MARKET WRAPS
STOCKS: Tech shares led U.S. stock indexes higher as traders brushed off AI worries.
TREASURYS: Treasury yields were little changed amid a light economic data schedule and a lull in Middle East developments.
FOREX: The dollar strengthened against a basket of currencies while the yen weakened, with traders on high alert for an intervention.
COMMODITIES: Oil futures settled lower following another monthly production increase from OPEC+ countries, as a supply shock quickly turns into a glut.
HEADLINES
U.S. Services-Sector Activity Continued to Expand in June
U.S. services-sector activity continued to expand last month, a survey of managers has found.
The Institute for Supply Management's purchasing managers index for services providers was 54 in June compared with 54.5 in May. Economists polled by The Wall Street Journal expected a reading of 54.3. A reading above 50 signifies economic growth, while one below 50 indicates contraction.
The new-orders index continued to expand at a slightly slower pace than in May. The supplier-deliveries index was in its 19th consecutive month of expansion territory, indicating slower supplier delivery performance, the report said.
Microsoft Is Cutting More Than 3,000 Jobs in Xbox Division
Microsoft will cut some 3,200 jobs from its Xbox videogames division as it restructures the struggling business.
The company will lay off 1,600 people this week and 1,250 more during the rest of the fiscal year that began this month, Xbox Chief Executive Asha Sharma said in a memo to staff Monday.
In addition, Microsoft is selling or spinning off four game development studios and exploring strategic options for a fifth-moves that will take at least 350 additional people off its payroll.
Solstice Advanced Materials to Buy Element Solutions for More Than $12 Billion
Solstice Advanced Materials agreed to buy specialty-chemicals maker Element Solutions for more than $12 billion in cash and stock, a move aimed at expanding Solstice's footprint in high-growth electronics and artificial intelligence infrastructure markets.
Solstice on Monday said the deal values Element at about $50.10 a share, a roughly 15% premium to Thursday's closing price of $43.64 for the Miami Beach, Fla., company.
Solstice, a Morris Plains, N.J., maker of refrigerants and advanced materials that was recently spun out of Honeywell, said it will pay $10 cash and issue half of a share, worth about $40.10 based on Thursday's closing price, for each share of Element.
Rogers Communications Buys Rest of Toronto Maple Leafs, Raptors for C$4.35 Billion
Rogers Communications is buying out the final portion of Maple Leaf Sports and Entertainment from Larry Tanenbaum's Kilmer Sports for 4.35 billion Canadian dollars ($3.06 billion), giving the telco total control of Canada's lucrative sports empire.
The transaction-which is expected to close in the fourth quarter of this year and will require league approvals in order to go through-consolidates full ownership of the Toronto Maple Leafs, Toronto Raptors, Toronto FC and the Scotiabank Arena under Rogers.
Until recently, MLSE was jointly owned by Canada's two biggest rival telecom companies, Rogers and BCE, alongside Canadian billionaire businessman Larry Tanenbaum.
Lockheed Martin to Acquire Ultra Maritime in $3.45 Billion Deal
Lockheed Martin has signed a deal to acquire the defense company Ultra Maritime for $3.45 billion from private equity firm Advent International.
The aerospace and defense contractor said Monday that Ultra Maritime's portfolio of anti-submarine warfare will complement and expand its ability to offer sonar solutions for maritime platforms.
When the deal closes, Ultra Maritime will become part of Lockheed's Rotary and Mission Systems business segment.
Comcast's Sky to Buy ITV's Media and Entertainment Unit for Up to $2.14 Billion
Comcast's Sky has agreed to buy ITV's television business for up to about $2.14 billion, in a deal that will combine two of the U.K.'s best-known media brands.
Under the deal, London-listed ITV will receive 1.2 billion pounds ($1.6 billion) and Sky's Love Productions business, before additional performance-related add-ons that could bring the transaction volume up to 1.6 billion pounds.
The deal gives the U.S. media company control of one of the U.K.'s most watched broadcasters at a time when younger viewers are shunning traditional broadcasters in favor of streaming platforms like YouTube and Netflix.
SK Hynix Trims Fundraising Target for U.S. Listing to $28 Billion
South Korea's SK Hynix has lowered the fundraising target for its U.S. listing to about $28 billion after a recent decline in its share price.
The world's second-largest memory chip maker said in a regulatory filing with the Korea Exchange on Monday that it is seeking to raise 43.141 trillion won, equivalent to $28.21 billion, by issuing American depositary receipts on the Nasdaq. The target is down from its earlier goal of 45.453 trillion won.
Despite the downward revision, the deal would still rank among the biggest share sales in history, second only to SpaceX's record initial public offering raising $75 billion last month.
TALKING POINT ETF Inflows Smash Records, Tracking Toward Historic $2.3 Trillion in 2026
Investors have been pouring money into exchange-traded funds and asset flows into ETFs are now forecast to top $2 trillion for 2026, which would beat last year's record of $1.5 trillion, according to a new report from State Street Investment Management.
This year has already been a bonanza for fund flows, with U.S.-listed ETFs pulling in more than $1 trillion in the first six months of this year, according to the report by Matthew Bartolini, global head of research strategists at State Street Investment Management. During the second quarter, ETFs brought in a record $560 billion. State Street's report said that is a new record for any quarter and three-month period.
"If the year ended today, the first six months of 2026 would rank as the third-largest full calendar year total on record," the report finds.
Investors have been attracted to ETFs for years because they are tax-efficient and easy to trade. More recently, asset management companies have been launching hundreds of new ETFs to meet investor demand. With more strategies and asset classes in their preferred investment vehicle, investors have been moving billions of dollars into ETFs.
Near $16 trillion. Market appreciation and strong net new asset flows have pushed total U.S.-listed ETF assets to $15.8 trillion. That is a new high-water mark for ETF assets, according to State Street.
The report shows investors weren't buying just U.S. stock funds; non-U.S. ETFs attracted $228 billion, representing 34% of equity inflows. That is well above their current 20% share of total assets, according to the report.
And it isn't just index funds. Actively managed strategies have also done well in attracting investor dollars. State Street's report says active ETFs, including equity and fixed-income strategies, brought in $74 billion in June, a new record, and $398 billion this year.
- By Andrew Welsch, Barron's
Expected Major Events for Tuesday
05:00/JPN: May Indexes of Business Conditions - Preliminary Release
06:00/GER: May Industrial Production Index
06:00/UK: 2Q Lloyds House Price Index: UK Regional Breakdown quarterly release
06:00/UK: Jun Lloyds House Price Index
06:45/FRA: May Foreign trade
10:00/FRA: 1Q OECD Quarterly Labour Market Situation
10:00/FRA: May OECD Harmonised Unemployment Rates
12:30/CAN: May International merchandise trade
12:30/US: May U.S. International Trade in Goods & Services
12:55/US: 07/04 Johnson Redbook Retail Sales Index
14:00/US: Jul RCM/TIPP Economic Optimism Index
14:00/CAN: Jun Ivey Purchasing Managers Index
20:30/US: API Weekly Statistical Bulletin
23:01/UK: Jun KPMG and REC UK Report on Jobs
23:50/JPN: Jun Bank Lending
23:50/JPN: Jun International Transactions in Securities
23:50/JPN: 1Q Revised Balance of Payments
23:50/JPN: May Balance of Payments
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Expected Earnings for Tuesday
Aehr Test Systems (AEHR) is expected to report for 4Q.
Caldwell Partners International Inc (CWL.T) is expected to report for 3Q.
Enerpac Tool Group Corp (EPAC) is expected to report $0.49 for 3Q.
Fathom Holdings Inc (FTHM) is expected to report $-0.06 for 1Q.
Kura Sushi USA Inc (KRUS) is expected to report $-0.01 for 3Q.
Mega Matrix Inc (MPU) is expected to report for 1Q.
Nurix Therapeutics Inc (NRIX) is expected to report $-0.72 for 2Q.
Penguin Solutions Inc (PENG) is expected to report for 3Q.
Saratoga Investment Corp (SAR) is expected to report $0.55 for 1Q.
Scully Royalty Ltd (SRL) is expected to report for Full year.
WeShop Holdings Ltd (WSHP) is expected to report for 1Q.
Wins Finance Holdings Inc (WINSF) is expected to report for Interim.
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This article is a text version of a Wall Street Journal newsletter published earlier today.