Here are five things you must know for Tuesday, July 10:
1. -- Stocks Rise as Wall Street Gears Up for Earnings Season
U.S. stock futures rose modestly on Tuesday, July 10, and global stocks traded mostly higher following one of the strongest sessions on Wall Street in over a month, as investors slowly switched their focus to the upcoming corporate earnings season.
Contracts tied to the Dow Jones Industrial Average
PepsiCo Inc. (PEP) earned an adjusted $1.61 a share in the second quarter, beating estimates by 9 cents. Revenue of $16.09 billion rose 2% from a year earlier and also beat forecasts. The stock rose 1.8% in premarket trading.
Earnings season is expected to deliver a 20% year-on-year increase in S&P 500 earnings, according to projections from FactSet, down from 24.8% in the first quarter but still the second-best three-month period since 2010.
The upbeat sentiment on profits, as well as an apparent lull in the trade war rhetoric between Washington and its economic allies, propelled the Dow to a gain of 320 points on Monday, July 9.
As for Tuesday, the economic calendar in the U.S. includes the Labor Department's Job Openings and Labor Turnover Survey for May at 10 a.m. ET.
2. -- Brett Kavanaugh Is Trump's Supreme Court Pick
Donald Trump on Monday announced that Brett Kavanaugh would be his second nominee for the Supreme Court -- a pick widely considered to be of historical significance because it would solidify for many years to come a 5-4 conservative majority on the court.
If confirmed, Kavanaugh will replace Justice Anthony Kennedy, 81, who recently announced he was retiring at the end of July. Kennedy was a key swing vote on issues such as abortion, affirmative action, gay rights and voting rights.
Kavanaugh, 53, was among the front runners for the open position on the high court and even clerked for Kennedy. He is a Yale Law School graduate and has been a D.C. Circuit Court of Appeals judge since 2006; he also worked in the solicitor general's office in the George H.W. Bush administration and was an assistant to Ken Starr, the independent counsel who investigated President Bill Clinton.
During the announcement of Kavanaugh's nomination at the White House, Trump described his nominee as being "universally regarded as one of the finest and sharpest legal minds of our time."
"I am deeply honored to be nominated to fill Kennedy's seat on the Supreme Court," Kavanaugh said.
He added, "I believe that an independent judiciary is the crown jewel of our republic."
3. -- Fox Is Preparing a New Offer for Sky to Top Comcast - ReportTwenty-First Century Fox Inc. ( FOXA) is preparing a new bid for Sky PLC that would value it at about £25 billion ($33.1 billion), a clear sign it is committed to beating Comcast Corp. ( CMCSA) for the television group, the Financial Times reported.
Fox is preparing to make the new bid as soon as this week if, as expected, its earlier bid for Sky is formally approved by the U.K. government, according to the Financial Times.
Fox's offer is expected to be a premium to Comcast's most recent bid of £12.50 a share, the Financial Times reported, citing two people briefed on the matter.
4. -- Takeda Gets FTC OK to Buy Shire
The remaining hurdles for Takeda include getting a regulatory OK from the European Union and China and approval from shareholders of both drugmakers, according to Reuters.
The acquisition of Shire would make Takeda one of the world's largest drugmakers.
5. -- IHOP Admits Change to IHOb Name Was Fake
Pancake chain IHOP has admitted a name change announced last month was just a publicity stunt to promote its hamburger menu.
On Monday, the company was back promoting a pancake deal tied to IHOP's 60th birthday, the Associated Press reported.
"That's right, IHOP! We'd never turn our back on pancakes (except for that time we faked it to promote our new burgers)," the company, a unit of Dine Brands Global Inc. (DIN) , said on Twitter.
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