Wall Street poised for gains as trade concerns take a back seat
By Sruthi Shankar
U.S. stock futures pointed to opening gains for Wall Street on Monday after healthy U.S. jobs data last week helped investors look past rising trade tensions between the United States and China.
The United States and China engaged in tit-for-tat tariffs on Friday, both countries imposing duties worth $34 billion on each others’ goods. But the benchmark S&P 500 closed up 0.84 percent on Friday as many analysts said the move was already priced in, but warned that further escalation could dent the appetite for stocks.
The sentiment was largely upbeat after Friday’s U.S. payrolls report showed tame wages and more people looking for work, boosting optimism that the Federal Reserve would stay on a path of gradual interest rate increases.
All eyes will turn to second-quarter earnings reports, with banks JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) scheduled to report on Friday.
S&P 500 companies are expected to report 21 percent growth in earnings per share for the June quarter, according to Thomson Reuters I/B/E/S. But focus will be on any warnings companies might give about the impact of trade tariffs.
European shares open higher, optimism spreads over global markets
By Julien Ponthus
European shares opened higher on Monday as a wave of optimism about the resilience of the global economy spread across markets despite the escalation of the U.S.-China trade dispute and a new Brexit crisis within the British government.
The pan-European STOXX 600 (STOXX) index was up 0.6 percent by 0813 GMT while the British blue chip index FTSE 100 (FTSE) gained 0.3 percent with gains across bourses and sectors.
Positive job data in the United States on Friday reassured investors who have yet to witness a tangible slowdown due to the implementation of higher trade barriers.
Data published on Monday also showed that “German exports rebounded in May, providing more evidence of a strengthening of the economy in the second quarter”, ING wrote.
In Britain, some investors took the view that the resignation of Brexit minister David Davis could actually help deliver a softer way out of the European Union.
Amazon is charging more for sellers to promote big discounts on Prime Day
By Eugene Kim
Amazon has turned Prime Day into one of the biggest online shopping holidays. But for many sellers, it’s becoming more expensive to participate.
For the second year in a row, Amazon has increased the registration fee to run Prime Day Lightning Deals, which are limited-time promotions exclusively offered to Prime members. It now costs third-party merchants $750 to run each Lightning Deal, up from $500 last year, according to an invitation that was sent to sellers and viewed by CNBC. Amazon first introduced the fee for Prime Day last year, after not charging anything in 2015 and 2016.
The fee hikes for Prime Day, which will be held on July 16 and 17, are another example of how Amazon is squeezing more money out of the sellers who wish to take part in the company’s annual shopping extravaganza, now in its fourth year. By charging more in fees, Amazon not only makes additional cash but also filters out sellers who aren’t confident that their products will be popular enough to justify the costs.
Amazon now has over 100 million Prime members worldwide, and Prime Day continues to break sales records every year — making Lightning Deals a valuable asset.
While Amazon gets the vast majority of its revenue from e-commerce and cloud computing, its advertising business surpassed $2 billion in revenue last quarter.
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