Key Takeaways
- US President Trump indicated a 50-50 chance of striking a trade deal with the European Union and is set to meet the UK Prime Minister tonight to discuss a potential UK trade agreement.
- US Durable Goods Orders plummeted by 9.3% month-over-month in June, a sharper decline than the estimated 10.7%, following a 16.4% increase in May. Core durable goods, however, saw a modest gain of 0.2%.
- Tesla (TSLA) has reportedly built hundreds of Optimus robots, though reports claim the company is falling short of Elon Musk's ambitious target of producing 5,000 units in 2024.
- German business confidence showed a marginal gain in July, but this improvement was primarily due to a downward revision of the June figures.
- Federal Reserve Chair Jerome Powell privately insists he will complete his entire term, with Office of Management and Budget (OMB) Head Vought stating that President Trump finds firing Powell "very unlikely."
US President Donald Trump delivered several key remarks today, signaling a cautious but active stance on international trade and domestic economic policy. Trump stated there's a "50-50 chance" of reaching a trade deal with the European Union. He is also scheduled to meet with the UK Prime Minister tonight to discuss and potentially approve a UK trade deal, highlighting ongoing efforts to reshape global trade relationships. On the US dollar, Trump affirmed he would "never say" he wants a weak currency, and he praised recent "great" economic results.
Economic data released this morning painted a mixed picture. US Durable Goods Orders for June fell significantly by 9.3% month-over-month, a sharper contraction than the estimated 10.7% decline, following a robust 16.4% rise in May. However, core durable goods orders, excluding transportation, increased by 0.2%, slightly above the 0.1% estimate. In Europe, business confidence in Germany registered a slight gain in July, though this was attributed to a downward revision of the June value, suggesting underlying sentiment remains fragile.
In corporate news, Tesla (TSLA) has made progress on its humanoid robot initiative, with the company confirming it has built hundreds of Optimus robots so far. Despite this, reports suggest Tesla is falling short of CEO Elon Musk's ambitious goal of producing 5,000 Optimus robots in 2024. Elsewhere in the market, Lilly (LLY) announced it has completed its acquisition of Verve Therapeutics (VERV), aiming to strengthen its drug portfolio. Charter Communications (CHTR) also reported earnings, missing expectations by $0.40 per share but meeting revenue forecasts.
Regarding the Federal Reserve, OMB Head Vought indicated that President Trump finds the idea of firing Fed Chair Jerome Powell "very unlikely," and that the administration will be "watching the next Fed move very closely." This comes as Powell has privately assured allies and associates that he intends to complete his full term at the Federal Reserve.
Geopolitical developments remain a focal point. President Trump commented on the Gaza situation, stating it's "down to final hostages" and claiming Hamas did not want a deal. Israeli Prime Minister Netanyahu echoed this, saying Israel is exploring alternative ways to free hostages and end Hamas's "terror rule," while also indicating that Hamas is the main obstacle to releasing hostages. Meanwhile, discussions on the Iran nuclear deal saw "no major breakthrough or breakdown" in talks today, with European diplomats emphasizing a clear offer for diplomacy while being prepared to use snapback sanctions if Iran does not take steps. In the oil market, an OPEC+ panel is likely to maintain its current oil policy steady at its upcoming meeting on Monday, according to sources.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.