5 Things to Know Before the Stock Market Opens

Stock futures and bitcoin are sliding this morning, while gold continues hitting new highs, as investors keep an eye on developments related to trade tensions with China and await a speech by Federal Reserve Chair Jerome Powell; quarterly results from major U.S. banks are coming in better than analysts had anticipated; GM shares are down after the automaker revealed a $1.6 billion charge over weakness in its EV business; and shares of rare earth miners continue surging following China’s announcement of trade restrictions on the high-tech materials. Here’s what you need to know today.

1. Stock Futures, Bitcoin Fall After Monday’s Bounce-Back

Stock futures are pointing to a lower open after major indexes rebounded Monday from a steep downturn to close out last week, as concerns linger about trade tensions between the U.S. and China, the world’s two largest economies. Investors this morning are digesting earnings reports from major banks and are awaiting remarks from Fed Chair Powell, who is due to speak this afternoon on the outlook for the economy and interest rates. Futures tied to the Dow Jones Industrial Average were down 0.7% recently, while those linked to the benchmark S&P 500 and the tech-focused Nasdaq dropped 0.9% and 1.2%, respectively. Bitcoin was also down sharply after yesterday’s rally, sliding to $111,300 in recent trading from an overnight high of around $116,000. The yield on the 10-year Treasury, which affects borrowing costs on an array of consumer loans, fell to 4.02%, its lowest level in a month.

2. Gold and Silver Hit New Record Highs

Precious metals continue rising as many investors turn to safe-haven assets amid increasing stock market volatility and economic uncertainty. Gold futures were up 0.4% at $4,150 an ounce in recent trading, after hitting a record high of just under $4,200 earlier in the session. (Read here about how the surge in gold prices—the price of the precious metal is up nearly 60% since the start of the year—is leading a growing number consumers to sell gold jewelry, coins and other items.) Silver futures were also trading at an all-time high this morning, rising slightly to around $50.50 an ounce.

3. Big Bank Earnings Top Wall Street Expectations

JPMorgan Chase (JPM) reported better-than-expected earnings as the banking giant led a string of reports from major financial institutions. JPMorgan shares were up slightly in premarket trading after the bank reported a 9% rise in revenue and a 12% jump in profits as increased stock trading helped boost the results. Wells Fargo (WFC) shares rose 3% ahead of the bell after the bank reported strong net interest income and raised its profitability target. Goldman Sachs (GS) also reported revenue and earnings that came in ahead of expectations, though its shares dropped about 2.5%. Citigroup (C) shares were up 1% after its results beat estimates.

4. GM Reveals $1.6 Billion Charge from Slowing EV Business

General Motors (GM) said that its quarterly earnings next week will include a $1.6 billion charge associated with its electric vehicle business. The move comes after the U.S. ended its $7,500 tax credit for EV purchases. “Following recent U.S. Government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow,” the automaker said in a filing. GM shares were down about 2% in premarket trading.

5. Rare Earth Stocks Continue Climbing Amid China Trade Tensions

Shares of U.S. rare earth mineral mining firms continued to gain in premarket trading after China threatened to restrict exports of the materials that are critical for high tech products. Shares of USA Rare Earth (USAR) were up 12% after gaining 19% yesterday. MP Materials (MP) shares were up 7% ahead of the bell, after soaring 21% in the prior session.

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