General Market News

Hydro One Limited, Ontario's largest electricity transmission and distribution utility, will release its second quarter 2026 financial results on August 12, 2026, before market open. The company will host an investment community teleconference at 8 a.m. EDT the same day to discuss results and outlook.

• Hydro One serves 1.5 million customers with $39.7 billion in assets as of December 31, 2025, and generated $9 billion in annual revenues in 2025
• The company invested $3.4 billion in transmission and distribution networks in 2025 and purchased $3.0 billion in goods and services
• Financial results will be accessible via webcast through the Investor Relations section, with a rebroadcast available after the live call

US stocks fell on Monday as tensions between the US and Iran drove oil prices up sharply (WTI +9.4%, Brent +9.6%), raising inflation concerns and pressuring growth-sensitive sectors. The Dow dropped 138 points (-0.26%), while the Nasdaq declined 1.55% led by semiconductor losses. Markets now await key earnings reports, CPI data, and Fed Chair testimony amid elevated geopolitical and inflation risks.

• President Trump announced plans to blockade the Strait of Hormuz and seek 20% reimbursement on cargo, sending oil above $78/barrel and reviving inflation fears that pushed markets to price in at least one 25-basis-point rate hike by year-end
• Semiconductor stocks led declines with SK Hynix falling 6% on debut, Intel down 7%, AMD down 4%, and Sandisk plunging 13% as investors reassessed valuations after the AI-driven rally
• Major bank earnings from JPMorgan, Goldman Sachs, Morgan Stanley and others kick off this week alongside June CPI, PPI, retail sales data and Fed Chair Warsh testimony before Congress

Fed Governor Christopher Waller warned that the Federal Reserve may need to hike interest rates if this week's inflation data comes in higher than expected. June's Consumer Price Index is expected to show inflation declining to 3.8% yearly, but Waller said multiple months of improvement are needed before inflation concerns ease. The warning marks a shift from earlier expectations of continued rate cuts.

• About 40% of traders now predict a quarter-point rate hike at the Fed's July 29 meeting, a sharp reversal from earlier hopes for continued cuts after three consecutive reductions in 2025
• June CPI is expected to show a 0.1% monthly decline with yearly inflation at 3.8% (down from 4.2%), while PPI is forecast at 6.2% yearly (down from 6.5%)
• War in Iran has disrupted a key maritime route carrying 20% of global oil, pushing energy prices higher and causing inflation to seep into broader economy through food and transportation costs

Robert Minter, Director of Investment Strategy at Abrdn, argues that gold has become a structurally important asset in the global financial system despite recent price consolidation around $4,000 per ounce. He views the recent correction as removal of speculative excess rather than a fundamental weakness, with continued central bank buying supporting gold's evolved role as a core monetary asset amid rising sovereign debt concerns.

• Minter sees recent price weakness as technical and positive, removing speculative length while leaving strongest demand sources (central banks) intact
• Professional investors are viewing $4,000 gold as a buying opportunity to increase allocations rather than a warning sign
• Gold's role has evolved beyond traditional inflation hedge into a core monetary asset as governments globally show no policy to control debt, with Minter noting 'gold continues to be the only currency that isn't somebody else's debt'

Oil prices surged approximately 9% after President Trump announced a naval blockade of Iranian ports and demanded a 20% fee on all cargo passing through the Strait of Hormuz. WTI oil climbed above $74.50-$75.00 while Brent oil tested $83.00, driven by fears of supply disruption as tensions escalate in the Middle East with Iran and Houthi involvement.

• Trump's proposed 20% transit fee is 10 times higher than Iran's historical 2% charge, raising concerns among Gulf countries and increasing likelihood of Iranian vessel attacks
• Global oil reserves remain significantly depleted from previous Strait of Hormuz blockades, making another disruption a serious bullish catalyst that could push prices toward April-May 2026 levels
• Natural gas declined to test $2.90 support as recent EIA data showed stocks building faster than expected, despite high demand forecasts for the next seven days

The UN's International Maritime Organization rejected transit fees for the Strait of Hormuz after President Trump demanded ships pay the U.S. 20% of cargo value for Navy protection. The IMO stated there is no legal basis for mandatory tolls in international straits. Iran had also demanded tolls but agreed to suspend them for 60 days under an interim deal with the U.S.

• Trump ordered the U.S. Navy to reimpose a blockade on Iranian ships while demanding 20% of cargo value as reimbursement for protecting other vessels through Hormuz
• International maritime law experts confirm tolls violate the Convention on the International Maritime Organization and treaties guaranteeing unimpeded transit rights through international straits
• Security tensions have escalated with Iran attacking commercial ships, demanding use of northern routes through its waters, while the U.S. Navy escorts vessels through a southern corridor along Oman's coast

The probability of a Federal Reserve interest rate hike at its July 29 meeting has surged, with CME's FedWatch tool now showing 46.5% odds (up from 34% Sunday) and prediction platform Kalshi at 36% (up from under 10% earlier this month). The increased likelihood stems from Trump's announcement of reinstating a U.S. blockade of Iranian ports and imposing a 20% toll on cargo through the Strait of Hormuz, which sent oil prices jumping over 5% past $75 per barrel.

• Oil prices rose sharply in response to renewed Iran-U.S. tensions, with WTI crude jumping 5.99% to cross $75 per barrel, raising inflation concerns beyond what June CPI data may show
• Fed Governor Christopher Waller stated the central bank 'waited too long' to raise rates amid rising inflation, though he cautioned against overcorrecting with overly aggressive hikes
• Barclays analysis warns that inflation pressures extend beyond energy prices, with lack of demand destruction from elevated prices exacerbating concerns and suggesting data prints 'for the next few months, are not going to look good'

Federal Reserve Governor Christopher Waller cautioned against prematurely raising interest rates despite elevated inflation, warning the Fed should avoid 'fighting the last war' by overreacting to its 2021 mistake of waiting too long to act. He cited new inflation drivers including AI-related demand and tariffs, while noting that well-anchored expectations and a strong labor market provide some buffer as the Fed awaits more data.

• Waller identified artificial intelligence spillovers, 2025 tariffs, and Middle East energy price impacts as current inflation drivers beyond traditional causes
• June CPI data expected to show headline inflation declining to 3.8% from 4.2% and core inflation to 2.8% from 2.9%, though Waller said he needs 'several months' of lower readings before feeling confident
• Markets price in 39% chance of a rate hike at the Fed's late July meeting, as Waller emphasized both avoiding premature tightening and not repeating 2021's delayed response

Ship traffic through the Strait of Hormuz has dropped approximately 60% amid escalating conflict between the U.S. and Iran over control of shipping routes. Only 14 ships transited the strait on Sunday compared to 37 the previous week, down from over 100 daily before hostilities began on February 28. Iran is attacking vessels using a U.S.-protected southern route and demanding ships use northern lanes through Iranian waters.

• Traffic through the U.S.-protected southern corridor along Oman's coast has effectively collapsed after repeated Iranian attacks on commercial vessels, with ships increasingly using the northern route through Iranian territorial waters
• The U.S. has launched retaliatory strikes against Iran for the ship attacks, while Tehran has responded by firing on U.S. allies in the Gulf region
• President Trump announced plans to reimpose a naval blockade against Iran and demand ships pay the U.S. 20% of cargo value for protection services

Shein Executive Chairman Donald Tang will step down to an advisory role as the fast-fashion retailer nears completion of its Hong Kong IPO after receiving Chinese regulatory approval. Tang, a Chinese-American billionaire, has served as the company's Western proxy for three years, navigating failed IPO attempts in New York and London. Founder Sky Xu is expected to lead the investor roadshow ahead of the listing.

• Tang was brought in by Sequoia Capital China's Neil Shen to pursue a U.S. listing, but pivoted to London and ultimately Hong Kong after regulatory obstacles and political scrutiny over 'de minimis' customs waivers and forced labor allegations
• The executive chairman faced reputational challenges including a scandal in November when French regulators found child-resembling sex dolls on Shein's marketplace, leading to government crackdown and the closure of the company's Paris store experiment
• There is no fixed timetable for Tang's transition to senior adviser, and it remains unclear whether founder Xu will assume the public-facing role or bring in another external leader

Wall Street enters a critical week with major bank earnings (JPMorgan, Goldman Sachs, Bank of America, Citigroup, Wells Fargo) reporting Tuesday, alongside key tech companies like ASML, TSMC, and Netflix. Federal Reserve Chair Kevin Warsh testifies before Congress while crucial inflation data (CPI and PPI) will shape expectations for the Fed's next policy move, all amid rising Middle East tensions affecting oil prices.

• Major banks report Tuesday offering insights on loan growth, investment banking activity, and consumer health under higher interest rates
• June CPI (Tuesday) and PPI (Wednesday) data expected to show cooling inflation as lower gasoline prices offset other pressures, according to Wells Fargo economists
• Geopolitical tensions between U.S. and Iran have pushed oil prices higher and slowed Strait of Hormuz shipping, though Brent crude remains below $80 per barrel

Energy Transfer LP (ET) has become a trending stock on Zacks.com, driven by investor interest in its business prospects. The company currently holds a Zacks Rank #3 (Hold) and a Value Style Score of A, indicating it trades at a discount to peers. For the current fiscal year, ET is expected to deliver earnings of $1.43 per share, representing an 18.2% increase year-over-year.

• Revenue is projected to surge 41.7% for the current fiscal year to $121.19 billion, with next year's consensus at $126.38 billion (+4.3% growth)
• The stock has consistently beaten consensus estimates, surpassing EPS and revenue expectations multiple times over the last four quarters
• ET's Value Style Score of A suggests the stock is trading at a discount relative to peers, though the Zacks Rank #3 indicates near-term performance may align with the broader market

US markets opened mixed on Monday as the Dow rose 0.23% while the S&P 500 fell 0.17% and Nasdaq dropped 0.61%, pressured by semiconductor selloffs and rising oil prices from US-Iran tensions. Investors are preparing for major bank earnings reports and key inflation data this week that could influence Federal Reserve policy.

• Oil prices jumped roughly 3% (WTI to $73.83, Brent to $78.52) after Iran claimed to close the Strait of Hormuz, though President Trump disputed this, raising inflation concerns ahead of Tuesday's CPI report
• Semiconductor stocks fell sharply following SK Hynix's Nasdaq debut, with Micron down 6.4% and Western Digital, Seagate falling 4-7%, spreading weakness across the chip sector
• Major banks including JPMorgan, Goldman Sachs, and Morgan Stanley report earnings this week, with S&P 500 companies expected to post 23.7% profit growth for Q2 amid elevated market expectations

Ferguson Enterprises agreed to acquire FloWorks from private equity firm Wynnchurch Capital for approximately $1.6 billion in cash. The deal strengthens Ferguson's industrial flow-control products and services portfolio, providing greater exposure to energy, chemicals, and manufacturing sectors. The transaction is expected to close in the third quarter of 2026, pending regulatory approvals.

• The acquisition diversifies Ferguson's revenue streams toward industrial maintenance, repair, and operations products, which have shown more resilience than construction-related spending
• FloWorks distributes highly engineered flow-control products to industrial customers in energy, chemicals, and manufacturing sectors
• The $1.6 billion all-cash transaction is subject to customary conditions and regulatory approvals, with expected closing in Q3 2026

Global smartphone shipments fell 11% in Q2 to their lowest level since 2013, driven by a memory chip shortage that increased handset prices and weakened demand. Apple gained market share with a 3% shipment increase, while competitors like Samsung, Xiaomi, Oppo, and Vivo struggled with declining sales. The memory shortage is expected to persist into 2027, with annual shipments projected to decline 14% this year.

• Memory chip prices rose as suppliers prioritized AI data center customers over consumer electronics, forcing manufacturers to raise prices especially on entry- and mid-range devices
• Samsung reclaimed the top market position with 24% share, while Xiaomi, Oppo, and Vivo experienced the steepest declines due to greater exposure to lower-priced device segments
• Counterpoint Research forecasts global smartphone shipments will decline approximately 14% for the full year, with the memory shortage likely continuing into 2027

US stock futures fell on Monday, with Nasdaq futures down 1.0%, as oil prices surged 3.5% to $73.94 per barrel following fresh US military strikes on Iran targeting its capabilities in the Strait of Hormuz. The escalation in US-Iran tensions raised concerns about energy costs ahead of Tuesday's key US inflation report and Fed chair testimony.

• WTI crude rose 3.5% to $73.94 a barrel, briefly trading above $75, after the US confirmed military strikes aimed at reducing Iran's ability to attack commercial shipping in the Strait of Hormuz
• Asian technology stocks were hit hard, with South Korea's Kospi plunging nearly 9% and SK Hynix down 13%, while Japan's Nikkei lost 1.9%
• Investors await Tuesday's US inflation report and Fed chair Kevin Warsh's testimony to Congress, with higher energy prices raising doubts about policymakers' comfort with inflation data

President Trump announced the U.S. will take control of the Strait of Hormuz and charge nations for protecting the vital waterway, following Iran's blockade that has disrupted global oil supplies and driven up energy prices. The move comes amid escalating U.S.-Iranian military exchanges over the weekend, undermining a recent interim agreement to reopen the strait and pursue negotiations.

• Trump stated the U.S. will act as 'guardian' of the strait and charge wealthy nations for protection services, citing Iran's repeated violations of agreements
• Iran's Revolutionary Guards closed the strait Saturday and said passage remains suspended until 'stability and calm' are restored, warning that continued U.S. interference could lead to greater incidents in the global oil and gas sector
• Heavy missile and drone attacks were exchanged over the weekend, with Tehran striking U.S. military facilities across the Gulf, marking a sharp escalation that casts doubt on last month's interim agreement

US stock indices initially plunged on July 13, 2026, following escalating Middle East conflict but stabilized before New York trading opened. The Nasdaq 100, Dow Jones 30, and S&P 500 all showed recovery signs with technical support levels holding. Analysts view the pullback as normal consolidation within a longer-term uptrend rather than a reversal.

• Nasdaq 100 found support above its 50-day EMA with a floor at 28,500, signaling buyers remain engaged despite initial weakness
• Dow Jones 30 flipped positive before US session open, targeting 53,000 with strong support at 52,000
• S&P 500 is approaching the psychologically significant 7,600 level with short-term floor support at 7,500

HCLTech, India's third-largest IT services firm, reported first-quarter revenue that exceeded analyst expectations, driven by increased technology spending from financial services clients. The company posted consolidated revenue of 345.79 billion rupees ($3.62 billion) for the April-June quarter, representing a 13.94% year-on-year increase.

• First-quarter revenue reached 345.79 billion rupees ($3.62 billion), beating the analyst consensus estimate of 343.5 billion rupees
• Revenue grew 13.94% year-on-year, fueled by higher technology spending from financial services sector clients
• HCLTech is positioned as India's third-largest IT services exporter in the competitive software services market

Ivory Coast cocoa farmers report that while below-average rainfall last week helped dry waterlogged soil from late June flooding, insufficient sunshine and overcast conditions threaten the development of the September-to-February main crop. As the world's top cocoa producer moves through its rainy season, farmers need more sunny spells to prevent crop diseases and ensure proper flower development into cocoa pods.

• Rainfall across key cocoa regions fell 19-23.6mm below five-year averages last week, but persistent cloud cover and cold winds since Friday are preventing adequate sunshine needed for crop development
• Farmers expect clearer indications of main crop size by late August, with flowering continuing until September; crop yield depends on how many flowers survive to become pods
• Current mid-crop supply from the bush is scarce as the season nears its end, with temperatures ranging between 24.4-28.1 degrees Celsius across cocoa-growing regions