Here is what you need to know.
Brazil’s president is headed to trial. In a 59 to 21 vote, Brazil’s Senate voted to indict president Dilma Rousseff on charges of breaking budget laws. The outcome means Rousseff will face an impeachment trial, likely at the end of the month, where a two-thirds vote will be needed for her conviction, Reuters reports.
The UK economy is slowing down after the Brexit vote. That’s according to the latest numbers from the National Institute of Economic and Social Research (NIESR), which shows growth in the UK was 0.3% in the three months up to the end of July, compared with 0.6% growth in the three months to the end of June. The UK’s vote to leave the European Union was held on June 23.
Norway could block Brexit. Norway’s European affairs minister, Elizabeth Vik Aspaker, said her government could block the UK from trying to rejoin the single market, as it’s not in her country’s best interest. Vik Aspaker suggested letting the UK join the European Free Trade Association (EFTA) would “shift the balance,” and would force Norway to renegotiate a bunch of trade agreements.
Japan’s core machinery orders rise for the first time in 3 months. Orders rose a seasonally adjusted 8.3% month-over-month in June, easily surpassing the 3.4% gain that economists had forecast. Despite the big jump, the government says the sector remains “at a standstill.” The Japanese yen is stronger by 0.6% at 101.26 per dollar.
Disney topped estimates. The entertainment giant earned an adjusted $1.62 on revenue of $14.3 billion. Disney announced it bought $1 billion minority stake in BAMTech, a video-streaming company previously formed by Major League Baseball. CEO Bob Iger says the acquisition will help bring the sports network’s content over the top on the internet.
Yelp posted a surprise profit. The online review aggregator earned an adjusted $0.01 per share, easily beating the $0.07 loss that analysts were expecting. Revenue of $173.4 topped the $169.8 million that was anticipated. “We had a great second quarter with local revenue growth accelerating to 41% year over year,” said Yelp CEO Jeremy Stoppelman in the earnings release.
SolarCity’s loss widened. The company lost $0.56 per share, more than double the $0.23 loss from a year ago. Taking into account one-time adjustments, non-GAAP, SolarCity’s loss grew to $2.32, but that was ahead of the $2.44 loss analysts were expecting. Revenue surged 81% to $185.8 million, easily beating the Wall Street consensus of $146 million.
Stock markets around the world are mostly lower. China’s Shanghai Composite (-0.2%) led the losses in Asia and Germany’s DAX (-0.5%) paces the decline in Europe. S&P 500 futures are up 1.50 points at 2,179.00.
Earnings reporting slows. Michael Kors, Ralph Lauren, and Wendy’s Co. report ahead of the opening bell and Shake Shack releases its quarterly results after markets close.
US economic data is light. JOLTs Job Openings will be released at 10 a.m. ET and crude oil inventories will cross the wires at 10:30 a.m. ET. The US 10-year yield is down 1 basis point at 1.54%.