Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Top 5 Things to Know in the Market on Monday, July 13th

EconomyJul 13, 2020 11:43
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Shutterstock

By Geoffrey Smith --  The coronavirus continues to spread unchecked in the U.S. and across much of the developed world. Stocks are set to open higher as Goldman Sachs (NYSE:GS) raises its profit forecast for the S&P 500 ahead of the Q2 earnings season, although Pepsico (NASDAQ:PEP) demurred in its latest update.  The zloty is weakening slightly after conservative President Andrzej Duda won another term, and oil prices slid on the prospect of OPEC and its allies preparing to let more oil back into the market from next month. Here's what you need to know in financial markets on Monday, July 13th. 

1. Virus spreads faster; Trump dons a mask

The World Health Organization registered a new daily record high for the number of new cases of Covid-19 at the weekend at over 230,000. The U.S. registered a new daily record of over 70,000 infections on Friday, while Florida alone registered over 15,000 new cases – more than New York at the height of the virus’ first wave in April.

The White House sought to distance itself from Anthony Fauci, the head of the National Institute for Allergies and Infectious Diseases, after the latter repeatedly warned about the inadequacy of the U.S.’s response to the virus in recent weeks.

At the same time, President Donald Trump wore a face mask in public for the first time after weeks of refusing to do so and mocking his opponents for doing so.

2. Chipmakers Analog and Maxim to merge

Analog Devices (NASDAQ:ADI) is to merge with Maxim Integrated (NASDAQ:MXIM) in an all-stock deal that will be the biggest in the U.S. so far this year.

The merger will create a company with a market value of some $70 billion and annual revenue of around $8 billion. It is the latest combination in a sector that has seen rapid consolidation in its top tier in the last five years.

Under the terms of the deal, Maxim shareholders will own around one-third of the company.

The two companies are both major players in analog semiconductors, whose applications include power management for automotive batteries. Their biggest rival, according to The Wall Street Journal, will be Texas Instruments (NASDAQ:TXN).

3. Stocks set to open higher as Goldman ups forecast; Pepsi silent on outlook

U.S. stock markets are poised to open higher, shrugging off reports of the further spread of the coronavirus amid confidence that the upcoming earnings season won’t force investors to take a bleaker view of the outlook for major companies.

Goldman Sachs strategists have revised their baseline forecast for 2020 earnings per share at S&P 500 companies up to $115 from $110 previously, according to a note released at the weekend. David Kostin’s team stressed that outlooks, rather than historical figures, will be particularly important during the coming earnings season.

Pepsico, which reported earlier, ducked the challenge, failing to provide a financial outlook for the year beyond reiterating its previous assurances on shareholder payouts.

By 6:30 AM ET (1030 GMT), the Dow Futures contract was up 139 points, or 0.5%, while the S&P 500 Futures contract was up 0.4% and the Nasdaq 100 futures contract was up 0.6%.

4. Zloty weakens slightly on Duda's re-election

The Polish zloty weakened slightly after incumbent President Andrzej Duda, standing for the conservative Law and Justice party, was re-elected by a narrow margin, in what was seen as a popular vindication of the party’s economic record.

Duda’s victory over his more economically and socially liberal opponent suggests that the strength of conservative opinion in central and eastern Europe, which has led to increasing tension between the EU and its newer members, is set to continue.

By 6:30 AM ET (1030 GMT), the euro was at 4.4764 zloty, just off what would be a seven-week high.

5  Oil slides as OPEC+ prepares to open the taps

Crude oil prices slid on the prospect of OPEC and its allies partially turning the taps back on at the end of the month.

Under the emergency deal on output restraint agreed during the pandemic by the so-called “OPEC+” bloc, the amount of oil being withheld from world markets is set to drop from 9.7 million barrels a day to 7.7 million b/d at the end of July.

Officials from Russia have indicated that they see no need to diverge from that timetable, which is likely to be re-endorsed at a technical monitoring meeting later this week.

U.S. crude futures were down 1.7% at $39.85 a barrel, while the international benchmark Brent was down 1.4% at $42.62 a barrel.

Top 5 Things to Know in the Market on Monday, July 13th

Related Articles

Dollar resumes downtrend after worst week since May
Dollar resumes downtrend after worst week since May By Reuters - Aug 02, 2021

By Sujata Rao LONDON (Reuters) - The dollar lurched lower on Monday, back towards the one-month lows hit last week when it became clear the Fed was in no hurry to tighten policy...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
mskl liu
mskl liu Jul 13, 2020 12:32
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I reiterate the market still not ready to take an oil price at 40pbl
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email