Wall Street to make mixed start following July 4th weekend

Markets on Wall Street are set to open mostly lower on Tuesday as traders return after the long Independence Day weekend. Spread betting quotes suggest the Dow Jones industrial average will open 41 points lower at 34,745 and the S&P 500 4 points easier at 4,352. The tech-heavy Nasdaq 100, however, is expected to eke out a five-point rise at 14,733. Oil stocks are likely to be in focus after the OPEC+ talks ended in disarray yesterday. “Official OPEC+ negotiations have broken down but back-channel discussions continue. The negotiations have been very difficult because the UAE is touching upon the very nerve of the core strategy of OPEC+: to keep investments in check,” said SEB’s chief commodities analyst, Bjarne Schieldrop. “The UAE is planning to spend USD 25 bn to 2030 and lift its production/capacity by 56% from 3.2 m bl/d to 5 m bl/d. All of OPEC+ obviously cannot do the same. At the same time, the UAE cannot both have a lot more market share and still stay within a capex disciplined OPEC+,” he noted. “The best solution right now would be to decide to lift production by 0.4 m bl/d in August and then continue with the current difficult discussion about an extension of the current deal to December 2022 and what baselines to use. If production caps stays unchanged for August, it is likely that production will increase by 0.4 m bl/d anyhow and the group would look irresponsible and get a lot of political heat from both China and the US on top,” the Nordic investment bank’s commodities analyst added. The ISM services reading for June is the key US economic release today, although Daiwa Capital Markets observed it will probably carry less weight than usual with the June employment report already released last week. “Daiwa America’s Mike Moran expects the headline index to remain close to last month’s record reading of 64, while Markit’s less-followed services PMI should print in the same ballpark based on last month’s flash reading,” the Japanese broker said. Four things to watch for on Tuesday: Firms reporting earnings today include memory and data storage group SMART Global Holdings Inc (NASDAQ:SGH), plastic recycling group Loop Industries Inc (NASDAQ:LOOP) and water group Pure Cycle Corp (NASDAQ:PCYO) Ride-hailing app DiDi Global Inc (NYSE:DIDI) will be in focus as a crackdown on the firm by Chinese authorities sent its shares tumbling in pre-market trading Meanwhile, Facebook Inc (NASDAQ:FB) and Google, owned by Alphabet Inc (NASDAQ:GOOGL) could be eyed after they joined other tech giants in warning they could pull out of Hong Kong amid concerns over a new privacy law in the territory On the macro front, aside from the latest US services PMI there could also be interest in the latest business activity and economic optimism readings