General Market News

The United States signed an agreement with Saudi Arabia to develop a civilian nuclear program in the kingdom, requiring Congressional review under the Atomic Energy Act. Saudi Arabia currently produces nearly all its domestic energy from fossil fuels, with 60% from natural gas and 40% from oil. The agreement comes amid U.S. military action against Iran over its nuclear ambitions.

• Saudi Arabia is OPEC's largest oil producer and generates virtually all electricity from fossil fuels (60% natural gas, 40% oil)
• The cooperation agreement requires Congressional review under the Atomic Energy Act before implementation
• The timing coincides with U.S. bombing campaigns in Iran aimed at pressuring Tehran to abandon its nuclear program

US stock markets closed mixed on Wednesday, with the Dow flat, S&P 500 down 0.1%, and Nasdaq down 0.6%, as investors awaited major Big Tech earnings from Alphabet and Tesla while monitoring surging oil prices. Oil climbed 3% to above $94 per barrel for Brent crude due to US-Iran tensions, reviving inflation concerns and increasing expectations of potential Federal Reserve rate hikes.

• Oil prices hit their highest levels since June 11, with Brent above $94 and WTI above $86, driven by 11 consecutive US strikes against Iran and Red Sea shipping threats, raising inflation and Fed rate hike concerns.
• Market expectations for a Fed rate hike this month jumped to 31% from 10% a week earlier, with traders pricing in a 75% chance of at least a quarter-point increase in September.
• Super Micro Computer surged 21% after reporting over $60 billion in new AI server orders and stronger-than-expected margins, while GE Vernova fell 8% on an earnings miss.

Rising gasoline and diesel prices driven by the Iran conflict are threatening the U.S. economy and consumer purchasing power, with diesel posing the greater risk due to its impact on trucking and broader price levels. U.S. refineries are running near 96% capacity with depleted inventories and a diminished Strategic Petroleum Reserve, limiting the ability to quickly reduce retail fuel prices even if crude oil costs decline. President Trump has few remaining tools to shield consumers from the energy shock in the near term.

• National average gasoline prices rose to $4.06/gallon (up 4.4% week-over-week) while diesel jumped 34 cents to $5.13/gallon, the largest weekly increase since the war started in March
• U.S. refineries are maxed out at 96.1% capacity utilization with inventories at 'tank bottoms' in key delivery points, while the Strategic Petroleum Reserve sits at its lowest level since March 1983
• A Federal Reserve survey found 37% of voters are using credit cards more frequently due to higher food and gas prices, up 6% since April, indicating growing financial strain on American households

Moody's has warned that high capacity prices in the PJM Interconnection grid could negatively impact credit ratings for regulated electric utilities. These utilities face pressure to keep power bills affordable while managing rising costs from capacity payments, which cleared at $325 per megawatt-day last week. The situation reflects growing tension between affordability and reliability as data center demand, resource retirements, and transmission constraints reshape the market.

• Regulated utilities in PJM see little benefit from rising capacity prices since they own transmission lines but are generally barred from owning power plants that receive the payments
• PJM capacity prices cleared at $325 per megawatt-day last week, creating affordability concerns that increase regulatory and political risk for utilities passing costs to retail customers
• Independent power producers that own plants and receive capacity payments directly may see credit upgrades, contrasting with the credit-negative outlook for regulated utilities

President Trump announced that imported generic drugs will face escalating tariffs starting in two years, rising from 0% to 100% after two years and 200% after three years beginning August 1. The generic drug industry, while noting recent U.S. growth, warns that existing structural problems in purchasing and reimbursement already inhibit sector growth. Patient advocates caution that massive tariffs risk making affordable generic medications more expensive and less accessible for millions of Americans.

• Tariffs on imported generic drugs will remain at 0% for two years starting August 1, then jump to 100% for one year, and eventually reach 200%
• The Association for Accessible Medicines says the industry has grown significantly over the past two years but still faces structural purchasing and reimbursement problems that limit growth
• Patient advocacy groups warn the tariffs could make lower-cost generic drugs that millions rely on more expensive and harder to access

Philip Morris International reported Q2 2026 results that beat estimates, with adjusted EPS of $2.20 (up 15.2% year-over-year) and net revenues of $11.19 billion (up 10.4% reported, 7.6% organic). The company maintained its 2026 organic sales growth guidance of 5-7% and raised its adjusted EPS outlook to $8.26-$8.41, driven by strong international smoke-free product performance.

• Organic revenue growth of 7.6% was driven by favorable pricing in combustibles and strong volume growth in smoke-free products, with international smoke-free segment revenues up 14.2% (11.8% organic)
• Total shipment volumes rose 2.5% to 205.2 billion units, with smoke-free products growing 8% to 44.7 billion units, while cigarette volumes grew 1.1% to 156.9 billion units
• Company expects 2026 adjusted EPS of $8.26-$8.41 (9.5-11.5% growth) and Q3 EPS of $2.20-$2.25, with operating cash flow projected at $13.5 billion

President Trump is expanding his Ratepayer Protection Pledge to shield households from electricity costs tied to AI data center expansion, with the nonbinding agreement now covering 80% of U.S. delivered electricity. The pledge requires data center companies to pay above normal rates to prevent cost transfers to average consumers, as regional power grids face severe strain from surging demand.

• The PJM Interconnection, serving 67 million people, saw transmission congestion costs surge 81% to $3.2 billion in 2025, with last week's power auction reaching record price levels
• FERC is meeting Thursday to examine PJM's worsening supply-demand imbalance as the grid struggles with the one-size-fits-all model
• Large data center customers may face decade-long waits for service while the expanded pledge involves governors, lawmakers, utilities and data center developers in the nonbinding agreement

The Senate is considering updated cryptocurrency legislation, known as the Clarity Act, that would prohibit presidents and other federal officials from issuing or sponsoring digital assets. Republicans updated the bill on Wednesday, marking what would be the first major legislation governing digital assets and the first limits on how presidents may profit from cryptocurrency.

• The Clarity Act represents the first major federal legislation aimed at regulating digital assets
• The updated bill specifically targets potential conflicts of interest by banning federal officials, including presidents, from issuing or sponsoring cryptocurrencies
• Republicans introduced the updates to the measure already under Senate consideration, with CNBC obtaining the full bill text

Aston Martin secured £550 million ($735.57 million) in new debt financing led by funds managed by HPS Investment Partners, which is owned by BlackRock. The financing deal strengthens the luxury carmaker's financial position as it works to improve its balance sheet.

• The debt financing totals £550 million ($735.57 million) and is led by BlackRock-owned HPS Investment Partners
• The new funding is aimed at strengthening Aston Martin's financial position amid ongoing efforts to stabilize the luxury automaker's finances

New Federal Reserve Chair Kevin Warsh has repeatedly used three distinctive phrases across five public appearances: 'family fight' (13 times), 'first principles' (11 times), and 'inflation is a choice' (6 times). Fed watchers are analyzing these cryptic phrases to understand Warsh's monetary policy approach, as he has chosen to communicate less than his predecessors, making each word choice significant.

• 'Family fight' signals Warsh's desire for more open FOMC debate, though experts note this may be deflecting external pressure and conflicts with his own limited public communications compared to other Fed members.
• 'First principles' suggests questioning fundamental Fed assumptions and potentially rolling back post-2008 expansions, including skepticism toward the Phillips Curve, economic forecasting models, and Fed involvement in regulatory and climate issues.
• 'Inflation is a choice' echoes Milton Friedman's monetarist philosophy, indicating Warsh will be less tolerant of attributing inflation to external factors like tariffs or supply shocks and more willing to acknowledge the Fed's direct responsibility.

Panama is considering creating a state-owned mining company to partner with Canada's First Quantum Minerals to reopen the shuttered Cobre Panama copper mine, which was closed in 2023 after its contract was ruled unconstitutional. The closure eliminated 4.5% of Panama's GDP and over 1% of global copper production, but near-record copper prices and 10% unemployment are making reopening more attractive to President Mulino's government. Officials remain cautious about potential public protests over environmental and governance concerns.

• Under a proposed public-private partnership, First Quantum would hold 60-65% stake with operational control, while Panama would own 35-40%, providing a potential workaround to a 2023 law banning new mining concessions
• The mine's 2023 shutdown wiped out 4.5% of Panama's GDP, more than 1% of global copper production, and 40% of First Quantum's revenues, while the company has suspended its $20 billion compensation claim against Panama
• Alternative lease option being considered would have First Quantum pay royalties and taxes to Panama, with the government expected to make a final decision by end of 2025

Critical mineral refining company Nth Cycle announced it will go public through a merger with SPAC Kensington Capital Acquisition, valuing the company at $585 million. The combined entity will trade on the NYSE under ticker 'NTH' and aims to reduce Western dependence on China for processed critical minerals.

• The deal is expected to provide up to $230 million from Kensington's trust account and up to $100 million from a PIPE investment, with $40 million already committed
• Nth Cycle plans to use the proceeds to expand its refining capacity for critical minerals
• The transaction addresses strategic concerns about Western reliance on China for processed critical minerals

US equity indices opened lower on Wednesday, July 22, 2026, as earnings season begins and rising interest rates weigh on sentiment. The Nasdaq 100 fell 0.76%, the S&P 500 declined 0.26%, and the Dow Jones 30 dropped 0.05%. Geopolitical concerns from the Middle East and investor reactions to corporate earnings are contributing to market uncertainty.

• The Nasdaq 100 pulled back near 28,900, facing resistance at the 50-day EMA with support at 28,500, as rising interest rates pressure technology stocks
• The S&P 500 is consolidating around 7,500 within a potential ascending triangle pattern, with the 50-day EMA providing underlying support
• All three indices are experiencing cautious trading as investors await corporate earnings results and monitor geopolitical tensions in the Middle East

Stock futures declined Wednesday morning as investors awaited earnings reports from major tech companies including Alphabet and Tesla, due after the closing bell. Markets had rebounded Tuesday, ending a three-day losing streak on gains in chip and memory stocks. Commodity prices surged, with WTI oil climbing over 4% to $88 per barrel and gold rising 1% to $4,130 an ounce, while the 10-year Treasury yield reached 4.64%, its highest level in two months.

• Alphabet is expected to report a 20% revenue increase year-over-year, setting benchmarks for cloud computing rivals Microsoft and Amazon reporting next week
• Supermicro stock jumped over 15% premarket after raising adjusted gross margin guidance to 15-17% from previous 8.2-8.4% range, despite revenue at the low end of its $11-12.5 billion guidance
• AT&T shares rose more than 4% on better-than-expected Q2 profit, while GE Vernova fell 7% despite raising full-year guidance after missing quarterly earnings expectations

Nasdaq futures fell 0.71% as investors await critical earnings reports from Alphabet and Tesla, focusing on whether massive AI investments are generating adequate returns. Super Micro Computer provided a bright spot with stronger-than-expected margin guidance and a record $60 billion order backlog. Oil prices near six-week highs due to Middle East tensions are complicating the Federal Reserve's outlook on inflation and interest rates.

• Alphabet's earnings test centers on Google Cloud growth and whether AI capital expenditure is translating into faster revenue, with cautious spending signals potentially hurting chip suppliers dependent on hyperscaler demand.
• Tesla delivered 480,126 vehicles in Q2 but faces scrutiny on automotive margins, free cash flow, and costs of expanding robotaxi, AI, and humanoid-robot programs.
• Super Micro Computer surged after raising Q4 gross margin guidance to 15-17% (nearly double prior forecast) and disclosing over $60 billion in new orders, signaling strong AI-server demand despite execution risks.

Iran's National Iranian Oil Company has set the official selling price for its light crude oil grade to Asian buyers at $4.35 per barrel below the Oman/Dubai average for August. This represents a dramatic reversal from July's pricing, which was set at a premium of $7.15 above the benchmark, marking an $11.50 per barrel decline month-over-month.

• Iranian Light crude pricing shifted from a $7.15 premium in July to a $4.35 discount in August, a total change of -$11.50 per barrel
• Most Iranian crude grades experienced similar sharp declines of approximately $11.50-$11.85 per barrel, except Soroush which remained unchanged at -$2.50
• Iranian Heavy crude was priced at -$6.50 discount for August compared to +$5.30 premium in July, reflecting broader downward pressure on Iranian oil exports to Asia

Markets are volatile as U.S.-Iran conflict enters its eleventh day, driving oil prices toward $95/barrel and pushing Japan's yen to a 40-year low above 163 per dollar. Investors await key earnings from Alphabet and Tesla amid concerns that Big Tech's AI spending will soon exceed operating cash flow, while chip stocks experienced sharp swings overnight.

• Oil prices approaching $95/barrel with Goldman Sachs warning of potential $120/barrel in Q4 if Gulf conflict continues; the war has already cost the U.S. government over $37.5 billion
• Japan's yen hit weakest level in 40 years as officials warn of possible intervention; only $2 billion of the $550 billion trade deal with the U.S. has been earmarked so far
• Big Tech AI hyperscalers expected to see capital expenditures exceed operating cash flow by next year, marking a significant shift for companies previously known for generating cash

Many U.S. Medicare patients are choosing injectable GLP-1 obesity medications over pills through a new 18-month pilot program that offers drugs like Wegovy and Zepbound for $50 monthly. This contradicts pharmaceutical industry expectations that older patients would prefer oral formulations. Doctors report strong demand, though coverage access has been inconsistent across patients.

• Injectable Zepbound showed 22% weight loss over 72 weeks versus oral Foundayo's 11% reduction, driving patients to prioritize efficacy over convenience despite industry predictions of 2-to-1 preference for pills
• The Medicare pilot program launched in July for Americans 65+ is processing most authorizations in under 12 hours, with some clinics receiving approvals for 200 patients in the first week
• Access remains uneven as some patients face delays and doctors describe 'cumbersome' processes requiring significant staff hours to navigate approval requirements

U.S. stock index futures declined on Wednesday, with the Nasdaq falling 0.7%, as investors awaited earnings reports from Big Tech companies including Alphabet and Tesla. The results will test whether Wall Street's AI-driven rally can continue amid concerns about whether massive AI investments are generating sufficient returns.

• Futures down: Dow 0.1%, S&P 500 0.3%, Nasdaq 0.7%, with chip stocks leading the decline
• Alphabet and Tesla are the first of the 'Magnificent 7' megacap stocks to report earnings after the bell, facing scrutiny over multibillion dollar AI investment returns
• Geopolitical risks from Middle East conflicts and elevated oil prices near six-week highs add to market caution, while Fed is expected to keep rates steady with over 70% probability at next week's meeting

Brent crude oil prices jumped more than 2% to above $92 per barrel on Wednesday as U.S.-Iran tensions escalated following the 11th consecutive night of U.S. military strikes on Iranian targets. Secretary of State Marco Rubio stated Iran is 'not serious' about negotiations, with the Strait of Hormuz remaining a key dispute between the two nations, raising concerns about oil supply disruptions through this critical shipping route.

• Brent crude rose 2.5% to $93.46 while WTI futures climbed 2.5% to $86.46 as U.S. forces conducted their 11th straight night of strikes targeting Iranian military infrastructure and maritime capabilities
• The Strait of Hormuz, through which critical oil shipments pass, remains a sticking point with Iran allegedly demanding control rights over the waterway, which Rubio called a 'dangerous precedent'
• Rising energy prices fueled inflation concerns and increased market expectations of hawkish Federal Reserve action, with a 24.1% probability of a July rate hike and 69% chance of a September increase