Traders work on the floor of the New York Stock Exchange during afternoon trading on July 18, 2023 in New York City.
Michael M. Santiago | Getty Images News | Getty Images
This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
More mixed markets
U.S. stocks closed Friday mixed. The Nasdaq Composite was the only major index to fall. Asia-Pacific markets traded mixed Monday as well. Hong Kong’s Hang Seng Index lost 1.4% to start the week, but Japan’s Nikkei 225 gained 1.22% on the back of the country’s seventh straight month of business activity expansion.
Booming U.S. economy?
Morgan Stanley has made a “sizeable upward revision” to its estimates for the U.S. economy. The bank expects GDP to grow 1.9% for the first half of this year, almost four times the original forecast of 0.5%. For the second half, the bank thinks GDP will grow 1.3%, compared with 0.6%. Joe Biden’s Infrastructure Investment and Jobs Act is “driving a boom in large-scale infrastructure,” wrote Ellen Zentner, chief U.S. economist for Morgan Stanley.
Demand for oil
Oil prices might spike in the second half of the year as supply fails to keep up with demand, Secretary General of the International Energy Forum Joseph McMonigle told CNBC. “India and China combined will make up 2 million barrels a day of demand pick-up in the second half of this year,” he said. However, McMonigle thinks OPEC+ will respond to a “big supply-imbalance.”
What Foxconn’s failure says
Foxconn’s recent decision to pull out of a joint venture to establish semiconductor manufacturing in India highlights how difficult it is for new players to enter the industry. High barriers to entry like lack of specialized labor, reliance on third-party technology and intellectual property mean TSMC’s 59% market share is likely to remain unchallenged for now.
[PRO] Fully packed week
This week’s packed full of economic data releases and earnings reports, and will see the Federal Reserve meet to decide on the path of U.S. interest rates. CNBC Pro’s Sarah Min breaks down what analysts are expecting and how they are positioning their portfolios to deal with the heavy week.
The bottom line
Let’s talk about the Dow Jones Industrial Average and why it did better than the S&P 500 and the FOLLOW US ON GOOGLE NEWS