Investing.com — U.S. stock futures edged lower as investors braced for incoming labor market data during a holiday-shortened trading week. Federal Reserve Chairman Jerome Powell will speak at the European Central Bank event, where the focus is on the Fed’s approach to interest rates for the rest of the year. Elsewhere, US federal prosecutors are reportedly awaiting a decision from Boeing (NYSE: ) on a plea deal to settle charges related to two fatal accidents.
1. The future is low
US stock futures edged lower on Tuesday after Wall Street averages edged higher in light pre-holiday trading in the previous session.
At 03:19 ET (07:19 GMT), the contract had shed 96 points or 0.3%, was down 17 points or 0.3%, and was down 83 points or 0.4%.
All three indexes finished higher on Monday, with technology heavy especially with jumps in Big Tech names like electric car maker Tesla (NASDAQ: ) and iPhone giant Apple (NASDAQ: ). Trading rates were muted as equity markets prepared to close for the US Independence Day holiday on Thursday.
Meanwhile, investors remain focused on the release of key U.S. labor market data this week, including job openings on Tuesday and the monthly nonfarm payrolls report on Friday. The numbers could reflect how close the Federal Reserve is to possible interest rate cuts later this year.
2. Powell will speak in Sintra
Fed Chairman Jerome Powell will participate on a panel at the European Central Bank’s conference in Sintra on Tuesday, with markets eager to see if he will provide new signs of monetary policy.
Powell’s comments will serve as a prelude to the publication of minutes from the Fed’s June policy meeting on Wednesday, when the Federal Open Market Committee (FOMC) set the central bank’s rate indicating it expects to cut borrowing costs once this year — down. from three in March.
Yet traders, encouraged by prospects of continued cooling in the US currency, are still betting that the Fed will issue about two cuts in 2024 as of September, according to CME Group’s (NASDAQ: ) closely watched FedWatch tool.
“There was a tendency from Powell to be less optimistic than the FOMC consensus on monetary easing, and we think there are downside risks to the dollar ahead of today’s speech,” ING analysts said in a note.
3. Federal prosecutors await Boeing’s decision on plea deal – AP
The US Department of Justice is waiting for Boeing to accept a deal to settle fraud charges related to two crashes of its 737 Max planes, according to the Associated Press.
Citing people familiar with the matter, the AP said Boeing has until the end of the week to accept or reject the offer, which would require the company to agree to independent monitoring to comply with anti-fraud laws.
The proposal stems from a Justice Department finding earlier this year that Boeing had misled regulators who had approved the 737 Max, violating the terms of a 2021 agreement that protects the company from prosecution for fatal crashes in 2018 and 2019 that killed 346 people.
While accepting the settlement will save Boeing from a potentially deadly court battle, it threatens to derail its ongoing effort to move beyond a fatal air panel explosion in January on one of its planes operated by Alaska Airlines.
4. Billionaire Barry Diller eyes potential bid – NYT
Billionaire Barry Diller is considering a takeover bid for Paramount Global (NASDAQ: ) after the studio he previously led pulled out of a merger with Skydance Media, the New York Times reported Monday.
Diller’s media agency IAC has signed non-disclosure agreements with National Amusements, Paramount’s controlling shareholder, the NYT report said, citing people familiar with the matter. A non-disclosure agreement often precedes negotiations for a settlement.
The NDAs were also signed sometime after deal negotiations between Paramount and Skydance ended earlier this year, the NYT report said.
Diller had applied for Paramount in the early 1990s, but lost out to Sumner Redstone, whose daughter Shari now controls the studio. Diller also led the studio in the 1970s and 80s, and was credited with revitalizing it with several popular projects.
Paramount is the parent company of several major networks, including CBS, MTV and Nickelodeon. The company has been engaged in sales talks with potential buyers over the past year, but none have borne fruit so far.
5. Dirty wandering near the two-month high
Crude prices rose on Tuesday, delaying a nearly two-month increase expected from rising demand for gasoline during the US summer.
By 03:20 ET, futures (WTI) had gained 0.1% to $83.42 a barrel, while the contract was up 0.1% to $86.71 per barrel. Both benchmarks reached their highest levels since the end of April during the previous session.
Gasoline demand in the US, the world’s largest oil consumer, is expected to increase as the summer tourist season picks up steam due to the Independence Day holiday.
Traders will also look at the latest data on US crude stockpiles from industry body the American Petroleum Institute later in the session, as well as possible disruptions from Hurricane Beryl to US oil refining and offshore production in the Gulf of Mexico.
