MARKET MOVERS
- Russia cuts Nord Stream flows further, escalating the gas fight. Gazprom PJSC will cut shipments via the link to Germany to about 20% of its capacity from 7 a.m. Moscow time on Wednesday, the Russian gas giant said in a statement. One more gas turbine, crucial for the supply, is due for maintenance and will be taken out of service then, according to the company. Read more here.
- Stock futures fall after Walmart cuts forecast, says inflation hit consumer spending. It alarmed investors who deliberated the implications for other retail stocks. The big-box retailer said higher prices are spurring consumers to pull back on general merchandise spending, particularly in apparel. Traders are also bracing for an onslaught of mega-cap tech earnings and economic data this week.
- Tesla records a $170 million impairment charge on Bitcoin. The company said it recorded a $170 million impairment charge against the carrying value of its bitcoin holdings for the first six months of the year. The electric-car maker also logged $64 million in gains from certain sales of its bitcoin holdings, the company said in its 10-Q filing with the Securities and Exchange Commission on Monday.
- Rich Americans keep borrowing, defying economic gloom. The wealth-management units at Morgan Stanley and Bank of America Corp. posted double-digit loan growth in the second quarter. The increase came from well-heeled clients taking out mortgages and loans backed by assets like stock-and-bond portfolios, executives said. Morgan Stanley said mortgages rose 30% in its wealth unit from a year earlier while at Bank of America, it rose 12% from a year earlier to $222 billion. Read more here.
- People underestimated how bad the apple change would impact the digital ad ecosystem. It was a massive blow for eCommerce. Millions of people were reliant on Facebook data gathering. That got shut down when Apple changed its policy. Now? Facebook/Meta is being forced to start all over again and try to build the same potency without iOS data. Read more here.
WHAT TO WATCH
- Tesla looks to open its EV-charging network. The company is trying to tap into public funding to build electric-vehicle chargers, as it moves to open some of its U.S. Supercharger networks to EVs made by other manufacturers. Recent regulatory filings and other documents indicate that the company is applying for public funding that, if granted, would require access by other makers of EVs to the network.
- Wheat prices surge indicating a worse food crisis ahead. Wheat prices rose on Monday shortly after Russian forces struck the southern Ukrainian port of Odesa. Two missiles hit the port’s infrastructure facilities. An estimated 20 million tonnes of grain has been held up in the port of Odesa in southwestern Ukraine, prompting concerns that the conflict could impact global supplies.
- Apple reportedly planning a high-end watch with a new design and bigger screen. The watch is reportedly arriving this fall. The high-end version will have a screen that’s 7% larger than the standard ones, Bloomberg said. It will also have a fresh look, including advancement to its current rectangular shape, but won’t have rumored flat sides, according to the report. Read more here.
- Meta to start music revenue sharing on Facebook videos. It will help creators make money from videos that use licensed music, in an effort to better compete with rival TikTok. A new tool called Rights Manager will also help content owners protect their rights. Video creators will receive 20% of revenue on eligible videos, with a separate share going to music rights holders and to Meta. Videos must be at least 60 seconds long and there must be a visual component as well.
- Goldman says to buy these energy stocks ahead of earnings. The firm said Monday in a note to clients that Diamondback Energy, EQT, and Chesapeake Energy are solid bets for investors from a risk vs. reward standpoint. Key factors to watch for during earnings reports include production execution, management of inflationary pressures, and capital return outlook.
Read more here.
