Here are five things you must know for Tuesday, July 17:
1. -- Jerome Powell to Address Congress
U.S. stock futures traded lower on Tuesday, July 17, ahead of Federal Reserve Chairman Jerome Powell's first testimony before Congress.
Powell is likely to tell the U.S. Senate Banking Committee on Tuesday at 10 a.m. ET, and the House of Representatives Financial Services Committee on Wednesday, July 18, that the central bank remains committed to gradual monetary policy tightening. The Fed raised rates in March and June, and has indicated two more rate hikes will be coming in 2018.
Powell also could speak about the narrowing yield curve, which has anticipated recessions when 2-year yields rise past 10-year note yields.
Minneapolis Federal Reserve Bank President Neel Kashkari argued in a blogpost on Monday, July 16, that there was "little reason to raise rates much further, invert the yield curve, put the brakes on the economy and risk that it does, in fact, trigger a recession ... if inflation expectations or real growth prospects pick up, the Fed can always raise rates then."
Contracts tied to the Dow Jones Industrial Average
The economic calendar in the U.S. on Tuesday also includes Industrial Production for June at 9:15 a.m. and the Housing Market Index for July at 10 a.m.
2. -- Netflix Falls Hard on Subscribers Miss
Netflix Inc. (NFLX) was falling 12.6% in premarket trading on Tuesday after the streaming giant missed estimates on subscriber growth, perceived by many analysts as the key to Netflix's long-term dominance as it chases international markets and spends heavily on content and marketing.
- Why Netflix's Weak Subscriber Numbers Are Particularly Worrisome to Analysts
- Netflix Tanks on Disappointing Subscriber Numbers: 7 Key Takeaways
3. -- Amazon's Prime Day Hits a Snag
Amazon.com Inc.'s (AMZN) 36-hour Prime Day event began with one giant hiccup - immediately after the event kicked off at 3 p.m. ET on Monday, shoppers found themselves unable to use the Prime Day site, stuck in a frustrating loop of bad links and error pages.
The stock fell 0.6% in premarket trading.
4. -- Walmart in Cloud Partnership With Microsoft
Walmart Inc. (WMT) said Tuesday it has chosen Microsoft Corp. (MSFT) as its strategic cloud provider "to further accelerate Walmart's digital transformation in retail, empower its associates worldwide and make shopping faster and easier for millions of customers around the world."
The five-year agreement between Walmart and Microsoft - fierce Amazon rivals - leverages the full range of the tech giant's cloud solutions, including Microsoft Azure and Microsoft 365.
The shared rivalry with Amazon "is absolutely core to this," Microsoft CEO Satya Nadella said in an interview with The Wall Street Journal.
5. -- Goldman, UnitedHealth Report Earnings
Goldman Sachs Group Inc. (GS) reported second-quarter profit of $5.98 a share, smashing estimates of $4.66. The stock fell 0.2% in premarket trading.
Goldman Sachs also said President David Solomon would take over the role of CEO, effective Oct. 1.
UnitedHealth Group Inc. (UNH) posted second-quarter adjusted earnings of $3.14 a share, 10 cents above estimates. Shares fell 1.7%.
Johnson and Johnson (JNJ) earned an adjusted $2.10 a share in the second quarter, beating estimates of $2.07. The company said it expects adjusted earnings in 2018 of $8.07 to $8.17 a share. The stock rose 1.1% in premarket trading.
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