theatre. (Rolling Stone)