Coronavirus continues to spread unhindered in the United States and in most developed countries. The US stock market opens higher as Goldman Sachs (NYSE: GS) raised its earnings forecast for the S&P 500 ahead of the second quarter earnings report season. The Polish zloty weakened a little after the conservative president Andrzej Duda was re-elected for another term, and oil prices fell amid the prospect of a meeting of OPEC and its allies preparing to ease restrictions on production and supply more oil to the market starting next month. Here’s what you need to know about the financial market on Monday, July 13.
- The virus is spreading around the world faster; Trump puts on a mask
The World Health Organization registered a new record for the number of infections per day last weekend – more than 230 thousand. On Friday, more than 70 thousand new infections were registered in the USA, while in Florida – more than 15 thousand, which is more than in New York at the height of the first wave of the virus in April.
The White House tried to distance itself from Anthony Fauci, head of the National Institute of Allergy and Infectious Diseases, after the latter had repeatedly warned of the inadequacy of the US response to the virus in recent weeks.
At the same time, President Donald Trump first appeared in a mask publicly a few weeks after he refused it and taunted his opponents wearing masks.
- Merger of Analog and Maxim Chip Manufacturers
Analog Devices (NASDAQ: ADI) is awaiting a merger with Maxim Integrated (NASDAQ: MXIM) as part of its stock deal, which will be the largest of its kind in the US this year.
The merger will create a company with a market value of about $ 70 billion and an annual income of about $ 8 billion. This is the latest combination in the industry, which over the past five years has quickly consolidated at the highest level.
According to the terms of the deal, Maxim shareholders will own about a third of the new company.
Both companies are the main manufacturers in the market of analog semiconductors, which are also used for power management of car batteries. Their biggest competitor, according to The Wall Street Journal, will be Texas Instruments (NASDAQ: TXN).
- US stock market opens up as Goldman raises S&P 500 forecast
The US stock market will open with growth, ignoring reports of the further spread of coronavirus amid confidence that the upcoming earnings report season will not cast a gloomy shadow on the assessment of the prospects of large companies.
Goldman Sachs strategists have revised their basic earnings forecast for earnings for 2020 for S&P 500 companies from $ 110 earlier to $ 115, the report said on the weekend. David Kostin’s team emphasized that forecasts, not historical realities, will be especially important in the upcoming season.
Pepsico, which had previously reported problems, was unable to present a financial forecast for the year, with the exception of the repetition of its previous dividend assurances to shareholders.
KV 06:30 a.m. EST (10:30 GMT), the Dow futures contract rose 139 points, or 0.5%, the S&P 500 futures contract grew 0.4%, and the Nasdaq 100 futures contract increased by 0.6%.
- Polish zloty slightly weakened after re-election of Duda
The Polish zloty weakened a bit after the current president, Andrzej Duda, who was running for the conservative Law and Justice party, was reelected with a slight margin, which was regarded as an excuse for the people to achieve the economic results.
Duda’s victory over his economically and socially more liberal opponent suggests that the strength of conservative opinion in Central and Eastern Europe, which has led to increased tension between the EU and its new members, will continue.
At 06:30 am ET (10:30 GMT), the euro was at 4.4764 to the zloty, which is close to a seven-week high.
- Oil prices have declined, as OPEC + is preparing to release even more oil on the market
Crude oil prices fell amid the prospect of easing production restrictions by OPEC and its allies by the end of the month.
As part of an urgent production-limiting deal agreed upon during the pandemic by the so-called OPEC + block, oil volume on world markets should be reduced from 9.7 million barrels per day to 7.7 million barrels per day after the end of July.
The Russian authorities indicated that they did not see the need to deviate from this schedule, which was likely to be re-approved at a meeting of the committee for monitoring the implementation of the OPEC + agreement at the end of this week.
Quotations of futures for WTI crude oil fell 1.7% to $ 39.85 per barrel, while the international standard Brent fell 1.4% to $ 42.62 per barrel.