NextFin News -
1) Pre-Market Performance
U.S. equity futures were firmer ahead of the open, recovering part of Thursday’s tech-led decline. Nasdaq 100 futures rose 55.8 points to 28,676.5 (+0.19%); S&P 500 futures gained 20.0 points to 7,465.0 (+0.27%); Dow Jones futures advanced 227 points to 52,121 (+0.44%).
European markets traded higher. The U.K. FTSE 100 rose 37.86 points (+0.36%) to 10,677.03 (range 10,599.10–10,698.49). France’s CAC 40 gained 23.66 points (+0.29%) to 8,322.75, while Germany’s DAX added 169.41 points (+0.68%) to 24,932.53, touching 25,006.07 intraday.
In commodities, oil eased after a sharp Middle East-driven spike. Brent crude slipped below the $100 level to about $97.94 a barrel (-2.7%), while WTI was indicated around $90.62 (-1.75%). Gold was mixed to softer: spot gold was little changed near $4,046 an ounce, while U.S. gold futures were around $4,029.60 (-0.5%). The U.S. dollar index remained elevated near 101.5, supported by higher Treasury yields and inflation concerns tied to oil and tariffs.
2) Hot News
- Futures rebound after tech rout: U.S. stock-index futures moved higher as investors weighed fresh earnings against the prior session’s pressure from AI spending concerns. Market attention remains on whether stronger single-stock earnings can offset worries about cash burn, higher yields and elevated energy prices.
- New U.S. tariffs add trade-policy uncertainty: The Trump administration imposed new tariffs of 10% and 12.5% on goods from 60 trading partners, including the EU and China, citing forced-labor enforcement concerns. The move replaces an expiring temporary 10% global tariff and keeps trade risk in focus for importers, retailers and multinationals.
- Oil shock keeps inflation risk elevated: Global markets continued to digest the impact of a near 40% monthly rise in oil prices linked to Middle East tensions; the earlier surge has pushed investors to reassess inflation and rate-risk assumptions.
- Dollar stays firm as yields rise: The dollar was supported by higher U.S. Treasury yields and remained near a four-decade high against the yen. Currency markets reflect energy-price inflation, trade-policy uncertainty and expectations that rates may need to stay higher for longer.
- Europe steadies despite oil and earnings pressure: European equities were broadly resilient, helped by selective large-cap strength and a pullback in crude from its highs, though investors remained cautious amid elevated energy prices and geopolitical risks.
3) U.S. Stock Focus
- Intel — AI demand drives strong guidance: Intel shares rose about 5% to 6% in pre-market trading after reporting Q2 revenue of $16.13 billion and adjusted EPS of $0.42, both above expectations. The company guided current-quarter revenue to $15.8 billion–$16.8 billion and plans to increase spending over the next two years to meet AI data-center demand.
- Alphabet — cash burn raises AI-spending concerns: Alphabet reported its first recorded cash burn, with free cash flow negative by $5.9 billion in Q2 despite cloud growth. Investors are scrutinizing higher AI capital-spending plans, with expectations of about $15 billion more in 2026 spending.
- Tesla — cash burn and robotaxi caution weigh on sentiment: Tesla reported negative free cash flow for the first time in over two years as spending accelerated on AI infrastructure, battery capacity, robotaxis and next-gen manufacturing, contributing to its recent sharp decline.
- American Express — earnings due before the open: American Express will discuss Q2 2026 results at 8:30 a.m. ET. Consensus expects EPS around $4.40 and revenue near $19.6 billion, with focus on billed business, card spending, net interest income and credit quality.
- Verizon — Q2 report and guidance in focus: Verizon reports Q2 2026 results at 8:30 a.m. ET. Estimates center on EPS near $1.28 and revenue around $35.23 billion, with attention on postpaid phone additions, broadband growth and sustained momentum after earlier guidance raises.
- HCA Healthcare — preliminary Q2 results and guidance update: HCA previews Q2 results with same-facility admissions up 2.5% and same-facility equivalent admissions up 2.7% year over year, and revised 2026 diluted EPS guidance to $29.10–$31.50 (from $28.70–$30.50).
- SLB — oilfield services results amid energy volatility: SLB reported Q2 results noting that, excluding its acquisition, global revenue declined 5% year over year (international revenue down 6%, North America down 1%), while highlighting a deepwater contract from ONGC covering 24 wells over four years.
- Charter Communications — Q2 webcast before market open: Charter will discuss Q2 2026 financial and operating results at 8:00 a.m. ET. Consensus estimates are near EPS of $10 and revenue of roughly $13.5 billion, with focus on broadband subscriber trends, mobile growth and integration commentary.
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