Here are five things you must know for Tuesday, July 9:
1. -- Stock Futures Sink as Equity Markets Lose Steam
U.S. stock futures declined on Tuesday and global stocks retreated for a second consecutive session as investors continued to reduce bets on a big rate cut from the Federal Reserve and focused on deteriorating economic data and weakening corporate earnings.
Contracts tied to the Dow Jones Industrial Average declined 116 points, futures for the S&P 500 fell 13.10 points, and Nasdaq futures were down 45.50 points.
A solid U.S. employment report for June has all but eliminated the chance of a rate cut of 50 basis points from the Fed when it meets in late July. The re-pricing of support from the central bank, which is under renewed fire from Donald Trump, has taken the steam out of global equity markets and re-focused investors toward weakening economic data and the prospect of the first back-to-back quarterly decline in profits since 2016. Earnings season kicks into high gear next week in the U.S.
Adding to the broader concerns are a lack of clarity in U.S.-China trade talks following last week's G-20 summit in Japan, a slump in overall business conditions and falling government bond yields, all of which point to near-term equity market weakness.
2. -- PepsiCo and Levi Strauss Report Earnings
The economic calendar in the U.S. on Tuesday includes the Job Openings and Labor Turnover Survey for May 10 a.m. ET.
Federal Reserve Chairman Jerome Powell is expected to deliver opening remarks at the "Stress Testing: A Discussion and Review" conference held at the Boston Federal Reserve Bank in Boston at 8:45 a.m.
- Behind the Label: Is Pepsi Okay? The History Behind PepsiCo
3. -- Richard Branson's Virgin Galactic to Go Public
Virgin Galactic, Richard Branson's space-tourism venture, confirmed it plans to go public.
The Wall Street Journal was first to report that the news could be announced Tuesday.
Social Capital Hedosophia Holdings, a special-purpose acquisition company, will invest roughly $800 million in Virgin Galactic for a 49% stake.
Upon closing of the transaction, which is expected in the second half of 2019, Virgin Galactic will be the first publicly listed human spaceflight company.
Virgin Galactic expects that this deal will give it enough capital to fund the business until its spaceships can commercially operate and turn a profit. It's competing with Jeff Bezos' Blue Origin and Elon Musk's SpaceX to send tourists into space.
Virgin Galactic already has raised more than $1 billion since it was founded in 2004, mostly from Branson, according to the Journal.
4. -- Piper Jaffray Nears Deal to Buy Sandler O'Neill - ReportPiper Jaffray ( PJC - Get Report) is nearing a deal to buy Sandler O'Neill + Partners LP for $485 million in cash and stock, the Journal reported, citing people familiar with the matter.
The deal could be announced as early as Tuesday. It would add Sandler O'Neill's business of advising community banks on mergers, equity offerings and debt issuance to Piper Jaffray's broader client base, the Journal noted.
Since 2010, Sandler O'Neill has advised on 355 bank mergers, more than any other firm, according to Dealogic. It ranks third over that period in total value of bank deals, above JPMorgan Chase (JPM - Get Report) and Morgan Stanley (MS - Get Report) .
The combined company will be known as Piper Sandler Cos. Piper Jaffray CEO Chad Abraham will continue to lead the company.
5. -- BASF Notes U.S.-China Trade Dispute in Profit Warning
German chemicals giant BASF (BASFY) issued a significant full-year profit warning that it said was linked to the U.S.-China trade dispute.
BASF said full-year earnings likely would come in about 30% lower than a year earlier, a notable reduction from previous forecasts of a modest advance, as revenue declines amid weaker global demand in BASF's automotive, agricultural and coatings divisions.
BASF said second-quarter sales likely fell 4% from last year to €15.2 billion, while earnings are forecast to tumble 47% to just €1 billion.
"Overall, uncertainty remains high," BASF said in a statement. "The conflicts between the United States and its trading partners, particularly China, have not eased contrary to what was assumed in the BASF Report 2018. In fact, the G-20 summit at the end of June has shown that a rapid detente is not to be expected in the second half of 2019. Overall, uncertainty remains high."
The stock fell nearly 6% in trading Tuesday in Frankfurt.