OPENING CALL
U.S. stock futures pointed to a mostly higher open Tuesday after the Dow on Monday reached a new record close on optimism about corporate earnings and the U.S economy.
Tuesday marks the start of a series of closely-watched data releases scheduled this week. Retail sales for December are expected later, as are fourth-quarter Employment Cost Index figures.
The retail sales numbers are expected to show an increase in the last month of last year.
Market Insight
Increased U.S. and German government spending will drive demand for European chemicals companies, according to Goldman Sachs.
It adds that positive economic momentum driven by adaptation to tariffs and surprisingly resilient U.S. manufacturing outlook will also support demand.
Stocks to Watch
AstraZeneca shares rose 2.5% in New York after the company's latest quarterly results.
U.S.-listed shares of BP fell 5.5% after it suspended its quarterly share buybacks.
Credo Technology surged 15% after the company raised its fiscal third-quarter revenue expectations.
ON Semiconductor Corp stocks slipped 4.7% after it missed quarterly revenue forecast.
Upwork plummeted 24% after issuing weak revenue guidance.
ZoomInfo Technologies fell 11% after guiding for slower growth or a slight decline in revenue.
Watch For:
U.S. Import Prices for December; U.S. Business Inventories for November; World Agricultural Supply & Demand Estimates (WASDE); Coca-Cola 4Q earnings; Ford 4Q earnings
Today's Top Headlines/Must Reads:
- Trump to Repeal Landmark Climate Finding in Huge Regulatory Rollback
- Proposed Ban on Investors in the Housing Market Hits a Wall in Congress
- Pentagon Warns Major Defense Contractors It Is Reviewing Their Performance
MARKET WRAPS
Forex:
The dollar recovered only marginally against a basket of currencies. It reached a one-and-a-half-week low overnight on concerns about the sale of U.S. assets.
The euro traded steadily against the dollar, remaining strong after hitting a one-and-a-half-week high in the previous session.
Sterling fell against the dollar and weakened against the euro. The currency remains under pressure on growing concerns that U.K. Prime Minister Keir Starmer faces a leadership challenge.
"Hence, we retain our negative view on U.K. growth and see the Bank of England delivering more [rate cuts] than priced in," Jefferies said.
Bonds:
Treasury yields declined in Asian trade, with attention shifting to Wednesday's release of January employment data, expected to show a small increase of job additions, according to a Wall Street Journal poll.
Energy:
Oil prices slipped in early trading after rising in the previous session, with focus on U.S.-Iran developments.
"Prices are struggling to break convincingly above $70 amid speculation that the risk of higher oil prices--and the impact of rising fuel costs--could ultimately push President Trump toward a negotiated settlement with Iran," Saxo Bank said.
European natural gas prices remained below 35 euros a megawatt-hour in early trading after falling sharply in the previous session.
"Weather models point to warmer conditions across most of the continent in coming days," ANZ Research analysts said.
Metals:
Gold prices edged lower in early trading but remained above the $5,000 mark as investors await the release of key U.S. economic data this week. Silver futures fell.
"Despite the rebound, price action continues to look positioning-driven rather than fundamentally new, with volatility still acting as a deterrent to broader participation. High margin requirements and elevated hedging costs are limiting the return of more commercial flows, " Sucden Financial said.
Copper
Copper prices slipped in early trading but remained above $13,000 as China heads into the Lunar New Year holiday, reducing market liquidity.
"Price action is likely to remain contained unless speculative appetite resurges or a macro headline disrupts sentiment, in which case thinner liquidity could amplify moves," Sucden Financial said.
TODAY'S TOP HEADLINES
Red Lobster CEO Says Seafood Chain Needs to Get Smaller
Red Lobster's chief executive said the chain still needs to slim down to help move past its stint in bankruptcy two years ago.
The casual-dining chain is reviewing its real-estate footprint and leases as it works to cut costs, and it could close more locations, Chief Executive Damola Adamolekun said. Red Lobster previously closed around 130 restaurants during its 2024 bankruptcy.
SMIC Earnings Top Expectations on Strong Chip Demand
Semiconductor Manufacturing International Corp. finished 2025 on a strong note, with annual revenue reaching a record as the Chinese contract chip maker cashes in on domestic orders amid China's push for tech self-sufficiency.
The Shanghai-based company on Tuesday reported a 61% rise in fourth-quarter net profit from a year earlier to $172.85 million, above the $139.5 million expected of analysts polled by FactSet.
TSMC Stock Is on a Roll as Chip Sales Surge. This Trump Tariff News Could Drive It Higher.
Taiwan Semiconductor Manufacturing on Tuesday reported another month of growing revenue. It's a sign of the chip manufacturer's dominant role in the semiconductor supply chain and it could get a further boost from U.S. tariff relief.
The Taiwanese chip manufacturer said its revenue for January came to around 401.6 billion New Taiwan dollars ($12.73 billion), up 20% from the previous quarter and 37% from the same period a year earlier.
Kering Targets Return to Growth as Push to Get Gucci Back in Fashion Continues
Kering reported better sales trends for the fourth quarter and said it aims to return to growth in 2026 after years of decline, as the Gucci owner pushes ahead with a revamp plan to draw shoppers back to its boutiques.
The Paris-based luxury giant is looking to turn around the fortunes of its core Gucci brand while recently appointed Chief Executive Luca de Meo designs a comeback plan for the broader group, which, like many of its rivals, is contending with a downturn in spending.
Wall Street's Hunt for Cheaper Stocks Goes Global
Last spring, it was "Sell America." Now Wall Street's hot trade is buy everywhere else.
After years making outsize bets on the largest U.S. companies, investors are moving more money into international markets, wagering that America's wide lead on the rest of the world will shrink. For years, money managers say, the U.S. stock market was viewed as the only game in town. Now that perception is starting to shift.
Proposed Ban on Investors in the Housing Market Hits a Wall in Congress
The White House is at loggerheads with Congress over one of President Trump's signature housing proposals, a ban on Wall Street investors buying single-family homes.
Trump officials pressured congressional Republicans in recent weeks to include the investor ban as an amendment in either of the major housing bills currently winding through the House and the Senate, according to people familiar with the matter.
Japan's Takaichi Triumphs. Now for the Hard Part.
Japanese Prime Minister Sanae Takaichi wrought a political miracle, leading her Liberal Democratic Party over the weekend to its biggest-ever election victory and a two-thirds majority in the Lower House of parliament. It was enough to override Upper House vetoes and amend Japan's pacifist constitution.
Now she faces an economic and political juggling act with numerous balls in the air.
Fed's Miran Says Dollar Needs 'Really Big Move' to Affect Inflation
Federal Reserve governor Stephen Miran said the dollar would need to register a steeper fall than it already has for it to become a first-order issue that would affect consumer inflation.
"You need a really big move for it to sort of really be a first order issue that would really affect consumer inflation in the United States," Miran said Monday in a discussion at Boston University's Questrom School of Business. "The result is that it doesn't matter that much for consumer inflation."
Trump to Repeal Landmark Climate Finding in Huge Regulatory Rollback
The Trump administration is planning this week to repeal the Obama-era scientific finding that serves as the legal basis for federal greenhouse-gas regulation, according to U.S. officials, in the most far-reaching rollback of U.S. climate policy to date.
The reversal targets the 2009 "endangerment finding," which concluded that six greenhouse gases pose a threat to public health and welfare. The finding provided the legal underpinning for the Environmental Protection Agency's climate rules, which limited emissions from power plants and tightened fuel-economy standards for vehicles under the Clean Air Act.
Trump Threatens to Block Opening of New Bridge Between Detroit and Canada
President Trump threatened on Monday to not allow the opening of a new bridge connecting Canada with Detroit, marking the latest source of political tension between the two countries.
The Gordie Howe International Bridge is close to completion after nearly eight years of construction paid for by Canada. The cable-stayed bridge, running 1.5 miles, marks a new piece of trade infrastructure to alleviate congestion at the Detroit-Windsor, Ontario, gateway, the busiest commercial land crossing in North America.
Israel Assumes Broad New Powers in the West Bank
Israel's government is deepening a push by far-right ministers to expand its authority and settlements in the West Bank, giving it broad new powers in a territory that would make up the heart of any future Palestinian state.
(MORE TO FOLLOW) Dow Jones Newswires
02-10-26 0614ET
