Good morning. US stock futures moved higher in Monday morning trading as investors gear up for earnings reports from major retailers that could give an insight into the state of US consumers.

"The most dangerous people in the world are very smart traders who haven’t gotten their teeth kicked in"

F. Helmut Weymar

Top News

Wall Street powerhouse predicts rate cuts in 2024

WHAT: The economists over at Goldman Sachs are putting on their prediction goggles and foresee a tantalizing tale of interest rate reductions by the end of June 2024! “The cuts in our forecast are driven by the desire to normalize the Fed Funds Rate from a restrictive level, once inflation is closer to target” Goldman’s economists wrote in a recent note.

WHY: Fed policymakers having been ramping up interest rates since March of 2022, taking the benchmark rate to a range of 5.25%-5.50%.

China’s banking conditions deteriorate

WHAT: Looks like China’s economy had a bit of a credit hiccup in July! According to data from the People’s Bank of China, Chinese banks extended 245.9 billion yuan ($47.80 billion) in July — a whopping 89% drop from the prior month, marking the sharpest decline since late 2009, and falling far short of analysts’ forecasts.

WHY: Hobbled by weak demand at home and abroad, China’s economic momentum has faltered in recent months despite strong bank lending in the first half.

Steel Wars!

WHAT: US Steel Corp gave rival Cleveland-Cliffs a polite “thanks, but no thanks” to a takeover offer that promised to create one of the world’s biggest steel makers. The company said it would begin a review of its “strategic options” instead. Cleveland-Cliffs proposed a takeover bid which valued US Steel at about $7.25 billion, a 43% premium to the company’s most recent closing share price.

WHY: The bid comes at a time when producers including US Steel are predicting that domestic demand will benefit from green-energy infrastructure and manufacturing projects, bolstered by the Biden Administration’s Inflation Reduction Act.

In Other News

Firearms advertising banned in Illinois

 WHAT: Illinois Governor JB Pritzker just put pen to paper and signed a law banning firearm advertising that officials determine poses a public safety threat, or appeals to children or others who might later use firearms illegally. The law, called the Firearm Industry Responsibility Act, makes Illinois the eighth state to approve legislation that rolls back protections for firearms manufacturers or distributors.

WHY: “We hold opioid manufacturers accountable. We hold vaping companies accountable. We hold predatory lenders accountable. Gun manufacturers shouldn’t get to hide from the law — and now they won’t be able to” Pritzker said.

Millennials, Gen-Z lean heavily on credit cards

WHAT: The credit card carnival continues as the latest survey by Quicken Inc reveals that a whopping 53% of millennials and 41% of Gen-Z respondents said they were more reliant on credit cards than ever before this summer. The survey, which consisted of 1002 credit cardholders, also found that 38% were using credit cards just to make ends meet.

WHY: Just recently, the Federal Reserve Bank of St. Louis announced that US credit card debt had topped $1 trillion for the first time.

Unlimited vacay firms seen outperforming S&P 500 according to new survey

WHAT: Is unlimited paid time off the magical potion for boosting stock prices? Looks like most investors think so! According to the latest Market Live Pulse Survey (MLIV), 64% of the 1061 survey respondents said that companies that offer the option will do better than the S&P 500.

WHY: Despite their bullish prediction, investors don’t see unlimited PTO as the hottest up-and-coming workplace perk. A four-day workweek is likely to become more common respondents said.

Key Economic Events

• Monday - No Major Economic News

• Tuesday - Fed’s Kashkari Speaks, NAHB Housing Market Index

• Wednesday - FOMC Minutes

• Thursday - Philadelphia Fed Manufacturing Index

• Friday - Baker Hughes Total Rig Count

Notable Briefs

• Do you know your investor personality type?

• Follow these 6 steps to avoid lifestyle creep

• Maxed out your credit card? Follow these steps to get back on track!

• Was this forwarded to you? Sign up here.

• Want to advertise in Daily Market Briefs? Go here.