OPENING CALL
Stock futures were broadly flat on Tuesday as investors await the outome of U.S-China trade talks in London.
Expectations were high after Kevin Hassett, director of the National Economic Council, said he expected both countries to relax export controls.
That had spurred a rally in chip stocks on Monday as investors eyed a potential easing of restrictions on China's access to semiconductors.
Meanwhile, the Treasury will offer $58 billion in three-year notes, with this week's auctions in focus amid worries about government debt and spending.
Apple released new live translation capabilities and other features during its annual Worldwide Developers Conference. But it was far from the AI comeback investors were hoping for .
Stocks to Watch
AirSculpt Technologies launched an underwritten public offering of some 3.1 million shares of its common stock. Shares fell 16%.
Casey's General Stores guided for potentially stronger sales growth in the year ahead after logging better-than-expected results in the fiscal fourth quarter. Shares rose 9.2%.
Cracker Barrel Old Country Store said it planned to offer $275 million of convertible senior notes due in 2030 to institutional investors. Shares declined 4.6%.
J.M. Smucker and GameStop were expected to report results on Tuesday.
Limoneira planned to merge its citrus sales and marketing operations with Sunkist Growers to streamline operations and boost supply chain efficiency. Shares declined 10%.
Marin Software said it entered a non-binding letter of intent with a private equity firm that may lead to the sale of substantially all of its assets. Shares more than doubled.
MP Materials shares climbed after an 8% rally on Monday as U.S. negotiators are expected to press for a relaxation of China's rare-earth metal export curbs in trade talks between the two nations.
Tesla shares were on track to continue their rebound from the rout last week that was sparked by Elon Musk's fallout with President Trump. Shares rose 2%.
Watch For:
Manpower U.S. Employment Outlook Survey for 3Q
Today's Headlines/Must Reads:
-'Big Money' turns bullish on stocks. Will that lead the S&P 500 to a 'melt up'?
-News Sites Are Getting Crushed by Google's New AI Tools
-China Extends Probe Into EU Pork Imports
MARKET WRAPS
Forex:
The dollar rose as trade talks between the U.S. and China extended into a second day and investors hope for a successful outcome.
Still, gains in the dollar remained limited and sentiment toward the currency remained fragile due to concerns over "erratic U.S. trade policy and fiscal risks," IG said.
Sterling fell after data showed unemployment rising and wage growth falling.
"The report has encouraged some pound selling," MUFG said.
This should ensure the BOE keeps lowering rates gradually, it said.
Bonds:
The Treasury's three-year note auction should see a smooth takedown, while longer-term debt auctions might face more challenges this week, Pepperstone said.
The $58 billion offer of three-year notes on Tuesday should be digested easily.
Meanwhile, Wednesday's $39 billion auction of 10-year notes and Thursday's $22 billion sale of 30-year bonds represent "much bigger tests," it said.
Energy:
Oil prices were relatively stable in early trade after climbing in the previous session as the U.S. and China head into the second day of talks in London.
Meanwhile, geopolitical tensions continue to provide underlying support to prices, as nuclear talks between Iran and the U.S. show little progress.
Metals:
Gold futures fell on trade optimism.
Renewed momentum in U.S.-China trade talks has suppressed demand for traditional safe-haven assets like gold and the Swiss franc, Swissquote Bank said.
Any more progress in trade talks should support further risk-on sentiment.
Any disappointments, however, could jolt markets and lift gold prices, it said.
Gold chart
Comex gold futures were likely to continue consolidating, based on the daily chart , RHB Retail said.
While selling pressure has diminished, resistance at $3,400 is still intact.
TODAY'S TOP HEADLINES
Tech Industry Fights to Save Clean-Energy Tax Credits
The tech industry is fighting to save clean-energy subsidies in the tax-and-spending bill working its way through Congress, a sign that access to power is a priority for the biggest artificial-intelligence companies.
The Data Center Coalition, a group that includes Microsoft, Alphabet's Google, Amazon.com and Meta Platforms, recently made its pitch in a letter to Senate Majority Leader John Thune (R., S.D.), according to a copy viewed by The Wall Street Journal. The group asked him to preserve tax credits and loan funding that would be aggressively phased out in the version of the bill passed by the House of Representatives last month.
Huawei Founder Dismisses U.S. Export Control Concerns
U.S. chip restrictions won't have an impact on Huawei Technologies, its founder has said, dismissing concerns that it will be squeezed by export controls.
Huawei's chips are still one generation behind those of U.S. peers, Ren Zhengfei said in an interview with Chinese government mouthpiece The People's Daily.
Warner Bros. Discovery Seeks Ban on Creditor Cooperation in Corporate Split
Creditors of Warner Bros. Discovery are consulting with advisers after the entertainment company proposed to ban investor cooperation pacts as part of its plan to separate itself into two new public businesses.
After Warner announced Monday that it would split its streaming, studio and production business from its cable networks, bondholders have zeroed in on provisions in the company's offer that would prohibit them from entering into cooperation agreements with each other in the future. Law firm Akin Gump Strauss Hauer & Feld is organizing bondholders to push back against Warner's proposal and negotiate better terms, people familiar with the matter said.
Ad Forecaster Cuts Industry Outlook as Trade Upheaval Risks Five-Year 'Chilling Effect'
A major advertising forecaster said global trade disruptions and economic deglobalization have led it to cut ad revenue growth expectations for 2025 to 6%, excluding U.S. political spending, from its December prediction of 7.7%.
WPP Media, a unit of London-based advertising giant WPP that was formerly called GroupM, said global ad revenue in 2025 will reach $1.08 trillion, in a report published in the U.K. on Tuesday. But the uncertainty of the moment is a drag on both business and consumer investment, WPP Media said, leading to the firm's reduced expectations.
Trump's Policies Could Cut Flow of Foreign Students to U.S. Why Some Are Worried.
Advocates for higher education are worried that the Trump administration's immigration policies, and the resulting chaotic pushback, could lead to a decline in the number of international students coming to study at U.S. colleges and universities this fall.
As of Monday, the White House has banned travel to the U.S. for people from 12 countries, many of them in Africa, and placed restrictions on people from seven other countries, including from applying for tourist or student visas.
Israel Deports Greta Thunberg After Intercepting Gaza-Bound Activist Boat
Israel deported climate activist Greta Thunberg on Tuesday, a day after Israeli forces intercepted her and a group of other volunteers on a sailboat attempting to take humanitarian aid to Gaza.
Thunberg was flying to Sweden via France, according to the Israeli Foreign Ministry, which earlier said that the activists on board the boat were awaiting deportation at the country's Ben Gurion Airport near Tel Aviv. Those who didn't sign deportation documents would be brought before a judicial authority, the ministry said.
Marines Are Deploying to L.A. Area as ICE Protests Continue
Roughly 700 Marines are deploying to the Los Angeles area to protect federal buildings and personnel in the wake of protests over immigration that have already led President Trump to federalize National Guard troops, the U.S. military said Monday.
The troops, which are assigned to the 2nd Battalion, 7th Marines, 1st Marine Division out of Twentynine Palms, Calif., won't engage with protesters, the U.S. Northern Command, which is responsible for U.S. military operations in North America, said.
Xi Tightens Leash on Officials' Boozing and Lavish Living
Local officials gathered in China's central city of Xinyang in March for a seminar about regulations requiring them to be frugal. Over lunch, five officials consumed four bottles of baijiu, a fiery sorghum-based spirit, flouting the very rules they had studied.
One of them died that afternoon, according to an official account, which didn't state the cause of death. The officials at the lunch tried to hide the illicit consumption of alcohol, the account said, by paying off the deceased official's family and omitting the drinking in their reports to superiors.
Write to nina.kienle@wsj.com
TODAY IN CANADA
Earnings:
D2L Inc. 1Q
North West Co. 1Q
Stingray Gp. 4Q
Economic Indicators (ET):
Nothing major scheduled
Stocks to Watch:
Fitch Affirms Bank of Montreal at 'AA-'; Outlook is Stable
Expected Major Events for Tuesday
04:01/US: 3Q Manpower U.S. Employment Outlook Survey
06:00/GER: 1Q Labour cost index
06:00/JPN: May Preliminary Machine Tool Orders
06:00/UK: May UK monthly unemployment figures
08:00/ITA: Apr Industrial Production
08:30/UK: 1Q Mortgage Lenders and Administrators Return (MLAR) statistics
10:00/US: May NFIB Index of Small Business Optimism
12:55/US: 06/07 Johnson Redbook Retail Sales Index
14:00/US: 1Q Quarterly Financial Report - Industry
14:00/US: 1Q Quarterly Financial Report - Retail Trade
20:30/US: API Weekly Statistical Bulletin
23:50/JPN: May Corporate Goods Price Index
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Tuesday
(MORE TO FOLLOW) Dow Jones Newswires
06-10-25 0619ET
