Here are five things you must know for Tuesday, July 28:
1. -- Stock Futures Turn Lower
Stock futures fell Tuesday amid a bevy of earnings reports and as Wall Street turns its attention to the Federal Reserve and efforts by U.S. lawmakers to secure the next coronavirus relief package.
Contracts linked to the Dow Jones Industrial Average fell 141 points, S&P 500 futures were down 13 points and Nasdaq futures slipped 54 points.
The Fed begins a two-day meeting Tuesday and investors expect the central bank to remain supportive of the economy as the U.S. struggles in its fight against the coronavirus pandemic.
Gold, often perceived as a safe-haven asset, hit an intraday record of $1,974.70 an ounce earlier Tuesday before turning lower to trade at $1,923.50, down 0.39%.
Meanwhile, Senate Republicans unveiled their $1 trillion virus aid package that would include cutting the current federal $600 weekly unemployment supplement down to $200 a week, and send $1,200 payments to most Americans. Democrats want billions to go toward schools and local governments.
2. -- Pfizer, AMD, McDonald's Report Earnings
Earnings reports are also expected Tuesday from Visa (V) - Get Report, Advanced Micro Devices (AMD) - Get Report, Starbucks (SBUX) - Get Report, Altria (MO) - Get Report, eBay (EBAY) - Get Report, Raytheon Technologies (RTX) - Get Report and Mondelez International (MDLZ) - Get Report.
The economic calendar Tuesday includes the first day of the two-Federal Reserve meeting. The central bank is expected to make an announcement on interest rates Wednesday afternoon.
At its meeting in June, the Federal Reserve kept interest rates steady and said it expects to hold the target range for the federal funds rate unchanged at 0% to 0.25% at least through 2022 or until the economy “had weathered recent events.”
“The reality is that the Fed has proclaimed that they are going to keep the printing presses rolling, they will print money and it has created this all-you-can eat buffet,” Terri Spath, Sierra Investment Management’s chief investment officer, told Bloomberg. “The bottom may be in for the year, but we do expect volatility in the future.”
The calendar also includes the S&P Corelogic Case-Shiller Home Price Index for May at 9 a.m. ET and Consumer Confidence for July at 10 a.m.
3. -- Intel's Chief Engineering Officer Departs
Intel (INTC) - Get Report announced the departure of Chief Engineering Officer Murthy Renduchintala, less than a week after the chip giant said its new 7-nanometer processor, a key component in its strategy to take on market-leading rivals such as Taiwan Semiconductor (TSM) - Get Report, was around six months behind schedule and that it mighthave to seek outside help in order to catch up.
Renduchintala will leave Intel on Aug. 3. The technology group he led will be separated into five teams, with Intel saying the moves were being made to "accelerate product leadership and improve focus and accountability in process technology execution."
Shares of Intel fell 16% last Friday, the day after the company announced it was considering looking to use chip foundries from other companies.
Intel CEO Bob Swan said last week that chips made with the company's 7nm-based CPU technology were expected to launch in 2021 but would be delayed due to a flaw that resulted in "yield degradation" in its manufacturing process.
The stock fell 0.77% to $49.19 in premarket trading.
4. -- Coronavirus - The Latest
The number of confirmed global cases of the coronavirus has risen to 16,495,309, according to Johns Hopkins University, and deaths increased to 654,327.
The U.S. has 4,294,770 cases of the coronavirus, the most in the world, according to Johns Hopkins. Deaths in the U.S. have risen to 148,056, also the most in the world.
The trial will involve 30,000 people. It will begin in the U.S. but expand overseas to include 120 clinical investigational sites. If the Phase 2/3 trial is successful, the companies said they expect to submit the vaccine for regulatory approval as early as October.
5. -- Tailored Brands Says 'Likely' to File for Bankruptcy in Third Quarter
Tailored Brands (TLRD) - Get Report, the owner of Men's Wearhouse and Jos. A. Bank, said in a regulatory filing that it was likely it could file for bankruptcy protection in the third quarter.
“We have determined that there is substantial doubt about our ability to continue as a going concern. Although we are evaluating several alternatives, it is likely that we will pursue a reorganization under applicable bankruptcy laws, possibly as soon as during the third quarter of fiscal 2020, which begins on Aug. 2, 2020,” Tailored Brands said.