Dow futures are down this morning as IBM reported worse-than-expected preliminary results, contributing to a negative market sentiment following a losing day. In a related development, President Donald Trump announced the reinstatement of a blockade on Iranian ports and a 20% toll on cargo passing through the Strait of Hormuz, which caused oil prices to surge over 9%.
This spike in oil prices is likely to add pressure on stocks, despite the Department of Energy reporting that 8.5 million barrels of oil transited the strait recently. Meanwhile, Wall Street's major banks have kicked off earnings season with strong results, with JPMorgan Chase and Bank of America reporting record revenues across their major business segments.
The Bureau of Labor Statistics is set to release the consumer price index for June, which is expected to show a slight decrease, while Federal Reserve Chairman Kevin Warsh will begin his first hearings on Capitol Hill. Additionally, a group of state attorneys general is suing to block Paramount Skydance's acquisition of Warner Bros.
Discovery over antitrust concerns, and Chipotle is making its first move into the Mexican market, targeting Monterrey for its expansion. This expansion is part of Chipotle's strategy to overcome stagnant growth in the U.S. market