Breakfast News: Big Banks Crypto Boost

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1. Banks Declare Interest in Stablecoins

The growing interest in stablecoins -- cryptocurrencies backed by stable assets like the U.S. dollar -- just got a boost with two of the country's big banks, JPMorgan Chase (JPM -0.74%) and Citigroup (C 3.47%), set to climb aboard. However, bills aimed at establishing a stablecoin framework were held up by Congress yesterday.

• "We really welcome the administration's willingness to allow banks to participate." Jane Fraser, CEO of Citigroup -- which topped Q2 earnings estimates -- said the bank is "looking at the issuance of a Citi stablecoin."
• "We're going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it." JPMorgan CEO Jamie Dimon, who has been vocal in his dislike of crypto but sees the inevitability, added, "I don't know why you'd want ... stablecoin as opposed to just payment."

2. Chips and Rare Earths Go Hand in Hand

ASML Holding (ASML 2.09%) posted second-quarter top- and bottom-line beats this morning, with revenue reaching $8.94 billion for a 24% year-over-year rise. CEO Christophe Fouquet said the company's growth outlook for 2026 is less certain, citing U.S. tariff policy as a threat. Fears for 2026 pushed the stock down 7% in pre-market trading.

• Up 420% in five years: MP Materials (MP 20.40%) hit an all-time intraday high yesterday, closing 20% ahead, after inking a $500 million deal with Apple (AAPL 0.31%) to recycle rare earth elements and help ease reliance on Chinese supplies.
• Rare earth deal fuels Nvidia exports: Trade in rare earths was also part of the deal behind the resumption of Nvidia (NVDA 4.08%) H20 chips to China, Commerce Secretary Howard Lutnick told Reuters. Rival AMD (AMD 6.55%) said it expects to restart exports of its MI308 chips to China following a Commerce Department review.

3. Inflation Heating Up

Eyes will be on the June Producer Price Index (PPI) print due at 8:30 a.m. ET, after the Consumer Price Index (CPI) showed a 2.7% rise year over year, up from May's 2.4%. PPI -- which measures inflation at the wholesale level -- reached 2.6% year over year in May. Excluding volatile food and energy, core PPI hit 2.7%.

• "An indication of tariff effects." Bloomberg senior editor Chris Anstey noted June's 1% monthly rise in household furnishings, the highest since January 2022. Recreation, apparel, and other tariff-affected prices all rose.
• The Fed to remain cool? Rising prices are strengthening the Federal Reserve's wait-and-see approach to interest rates. The CME FedWatch tool shows a near certainty for no change this month, with chances of a September cut down to 52% from 70% a week ago.

4. Earnings to Watch Today

We're due a Q2 report from Johnson & Johnson (JNJ -0.96%) before today's opening bell. Investors will look for guidance as President Donald Trump's pharmaceutical import tariffs could be as high as 200%. Wall Street expects a 5% earnings dip, though revenue should rise.

• Bank earnings season continues: Bank of America (BAC -1.96%), Morgan Stanley (MS -1.65%), and Goldman Sachs (GS -1.51%) are all set to report their latest quarterly performances before the market opens, following mixed bank results yesterday.
• Climbing 95% in 12 months: United Airlines (UAL -2.88%) will release Q2 results after market close, following a 5% year-over-year revenue rise in Q1. Analysts predict 2.5% revenue growth compared to the same period a year ago.

5. Your Take

What company or industry do you think will be around 50 years from now, largely in the same form it exists now? Debate with friends and family or become a member to hear what your fellow Fools are saying.