A combination of the usual summer doldrums and Fed uncertainty has the stock market in "indecisive" mode ahead of the week's second trading day. Monday's mixed market did serve as a reminder of just how strong the market has been, with the Dow's relatively modest 46 point drop registering as its biggest one-day loss since June 28.
The government will issue the June trade deficit at 8:30 a.m. ET in a relatively light day for economic numbers. Economists are looking for a June shortfall of $43.6 billion, following May's $45.0 billion deficit. The Labor Department will also issue the monthly "JOLTS" report – a measure of job opportunities and labor turnover – at 10 a.m. ET.
The Treasury will auction $32 billion in 3-year notes today, with the results of that sale available shortly after 1 p.m. ET.
The earnings calendar picks up some steam today, with Archer Daniels Midland (ADM), Charter Communications (CHRT), Cognizant Technology (CTSH), CVS Caremark (CVS), Fossil (FOSL), Molson Coors (TAP), and Tenet Healthcare (THC) among the companies out with quarterly numbers this morning. After the closing bell, we'll get the latest numbers from Dow component Walt Disney (DIS) as well as First Solar (FSLR), Marathon Oil (MRO), and Zillow (Z).
American Eagle Outfitters (AEO) leads our list of stocks to watch, after slashing its current quarter profit outlook to 10 cents per share from the prior 21 cents. The teen retailer blames weaker than expected sales and lower profit margins, with chief executive Robert Hanson saying the company was "not at all happy" with the quarter's results.
Sony (SNE) rejected investor Daniel Loeb's proposal to spin off its entertainment business, saying that owning 100 percent of the entertainment business is the best path forward. Loeb issued a statement saying he would keep talking with Sony and would explore other options.
DSW (DSW) raised its full year outlook and announced a two for one stock split. The shoe retailer's raised guidance comes as it reports same-store sales for its second quarter were up 4.3 percent over a year ago.
Alliant Techsystems (ATK) is talks to buy Bushnell Outdoor Products in a deal worth about $1 billion, according to multiple reports. Alliant is a maker of aerospace and defense systems, while Bushnell is a privately held maker of gun accessories.
Washington Post Co. (WPO) is selling its newspaper publishing business to Amazon.com (AMZN) founder Jeff Bezos for $250 million. The two sides expect the deal to close later this year.
McDermott International (MDR) lost 63 cents per share for the second quarter, surprising analysts who had expected a small profit. Revenue was also considerably short of estimates, and the construction company also said chief operating officer John McCormack will be retiring later this year. The loss stems from projects in the company's Middle East and Asia Pacific regions.
Vornado Realty (VNO) reported second quarter funds from operations at $1.30 per share, beating estimates by nine cents. Vornado registered an increase in the value of its investment of J.C. Penney (JCP) derivatives, although the value of its stake in Toys R Us fell in value.
Investor Carl Icahn has bought four million more shares of Dell (DELL), according to an SEC filing, boosting his stake to 8.9 percent from 8.7 percent. Icahn continues to battle the buyout deal struck between the company, founder Michael Dell, and Silver Lake Partners, in favor of his own plan to enhance shareholder value.
General Motors (GM) is cutting the price of the 2014 Chevrolet Volt by $5,000, or about 12.5 percent. GM had cut the price of the 2013 Volt by about $4,000 back in June in hopes of spurring sales.