OPENING CALL
Stock futures were mostly down as oil rose after the U.S. and Iran exchanged strikes over the weekend .
"Reports of damage to vessels, intercepted missiles and drones, and strikes on military and energy-linked sites across the Gulf underscore the widening scope of the conflict," Deutsche Bank said. "Oil markets have reacted."
Oil prices surged more than 3.5% after the fresh strikes, approaching $79 a barrel.
" Brent and WTI could climb further
if tensions threaten tankers, ports or production, but credible negotiations and stable shipping flows would quickly remove part of the risk premium,"
Investors are also watching the artificial-intelligence trade, as concerns over AI spending remain. The Nasdaq 100 was down more than 1%, as U.S. chip stocks looked set to join the global selloff. In South Korea, SK Hynix's shares plummeted 15%, their steepest fall on record.
Looking ahead, U.S. inflation figures on Tuesday will mark the key economic data release as investors assess when and whether the Federal Reserve could raise interest rates.
If the figures could show slowing inflation, especially core inflation, this could cause investors to scale back rate-hike expectations. U.S. money markets fully price a 25 basis-point rate increase in December, with a high chance of an earlier move in October, LSEG data show.
"Our forecast for core CPI to fall below 2.5% year-on-year by late summer would be an important sign that underlying inflation is still gradually easing, pricing out the chance of rate hikes altogether," Citi said.
Fed Chairman Kevin Warsh will appear before Congress shortly after the inflation print.
Investors are also gearing up for a busy week of bank earnings.
Stocks to watch
Nippon Paint made an $8.6 billion bid to buy Akzo Nobel's decorative-paints business, its latest move to prevent a tie-up between Akzo and U.S. rival Axalta Coating Systems. Akzo shares rose in Amsterdam.
Nvidia, Applied Materials, Micron Technology, Marvell Technology, Intel, Advanced Micro Devices: The U.S. chip stocks fell premarket as investors weigh risk in the AI sector.
SK Hynix's Korean shares sank more than 15%, its biggest one-day drop on record, as investors cashed out after its ADRs' Nasdaq debut on Friday sparked a price rally. Its peer Samsung Electronics also slumped.
Watch For:
Monthly Treasury Statement of Receipts and Outlays of the U.S. Government for June
Today's Top Headlines/Must Reads:
- The Next Labor Crisis May Be Too Few Workers. Could AI Help Pick Up the Slack?
- How Ukraine Is Taking Out Russia's Refineries
- Frequent Oil Draws From U.S. Strategic Reserve Push Old System to Breaking Point
MARKET WRAPS
Forex:
The dollar declined after the U.S. and Iran traded new attacks, pushing oil prices higher and driving investors towards safe-haven assets.
Data from the Commodity Futures Trading Commission shows that speculators are currently holding large net long dollar positions . CBA expects the dollar to strengthen further over the rest of the year because of U.S. economic exceptionalism.
The euro rose. The currency could fall further as renewed U.S.-Iran conflict pushes energy prices higher, ING said.
Bonds:
Treasury yields rose in early trade as oil prices are higher following the weekend's military escalation in the Middle East.
The sharp rise in government bond yields over the past few days cannot be explained solely by shifts in expectations regarding key interest rates but also by fears of rising government debt, LBBW said.
J.P. Morgan entered tactical long positions in 10-year Bunds
with a tight stop and look to take profit below 3%, and also went tactically long in 10-year U.K. gilts.
Energy:
In early trading, Brent crude was up 3.6%, while WTI futures rose 3.6%.
Metals:
Gold futures slid more than 1%
after fresh strikes between the U.S. and Iran sent oil prices higher, reviving concerns about inflation and prospects of tighter monetary policy.
Iron
Iron ore fell in early trade. Oversupply pressures are likely to intensify as supplies from Australia, Brazil and new sources increase, ANZ Research said.
TODAY'S TOP HEADLINES
Stellantis Shipments Rise on Strong Growth in North America
Jeep maker Stellantis reported an estimated 10% increase in second-quarter vehicle shipments, driven by new model launches in North America.
The company said Monday that global shipments-vehicle deliveries to dealers, distributors, or directly from the company to retail and fleet customers-rose to an estimated 1.6 million units.
Nippon Paint Makes $8.6 Billion Bid for AkzoNobel's Decorative-Paints Unit
Nippon Paint Holdings made an $8.6 billion bid to buy AkzoNobel's decorative-paints business, in its latest attempt to trump a proposed tie-up between the Dutch company and U.S. rival Axalta Coating Systems.
The Japanese company said Monday that it submitted to Akzo a proposal to acquire its decorative-paints business for 7.5 billion euros, equivalent to $8.56 billion.
Apple's 'Thermonuclear' Response to the OpenAI Threat
Steve Jobs declared "thermonuclear war" on Google's Android operating system in 2010, calling it a "stolen product." Now, his successor is going to battle against Apple's new and dangerous rival.
In one of his last acts as Apple's chief executive before successor John Ternus takes over, Tim Cook fired a missile at OpenAI. In a lawsuit filed Friday, Apple alleged that a senior OpenAI executive, who once sat atop Apple's own product design team, was involved in a monthslong campaign to steal Apple trade secrets.
Shein Targets Over $40 Billion Valuation After China Nod for IPO
Fast-fashion retailer Shein has cleared a key hurdle for its long-awaited Hong Kong initial public offering, winning China's nod for a listing that people familiar with the matter said could see it valued at more than $40 billion.
Beijing's approval came about a year after Shein confidentially filed for an IPO with Hong Kong's stock exchange last summer.
Frequent Oil Draws From U.S. Strategic Reserve Push Old System to Breaking Point
The U.S. is tapping in to its national stocks of crude with abandon. The withdrawals are taking a toll on the strategic reserve system.
Just in the past four years, the Biden and Trump administrations have ordered the largest releases from the Strategic Petroleum Reserve while seeking to tamp down soaring oil prices-a total of 352 million barrels, or nearly half the capacity of the stocks.
Think the S&P 500 Looks Cheap? Read the Fine Print
Wall Street pros are predicting stellar S&P 500 earnings growth this year and beyond. But there's a problem with the underlying numbers. They are often deeply distorted.
This matters to everyday investors because it directly influences how cheap or expensive the market looks. Specifically it affects the index's price/earnings, or P/E, ratio, perhaps the most frequently cited valuation metric for stocks. If you pick an "E" that uses actual net income for the past four quarters, the index may seem pricey at about 29 times earnings.
Warsh's First Big Call: Whether to Undo Last Year's Cuts
At his first meeting as Federal Reserve chairman last month, Kevin Warsh presided over a unanimous decision to leave interest rates unchanged. Consensus was easy, with little appetite on the policymaking committee to move.
Holding that consensus together will be trickier in the weeks ahead.
U.S. and Iran Trade New Rounds of Attacks in Fight Over Strait of Hormuz
The U.S. conducted multiple waves of strikes on Iranian military targets Sunday, and Iranian forces fired at commercial vessels transiting the Strait of Hormuz, as the two countries' standoff over control over the critical waterway deepens.
The U.S. military said late Sunday afternoon East Coast time it had launched new strikes against Iran, the third wave in 24 hours. The attacks, like previous rounds, were designed to degrade Iran's ability to launch attacks on commercial vessels transiting the strait and focused on areas near the strait and along the coast, according to a senior U.S. official.
How Ukraine Is Taking Out Russia's Refineries
Ukraine is targeting Russian energy infrastructure with its growing fleet of long-range drones and missiles, causing fuel shortages in one of the world's biggest oil and gas producers and embarrassing President Vladimir Putin.
Fire Tears Through Bangkok Bar, Kills at Least 27
A fire tore through a popular Bangkok bar and live music venue late Sunday, killing at least 27 people and putting a spotlight on fire safety in a country where nightlife makes up an important part of the tourism industry.
More than 70 people were injured in the blaze at Rong Beer Na Lat Phrao just before midnight local time, Thai officials said, including more than 20 in critical condition. Local authorities said 45 people were still missing. They confirmed the identities of 13 victims killed in the fire, including a Laotian national.
Trump Administration Subpoenas New York Times Reporters After Air Force One Reporting
The Trump administration subpoenaed New York Times reporters who worked on stories about security concerns involving a jet gifted to the U.S. by the Qatari government that was being used as Air Force One, the news organization said.
Reporters including Julian E. Barnes, Eric Lipton, Tyler Pager and Eric Schmitt were served subpoenas, in some cases by federal agents at their homes Friday. The subpoenas were delivered two days after reporting that President Trump flew out of Turkey aboard an older Air Force One plane, rather than on the new luxury jet, as a security precaution.
Write to priscila.barrera@wsj.com
TODAY IN CANADA
Earnings:
Nothing major scheduled.
Economic Indicators $(ET)$:
Nothing major scheduled.
Stocks to Watch:
Brookfield Plans to Buy Stake in Hudson Square Complex in Bet on Manhattan Tech Hub
Canada Govt: Washington, Ottawa Agreed to Changes On Bridge Tolls, Investments;New Detroit-Windsor Bridge to Open on July 27
Goodfellow 2Q EPS C$0.25;2Q Sales C$142.7M
Orezone Gold Price Target Cut 4.7% to A$4.10/Share by Euroz Hartleys
Expected Major Events for Monday
16:59/GER: May Balance of Payments
18:00/US: Jun Monthly Treasury Statement of Receipts and Outlays of the U.S. Government
23:01/UK: Jun BRC-KPMG Retail Sales Monitor
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Monday
CCA Industries Inc $(CAWW)$ is expected to report for 2Q.
Carver Bancorp Inc (CARV) is expected to report for 4Q.
Commercial National Financial Corp (Pennsylvania) (CNAF) is expected to report for 2Q.
Cryo-Cell International Inc $(CCEL)$ is expected to report $0.00 for 2Q.
Environmental Tectonics Corp (ETCC) is expected to report for 1Q.
FB Financial Corp $(FBK)$ is expected to report $1.15 for 2Q.
Fastenal Co $(FAST)$ is expected to report $0.33 for 2Q.
Fastenal Co (FAST) is expected to report.
Jewett-Cameron Trading Co Ltd (JCT-T,JCTC) is expected to report for 3Q.
Lyra Therapeutics Inc $(LYRA)$ is expected to report for 1Q.
PrairieSky Royalty Ltd (PSK.T) is expected to report for 2Q.
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ANALYST RATINGS ACTIONS
Citizens Community Bancrp Cut to Market Perform From Outperform by Hovde Group
CNO Financial Cut to Hold From Buy by Jefferies
CubeSmart Raised to Overweight From Equal-Weight by Barclays
Independent Bank MI Raised to Outperform From Market Perform by Hovde Group
Jackson Financial Raised to Buy From Hold by Jefferies
JB Hunt Raised to Outperform From Market Perform by Bernstein
Lamar Advertising Cut to Neutral From Buy by Citigroup
PepsiCo Cut to Neutral From Buy by Citigroup
$Public Storage(PSA-N)$ Cut to Equal-Weight From Overweight by Barclays
Ryder System Cut to Neutral From Buy by Citigroup
Toll Brothers Raised to Buy From Neutral by Citigroup
Travelers Cut to In-Line From Outperform by Evercore ISI Group
Twilio Raised to Buy From Hold by Stifel
Weyerhaeuser Raised to Strong Buy From Outperform by Raymond James
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
July 13, 2026 05:56 ET (09:56 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
