Here are five things you must know for Monday, July 26:
1. -- Stock Futures Fall Ahead of Week Filled With Tech Earnings and the Fed
Stock futures declined Monday as Wall Street readied for a big week of earnings from the likes of Apple (AAPL) - Get Apple Inc. (AAPL) Report, Amazon (AMZN) - Get Amazon.com, Inc. Report, Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report, Tesla (TSLA) - Get Tesla Inc Report and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report and a policy update from the Federal Reserve.
Sentiment early Monday was dented by China's widening crackdown of the technology sector and a statement from Beijing that the U.S.-China relationship was "now in a stalemate and faces serious difficulties" as high-level talks began.
Contracts linked to the Dow Jones Industrial Average fell 111 points, S&P 500 futures were down 10 points and Nasdaq futures declined 23 points.
The yield on the benchmark 10-year Treasury fell early Monday to 1.241% as investors awaited the Federal Reserve's outlook for stimulus. The central bank's two-day meeting begins Tuesday and ends Wednesday with a policy statement and a press conference from Fed Chairman Jerome Powell.
Stocks closed in record territory Friday, with the Dow closing above 35,000 for the first time, as earnings optimism lifted Wall Street sentiment.
The S&P 500 rose 1.9% for the week and the Nasdaq gained 2.8%. The Dow rose 1% for the week.
"After a brief scare (last) Monday, the risk-back-on trade returned with a vengeance. Despite the higher-than-expected initial jobless claims number earlier in the week, the markets remained undeterred," said Anu Gaggar, global investment strategist for Commonwealth Financial Network.
"To an extent, somewhat less upbeat economic news is good news for the market as it points to the Fed being right and interest rates to remain lower for longer. The upbeat earnings numbers from the tech companies added further fuel to the fire," Gaggar added.
2. -- This Week's Earnings Calendar: Tesla, Apple, Microsoft, Alphabet and Amazon
Earnings reports are expected Monday from Tesla (TSLA) - Get Tesla Inc Report, Lockheed Martin (LMT) - Get Lockheed Martin Corporation (LMT) Report, Check Point Software (CHKP) - Get Check Point Software Technologies Ltd. Report and Hasbro (HAS) - Get Hasbro, Inc. (HAS) Report.
Analysts expect Tesla, the electric vehicle company, to report second-quarter earnings of 94 cents a share on revenue of $11.53 billion.
Later in the week reports are expected from Apple (AAPL) - Get Apple Inc. (AAPL) Report, Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report, Alphabet (GOOGL) - Get Alphabet Inc. Class A Report, Visa (V) - Get Visa Inc. Class A Report, United Parcel Service (UPS) - Get United Parcel Service, Inc. Class B Report, Starbucks (SBUX) - Get Starbucks Corporation Report, 3M (MMM) - Get 3M Company Report, General Electric (GE) - Get General Electric Company (GE) Report, Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report, Facebook (FB) - Get Facebook, Inc. Class A Report, Ford (F) - Get Ford Motor Company Report, PayPal (PYPL) - Get PayPal Holdings Inc Report, Pfizer (PFE) - Get Pfizer Inc. Report, Shopify (SHOP) - Get Shopify, Inc. Class A Report, McDonald's (MCD) - Get McDonald's Corporation (MCD) Report, Qualcomm (QCOM) - Get QUALCOMM Incorporated Report, Bristol Myers (BMY) - Get Bristol-Myers Squibb Company Report, Boeing (BA) - Get Boeing Company Report, Amazon.com (AMZN) - Get Amazon.com, Inc. Report, Mastercard (MA) - Get Mastercard Inc. (MA) Report, Comcast (CMCSA) - Get Comcast Corporation Class A Report, Merck (MRK) - Get Merck & Co., Inc. (MRK) Report, Caterpillar (CAT) - Get Caterpillar Inc. Report, AbbVie (ABBV) - Get AbbVie, Inc. Report, Chevron (CVX) - Get Chevron Corporation Report, Exxon Mobil (XOM) - Get Exxon Mobil Corporation Report, Procter & Gamble (PG) - Get Procter & Gamble Company ReportPG and T-Mobile (TMUS) - Get T-Mobile US, Inc. Report.
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3. -- Federal Reserve's Policy Update Expected Wednesday
The economic calendar in the U.S. Monday includes New Home Sales for June at 10 a.m. ET.
Data is expected later in the week on durable goods, consumer confidence, jobless claims, gross domestic product, personal incomes and consumer spending.
The Federal Reserve's policy statement will be issued at 2 p.m. ET on Wednesday, with Fed Chairman Jerome Powell's press conference set to begin at 2:30 p.m.
4. -- Bitcoin Rises on Speculation Amazon to Enter the Crypto Sector
Bitcoin prices were rising solidly Monday amid speculation Amazon could be entering the cryptocurrency sector.
The world's largest digital currency was up more than 10% to $38,121. It has risen 31.62% so far this year, according to CoinDesk.
Amazon posted a listing for a digital currency and blockchain product lead, hinting at a potential crypto integration in the future.
The description called for someone who can "own the vision and strategy for Amazon’s Digital Currency and Blockchain strategy and product roadmap" as well as someone who has a "deep understanding of the digital/cryptocurrency ecosystem and related technologies."
The news about Amazon follows favorable Bitcoin comments last week from Tesla CEO Elon Musk, ARK Investment Management's Cathie Wood and Twitter (TWTR) - Get Twitter, Inc. Report and Square (SQ) - Get Square, Inc. Class A Report CEO Jack Dorsey.
5. -- Lucid Motors Set for Trading Debut
Shares of electric vehicle startup Lucid Motors will debut Monday on the Nasdaq under symbol "LCID."
The listing follows the close Friday of the merger between special purpose acquisition company Churchill Capital (CCIV) - Get Churchill Capital Corp IV Report and Lucid Motors. The companies rounded up enough shareholder votes to secure the deal after extending the voting deadline. Reports said Churchill was struggling to win the backing of shareholders.
Churchill Capital will delist from the New York Stock Exchange.
"We are thrilled to complete our business combination with Churchill IV and become a public company," said Peter Rawlinson, Lucid's CEO and chief technology officer. "Lucid has further increased its momentum as we gear up to make the first customer deliveries of our Lucid Air lineup of electric sedans later this year."