Strong Earnings Reports Fail to Lift Market
Only the Dow Jones Industrial Average managed to stem Monday’s downbeat session at the U.S. stock market. Investors focused on the corporate quarterly results and upbeat economic data. However, it was not enough to encourage buying.
The blue-chip index advanced 44.95 points (+0.18%) and rose to 25,064.36. The components JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) led the benchmark’s rise. The broader S&P 500 Index as well as the tech-heavy Nasdaq Composite Index shed -.01% and -0.26% respectively.
Investors also monitored the U.S.-Russia summit in Helsinki, Finland. The reactions to the meeting between the leaders of the two countries were muted. Interestingly, U.S. President Donald Trump raised doubts about the findings from U.S. intelligence that Russia interfered in the recent U.S. elections.
Oil Markets Face Strain if Iran Exports Fall
The oil markets might experience huge strain if Iran oil exports fall. Because of the new U.S. sanctions, the volume of Iran’s oil exports could fall by as much as two-thirds by the end of 2018.
The Trump administration wanted to completely shut Iran out of global oil markets. However, the U.S. eased the hard stance and is open to grant sanction waivers to some allies that are reliant on Iranian supplies.
Energy consultancy Facts Global Energy (FGE) estimate Iran’s crude exports could fall to only 700,000 barrels per day due to the sanctions. The exports would mainly go to China and the rest will be shared by India, Turkey and other buyers with waivers.
Wireless Carriers Rethink Options After U.S. Ban on ZTE
Wireless carriers in Europe and South Asia are rethinking their business options following the U.S. trade ban on ZTE Corp. The ban disrupted operations and forced the companies to consider broadening their supply networks.
According to Reuters’ sources, since the Chinese telecom equipment maker failed to deliver, Russian and emerging markets mobile operator Veon suffered project and launch delays. Thus, the company had no recourse but to second source everything.
Italian mobile operator Wind Tre suffered the biggest setback. The U.S. ban forced ZTE to abandon more than half of the remainder of the $1.17 billion contract with Wind Tre which has since moved to network supplier Ericsson.
Tech Giants to Face U.S. Congress
Senior officials of Alphabet Inc.’s Google (GOOGL), Facebook Inc. (FB), and Twitter Inc. (TWTR) will be questioned on Tuesday about how the tech giants filter their content.
The executives of the tech firms will appear before the U.S. House Judiciary Committee. Last year, the same three companies appeared before the Senate and House Intelligence Committees over their roles in Russia’s meddling in US politics.
Amazon’s Website Hit by Outages on Prime Day
The much-advertised and self-created sale bonanza of Amazon.com Inc. (AMZN) was off to a tumultuous start Monday afternoon. Periodic outages affected the online retail giant’s website on Prime Day.
Immediately after the opening, many shoppers using desktops and mobiles were saw Amazon’s error page instead. Customers were excited to purchase items at bargain prices. Observers see a drop in AMZN when the market opens on Tuesday.