Stock Market Update

Equity futures point to a higher open again this morning as stocks look to add to what has been an exceptional week so far. Yesterday's action saw the S&P 500 and DJIA both notch record highs as strong earnings, renewed momentum across semiconductor names, and easing oil prices led the market higher.

Investors have plenty of earnings reports to assess this morning, including several notable mega-cap names and Dow components.

Meanwhile, oil prices are steady around their flatline after two sharp retreats to start the week. Axios reported that the U.S., Iran, and Oman are nearing an interim agreement to reopen the Strait of Hormuz, which could be announced today. The interim agreement will last 60 days and could be extended.

The market has several economic data releases to look forward to this morning, including the July ISM Non-Manufacturing Index (Briefing.com consensus 54.7%). The MBA Mortgage Applications Index for the week ended August 1 decreased 2.9% from a prior decrease of 0.3%.

In corporate news:

• Advanced Micro Devices (AMD 478.38, -40.20, -7.8%) beat EPS expectations by $0.04, beat revenue expectations, and guided Q3 revenues in-line.
• Eli Lilly (LLY 1,169.00, +53.32, +4.8%) beat EPS expectations by $2.37 and beat revenue expectations. Worldwide Mounjaro revenue was up 91%. The company slightly lowered the high end of its FY26 EPS guidance range (still above consensus) and raised its revenue guidance.
• SpaceX (SPCX 111.75, -13.58, -10.8%) beat EPS expectations by $0.14 and beat revenue expectations.
• Walt Disney (DIS 100.85, +2.67, +2.7%) beat EPS expectations by $0.20, reported revenues in-line, and reaffirmed its FY26 EPS guidance.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region climbed on Wednesday with South Korea's Kospi (+3.8%) closing at its best level in nearly a week. Japan's Nikkei: +3.7%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: +1.5%, India's Sensex: +0.2%, South Korea's Kospi: +3.8%, Australia's ASX All Ordinaries: +1.0%.

In news:

• China's RatingDog Services PMI (50.4) decelerated in July, reflecting a near standstill in growth in the services sector.
• New Zealand reported strong employment figures for Q2, though an increase in the participation rate to 70.7% from 70.4% resulted in a higher unemployment rate (5.6% from 5.4%).
• The Reserve Bank of India left its policy rate at 5.25%, as expected, noting that core inflation remains benign.

In economic data:

• China's July RatingDog Services PMI 50.4 (expected 53.7; last 54.1)
• Japan's June Overall Wage Income 3.4% yr/yr, as expected (last 3.3%) and Overtime Pay 2.8% yr/yr (last 2.8%). July Services PMI 51.2 (expected 51.9; last 52.2)
• Hong Kong's July Manufacturing PMI 51.0 (last 52.0)
• Australia's July AIG Manufacturing Index -19.6 (last -16.8) and AIG Construction Index -40.6 (last -38.1). July Services PMI 53.6 (expected 53.0; last 50.5)
• New Zealand's Q2 Labor Cost Index 0.7% qtr/qtr (expected 0.6%; last 0.5%); 2.1% yr/yr (last 2.0%). Q2 Employment Change 0.5% qtr/qtr (expected 0.1%; last 0.2%), Q2 Unemployment Rate 5.6% (expected 5.4%; last 5.4%) and Participation Rate 70.7% (last 70.4%)
• India's July Services PMI 53.3 (expected 53.1; last 57.4)
• Singapore's June Retail Sales 1.0% m/m (last -2.2%); 4.0% yr/yr (last 2.9%)

Major European indices trade near their flat lines while Spain's IBEX (+0.5%) outperforms with industrial and consumer names among the leaders. STOXX Europe 600: -0.1%, Germany's DAX: UNCH, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.5%.

In news:

• Siemens Energy reported strong quarterly results while DHL affirmed its guidance.
• The U.K. is planning to provide about GBP9 bln in infrastructure support for housing and businesses.
• Italy's Economy Minister Giorgetti said that his country will use extra deficit allowances for energy and defense spending.

In economic data:

• Eurozone's July Services PMI 52.0 (expected 51.9; last 50.0). July PPI -0.3% m/m (expected -0.2%; last 0.2%); 4.6% yr/yr, as expected (last 5.9%) o Germany's July Services PMI 49.8 (expected 49.6; last 48.6)
• U.K.'s July Services PMI 52.1 (expected 51.8; last 48.8)
• France's July Services PMI 49.6 (expected 49.8; last 46.8)
• Italy's July Services PMI 52.5 (expected 51.0; last 50.2)
• Spain's July Services PMI 53.8 (expected 54.9; last 54.2)