10 things you need to know before the opening bell

Here is what you need to know.

Australia cut rates to a record low. The Reserve Bank of Australia lowered its benchmark interest rate to a record low 1.50%, as expected. The central bank’s board noted “that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.” Following the decision, the Australian dollar is stronger by 0.6% at .7582 per barrel.

Oil is flirting with $40. Early selling pressured West Texas Intermediate crude oil to a low of $39.85 per barrel, its weakest since mid-April. However, trade has rebounded to session highs, and sits up 0.8% near $40.40.

Britain’s construction sector shrinks post-Brexit. Construction PMI slipped to 45.9 in July, down from 46.0 in June. While better than the 43.8 that economists had forecast, the sector is shrinking at its fastest pace since the financial crisis. The British pound is higher by 0.5% at 1.3242.

Goldman Sachs says sell stocks. A note written by Goldman strategist Christian Mueller-Glissmann moved his teams weighting on stocks to Underweight from Neutral for its 3-month asset allocation. “In our view, equities remain in their ‘fat and flat’ range and are now just near the upper end,” Mueller-Glissmann penned. The team remains Neutral on the market for the next 12 months.

European bank stocks are getting crushed. The sector remains under pressure after the results of the European Banking Association stress tests were released after markets closed on Friday. Europe’s STOXX Banking Index trades lower by 3.7% with Germany’s Commerzbank pacing the decline among individual names, down 7.9%.

Yahoo isn’t planning to layoff any employees before its sale closes. Additionally, all unvested stock options will vest immediately, but restricted stock units will continue with their current schedule. The sale is expected to close in the first quarter of 2017.

Tablet sales are in free fall. Sales tumbled 12.3% year-over-year in the second quarter, VentureBeat says, citing data from research firm IDC. The tablet space has now seen sales decline for seven consecutive quarters.

Stock markets around the world are mostly lower. Spain’s IBEX (-1.8%) paces the decline in Europe after Japan’s Nikkei (-1.5%) led the losses in Asia. S&P 500 futures are down 3.50 points at 2161.00.

Earnings reporting picks back up. Aetna, Archer-Daniels-Midland, CVS Health, Ferrari, Molson Coors, and Pfizer are among the names reporting ahead of the opening bell while American International Group, Caesars Entertainment, Etsy, and Sturm Ruger highlight the names releasing their quarterly results after markets close.

US economic data is light. Auto sales will be released throughout the day. The US 10-year yield is higher by two basis points at 1.54%.

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