Stocks closed lower yesterday, erasing sharp gains made at the open.

Stocks gapped higher on the open yesterday after better-than-expected earnings from Microsoft and Meta after the close the day before. While Microsoft (up +3.95% yesterday), and Meta (up 11.25%), closed solidly in the green, it was not enough to keep the rest of the indexes in the plus column.

We got more earnings from mega-caps Amazon and Apple after the close yesterday.

Amazon reported a positive EPS surprise of 26.3%, and a positive sales surprise of 3.32%. That translated to a quarterly EPS growth rate of 36.6% vs. this time last year, and a sales growth of 13.3%. They were up 1.70% in the regular session before earnings, but were trading lower by more than -7.5% in after-hours trade following earnings. Headlines read that Amazon gave a gloomy earnings forecast. For context, sales guidance came in above expectations by roughly 2%. But their guidance on operating income came in under views by roughly 7.7%, and that's weighing on shares.

We also heard from Apple after the bell. They posted a positive EPS surprise of 10.6%, and a positive sales surprise of 5.75%. That equated to a quarterly EPS growth rate of 12.1%, and a sales growth of 9.63%. This was their biggest quarterly sales growth since 2021. And they gave reassuring guidance. They were off -0.71% before earnings, but were trading higher by roughly 2.5% following earnings.

We'll get earnings from 91 companies today, including Berkshire Hathaway and ExxonMobil.

In other news, yesterday's Personal Consumption Expenditures (PCE) index showed inflation ticking up. The headline number was up 0.3% m/m, in line with expectations, and up from last month's 0.0%. The y/y rate rose to 2.6% vs. views for 2.5%, and last month's 2.4%. The core rate (ex-food & energy) was up 0.3% m/m as well, in line with expectations, and up from last month's 0.2%. The y/y rate came in at 2.8% vs. the consensus for 2.7%, but in line with last month's upwardly revised 2.8% (originally 2.7%). A bit hotter than expected. But the annual core rate, since the beginning of the year, is unchanged from its 2.8%.

The main event today, however, will be the always important Employment Situation report. The consensus is calling for 110,000 new jobs to have been created (100,000 in the private sector and 10,000 in the public sector). That's down from last month's better-than-expected 147,000. But private payrolls at 100K would be a notable increase from last month's 74,000. The unemployment rate is expected to remain the same at 3.7%. The report comes out at 8:30 AM EST.

The market will also be following which countries make last minute trade deals, and which ones don't, given today's August 1^st deadline for doing so.

The biggies that remain are Mexico and Canada, our second and third largest trading partners after the E.U. President Trump extended their timeline for another 90 days due to "complexities," including the border.

But no word on if a deal will be reached with Canada. Will they get the same extension as Mexico? It's unknown. But aside from them, it looks like all other countries without a deal will see their rates rise after today.

While stocks are underwater for the week so far, the big three indexes are still trading near their all-time highs.

But a friendly jobs report today could put them back into the plus column.

Best,