Stock Market Update

Equity futures point to a mixed open this morning as continued weakness across the semiconductor space weighs against further easing in oil prices and a relatively solid batch of earnings reports. Similar factors saw the major averages finish mixed yesterday, though strength in the broader market remained firm under the surface.

WTI crude oil is currently down $0.81 (-1.0%) to $81.80 per barrel, with The Wall Street Journal reporting that Iran and Oman are discussing an agreement to reopen the Strait of Hormuz, hoping an arrangement would restart peace talks between the U.S. and Iran.

Meanwhile, chipmaker names move lower again in the premarket after an intense selloff in the Korean market overnight. Bloomberg also reports that increased competition from Chinese chipmakers adds pressure to the group as investors assess the sustainability of the AI-buildout spending boom.

In addition to a hefty batch of earnings reports, the market will also receive several economic data releases this morning, including the Consumer Confidence reading for July at 10:00 a.m. ET (Briefing.com consensus 92.1).

In corporate news:

• Coca-Cola (KO 86.92, +2.85, +3.4%) beat EPS expectations by $0.04, beat revenue expectations, and raised its FY26 organic revenue growth and comparable EPS growth guidance.
• Corning (GLW 120.80, -22.56, -15.7%) beat EPS expectations by $0.02, beat revenue expectations, and guided Q3 EPS and revenues in-line.
• Sherwin-Williams (SHW 347.87, +20.60, +6.3%) beat EPS expectations by $0.18, beat revenue expectations, and guided Q3 revenues above consensus while also raising its FY26 EPS and revenue guidance.

Reviewing overnight devlopments

Equity indicies in the Asia-Pacific region ended Tuesday on a mixed note with South Korea's Kospi (-10.8%) plunging to its lowest level since mid-April with SK Hynix falling nearly 15% ahead of tomorrow's release of its quarterly results. Japan's Nikkei: -4.0%, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: -1.2%, India's Sensex: -0.1%, South Korea's Kospi: -10.8%, Australia's ASX All Ordinaries: +0.5%.

In news: 

• South Korean regulators are expected to announce deposit requirements for ETF purchases on Friday.
• There was some concern about China's reported mass production of Deep Ultraviolet chip fabrication tools, though that technology is still behind the latest Extreme Ultraviolet technology used by ASML.
• Japan's Prime Minister Takaichi plans to lower the food tax to 1% from 8% and is likely to raise the minimum wage.

In economic data:

• Japan's May BoJ Core CPI 2.7% yr/yr (last 2.7%)
• South Korea's July Consumer Confidence 106.8 (last 106.6)

Major European indices trade on a mostly higher note. STOXX Europe 600: +0.1%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.3%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: +0.2%.

In news:

• The Swiss National Bank is expected to keep its rate at zero until the end of next year.
• Several large companies reported their results with Mercedes beating expectations but trimming its guidance.
• Military contractor Safran raised its guidance for the year while Orange and Barclays beat their quarterly expectations and raised their outlooks.
• Unilever reported strong volume growth for the quarter.

In economic data:

• France's July Consumer Confidence 86 (expected 85; last 84)
• Italy's non-EU trade surplus EUR2.55 bln (last surplus of EUR3.84 bln)
• Spain's June Retail Sales 0.5% yr/yr (last 1.3%) and Q2 Unemployment Rate 9.87% (expected 10.1%; last 10.8%)