1/ FROM THE EDITOR'S DESK

What's Happening Today

U.S. stock futures are edging lower following a sharp rally for stocks yesterday on the back of better-than-expected corporate earnings.

The S&P 500 gained 2.7%, and the Dow added 2.4%, while the Nasdaq gained over 3%. Shares of Netflix (NFLX) surged more than 7% in extended trading after reporting it lost fewer subscribers than expected (more below).

Bond yields rose as prices were pressured by the rally in stocks. The 10-year Treasury yield is hovering near 3%, with the two-year yield at 3.22%. The inverted yield curve is often a predictor of a recession. 

Abbott Laboratories, Biogen, CSX, Tesla, and United Airlines report quarterly earnings results today.

Later this morning, the National Association of Realtors will also release its report on existing home sales for June, which are expected to have declined to 5.38 million units from 5.41 million units in the previous month.

Overseas, the Stoxx Europe 600 added 0.3%. U.K. inflation came in at 9.4% in June, a 40-year high. The U.K.’s FTSE 100 Index was slightly higher. In Asia, the Shanghai Composite Index climbed 0.8% and the Hang Seng rose 1.1%. Japan’s Nikkei 225 rose 2.7% ahead of the country’s earnings season kickoff.

Major cryptocurrency prices rose. The price of Bitcoin jumped higher at above $23,600. The price of Ether also climbed, near $1,600.

St. Louis Federal Reserve / National Association of Realtors