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Intense start to the morning, that much is for sure. 

European stocks are rebounding firmly as the dollar rout pauses ahead of the start of the Federal Reserve meeting and a series of Dow component earnings that could add another gear to the global equity rally.

The FTSE 100 is getting help from higher oil prices (WTI: +0.41% at $46.53) and stronger commodities while European shares got a boost from a solid reading of business sentiment out of Germany (the Ifo Institute's benchmark business climate index rose to 116.0 from 115.2, topping forecasts) that poo-pooed the notion that a stronger euro (it's trading at 116.51 today, past its two-year high) will slow the region's largest economy in the second half of the year.

Oil's boost appears to be coming from a report that Saudi Arabia will trim its August exports in order to assist with overall OPEC compliance, as well as Monday's commitment to ultimately include Nigeria and Libya in the production cut mix.

TheStreet's BIGGEST Stories of the Morning

Alphabet Gets Hit

Alphabet's (GOOGL) - Get Alphabet Inc. Class A Report stock is under a bit of pressure early on.

Alphabet's costs to acquire customers, or traffic acquisition costs, were $5.1 billion in the second quarter, which was more than the $4.75 billion analysts' estimated. "Margin erosion was a modest negative for the quarter," Pivotal Research analyst Brian Wieser said in a note.

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Google's differentiated revenue streams have become more and more important as the company faces an increasing possibility that the ad market may soon reach a saturation point. Alphabet CFO Ruth Porat acknowledged this on an earnings call, saying that its non-ad businesses are scaling nicely. Google's other revenues segment, which includes its Google Cloud Platform, as well as hardware products like the Google Home, was up 42% to $3.09 billion.

Michael Kors Opens Its Pocketbook

With key department stores such as Macy's (M) - Get Macy's Inc Report struggling and closing stores, the world's biggest handbag makers have decided to bulk up in a bid to jolt their sales and profits.

The latest splashy deal arrived Tuesday, with Michael Kors Ltd. (KORS) agreeing to buy luxury footwear brand Jimmy Choo plc (JYMHF) .

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Michael Kors Monday said it had agreed to pay 230 pence per share in cash, valuing Jimmy Choo's existing issued and to be issued ordinary share capital at approximately £896 million ($1.2 billion).

The 230 pence represents a 36.5% premium to the close price of 168.5 pence on April 21, the day before JAB Luxury started a formal sale process for Jimmy Choo. The deal has been approved by the boards of both companies.

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