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MARKET RECAP at 4 pm ET

Stocks rose on a slew of positive Coming Up earnings updates and after the Federal Reserve reiterated a pledge to use its "full range of tools" to support the U.S. The Commerce Department is likely to demand for online orders surged with economy. The dollar fell, while long- report a contraction of the U.S. people staying at home due to term Treasury yields rose slightly, economy in the second quarter. Gross lockdowns induced by the coronavirus. and gold advanced. Oil prices jumped Domestic Product is expected to have The company had earlier warned that it after a steep drop in U.S. crude dropped 34.1% after having fallen 5% could post a quarterly loss due to its inventories. in the earlier quarter. Consumer spending at least $4 billion in response spending is likely to have dipped to to the pandemic. Investors will be on 1% in the second quarter from 1.7% in the lookout for the e-commerce giant's

STOCKS Close Chng %Chng Yr-high Yr-low the previous quarter. Initial claims for outlook for the third quarter. DJIA 26541.97 162.69 0.62 29568.57 18213.65 state unemployment benefits is likely to have increased to 1.450 million for /Mike Blake Nasdaq 10542.94 140.85 1.35 10839.93 6631.42 the week ended July 25 compared to S&P 500 3258.43 39.99 1.24 3393.52 2191.86 1.416 million in the previous week. 16294.66 173.34 1.08 17970.51 11172.73 FTSE 6131.46 2.20 0.04 7689.67 4898.79 Continuing claims for the week ended Eurofirst 1431.22 -0.09 -0.01 1691.19 1051.38 July 18 is likely to have inched up to Nikkei 22397.11 -260.27 -1.15 24115.95 16358.19 16.200 million from 16.197 million in Hang Seng 24883.14 110.38 0.45 29174.92 21139.26 the earlier week.

TREASURIES Yield Price Apple Inc is expected to report a drop 10-year 0.5642 5 /32 in third-quarter revenue, hit by a 2-year 0.1289 1 /32 pullback in consumer spending as well Alphabet Inc is expected to report a 5-year 0.2453 3 /32 as store closures globally due to the fall in second-quarter revenue, hurt by 30-year 1.2274 -4 /32 coronavirus pandemic. Investors are big spenders slashing ad buys due to keen to know if the iPhone maker will the COVID-19 pandemic. Investors will FOREX Last % Chng provide a forecast or refrain from the be looking out for any signs of a Euro/Dollar 1.1779 0.55 practice. rebound in ad spending. Dollar/Yen 105.02 -0.06 Sterling/Dollar 1.2985 0.43 Amazon.com Inc is expected to post a Inc is expected to post a Dollar/CAD 1.3337 -0.29 rise in second-quarter revenue as rise in second-quarter revenue. TR/HKEX RMB 91.36 0.05

COMMODITIES ($) Price Chng % chng KEY ECONOMIC EVENTS Front Month Crude /barrel 41.27 0.23 0.56 Spot gold (NY/oz) 1967.49 8.56 0.44 Events ET Poll Prior Copper U.S. (front month/lb) 0.0291 0.0000 0.00 CRB Index Total Return 153.30 0.91 0.60 GDP advance for Q2 0830 -34.1% -5.0% GDP sales advance for Q2 0830 -- -3.5% Price $ Chng % Chng S&P 500 GDP consumer spending advance for Q2 0830 -- -6.8% GAINERS GDP deflator advance for Q2 0830 1.1% 1.6% L Brands Inc 25.88 6.76 35.36 Advanced Micro Devices Inc 76.09 8.48 12.54 Core PCE prices advance for Q2 0830 1.0% 1.7% CH Robinson Worldwide Inc 95.28 8.13 9.33 PCE prices advance for Q2 0830 -- 1.3% LOSERS Initial jobless claims 0830 1,450,000 1,416,000 Seagate Technology PLC 44.31 -4.26 -8.77 Jobless claims 4-week average 0830 -- 1,360,250 Automatic Data Processing Inc 137.12 -9.53 -6.50 16.197 Coty Inc 3.87 -0.21 -5.04 Continued jobless claims 0830 16.200 mln mln

Investors will be on the lookout for the looking at any commentary on its newly Texas-based Valero Energy Corp is tech giant's comments on any signs of launched streaming service, Peacock. expected to swing to a second-quarter stability in online ad sales as loss, hit by lower demand for its refined advertisers continue to cut or pause Procter & Gamble Co is set to post a products. Investors will be watching for spend due to the coronavirus crisis. slight drop in fourth-quarter revenue, inventory writedowns and throughput hurt by weak demand for grooming and forecast for the rest of the year as the Gilead Sciences Inc will report second beauty products as consumers are less viral pandemic continues to stymie -quarter earnings. Investors will be worried about their appearance while recovery in fuel consumption. looking for information on how well the they stay at home. Still, the company, company's key HIV and hepatitis C which makes Charmin toilet paper and Kellogg Co is expected to report a rise drug franchises have weathered the Tide detergent, is expected to grab in organic sales in the second quarter, COVID-19 pandemic. Gilead is also market share for its cleaning products due to strong demand from consumers expected to discuss the commercial as consumers across the globe deal stocking up on its cereals and snacks opportunity for remdesivir, its antiviral with the pandemic. The conference call while stuck at home due to the COVID- drug for COVID-19 that was launched will focus on cost pressures, impact on 19 pandemic. However, concerns still commercially early this month. manufacturing and supply chains, and hover around the sustainability of that changes in shopping trends due to demand and investors will look out for Eli Lilly and Co is expected to report COVID-19. any update on the company's delayed its second-quarter earnings. Investors product launches. will focus on comments related to the Yum Brands Inc is slated to report pandemic, which could result in second-quarter earnings. Pizza Hut is firm Apollo Global patients losing commercial insurance likely to have performed better than Management Inc reports its second- and hurting the company's profits, as Yum's other brands, as diners sought quarter earnings after global financial well as demand for the company's more comfort food during COVID-19 markets recovered from a coronavirus- diabetes drugs. lockdowns. Fewer late-night and induced market selloff in March. breakfast orders will likely weigh on Cigna Corp is set to report second- Taco Bell. Management's comments Textron Inc, the Cessna business jet quarter results. Investors will focus on on the health of its franchisees will also maker is expected to report a second- the health insurer's full-year profit be watched. quarter loss, as the coronavirus crisis goals, as several parts of the country forces its customers to defer aircraft continue to see a surge in coronavirus Electronic Arts Inc is expected to post deliveries. cases. The focus will also be on the a rise in first-quarter revenue, driven by performance of Cigna's unit which a pandemic-led boost in its live Cabot Oil & Gas Corp is expected to houses its Express Scripts pharmacy services and unit sales, particularly in report weak second-quarter results as benefits business. its sports franchises like "FIFA" and oil prices plunged to record lows as "Madden NFL". demand collapsed amid the Ford Motor Co is likely to report coronavirus pandemic. Analysts and second-quarter results were hit by the Kraft Heinz Co is expected to report investors will be looking for updates on coronavirus pandemic and outline how an increase in second-quarter sales, as the natural gas producer's outlook for demand has rebounded since then. the U.S. packaged food industry the year as the challenging price continues to benefit from people on environment continues and any colour Mastercard Inc will report its second- lockdown buying more groceries and on cost management will be of quarter results. The payment processor higher unemployment levels. interest. will discuss the results in a conference call at 9 a.m. ET. Investors will look out Shake Shack Inc is expected to post a LIVECHAT - REUTERS GLOBAL for updates on the payment second-quarter loss compared with a MARKETS FORUM processor's transaction volumes amid profit a year earlier, as the COVID-19 Edward Moya, Senior Market Analyst the COVID-19 pandemic. pandemic and nationwide protests for the Americas at OANDA, discusses forced the burger chain to temporarily markets after the Federal Reserve Comcast Corp is expected to post a close some of its restaurants. Total meeting, recent surges in gold and drop in second-quarter revenue, hit by revenue is also likely to decline. silver, and what to expect across a near halt in advertising and Investors will be on the lookout for assets in the second half of the year. production delays due to coronavirus- comments on current levels of demand. (1330 ET/1730 GMT) To join the led restrictions. Investors will be conversation, click here

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Market Monitor

Stocks added to gains after the Federal Reserve repeated a pledge to use its "full range of tools" to support the economy but cautioned that the outlook "will depend significantly on the course of the virus." Wall Street's major indexes were already higher before the Fed commentary, on the eve of scheduled earnings reports from Amazon.com, Facebook, Apple and . "You'll often see an uptick in those shares ahead of earnings and if they disappoint then they tend to sell off," said Shawn Snyder, head of investment strategy at Citi Personal Wealth Management. Advanced Micro Devices shares rose 12.54% after the chipmaker raised revenue forecast. Starbucks climbed 3.72%. The Dow Jones Industrial Average rose 0.62%, to 26,541.97, the S&P 500 gained 1.25% to 3,258.56 and the Nasdaq A file photo shows a view of a nearly deserted Broad street and the Composite added 1.35%, to building in the financial district of during the outbreak of the coronavirus disease 10,542.94. (COVID-19) in , New York, U.S., April 3, 2020. REUTERS/Mike Segar

Longer-term U.S. Treasury yields moved slightly higher after the Federal 1/32, yielding 0.13%. 30-year bonds U.S. crude oil inventories fell by 10.6 Reserve renewed its pledge to keep fell 5/32 to yield 1.23%. million barrels last week to 526 million interest rates near zero to help the barrels, the Energy Information Administration said, the largest economy recover from the COVID-19 The dollar fell as the Federal Reserve pandemic. Evercore ISI macro affirmed its commitment to hold rates drawdown since December. Net U.S. research analyst Stan Shipley said the near zero for years. Against a basket of crude imports fell 1 million barrels per Fed appeared to be waiting to judge other currencies, the dollar fell 0.34% day to 1.9 million bpd, the EIA said. the full impact of its actions to date, to 93.38. The euro traded at $1.1777, Gold rose after the U.S. Federal including the extension of credit up 0.54%, although it has stepped back facilities. "The Fed has done a lot and from Monday's 22-month high of Reserve's decision to hold rates near they have made sure that capital $1.17815. zero and as uncertainty lingered over a markets have not collapsed. Whether U.S. Congress coronavirus relief package. Spot gold was up 0.47% at that’s going to be enough to give you Oil prices rose after a steep drop in stimulus amid the public health crisis, U.S. crude inventories, but another $1,968.08 per ounce, trading below a that’s an open question," Shipley said. record day for coronavirus cases record high of $1,980.57 scaled on The benchmark 10-year notes rose worldwide kept gains in check. Brent Tuesday. Gold futures were 0.71% higher at $1,958.40 an ounce. 5/32 to yield 0.57%. The two-year crude futures were up 1.23% at notes, which typically move in step $43.75 a barrel. U.S. crude futures with interest rate expectations, rose were at $41.25 a barrel, gaining 0.51%.

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Top News

Fed's Powell says coronavirus surge starting to weigh on economic recovery The surge in U.S. coronavirus cases and the restrictions aimed at containing it have begun to weigh on the economic recovery, the head of the Federal Reserve said, pointing to an apparent pullback by consumers and a slowdown in the rehiring of furloughed workers, particularly by small businesses. "We have seen some signs in recent weeks that the increase in virus cases and the renewed measures to control it are starting to weigh on economic activity," Fed Chair A file photo shows the Federal Reserve building set against a blue sky, amid the coronavirus Jerome Powell said in a news disease (COVID-19) outbreak, in Washington, U.S., May 1. REUTERS/Kevin Lamarque conference following release of the U.S. central bank's latest policy statement. The Fed's policy statement from . The company's sales analysts, according to IBES data from directly tied the economic recovery to tumbled 25% to $11.81 billion in the Refinitiv. Revenue declined 24% year- resolution of a health crisis whose quarter, missing estimates of $13.16 on-year to $17.7 billion. All of its direction remains much in doubt. "The billion. The company now expects to industrial units reported lower sales path of the economy will depend resume 737 MAX deliveries to airline and a double-digit decline in orders significantly on the course of the virus," customers before year-end in the during the quarter. The steepest fall the central bank's policy-setting United States, a slip from earlier was at its aviation unit, usually GE's Federal Open Market Committee guidance of end-September. Boeing most profitable and most cash- (FOMC) said. Fed policymakers also confirmed the last 747 would roll generative business segment. While repeated a pledge to use their "full out of its Seattle-area factory in around the company sees a slow recovery in range of tools" to support the economy two years. Boeing Chief Executive the aviation business, it expects free and keep interest rates near zero for as Dave Calhoun told analysts the cash flow to be better in the second long as it takes to recover from the company was making payments to its half of the year and turn positive in fallout from the epidemic, saying the sprawling supply chain and also 2021. The company's shares tumbled economic path will depend significantly working closely with airlines to manage 4.35% to $6.59. on the course of the virus. All FOMC a COVID-19 recovery process that members voted to leave the target could take three years. Boeing will now GM says it can pay off $16 billion range for short-term interest rates at reduce 787 production to six jets a loan if U.S. recovery continues between 0% and 0.25%, where it has month in 2021 - a third rate drop from a General Motors said if the U.S. been since March 15 when the virus year ago, when it was producing the economy continues to recover from the was beginning to hit the nation. Dreamliners at a record monthly rate of coronavirus pandemic and the auto 14 planes. industry does not experience any Boeing cuts jet output, jobs as further production shutdowns, the No. 1 pandemic hammers sales Pandemic pummels GE second- U.S. automaker should be able to Boeing slashed production on its quarter earnings; shares sink generate enough cash to pay off a $16 widebody programs, delayed the arrival General Electric saw less cash outflow billion loan by the end of the year. of its newest jet, and confirmed the than estimated in the second quarter, "Obviously, it is still a very fluid demise of its iconic 747, as it reported even as the coronavirus pandemic situation as you know and we're a bigger-than-expected quarterly loss pummeled demand in its aviation watching the virus, the economy and its amid fallout from the COVID-19 business, resulting in a wider-than- impact on the overall industry very pandemic. On an adjusted basis, expected quarterly loss. On an closely," Chief Financial Officer Dhivya Boeing lost $4.79 per share, bigger adjusted basis, GE reported a loss of Suryadevara told reporters. She spoke than analysts' average estimate of a 15 cents per share compared with a after GM posted a smaller-than- loss of $2.54, according to IBES data loss of 10 cents a share estimated by expected second-quarter loss thanks to

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solid high-margin pickup truck sales EU buys remdesivir to treat 30,000 $9.20 per share topped analyst and aggressive cost-cutting that helped COVID patients, seeks more expectations by 33 cents, according to mitigate the impact of a forced The European Union's executive said it Refinitiv data. Healthcare utilization shutdown that left its North American had agreed to buy a limited supply of recovered to about 90% of pre- plants shut for eight of the 13 weeks in the COVID-19 medicine remdesivir pandemic levels in June, after falling the quarter. Excluding one time items, from U.S. drugmaker Gilead to address 40% below expectations in April, GM reported a loss of 50 cents per the short-term needs of European Anthem said. For the quarter, the share. Analysts had expected a loss of patients, and hoped to be able to order percent of premiums collected that $1.77 per share. more later. The EU Commission has went to medical expenses improved to agreed to pay $74 million to buy 77.9% from 86.7% a year earlier. Facebook, Google absorb U.S. enough doses to treat about 30,000 Anthem maintained its full-year lawmakers' jabs in rare Big Tech patients, it said in a statement. "This adjusted profit outlook of more than hearing agreement is consistent with the $22.30 per share but did not provide Google and Facebook took the previously announced pricing," Gilead other forecasts, citing uncertainty from sharpest jabs for alleged abuse of their said in a statement. "This contract uses the pandemic. market power from Democrats and an average cost per dose of 345 Republicans in a much-anticipated euros," an EU spokesman told Reuters, revenue misses as congressional hearing with four of for a total of six doses per patient. He coronavirus deters advertisers America's most prominent tech CEOs added that the price agreed was valid Spotify Technology missed quarterly in the hot seat. Facebook's Mark "for the period of restricted supply revenue expectations and forecast a Zuckerberg, Amazon.com's Jeff Bezos, access to the company," signalling that soft current quarter, due mainly to a Alphabet-owned Google's Sundar it could change later in the year. The decline in ads as the COVID-19 Pichai and Apple's Tim Cook - whose Commission said this batch would pandemic kept advertisers at bay. companies together represent about $5 address "just immediate needs", and While monthly active users rose 29% to trillion of market value - parried a range that it was already working to secure 299 million, ad-supported revenue fell of accusations from lawmakers via new doses from October. 21% in the second quarter. Average videoconference before the House revenue per user (ARPU) for the Judiciary Committee's antitrust panel. Bunge raises outlook as robust second quarter stood at 4.41 euros, U.S. Representative David Cicilline, a agribusiness powers profit beat down 9% from a year earlier. Spotify Democrat and chair of the antitrust Agricultural commodities trader Bunge forecast total revenue of 1.85-2.05 subcommittee, began by accusing raised its full-year outlook after its billion euros for the third quarter. Google of theft. "Why does Google second-quarter profit handily beat Wall Analysts were expecting 2.01 billion steal content from honest businesses?" Street estimates, bolstered by oilseed euros. Revenue rose 13% to 1.89 he asked. Cicilline accused Google of crushing and robust crop exports to billion euros for the three months stealing reviews from the company China. Despite a worsening ended June 30, but missed analyst Yelp Inc and said that Google coronavirus pandemic that has rattled estimates of 1.93 billion. threatened to delist the company from global markets, Bunge reported strong search results if it objected. Pichai soy processing margins in South General Dynamics cuts 2020 profit responded mildly that he would want to America, Europe and Asia, record forecast as pandemic weighs on IT, know the specifics of the accusation. capacity utilization at its plants and the aerospace "We conduct ourselves to the highest lowest crushing costs in three years. General Dynamics cut its full-year profit standards," he added, disagreeing with Operating earnings in Bunge's outlook as its information technology the characterization that Google steals agribusiness segment grew four-fold in and aerospace units grappled with content from other businesses to the quarter, triggering the improved coronavirus-led disruptions, although it populate its search engine and keep 2020 outlook. Excluding items, Bunge signaled a gradual pick-up in demand users on its own services. Facebook's earned $3.88 per share, above for its Gulfstream jets. The company Zuckerberg took a series of questions analysts' average estimate of $1.32. said some high-margin programs at its about the company's purchase of IT business had come to a "hard stop" Instagram in 2012, and whether it was Anthem profit tops expectations as because of the pandemic, leading to a acquired because it was a threat. On people delay medical care during 12.7% drop in sales at the unit in the the Republican side, Representative pandemic second quarter. Net earnings plunged Jim Jordan accused the companies of Anthem reported a quarterly profit that 22.5% to $625 million, or $2.18 per taking a long list of actions that he said topped Wall Street expectations, aided share. Analysts expected earnings of showed they try to hamper by lower medical costs as people $2.15 per share. Earnings per share for conservatives from reaching their delayed non-essential procedures the year are now expected to be supporters. during the first surge of the U.S. between $11 and $11.10, down from a coronavirus outbreak. Adjusted profit of previous forecast of between $11.30 and $11.40.

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Muslim pilgrims maintain social distancing as they circle the Kaaba at the Grand mosque during the annual Haj pilgrimage amid the coronavirus disease (COVID-19) pandemic, in the holy city of Mecca, July 29. Saudi Ministry of Media/Handout via REUTERS

Insight and Analysis

U.S. small businesses face mass FOCUS-Stalled cruise industry Fintechs face pressure to grow up closures without more pandemic aid targets repeat guests with Cha Cha as coronavirus casts a chill After surviving two strokes at age 27, lessons and Chopin Aritra Chakravarty, founder of London- Olivia Colt threw herself into starting a Retired New Yorkers Mahlon and Kim based online accounts and investments catering business, a lifelong dream. Russell have taken 15 cruises over the provider Dozens, admits it's a tough Ten years and another stroke later, she past 15 years, visiting destinations from time to be seeking up to 15 million had built Salt & Honey Catering Plus Tahiti to St. Petersburg, primarily with pounds for a start-up. "It's definitely a Events into a thriving operation in Norwegian Cruise Line. After canceling bearish market" said Chakravarty, who downtown Oakland. Now with the a fall trip to Europe, in July the Russells is seeking funding for Project Imagine, coronavirus pandemic forcing booked a 10-day cruise around the company behind his fintech cancellations of her customers' Australia and - for ventures. He is looking to crowd weddings and events, she has slashed January 2022. "We love cruising," said funding and government-backed her staff from 25 to six and tried to Mahlon Russell. "But we don't love it COVID 19-support schemes for drum up new business by selling enough to be the first ones out of the technology firms to make up for any groceries online. She secured a gate." The cruise industry has been hit reticence from venture capital $100,000 forgivable loan under the hard by the coronavirus pandemic, with investors. Data suggest his caution is U.S. Paycheck Protection Program shares of the three major global warranted. Fintechs, which have been (PPP) and another $150,000 loan operators down an average of 51% one of the hottest draws for venture under a federal program usually used since the start of March, as their capitalists in recent years, raised $6.3 for natural disasters. She expected the revenue stream has dried up. billion in the second quarter, down 41% money to get her through just a few on the year, according to data from months of hardship. analysts at Forrester shared with Reuters.

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CANADA

COMING UP Market Monitor No major events are scheduled. 's main stock index rose, Aphria shares were down 18.70%. after a slew of upbeat earnings reports from those including e-commerce The U.S. dollar was 0.26% lower company and pipeline operator against the Canadian dollar at TSE's S&P/TSX composite Price C$ chng % chng . C$1.3341. GAINERS Element Fleet Management 11.20 1.20 12.00 The 's S&P/ REUTERS/Mark Blinch Corp TSX composite index ended 1.08% Celestica Inc 10.66 1.09 11.39 Seven Generations Energy Ltd 3.93 0.30 8.26 higher at 16,294.66. Lightspeed POS Inc 36.46 2.52 7.42 Equitable Group Inc 80.57 5.45 7.26 Technology sector rose 3.33% to LOSERS 171.17, boosted by Shopify shares Aphria Inc 6.52 -1.50 -18.70 which jumped 7.05%. Enbridge Corp 14.02 -2.01 -12.54 Aurora Cannabis Inc 14.22 -1.38 -8.85 gained 3.08%. OceanaGold Corp 3.67 -0.29 -7.32 Corp 24.67 -1.36 -5.22

Top News

Shopify shares at record high as $513.83 million, according to Refinitiv on average were expecting a loss of 4 online boom attracts more IBES data. The company posted a net Canadian cents, according to IBES merchants income of $36 million, or 29 cents per data from Refinitiv. However, net Shopify shares hit a record high after share, compared with a net loss of revenue rose more than 18% to the Canadian company smashed $28.7 million, or 26 cents per share, a C$152.2 million as the virus outbreak quarterly revenue estimates, as the year earlier. Excluding items, the led customers to stockpile on cannabis coronavirus-driven online shopping company's earnings of $1.05 per share ahead of the lockdowns. surge encouraged more brick-and- beat estimates of 1 cent. mortar businesses to list on its e- Canada's Enbridge beats profit commerce platform. Shopify reported a Pot producer Aphria posts bigger- estimates, sees improving Mainline 71% jump in what it calls "new stores" than-expected loss oil volumes on its platform in the second quarter Canadian pot producer Aphria posted a Canadian pipeline operator Enbridge from the prior quarter. More brands bigger-than-expected quarterly loss posted a quarterly profit slightly higher joined the platform this quarter than and took impairment charges on some than analysts' estimates and said it ever as merchants from lower-level foreign assets. Aphria took impairment sees volumes growing across the plans increased their sales and charges of C$64 million in the quarter Mainline, North America's biggest oil upgraded and large brands sought to on its assets in Jamaica, Lesotho, pipeline network. On an adjusted per scale up their businesses, Chief Colombia and Argentina. The company share basis, the company earned 56 Operating Officer Harley Finkelstein is looking at "mid to long-term options" Canadian cents, while analysts on said. Shopify's gross merchandise related to supply in those Latin average had expected 55 Canadian volume more than doubled to $30.1 American countries, including shipping cents, according to IBES data from billion in the quarter, the highest since products from Canada instead of Refinitiv. Net income fell to C$1.65 its IPO in 2015, largely helped by food, growing it there, Chief Executive Irwin billion, or 82 Canadian cents per share, beverages, and tobacco categories. Simon told analysts in a conference in the second quarter, from C$1.74 That easily beat expectations of $18.45 call. Aphria reported an adjusted loss billion, or 86 Canadian cents per share, billion. Revenue nearly doubled to of 14 Canadian cents in the three a year earlier. $714.3 million, beating estimate of months ended May 31, while analysts'

7

WEALTH NEWS

CORONAVIRUS AID White House, Congress see little progress on coronavirus bill as deadline nears Top White House officials and congressional Republicans and Democrats tried to narrow stark differences over coronavirus aid, with no guarantees they can craft a compromise before some unemployment benefits expire.

ECONOMIC DATA U.S. housing market pushes ahead, trade flows improve Contracts to buy U.S. previously owned homes rose to a nearly 14 -1/2-year high in June, the latest indication that the housing market was weathering the COVID-19 pandemic far better than the broader economy. The National Association of Realtors said its Pending Home Sales Index, based on contracts signed last month, rose 16.6% to 116.1 in June. That was the highest level since January 2006. Pending home sales increased 11.9% in the populous South in June. They soared 11.7% in the West and surged 54.4% in the Northeast. Contracts rose 12.2% in the Midwest. In a separate report, the Commerce Department said the goods trade deficit dropped 6.1% to $70.6 billion last month. Exports of goods accelerated 13.9% to $102.6 billion, eclipsing a 4.8% increase in goods imports to $173.2 billion. Goods imports fell in May to their lowest level since July 2010. Retail inventories dropped 2.6% in June after decreasing 6.2% in May. Motor vehicle and parts inventories tumbled 6.5%. Retail inventories, excluding motor vehicles and parts, the component that goes into the calculation of GDP, fell 0.8% after dropping 1.7% in May. Wholesale inventories fell 2.0% in June after sliding 1.2% in the prior month.

APPLE EARNINGS PREVIEW Can Apple's 24X7 services store-front make up for falling iPhone sales? When Apple reports earnings Thursday, investors will be keen to see if its services segment raked in enough to help offset expected declines in most hardware sales and uncertainty about the timing of this fall's iPhone lineup, historically the company's biggest sales driver.

AMAZON EARNINGS PREVIEW Will investors look past Amazon's COVID-19 e-commerce costs? Investors' penchant for prioritizing growth over profit at Amazon.com will be put to the test, when investors absorb the impact of second-quarter pandemic-related costs that could top $4 billion.

CME EARNINGS CME profits fall as low rate environment hits hedging demand CME, the world's biggest futures exchange operator, said its quarterly profit fell as steps taken by the U.S. government to ease the economic impact of the coronavirus pandemic curbed hedging demand for some of its top products.

PAY GAP U.S. CEO-workers pay gap narrowed, then COVID-19 hit - union report Top American chief executives on average made 264 times as much as their typical employee in 2019, narrower than the year before, a union report found, but the ratio is expected to rise "dramatically" due to COVID-19.

FED'S TREASURY BUYING Fed buying spree could move to long end of yield curve -analysts The Federal Reserve may shift more of its buying to the long end of the yield curve, analysts say, as the Treasury market braces for a surge in supply to finance relief efforts in the wake of the coronavirus pandemic.

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KEY RESULTS

Company Name* Quarter ET Smart Estimates EPS Estimates** Year Ago Rev Estimates (mln)

A. O. Smith Q2 BMO $0.41 $0.42 $0.61 $661.22 Alexion Pharmaceuticals Q2 BMO $2.61 $2.59 $2.64 $1,279.24 Alphabet Q2 AMC $8.20 $8.21 $14.21 $37,367.02 Amazon.com Q2 AMC $1.39 $1.46 $5.22 $81,530.30 American Tower Q2 07:00 $1.03 $1.03 $0.96 $1,944.58 Apple Q3 AMC $2.05 $2.04 $2.18 $52,247.74 Aptiv PLC Q2 BMO -$1.38 -$1.38 $1.33 $1,851.87 Arthur J Gallagher & Co Q2 AMC $0.73 $0.72 $0.65 $1,407.99 Baxter International Q2 BMO $0.73 $0.71 $0.89 $2,865.67 Cabot Oil & Gas Q2 AMC $0.03 $0.02 $0.36 $303.35 Comcast Q2 BMO $0.56 $0.55 $0.78 $23,567.40 ConocoPhillips Q2 BMO -$0.57 -$0.58 $1.01 $4,049.95 DaVita Q2 AMC $1.30 $1.30 $1.22 $2,926.20 Digital Realty Trust Q2 AMC $0.25 $0.28 $0.15 $948.49 Dupont De Nemours Q2 BMO $0.60 $0.59 $0.97 $4,698.28 Electronic Arts Q1 AMC $0.82 $0.78 $0.25 $1,050.36 Eli Lilly and Co Q2 BMO $1.59 $1.56 $1.50 $5,764.22 Eversource Energy Q2 AMC $0.77 $0.76 $0.74 $1,971.46 Expedia Group Q2 AMC -$3.49 -$3.40 $1.77 $675.33 Facebook Q2 AMC $1.39 $1.39 $1.99 $17,402.52 Flowserve Q2 AMC $0.29 $0.28 $0.54 $882.99 Ford Motor Co Q2 16:05 -$1.07 -$1.17 $0.28 $16,135.10 Genuine Parts Co Q2 BMO $1.02 $0.93 $1.57 $4,357.64 Gilead Sciences Q2 AMC $1.40 $1.45 $1.82 $5,305.03 HanesBrands Q2 BMO $0.01 -$0.07 $0.45 $1,172.12 Hartford Financial Services Group Q2 16:15 $1.22 $1.22 $1.33 $5,020.00 Host Hotels & Resorts Q2 AMC -$0.50 -$0.51 $0.39 $115.18 Intercontinental Exchange Q2 BMO $1.04 $1.04 $0.94 $1,386.40 International Paper Co Q2 BMO $0.40 $0.39 $1.15 $4,973.23 Kellogg Co Q2 BMO $0.93 $0.94 $0.99 $3,299.85 Kraft Heinz Co Q2 BMO $0.66 $0.65 $0.78 $6,543.16 Linde PLC Q2 06:00 $1.65 $1.65 $1.83 $6,285.61 LKQ Q2 BMO $0.15 $0.16 $0.65 $2,399.53 Marsh & McLennan Companies Q2 BMO $1.16 $1.13 $1.18 $4,188.95 Masco Q2 07:00 $0.70 $0.67 $0.88 $1,661.33 Mastercard Q2 BMO $1.18 $1.16 $1.89 $3,252.59 Mettler-Toledo International Q2 AMC $4.23 $4.20 $5.16 $643.58 MGM Resorts International Q2 AMC -$1.79 -$1.69 $0.16 $392.47 Molson Coors Beverage Co Q2 BMO $0.63 $0.68 $1.52 $2,450.81 Moody's Q2 BMO $2.36 $2.21 $2.07 $1,241.33 Newmont Corp Q2 BMO $0.30 $0.31 $0.12 $2,412.06 Northrop Grumman Q2 BMO $5.34 $5.32 $5.06 $8,625.99 Old Dominion Freight Line Q2 BMO $1.04 $1.08 $1.44 $897.39 Procter & Gamble Co Q4 BMO $1.01 $1.01 $1.10 $16,967.20 Southern Co Q2 BMO $0.66 $0.67 $0.80 $4,907.07 Stanley Black & Decker Q2 BMO $1.43 $1.23 $2.66 $3,112.63

9

Company Name* Quarter ET Smart Estimates EPS Estimates** Year Ago Rev Estimates (mln)

Stryker Q2 16:05 $0.56 $0.55 $1.98 $2,586.36 Teleflex Q2 BMO $1.28 $1.25 $2.66 $537.89 Textron Q2 BMO -$0.13 -$0.08 $0.93 $2,347.12 United Parcel Service Q2 BMO $1.12 $1.07 $1.96 $17,482.35 Valero Energy Q2 BMO -$1.42 -$1.41 $1.51 $15,940.55 Vertex Pharmaceuticals Q2 AMC $2.10 $2.07 $1.26 $1,385.48 Waste Management Q2 BMO $0.81 $0.80 $1.11 $3,523.91 Willis PLC Q2 BMO $1.66 $1.63 $1.78 $2,053.28 Xcel Energy Q2 BMO $0.48 $0.48 $0.46 $2,655.65 Xilinx Q1 AMC $0.56 $0.56 $0.94 $725.63 Xylem Q2 06:55 $0.39 $0.39 $0.79 $1,103.98 Yum! Brands Q2 BMO $0.58 $0.54 $0.93 $1,185.41 *Includes companies on S&P 500 index. **Estimates may be updated or revised; release times based on company guidance or past practice.

I/B/E/S EPS and revenue estimates, and StarMine Smart Estimates, provided by Refinitiv.

The Day Ahead - North America is compiled by Nachiket Tekawade and Yoganand K N in Bengaluru.

For questions or comments about this report, email us at: [email protected].

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