Good morning investors! The future of three crypto bills in Congress is uncertain as Republican infighting grows over key elements of the legislation, yet BTC continues to show strength.
Today we cover:
US PPI comes in flat
Other economy news
More big earnings
📊 Economy and News
U.S. Producer Prices Flat in June Amid Tariff Impact
U.S. producer prices remained unchanged in June, as tariff-driven goods price increases were offset by weaker service costs.
The producer price index (PPI) held steady after a revised 0.3% rise in May, against economists’ expectations of a 0.2% increase.
Over the past year, PPI rose 2.3%, down from 2.7% in May.
Core PPI, excluding volatile food and energy, also showed no change. Despite a 0.3% increase in final demand goods prices, driven by a 0.8% gain in tariff-sensitive communication equipment, a 0.1% drop in services offset the rise. Combined with the consumer price index’s 0.3% monthly increase, the data suggests tariffs have had a marginal effect on U.S. inflation so far.
Reports say that tariffs are boosting inflation for specific goods like household furnishings and appliances. Moreover, further increases are expected from new duties starting August 1 on imports from Mexico, Japan, Canada, Brazil, and the EU.
The Federal Reserve is likely to maintain its 4.25%-4.50% interest rate range at its upcoming meeting.
Global hits:
Canadian housing starts increased by 0.4% in June compared to May.
UK inflation rises to highest since January 2024, renewing focus on BoE rate cuts.
ANZ upgrades China’s 2025 GDP forecast after resilient H1 performance.
Fed Reports Slight Economic Growth, Rising Prices
The Federal Reserve’s latest Beige Book, released Wednesday, noted a slight uptick in economic activity across all 12 U.S. districts from May to July, improving from the prior report. Price increases were universal, driven by cost pressures and tariffs, though some businesses resisted passing costs to consumers wary of inflation.
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📈 Stocks
S&P 500 6,263.70 (+0.32%)
DJIA 44,254.78 (+0.53%)
NASDAQ 20,730.49 (+0.25%)
BRENT CRUDE 68.83 (-0.02%)
* Prices as of Jul 17th, 12:20 AM UTC
More earnings are here
Here are major earnings from yesterday:
ASML reported strong Q2 results but warned of potential stagnation in 2026. Despite beating Q2 estimates with €7.7B in sales and €5.5B in net bookings, ASML's Q3 revenue forecast fell short. The company narrowed its 2025 sales growth forecast to 15% (€32.5B). CEO Christophe Fouquet cited strong AI demand but highlighted uncertainties from U.S. tariff policies. ASML’s High NA EUV tools, critical for advanced chip production, remain a growth driver, with one unit shipped in Q2.
United Airlines reported Q2 earnings of $3.87 per share, surpassing expectations, but revenue of $15.24B fell short. Net income dropped 26% to $973M. The airline lowered its 2025 earnings outlook to $9-$11 per share due to earlier economic uncertainty. Q3 earnings are projected at $2.25-$2.75 per share, aligning with estimates. Domestic unit revenue fell 7%, while premium revenue rose 5.6%. Operational issues at Newark hub impacted Q2 margins by 1.2 points, with a 0.9-point hit expected in Q3 due to FAA flight cuts.
Bank of America reported a 3% profit increase to $7.12B in Q2, surpassing earnings estimates but missing on revenue with $26.61B. Net interest income of $14.82B fell short due to lower interest rates, despite deposit and loan growth. Fixed income revenue of $3.25B beat estimates, while investment banking fees dropped 9% to $1.4B, still above expectations. Shares are up 5% in 2025. Other major banks like JPMorgan and Goldman Sachs outperformed on both earnings and revenue.
Johnson & Johnson raised its 2025 sales growth forecast to 5.6%, nearly double its prior estimate, after a strong Q2 with 5.8% domestic sales growth. The company halved its projected tariff costs to $200 million, citing a more favorable trade environment.
Goldman Sachs reported a strong Q2 2025, with trading operations generating $840 million more in revenue than analysts expected, leading to a 22% profit increase to $3.72 billion. Revenue rose 15% to $14.58 billion, driven by a 36% jump in equities trading and higher investment banking fees. However, the asset and wealth management division saw a 3% revenue decline to $3.78 billion.
Check this: Trump announced tariff letters to 150 countries, intensifying global trade frictions and adopting a bolder approach to U.S. economic strategy. Also, Nvidia CEO Jensen Huang sells another $37 million worth of stock. Lastly, OpenAI says it will use Google Cloud for ChatGPT.
💵 Personal Finance
Trump’s Threat to Fire Fed Chair Powell Could Disrupt Markets
Firing Federal Reserve Chairman Jerome Powell would likely trigger an equity selloff and spike in long-term yields, per Wolfe Research, threatening market stability.
Litigation could escalate to the Supreme Court, which views the Fed’s structure as unique, potentially protecting Powell.
His removal could undermine the Fed’s independence, drawing comparisons to high-inflation nations like Turkiye.
Trump’s push for lower interest rates (currently 4.25%-4.5%) fuels the conflict. However, Trump denied plans to fire Powell on Wednesday, calling it “highly unlikely.”
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.