AUD is strongest and EUR is weakest when the NA session starts. USD is mixed and higher with one day ahead of tomorrow’s FOMC rate decision. A 90% chance of a rise to 5.5% tomorrow is expected. In September, the market is pricing in an 80% chance the Fed will stay put. The market also rates at a maximum rate of 5.48%. The ECB will also meet this week on Thursday with expectations for a 25 basis point hike.

Overnight, the Ifo business climate index for Germany in July 2023 came in at 87.3, below expectations of 88.0 and also lower than the previous reading of 88.6 (revised from 88.5).

Other components of the report include:

• Expectations were at 83.5, slightly above the forecast of 83.4 but below the revised previous reading of 83.8.
• The current conditions rate was 91.3, well below the expected 93.0 and the previous reading of 93.7.

This is the lowest since November of the previous year, indicating a deterioration in business conditions in Germany as the third quarter begins. Coupled with weekly PMI data, the report paints a worrying picture of the German economy ahead of the summer.

Earnings are also in the spotlight this week. A number of companies beat expectations this morning, including Dow 3M and Dow shares. Verizon — another Dow 30 stock — missed earnings:

• BEAT Nextera Energy Inc (NEE) Q2 2023: EPS 1.38, beating expectations of 0.82. Revenue was $7.35 billion, well ahead of the $6.23 billion forecast. They also reaffirmed their long-term financial outlook.

• MISS: Coming Inc (GLW) Q2 2023: Core EPS 0.45, slightly below expectations of 0.46. Topline revenue was $3.5 billion, matching expectations of $3.48 billion.

• MISS: Verizon Communications Inc ( VZ ) Q2 2023: Adjusted EPS was 1.21, beating expectations of 1.16. However, revenue fell to $32.6 billion versus the $33.28 billion expected.

• BEAT: Sherwin-Williams Co (SHW) Q2 2023: Adjusted EPS of 3.29 beat expectations of 2.69. Revenue was also higher at $6.24 billion versus the $6.03 billion forecast.

• BEAT: Moody’s Corp (MCO) Q2 2023: EPS was 2.30, beating expectations of 2.24, on revenue of $1.5 billion versus expectations of $1.45 billion.

• MISS: Archer-Daniets-Midland Co (ADM) Q2 2023: reported EPS of 1.89 beat expectations of 1.60. However, revenue was slightly lower at $25.19 billion versus the $25.9 billion expected.

• BEAT: Biogen Inc (BIIB) Q2 2023: EPS was 4.02, beating expectations of 3.77. Revenue also beat expectations at $2.46 billion versus $2.37 billion expected.

• BEAT: Raytheon Technologies ( RTX ) Q2 2023: Adjusted EPS was 1.29, beating expectations of 1.18, and revenue of $18.315 billion beat expectations of $17.68 billion.

• BEAT: PulteGroup ( PHM ) Q2 2023: reported EPS of 3.21, much higher than the 2.51 expected. Revenue also beat expectations at $4.19 billion versus $3.99 billion expected.

• BEAT: 3M Co (MMM) Q2 2023: EPS was 2.17, well above expectations of 1.72. Revenue came in at $8.30 billion, beating estimates of $7.87 billion.

• BEAT: General Motors Co (GM) Q2 2023: Adjusted EPS was 1.91, beating expectations of 1.85. Revenue was $44.75 billion, beating expectations of $42.64 billion.

• BEAT: General Electric Co (GE) Q2 2023: EPS was 0.68, well beating expectations of 0.46. Revenue was $15.92 billion, beating expectations of $15.0 billion.

• BEAT: Dow Inc (DOW) Q2 2023: EPS was 0.75, slightly higher than expected 0.70. Revenue was $11.42 billion, beating expectations of $11.27 billion.

After closing, Microsoft and Alphabet will release. Below is a list of major releases after closure:

• Microsoft.
• Alphabet
• Snap
• Visa
• Teladoc
• Texas Instruments

A snapshot of the markets during the NA session shows:

• Oil is trading little changed at $78.78. Yesterday, the price closed above its 200-day moving average for the first time in over a year. This moving average comes in at $77.10
• Spot gold is trading up $6.09 or 0.32% at $1960.88
• Silver is trading up $0.33 or 1.36% at $24.66
• Bitcoin is trading at $29,104. At this time yesterday, the price was trading at $29,300

Major indexes are trading higher in the premarket for U.S. stocks. The Dow industrial average rose slightly after closing higher for the 11th day in a row yesterday

• The Dow Industrial Average is trading up 11 points after yesterday’s gain of 183.55 points
• The S&P is trading up 4.1 points after yesterday’s gain of 18.30 points
• The NASDAQ index is trading up 55 points after yesterday’s gain of 26.06 points.

In European stock markets, the main indices change slightly during the day

• German DAX up 0.05%
• CAC France, up 0.09%
• UK FTSE 100 up 2.0%
• Spanish Capricorn down -0.37%
• Italy’s FTSE MIB, +0.19% (delayed).

In Asia Pacific, markets closed mixed today:

• Japan’s Nikkei 225, -0.06%

• China’s Shanghai Composite, +2.13%

• Hong Kong’s Hang Seng, +4.10%

• Australia’s S&P/ASX 200, +0.46%

In the US bond market, yields are higher at the start of US trading

• 2-year yield, 4.864% + 2.5 basis points
• 5-year yield 4.62% + 3.5 basis points
• 10-year yield 3.890% + 3.3 basis points
• 30-year yield 3.945% + 2.6 basis points

In the European bond market, benchmark 10-year yields are higher: