Tonight's Highlights | U.S. June PPI Below Expectations, Major U.S. Futures Rise
On Wednesday, U.S. June PPI data came in unexpectedly below forecasts, lifting U.S. stock futures slightly higher. Most major European indices also rose.
Pre-market data showed U.S. June PPI up 2.3% year-over-year, the lowest since September 2024, below the expected 2.5% and prior 2.6%, with a flat 0.0% month-over-month, the lowest since January, against an anticipated 0.2% and prior 0.1%.
This report follows Tuesday’s consumer inflation data, which indicated a rise in June CPI, adding pressure on markets the previous day and heightening investor concerns over President Trump’s tariff impacts as they permeate the real economy.
Bank of America, Goldman Sachs, and Morgan Stanley all reported better-than-expected earnings on Wednesday.
Bank of America’s pre-market stock rose over 1% initially, though its net interest income fell short of analyst expectations.
Goldman Sachs outperformed market forecasts with strong equity trading, seeing its pre-market stock climb 1.5% at one point.
Morgan Stanley also beat expectations but saw a slight pre-market dip of about 0.4%.
Bank of America echoed Tuesday’s sentiment from JPMorgan, noting resilience in the U.S. economy. Beyond financials, robust earnings boosted Johnson & Johnson’s pre-market stock.
In contrast, two major European firms across the Atlantic felt tariff pressures.
Dutch lithography giant ASML warned it cannot guarantee growth next year, while French automaker Renault lowered its full-year financial guidance.
At the time of writing, ASML’s U.S. pre-market shares plunged over 8%.
Company News
Insider: Tesla’s Six-Seat Model Y L Estimated at ~$40,000, May Launch Q3
Sources reveal Tesla’s six-seat Model Y L, positioned between the Model Y and Model X, is an all-wheel-drive luxury electric SUV with ultra-long range, expansive space, and premium interiors. With a wheelbase over 3 meters and length around 5 meters, it’s slated for a Q3 launch with an estimated price of ~$40,000, per an insider.
China’s Ministry of Industry and Information Technology listed the Tesla pure electric six-seat MPV in its 397th batch of new vehicle approvals today. Tesla China posted on Weibo: “Model Y L, see you this autumn!” (Reported by Liu Yang, Caixin).
SpaceX Plans Internal Share Sale, Valuation Climbs to ~$400 Billion
Reports indicate Elon Musk’s rocket and satellite maker SpaceX is planning an internal share sale, valuing the company at ~$400 billion. Insiders say the price is $212 per share, up from $185 in December’s $350 billion valuation.
Stellantis Group Halts Hydrogen Fuel Cell R&D
On July 16, Stellantis announced it is discontinuing its hydrogen fuel cell technology development. Citing limited hydrogen infrastructure, high funding needs, and weak consumer incentives, the company expects hydrogen-powered light commercial vehicles won’t see commercial adoption by 2030.
It will not launch its new Pro One hydrogen series this summer, canceling production plans in Hordain, France, and Gliwice, Poland.
ASML: U.S. Tariff Policy Clouds Growth Outlook
Dutch lithography giant ASML warned on July 16 that U.S. tariff policies may prevent growth in 2026. CEO Fouquet said the company is working toward growth but cannot guarantee it. Like the broader semiconductor industry, ASML faces growing U.S. trade restriction risks, with heightened geopolitical uncertainty since April driving up machine and chip prices in a challenging market.
Johnson & Johnson Q2 Revenue Up 5.8%, Raises Full-Year Guidance
On July 16, Johnson & Johnson reported Q2 revenue of $23.74 billion, up 5.8%, with adjusted EPS at $2.77. The company raised its full-year outlook to $93.2-93.6 billion in sales and $10.8-10.9 adjusted EPS.
Goldman Sachs Q2 Revenue $14.58B, Beats Expectations
Goldman Sachs posted Q2 revenue of $14.58 billion, exceeding the $13.39 billion forecast and last year’s $12.731 billion, with EPS at $10.91, up 26.57%. Equity trading revenue hit $4.3 billion (vs. $3.72 billion expected), and fixed income, currency, and commodity trading revenue reached $3.47 billion (vs. $3.26 billion expected).
Bank of America Q2 Net Interest Income $14.82B, Misses Expectations
Bank of America reported Q2 net income of $7.116 billion, up 3.18%, with EPS at $0.90, up 8.43%. Net interest income was $14.82 billion, slightly below the $14.84 billion consensus, with total deposits at $2.01 trillion (vs. $1.99 trillion expected), loans at $1.15 trillion (vs. $1.12 trillion expected), and trading revenue (ex-DVA) at $5.38 billion (vs. $4.94 billion expected).
Google to Invest $25B in PJM Grid Infrastructure Over Two Years
On July 15 local time, President Donald Trump, with senior officials, attended a tech industry conference in Pittsburgh, Pennsylvania, promoting a $90 billion energy and infrastructure initiative to support AI and tech growth.
Google announced a $25 billion investment over two years in PJM Interconnection’s grid infrastructure (representing Pennsylvania, New Jersey, and Maryland) to advance AI and data center development.