Emilty blunt
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Good morning. Here's what you need to know.
  • Asian markets were up in overnight trading with the Shanghai Composite ending up 0.2 percent after oscillating between gains and losses following a massive release of economic data. Europe is rallying and U.S. futures are modestly higher.

  • In earnings news, JP Morgan reported second quarter net income of $5 billion, but excluding all gains earnings were $0.67, against estimates of $0.76. Results include CIO trading losses of $4.4 billion. Wells Fargo is expected to report earnings of $0.81 per share.

  • Chinese GDP climbed 7.6 percent year-over-year in the second quarter, after growing 8.1 percent the previous quarter. Given weak data the past few months China has been cutting interest rates and pushing pro-growth measures. Industrial production also missed expectations. 

  • JP Morgan is restating its revenue to $26.71 billion. The restatement will reduce reported net income by $459 million and earnings per share was cut by $0.12 cents to $1.19, according to its 8-K filing. 

  • Italy sold €5.25 billion of three-year bonds at an average yield of 4.65 percent. Borrowing costs fell at the auction and this was the lowest the country had to pay to borrow since May.


  • Late yesterday, Moody's cuts Italy's government bond rating by two notches to Baa2, from A3. The downgrade was spurred by the country's deteriorating economic outlook and because it is likely to see its funding costs rise. 


  • Producer price index for June will be out at 8:30 am ET, followed by consumer sentiment at 9:55 a.m. ET. Expectations are for PPI to decline 0.4 percent month-over-month and for the sentiment index level to rise to 73.5.