Dow Futures Edge Higher After US, Japan Trade Deal – TSLA, GOOG, TXN, T, STLA Among Stocks To Watch

U.S. equity markets appeared set for a positive opening on Wednesday following the news of a U.S.-Japan trade agreement.

Dow Jones futures were up 0.48% in early morning trade, futures linked to the S&P 500 were up 0.41%, and tech-heavy Nasdaq 100’s linked futures gained nearly 0.2%. Meanwhile, futures of the Russell 2000 index climbed more than 1%.

Broader-market ETFs also joined the rally. The SPDR S&P 500 ETF Trust (SPY) was up 0.4% and the SPDR Dow Jones Industrial Average ETF (DIA) gained nearly 0.5%. The Invesco QQQ Series 1 Trust (QQQ), which tracks the Nasdaq-100,  climbed 0.2% on Monday morning. 

On Stocktwits, retail sentiment around SPY has remained in ‘neutral’ territory over the past day, while retail sentiment around DIA dipped to the ‘bearish’ zone from ‘neutral’.

As part of the U.S.-Japan trade deal, the United States announced that it will impose 15% tariffs on Japanese goods, with the same tariffs applied to the country's critical auto industry. Additionally, Japan will invest $550 billion in the U.S.

The U.S. also struck a trade deal with the Philippines late Tuesday and outlined the terms of its economic framework with Indonesia, expanding on the announcement made last week. President Trump also signaled a possible meeting with China’s Xi Jinping.

The moves have added to investor optimism that more trade agreements could be secured ahead of the August 1 deadline, when higher tariffs are scheduled to take effect.

Meanwhile, earnings season remains in focus, with results from Alphabet (GOOGL/GOOG) and Tesla (TSLA) due after the closing bell. Alphabet’s stock edged 0.3% higher in pre-market trade, and Tesla’s stock gained 0.2%. 

Asian markets ended Wednesday’s trading session on a high note. The Nikkei 225 led with gains of 3.5%, buoyed by the U.S.-Japan trade deal. Hang Seng rose 1.62%, followed by the TWSE Capitalization Weighted Stock index up 1.44%, and the Shanghai Composite edging 0.01% higher. South Korea’s KOSPI gained 0.4%.

The cryptocurrency market was subdued after Bitcoin (BTC) hit a new record high, crossing $120,000 late Tuesday. Bitcoin’s price had pared its gains, trading around $118,400 during U.S. pre-market hours on Wednesday.

Among the top 10 cryptocurrencies by market value, meme token Dogecoin (DOGE) and Cardano (ADA) led losses. Dogecoin’s price slipped 4.5% in the last 24 hours while Cardano’s price dropped 1.9%. The second-largest cryptocurrency by market cap, Ethereum (ETH), was down 1% in pre-market U.S hours.

Stocks To Watch

Stellantis (STLA): Shares of the European car maker jumped nearly 7% in pre-market trade after the U.S.-Japan trade deal lowered tariffs on Japanese cars to 15% from 25%. The European Union is still negotiating for a possible U.S. trade deal.

Tesla (TSLA), Alphabet (GOOG/GOOGL): The Magnificent Seven (MAGS) will kick off their second quarter (Q2) earnings today with Tesla and Alphabet first in line after the closing bell. Tesla is expected to report earnings of $0.40 per share on revenue of $22.28 billion, while Google-parent Alphabet is expected to report earnings of $2.18 on revenue of $93.96 billion.

AT&T (T): The telecommunication giant is expected to report its second-quarter earnings before the bell. Wall Street is expecting earnings per share (EPS) of $0.52 and revenue of $30.43 billion. AT&T’s stock edged 0.6% lower in pre-market trade.

NextEra Energy (NEE): NextEra Energy is also expected to report its earnings before the opening bell. Analysts are looking for earnings of $1.01 per share on revenue of $7.21 billion. NextEra Energy’s stock trended 0.4% lower in pre-market trade.

Texas Instruments (TXN): The chip maker’s guidance for the third quarter (Q3) disappointed the market. Texas Instruments’ stock fell more than 10% in pre-market trade on Wednesday. It is also among the top trending tickers on Stocktwits.

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