Stock futures were mixed Monday with tech stocks set for a firm start as

investors continue to keep a close eye on oil prices and developments in the Middle East.

Nasdaq futures were advancing while the Dow looked set to inch lower.

Minutes for the Fed's meeting in July are due on Wednesday and could give clues as to whether interest rates might rise in September. Recent weak jobs data and subdued inflation data prompted markets to trim rate-rise bets.

"Given Fed Chair Kevin Warsh has stepped back from offering policy guidance, the minutes may shed extra light on how the Fed is weighing inflation risks as well as their urgency to act should those risks remain elevated," Deutsche Bank said.

Attention will also turn to results from large retailers this week, including Target and Walmart, which will indicate the impact of recent turbulence on consumer sentiment.

Meanwhile, oil prices were little changed despite an apparent impasse in the Middle East. The 60-day memorandum of understanding between the U.S. and Iran expires on Monday.

"The U.S. is preparing fresh sanctions to pressure Iran back to the negotiating table, while Iran showcased a more offensive stance last week, hinting that peace is not in sight for the near future," Swissquote said.

Stocks to watch

Alibaba struck a $1.5 billion deal to sell its videogame business as it sharpens its focus on AI. Shares rose in Hong Kong; its U.S.-listed ADRs ticked up premarket.

BHP is set to report earnings after markets close.

Diana Shipping said Friday that it withdrew its bid to acquire Genco Shipping & Trading, ending a nearly year-long takeover battle between the two shipping companies. Shares in Diana rose about 7% premarket.

Micron Technology, Marvell Technology, Intel, Advanced Micro Devices: Shares in the chipmakers gained ahead of the bell; they are among the most active stocks premarket.

Watch For:

Canada CPI for July

Today's Top Headlines/Must Reads:

- Iran's Secret Plan to Escalate the War

- Why Big Tech's AI Spending Is $3 Trillion Higher Than It Seems

- Why Warehouses Are Rolling In More Robots

MARKET WRAPS

Forex:

The dollar fell to a 10-day low against a basket of currencies as expectations for the Fed to raise interest rates this year dim.

The euro rose to a two-month high against the dollar, driven by a favorable shift in interest-rate expectations.

Bonds:

Treasury yields declined across maturities, though stayed at elevated levels, as Brent oil is largely stable, while market expectations of Federal Reserve interest-rate hikes are weakening.

For Treasurys, Morgan Stanley is betting on a seven- to 30-year steepener and it also sees the historically stronger half of August still to come.

Given the recent rise in long-end bond yields in major markets, including the U.S., Japan and the U.K., Bank of America said it does not see any single driver. "There is not a single driver to point to, but excessively loose fiscal policy is generally a common factor." Energy:

The lack of progress in reaching a peace deal in Iran has put oil traders in a wait-and-see mode. Oil prices were mixed in early European trading, with WTI futures down 0.4% while Brent futures rose 0.3%.

Metals:

Gold rose as investors pare back bets of an imminent interest-rate hike. The precious metal continued a two-week advance after weaker U.S. retail sales and softer consumer sentiment weighed on the dollar and reduced expectations of a rate hike, MUFG said.

Gold chart

Comex gold futures' bullish setup was still intact, based on the daily chart, RHB Retail Research said. The commodity's fresh bullish candlestick pattern posted on Friday suggests selling pressure has tapered.

Copper

Copper continued to rally as supply concerns mount. In the morning trade, 3-month LME prices were 0.7% higher. The rise comes as LME inventories fell for a 42nd consecutive session to 204,975 tons, which is their lowest level since February, ING said.

Iron ore

Iron ore futures declined in early trade. The broader demand backdrop for the ferrous metal remained weak, said ANZ Research, citing factors such as softer domestic consumption in China and elevated inventories.

TODAY'S TOP HEADLINES

Alibaba to Sell Videogame Business for at Least $1.5 Billion

Alibaba Group is selling its videogame business in a deal worth at least $1.5 billion as the Chinese company shifts its focus to artificial intelligence.

The company has reached an agreement to sell Lingxi Games to Asian private-equity firm Trustar Capital, according to an internal memo viewed by The Wall Street Journal on Monday. The deal would value the gaming studio at more than $1.5 billion, a source familiar with the matter said.

AstraZeneca Ends Phase 3 Lung Cancer Drug Trial After Review

AstraZeneca said it is ending the Phase 3 trial of volrustomig plus chemotherapy for metastatic non-small-cell lung cancer.

The Cambridge-based pharmaceutical company said Monday that the decision is based on the recommendation of the Independent Data Monitoring Committee after a planned review of trial data.

K-Beauty Has Conquered the World. China's Proya Wants C-Beauty to Be Next.

Korean face masks and serums promising radiant, glass-like skin have made "K-Beauty" a multibillion-dollar industry. A potential play by China's biggest cosmetics company could signal the arrival of "C-Beauty."

According to people familiar with the matter, Proya Cosmetics will start selling its flagship brand in the U.S. via a partnership with Illinois-based retailer Ulta Beauty.

Geely Auto's Exports Cushion Weak Chinese Demand as Profit Slips

Geely Automobile's net profit fell slightly in the first half, though strong overseas sales and a better product mix helped the carmaker improve margins amid weaker auto demand in China.

China's second-largest electric-vehicle maker, like many of its peers, has faced subdued consumer demand and intense competition in the world's biggest auto market, leading many in the industry, including Geely, to look abroad for growth.

Dollar Falls Sharply as Prospects Dim for Fed Rate Rise

The dollar fell to a 10-week low against a basket of currencies on Monday, reflecting doubts over whether the Federal Reserve will raise interest rates this year.

Recent U.S. data, including weak jobs and retail sales figures along with subdued inflation prints, have prompted markets to further trim bets on U.S. rate rises.

China's Economy Weakens on Several Fronts as Property Bust Worsens

China's economic momentum slowed broadly in July, weighed down by muted consumer spending and slumping investment, according to official data released Monday.

Growing Rate-Hike Bets Push 10-Year JGB Yield to Three-Decade High

TOKYO-Growing bets on an imminent rate hike sent the benchmark 10-year Japanese government bond yield to a fresh three-decade high on Monday, extending a rise driven by concerns over the nation's fiscal health.

The 10-year JGB yield touched 2.930%, the highest level since September 1996. The policy-sensitive two-year yield also jumped 4.0 basis points to 1.690%, while the five-year yield reached as high as 2.170%.

Rural Economic Pain Tests the GOP's Grip on a Trump Stronghold

DES MOINES, Iowa-The arrival of late-summer state fairs, like the one here that features a prizewinning boar weighing 1,246 pounds, signals to the political world that the midterm campaign's final chapter is just ahead.

As Iowa's 11-day extravaganza started late last week, the state's Republicans found themselves in an unfamiliar position: trailing Democrats in a top race and facing serious challenges in several others.

Trump Orders Cuts to U.S.-South Korea Military Drills

WASHINGTON-President Trump said Sunday he would "substantially reduce" joint military exercises with South Korea, touting his "very good relationship" with North Korean leader Kim Jong Un.

Trump's social-media post comes as the U.S. and South Korea are scheduled to begin an 11-day exercise, dubbed Ulchi Freedom Shield, to strengthen the two countries' ability to defend against a potential North Korean attack.

Historic Floods Hit Indiana, Where Death Toll Rises to at Least Six

At least six people have died in Indiana as a series of relentless storms led to historic flooding in the Midwestern state.

Heavy rain over several days caused significant flooding along the White River, which flows through Indianapolis and central and southern Indiana. Early Saturday, the river crested at nearly 25 feet in central Indiana-surpassing a record set in 1913, according to the National Water Prediction Service.

Iran Says Pilots Missing After a Brazen Bombing Run Are Prisoners in Qatar

Iran accused Qatar of holding three of its air force pilots prisoner, deepening a mystery that dates back to the beginning of the war.

Just three days into the conflict, Qatar said it had shot down a pair of Iranian Sukhoi Su-24 warplanes that were threatening its airspace.

Write to priscila.barrera@wsj.com

TODAY IN CANADA Earnings:

Mining Americas 2Q

Economic Indicators $(ET)$:

0830 Jun New motor vehicle sales 0830 Jun International transactions in securities 0830 Jul CPI Stocks to Watch:

Accord Financial 2Q Adj Loss/Shr CAD 0.16; 2Q Loss/Shr CAD 0.33; 2Q Revenue CAD 6.82M; 2Q Adj Net Loss CAD 1.4M; Reports 2Q Adj Loss/Shr of CAD 0.16; 2Q Rev C$6.8M; 2Q Loss/Shr C$0.33; 2Q Adj Loss/Shr C$0.16

Clairvest Group 1Q EPS CAD 3.61; 1Q Book Value CAD 1.33B; 1Q Net Income CAD 48.4M; Reports 1Q EPS of CAD 3.61; 1Q EPS C$3.61; 1Q Net C$48.4M; Correct: 1Q EPS C$3.61, Not 4Q; Correct: 1Q Net C$48.4M, Not 4Q

Flexible Solutions International 2Q Basic Loss/Shr $0.15; 2Q Net Loss $1.91M; Reports 2Q Basic Loss/Shr of $0.15; 2Q Rev $7.6M; 2Q Loss/Shr 15c