10 things you need to know before the opening bell

Here is what you need to know.

The US budget deficit balloons. The deficit jumped 17% to $US779 billion in the 2018 fiscal year, according to the Treasury Department. It was the largest deficit since 2012.

Chinese inflation surged to its highest level in months. Consumer prices in China grew at a 2.5% year-over-year clip, the fastest since February, data released Tuesday by the National Bureau of Statistics showed.

A $US150 billion investment chief breaks down a ticking time bomb in markets that he thinks traders are foolishly ignoring. Brad McMillan, the chief investment officer of the $US150 billion Commonwealth Financial Network, explains why he is worried about the number of US companies whose credit ratings are sitting dangerously close to junk levels.

America’s biggest companies have larger worries than Trump’s tariffs. Third-quarter earnings season is here, and America’s biggest companies that have already reported are most concerned about foreign-exchange headwinds affecting their results.

Microsoft cofounder Paul Allen is dead at 65. Allen, a philanthropist who owned the Seattle Seahawks and the Portland Trail Blazers, died after a battle with non-Hodgkin lymphoma.

Twilio is spending $US2 billion to buy one of its publicly traded partners. The maker of communication tools for websites has agreed to pay $US2 billion – a 40% premium to Monday’s closing value – for the email-marketing platform SendGrid.

Canopy Growth spikes to a record high as Canada gets ready to legalise weed. The Canadian cannabis producer soared more than 14% Monday – to as high as $US57 a share – two days before Canada was set to legalise marijuana.

Stock markets around the world are gaining ground. Japan’s Nikkei (+1.29%) was out front in Asia, and Germany’s DAX (+0.25%) leads in Europe. The S&P 500 is set to open up 0.18% near 2,756.

Earnings reporting picks up. Domino’s Pizza, Goldman Sachs, Johnson & Johnson, and Morgan Stanley report ahead of the opening bell, while IBM and Netflix release their quarterly results after markets close.

US economic data flows. Industrial production and capacity utilization will be released at 9:15 a.m. ET before the NAHB Housing Market Index and Jolts Job Openings cross the wires at 10 a.m. ET. The US 10-year yield is up 2 basis points at 3.17%.

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