Last week’s earnings calls not giving much new info on tariffs, RBC says
Investors came into this earnings season looking for clues on how companies plan to adjust to higher U.S. tariffs and guidance on how it would impact them. RBC’s Lori Calvasina doesn’t think much new information was provided during last week’s deluge.
“On tariffs, we didn’t learn too much in the way of new information after the prior week’s avalanche of Industrials earnings,” wrote the firm’s head of U.S. equity strategy. “With a heavier dose of Tech companies taking the spotlight from the Industrials sector, the tariff discussions overall seemed a bit less front and center as well. Positive comments on tariffs tended to emphasize mitigation strategies, footprint adjustments either in the future or the past, pricing, USMCA compliance, and an ability to manage through.”
“More negative comments tended to center on fluidity of the policy backdrop, heightened uncertainty, and a difficulty in knowing where the policy will settle. We don’t have a great feel for the exact contours at the moment, but have been paying close attention to discussions of the timing of impacts for when mitigation strategies go into effect or stop having an impact,” Calvasina added.
More than 160 S&P 500 companies reported earnings last week, including megacaps Apple and Amazon.
— Fred Imbert
U.S. crude oil falls more than 4% after OPEC+ agrees to surge production again
U.S. crude oil futures fell more than 4% on Sunday, after OPEC+ agreed to surge production for a second month.
U.S. crude was down $2.49, or 4.27%, to $55.80 a barrel shortly after trading opened. Global benchmark Brent fell $2.39, or 3.9%, to $58.90 per barrel. Oil prices have fallen more than 20% this year.
The eight producers in the group, led by Saudi Arabia, agreed on Saturday to increase output by another 411,000 barrels per day in June. The decision comes a month after OPEC+ surprised the market by agreeing to surge production in May by the same amount.
— Spencer Kimball
Stock futures open little changed
U.S. stock futures were flat Sunday night.
Futures tied to the S&P 500 fell 0.2%. Dow Jones Industrial Average futures and and Nasdaq-100 futures ticked down 0.2% each.
— Hakyung Kim
