September S&P 500 E-Mini futures (ESU25) are up +0.24%, and September Nasdaq 100 E-Mini futures (NQU25) are up +0.30% this morning, extending a rebound driven by bets on Federal Reserve interest rate cuts and solid corporate earnings.
Palantir Technologies (PLTR) was the latest company to impress Wall Street with its quarterly results. Shares of the data analysis software firm climbed over +5% in pre-market trading after it posted upbeat Q2 results and raised its full-year guidance.
In yesterday’s trading session, Wall Street’s main stock indexes closed sharply higher. The Magnificent Seven stocks advanced, with Nvidia (NVDA) climbing over +3% to lead gainers in the Dow and Alphabet (GOOGL) rising more than +3%. Also, chip stocks gained ground, with Broadcom (AVGO) and KLA Corp. (KLAC) rising over +3%. In addition, IDEXX Laboratories (IDXX) soared more than +27% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the company posted upbeat Q2 results and raised its full-year guidance. On the bearish side, ON Semiconductor (ON) plunged over -15% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the chipmaker provided a weaker-than-expected Q3 adjusted gross margin forecast.
Economic data released on Monday showed that U.S. factory orders fell -4.8% m/m in June, slightly better than expectations of a -4.9% m/m decline. Still, that marked the largest decline in more than 5 years.
“This week is a quiet one on the economic calendar, so traders may be taking their cues from earnings, along with any new tariff and trade developments,” said Chris Larkin at E*Trade from Morgan Stanley. Larkin also noted that a key question now is whether traders will interpret any signs of economic weakness as a bearish signal for markets, or as a catalyst for the Fed to resume interest rate cuts.
San Francisco Fed President Mary Daly said on Monday that the time for rate cuts is approaching amid growing signs of labor market weakness and the absence of persistent tariff-driven inflation, according to Reuters.
Meanwhile, U.S. rate futures have priced in an 88.1% chance of a 25 basis point rate cut and an 11.9% chance of no rate change at the conclusion of the Fed’s September meeting.
Second-quarter corporate earnings season rolls on, with investors awaiting fresh reports from high-profile companies today, including Advanced Micro Devices (AMD), Caterpillar (CAT), Amgen (AMGN), Arista Networks (ANET), Pfizer (PFE), and Duke Energy (DUK). According to Bloomberg Intelligence, S&P 500 companies are on track to post a 9.1% increase in Q2 profits from a year earlier, well above analysts’ forecast of 2.8%.
On the economic data front, investors will closely monitor the U.S. ISM Non-Manufacturing PMI and S&P Global Services PMI, set to be released in a couple of hours. Economists expect the July ISM services index to be 51.5 and the S&P Global services PMI to be 55.2, compared to the previous values of 50.8 and 52.9, respectively.
U.S. Trade Balance data will also be released today. Economists anticipate the trade deficit will narrow to -$62.60 billion in June from -$71.50 billion in May.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.212%, up +0.05%.
The Euro Stoxx 50 Index is up +0.10% this morning, buoyed by a wave of solid corporate earnings reports. Food and beverage stocks gained ground on Tuesday. A survey released on Tuesday showed that business activity in the Eurozone expanded at a slightly quicker pace in July compared to June, though overall growth remained subdued as demand cooled. Meanwhile, an EU official stated on Tuesday that the 15% tariff applied to European Union goods entering the U.S. is all-inclusive. The 15% rate covers all goods, except for steel and aluminium, the official said. Tariffs on pharmaceuticals and semiconductors currently stand at zero, but if and when they increase following the U.S. 232 investigations, the rate will also be capped at 15%. Separately, European Commission trade chief Maros Sefcovic said on Tuesday that he was in discussions with U.S. officials Howard Lutnick and Jamieson Greer to implement the framework trade deal agreed upon in July. “The work continues in a constructive spirit,” said Sefcovic. In corporate news, BP Plc (BP-.LN) rose over +2% after the oil giant reported better-than-expected Q2 profit and announced a share buyback. Also, Diageo Plc (DGE.LN) climbed more than +6% after the world’s biggest spirits maker projected flat sales for 2026 despite the impact from tariffs and raised its cost-savings target. In addition, Infineon Technologies AG (IFX.D.DX) gained over +5% on strong quarterly results.
Eurozone’s Composite PMI, Eurozone’s Services PMI, and Eurozone’s PPI data were released today.
Eurozone’s July Composite PMI came in at 50.9, weaker than expectations of 51.0.
Eurozone’s July Services PMI stood at 51.0, weaker than expectations of 51.2.
Eurozone’s June PPI has been reported at +0.8% m/m and +0.6% y/y, compared to expectations of +0.9% m/m and +0.5% y/y.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.96%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.64%.
China’s Shanghai Composite Index closed higher today as investors digested strong economic data from the country. Bank stocks outperformed on Tuesday. A private sector survey released on Tuesday showed that China’s services activity grew at the quickest pace in 14 months in July, driven by robust demand, including the first expansion in new export business in three months. The reading was more upbeat than a competing official survey. Goldman Sachs analysts said in a note that the notable divergence between the official and private surveys suggests “substantial variation across services sub-industries.” Meanwhile, investors are closely watching whether the U.S.-China tariff truce will be extended after officials from both countries wrapped up their latest round of trade talks in Stockholm last week, with U.S. President Donald Trump set to make the final decision. Analysts anticipate some consolidation in Chinese equities over the coming weeks, given ongoing uncertainty over U.S.-China tariff rates and a challenging domestic business environment. Investors now await Chinese trade and inflation data due later this week for further insight into the economy’s health. In corporate news, Lenovo Group rose over +5% in Hong Kong after JPMorgan lifted its profit forecast for the company this year by 3%, citing strength in its core business.
The Chinese July Caixin Services PMI stood at 52.6, stronger than expectations of 50.4.
Japan’s Nikkei 225 Stock Index closed higher today, tracking overnight gains on Wall Street. Machinery stocks led the gains on Tuesday. A private sector survey released on Tuesday showed that Japan’s service sector activity expanded at the fastest rate in five months in July, supported by strong domestic demand that offset a steep decline in export orders and softer tourist arrivals. Meanwhile, minutes of the Bank of Japan’s June meeting revealed that some BOJ officials saw scope to resume interest rate hikes once trade tensions stemming from U.S. tariffs subsided, indicating that Tokyo’s recent trade agreement with Washington removed a key hurdle to further tightening. “Given high uncertainties, the BOJ would likely pause rate hikes for the time being. But it also must respond flexibly and nimbly, and return to a rate-hike phase depending on U.S. policy developments,” one member was quoted as saying. Japan’s top tariff negotiator, Ryosei Akazawa, said he planned to travel to Washington starting Tuesday to push the U.S. to have President Donald Trump sign an executive order implementing the agreed 15% tariff rate on automobiles. In other news, an auction of 10-year Japanese government notes on Tuesday attracted weaker demand after disappointing U.S. employment data last week sparked speculation of an early Fed rate cut, weighing on yields. In corporate news, Mitsubishi Heavy Industries gained more than +5% after Australian Deputy Prime Minister Richard Marles announced that the heavy machinery manufacturer would lead Australia’s new $6.5 billion navy frigate program. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -9.63% to 23.66.
The Japanese July au Jibun Bank Services PMI arrived at 53.6, stronger than expectations of 53.5.
Pre-Market U.S. Stock Movers
Palantir Technologies (PLTR) climbed over +5% in pre-market trading after the data analysis software company posted upbeat Q2 results and raised its full-year guidance.
Hims Hers Health (HIMS) plunged more than -13% in pre-market trading after the telehealth company reported weaker-than-expected Q2 revenue and issued soft Q3 revenue guidance.
Kyndryl Holdings (KD) slumped over -11% in pre-market trading after the company reported weaker-than-expected FQ1 revenue.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - August 5th
Advanced Micro Devices (AMD), Caterpillar (CAT), Amgen (AMGN), Arista Networks (ANET), Eaton (ETN), Pfizer (PFE), Duke Energy (DUK), Transdigm (TDG), Apollo Global Management (APO), Marriott (MAR), Zoetis (ZTS), Itau Unibanco (ITUB), Coupang (CPNG), Aflac (AFL), Marathon Petroleum (MPC), Cummins (CMI), Suncor Energy (SU), Public Service Enterprise (PEG), Fidelity National Info (FIS), Yum! Brands (YUM), Super Micro Computer (SMCI), DuPont De Nemours (DD), Broadridge (BR), Toast (TOST), Archer-Daniels-Midland (ADM), Gartner (IT), Fox Corp (FOXA), Astera Labs (ALAB), Devon Energy (DVN), Leidos (LDOS), News Corp (NWS), IFF (IFF), Zebra (ZBRA), Yum China Holdings (YUMC), Jacobs Engineering (J), Expeditors Washington (EXPD), Ball (BALL), Snap (SNAP), Axa Equitable (EQH), Rivian Automotive (RIVN), UL Solutions (ULS), Smith&Nephew SNATS (SNN), Mosaic (MOS), Aramark Holdings (ARMK), Topbuild Corp (BLD), Qiagen (QGEN), DaVita (DVA), American Financial (AFG), Skyworks (SWKS), Paylocity Holdng (PCTY), Molson Coors Brewing B (TAP), Westlake Chemical (WLK), Assurant (AIZ), BridgeBio Pharma (BBIO), Sportradar (SRAD), Shift4 Payments Inc (FOUR), Hamilton Lane (HLNE), Henry Schein (HSIC), Masimo (MASI), Match Group (MTCH), Klaviyo (KVYO), Upstart (UPST), Lucid Group (LCID), Halozyme (HALO), Jazz Pharma (JAZZ), Madrigal Pharma (MDGL), Stevanato Group SpA (STVN), Voya Financial Inc (VOYA), Life Time Holdings (LTH), Jackson Financial (JXN), Rhythm Pharma (RYTM), Stride (LRN), GXO Logistics (GXO), Cirrus (CRUS), Advanced Energy (AEIS), INTL FCStone (SNEX), Qualys (QLYS), Knife River (KNF), Enpro Industries (NPO), Camtek (CAMT), Spire (SR), Novanta (NOVT), One Gas Inc (OGS), Frontdoor (FTDR), Silicon Labs (SLAB), Sealed Air (SEE), California Resources (CRC), Noble (NE), Kemper (KMPR), Clearway Energy C (CWEN), Inter Parfums (IPAR), Resideo Tech (REZI), Champion Homes (SKY), Zeta Global Holdings (ZETA), Hinge Health (HNGE), Centrus Energy (LEU), Blackline (BL), IPG Photonics (IPGP), Douglas Emmett (DEI).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
