Here is what you need to know.
Tuesday is PMI day in Europe. German manufacturing slipped to 53.8 in July to 53.6 in August, but that was ahead of the 53.5 that economists were expecting. In France, the service sector saw an improvement to 52.0 from 50.5 while the manufacturing sector remained in contraction with a 48.5 print. The euro is little changed at 1.1328.
Oil is under pressure. West Texas Intermediate crude oil is lower by 1.1% at $46.87 per barrel. Tuesday’s selling has the energy component lower for a second straight day following its seven-day winning streak.
China controls 2 of the North Sea’s biggest oilfields. Nexen, a company owned by China National Offshore Oil Corporation, extracts nearly 200,000 barrels of oil per day across those two fields, according to The Times’ analysis of CNOOC accounts. The Chinese company gained a foothold in the region after former Chancellor George Osborne gave tax breaks for oil companies in the North Sea in an effort to combat the drop in oil prices.
Bayer and Monsanto are nearing a deal. Talks between the two sides have continued after Monsanto rejected Bayer’s $55 billion offer back in July. The companies continue to work towards a deal, progressing on issues such as purchase price and a termination fee, Bloomberg reports, citing people familiar with the matter.
Lyft says it’s not looking to sell itself. The company is pushing back against reports that it had failed to sell itself to six different companies. Lyft President John Zimmer told Business Insider’s Biz Carson the company isn’t seeking a buyer and that “Getting approached and then having it characterised as us wanting to sell the business and failing to do so is a large mischaracterization.”
Toll Brothers beat on the top and bottom lines. The luxury homebuilder earned $0.62 per share as revenue spiked 23.5% to $1.27 billion. “Given our land holdings, geographic diversity, variety of product offerings and brand name recognition, we believe we will continue to benefit from our strong position within the luxury new home market,” CEO Douglas C. Yearley, Jr. said in the press release.
Amazon is working on a music subscription service. The online retailer is in the planning stages of a subscription music service that would run through its Echo hardware, Recode reports, citing sources. Amazon is reportedly deciding whether the service will cost $4 or $5 per month.
Stock markets around the world are mixed. Spain’s IBEX (+1.1%) leads in Europe after Japan’s Nikkei (-0.6%) lagged in Asia. S&P 500 futures are up 5.25 points at 2,186.75.
Earnings reports trickle out. Best Buy and JM Smucker will release their quarterly reports ahead of the opening bell.
US economic data remains light. Markit US Manufacturing PMI and new home sales will cross the wires at 9:45 a.m. ET and 10 a.m. ET, respectively. The US 10-year yield is higher by 2 basis points at 1.57%.
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