BY THE NUMBERS
Stock futures are pointing to a modestly lower open, following yet another record close for the Nasdaq and the highest close for the S&P 500 since Feb. 21. Dow futures indicated around an 80-point drop at the bell. S&P 500 and Nasdaq futures also were slightly in the red. Investors will continue to closely follow the progress of negotiations in Washington over the next coronavirus relief bill.
* Treasury yields move lower amid talks over new stimulus checks (CNBC)
The tech-heavy Nasdaq on Monday rode a 1.47% gain to a fresh high on the first day of August trading. The Dow advanced 236 points, or 0.89%, while the broad S&P rose 0.72%. The Nasdaq has pieced together a four-day winning streak, and the Dow and S&P 500 were up in three of the past four days.
The day's only government economic report comes at 10:00 a.m. ET with the release of June factory orders, expected to show a 4.9% increase following a jump of 8% in May.
* U.S. manufacturing improves in July, future clouded by virus (AP)
Ralph Lauren (RL), Warner Music Group (WMG) and Spirit AeroSystems (SPR) report earnings this morning. Dow component Walt Disney (DIS) leads today's list of after-the-bell earnings reports, with Wynn Resorts (WYNN), Beyond Meat (BYND), Planet Fitness (PLNT) and Nikola (NKLA) also reporting.
* BP reports second-quarter loss after major write downs, halves dividend (CNBC)
IN THE NEWS TODAY
President Donald Trump suggested that the U.S. government should be reimbursed or "paid a substantial amount of money" from any sale of TikTok to Microsoft (MSFT) or another potential suitor. Trump said Monday that's "because without the United States they don't have anything, at least having to do with the 30%." The 30% is a reference to Microsoft potentially acquiring TikTok only in the U.S., Canada, Australia and New Zealand. It is unclear how, exactly, Trump's suggestion would work. Trump also said he believes it would be easier if Microsoft tried to acquire all of TikTok from ByteDance, the Chinese tech firm that owns it. (CNBC)
* ByteDance says goal of U.S. was to ban TikTok app rather than force a sale, internal letter shows (Reuters)
* Chinese state media slams U.S. as a 'rogue country' for its planned 'smash and grab' of TikTok (CNBC)
The Trump administration and Democratic leaders held "productive" discussions over the fifth coronavirus relief bill, but "still have our differences," according to House Speaker Nancy Pelosi. The California Democrat made the comments Monday after a more than two-hour negotiation on Capitol Hill with Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows. Senate Minority Leader Chuck Schumer, D-N.Y., said the two sides were moving closer on some issues and wanted to "get something done as soon as we can." However, Schumer claimed Republicans were holding firm on a lower federal unemployment supplement of 70% wage replacement. Democrats favor keeping it at the now-expired amount of $600 per week. (CNBC)
* Trump says U.S. may have coronavirus vaccine 'far in advance' of end of the year (CNBC)
* Coronavirus cases are climbing in Midwest states with previously low infections (Washington Post)
The Manhattan District Attorney said in a court filing that his office could be investigating Trump's private company for possible insurance and bank fraud. In the filing revealed Monday, Cyrus Vance Jr.'s office urged a federal judge to dismiss Trump's latest legal push to prevent prosecutors from obtaining his tax returns and other records as part of a subpoena. Trump, at a White House briefing Monday, said the possible criminal inquiry into his business was "just a continuation of the witch hunt" that includes the special counsel's investigation into Russian election interference. (CNBC)
Twitter (TWTR) said in an SEC filing it may have to pay a fine of up to $250 million from the Federal Trade Commission, stemming for an accused violation of the company's 2011 consent order with the federal agency. The allegation states Twitter used information provided for security purposes, such as phone numbers and/or email data, to instead target advertising. In its filing, Twitter said the matter is unresolved "and there can be no assurance as to the timing or the terms of any final outcome." Shares of Twitter were down about 1.3% in premarket trading. (CNBC)
* UK clears Amazon deal to buy 16% stake in online food platform Deliveroo (Reuters)
Hurricane Isaias was downgraded to a tropical storm after making landfall in North Carolina shortly after 11 p.m. Monday. The storm, which brought heavy rains and sustained winds of up to 85 mph in southern North Carolina, is proceeding north. The National Hurricane Center warned the threat of tornadoes is present today along the mid-Atlantic coast, noting they have already occurred in portions of North Carolina and southeastern Virginia. "Potential life-threatening" urban flooding may also occur in Washington and Baltimore, according to a 5 a.m. update from the NHC. (USA Today)
* Car malfunction sparked massive Apple fire, which swells to 26,000 acres in California (LA Times)
Primary elections are being held in five states today, including Arizona, Washington State and Michigan. Perhaps the most high-profile nominating contest is Kansas', where immigration hardliner Kris Kobach faces a crowded field in the Republican primary for the U.S. Senate. Kobach, who lost a 2018 bid for governor to Democrat Laura Kelly, is Kansas' former secretary of state and a former advisor to Trump. Republican Sen. Pat Roberts is not seeking reelection. While Kansas is a traditionally red state, some Republicans fear Kobach winning the nomination may make the seat more competitive for Democrats. (NY Times)
STOCKS TO WATCH
Hyatt Hotels (H) lost $1.80 per share for its latest quarter, wider than the loss of $1.32 that analysts were expecting, with revenue also below forecasts. Hyatt said it continues to contend with the negative impact of the Covid-19 pandemic on travel and hotel demand.
Take-Two Interactive (TTWO) saw profit nearly double and sales more than double in its latest quarter, as its video game business gets a boost from people sheltering at home due to Covid-19. The company behind franchises like "NBA 2K" and "Grand Theft Auto" also raised its full-year sales forecast.
Chegg (CHGG) reported adjusted quarterly profit of 37 cents per share, 5 cents above estimates, with revenue also above Wall Street forecasts. The maker of online learning platforms for students also raised its guidance for the full year, and noted that it had more subscribers during the second quarter than it had in all of 2018.
Mosaic (MOS) earned an adjusted 11 cents per share for its latest quarter, compared to analyst expectations of a 1 cent per share loss. The fertilizer producer also saw revenue top estimates, with a global emphasis on agriculture and food security limiting any Covid-19 related impact on its business.
AIG (AIG) beat estimates by 16 cents with adjusted quarterly earnings of 66 cents per share. However, profit was down 56 % from a year earlier, partly due to higher catastrophe losses.
Sony (SNE) reported better-than-expected profit for its second quarter, boosted by a surge in demand in its gaming business as consumers stayed at home during lockdowns.
Diageo (DEO) reported a larger-than-expected decline in quarterly sales, with the world's largest spirits maker seeing a drop in demand in all its markets except for North America.
The FAA released its guidelines for a return to service by Boeing's (BA) grounded 737 MAX jet, including four key design and operating changes. The proposals do match what had been expected by Boeing and industry analysts.
Regeneron Pharmaceuticals (REGN) said a drug cocktail involving two monoclonal antibodies both prevented and treated Covid-19 in animals. The treatment is currently being studied in late-stage clinical trials involving human patients.
Alphabet (GOOGL) borrowed $10 billion in the investment grade corporate debt market, its largest-ever bond issue. The Google parent's debt offering included $1 billion in 5-year debt at a coupon rate of just 0.45%.
WATERCOOLER
Six-time Olympic medalist Katie Ledecky's latest impressive feat in the pool: swimming with a glass of chocolate milk on her head. In a video posted to her Instagram, part of a "Got Milk?" ad, Ledecky methodically swam the length of the pool using a freestyle stroke, without spilling the beverage into the water. Ledecky, who won four gold medals in 2016, was set to compete at the 2020 Tokyo games prior to their postponement due to the coronavirus. The competition would have been ongoing now. (USA Today)