S&P 500 futures are up three points, trading 0.1% above fair value. Nasdaq 100 futures are down 10 points, trading 0.1% below fair value. Dow Jones Industrial Average futures are up 20 points, trading 0.1% above fair value.
Futures linked to the S&P 500, Nasdaq 100, and Dow Jones Industrial Average are mostly unchanged after yesterday's broad rebound. Investors are processing a mix of earnings reports.
UPS (UPS) is seeing a pre-open loss after its report, while General Motors (GM, Financial) is up 5% due to better-than-expected results.
The 10-year note yield is down two basis points to 4.24%, and the 2-year note yield is unchanged at 4.52%.
Today’s economic data includes the June Existing Home Sales report, which will be released at 10:00 ET.
In corporate news:
- Alphabet (GOOG, Financial): Google’s talks to acquire Wiz have ended.
- UPS (UPS): Misses earnings by $0.20 and revenue estimates; guides FY24 revenue above consensus; restarts buyback; to acquire Estafeta.
- General Motors (GM, Financial): Beats earnings by $0.35 and revenue estimates; raises FY24 EPS and EBIT guidance.
- SAP SE (SAP): Beats earnings by EUR0.06 and revenue estimates.
- NXP Semi (NXPI): Reports in-line EPS and revenue; guides Q3 EPS in-line and revenue below consensus.
- Comcast (CMSA): Beats earnings by $0.09 but misses revenue estimates.
- Lockheed Martin (LMT): Beats earnings by $0.65 and revenue estimates; guides FY24 EPS in-line and revenue above consensus.
- Coca-Cola (KO, Financial): Beats earnings by $0.03 and revenue estimates; guides FY24 EPS in-line.
- Sherwin-Williams (SHW): Beats earnings by $0.21; reports in-line revenue; guides Q3 revenue in-line; guides FY24 EPS in-line but lowers FY24 revenue outlook.
- Danaher (DHR): Beats earnings by $0.15 and revenue estimates.
- PulteGroup (PHM): Beats earnings by $0.56 and revenue estimates.
Overnight developments:
Today's News
Cybersecurity startup Wiz has reportedly turned down a $23B acquisition offer from Google (GOOG, GOOGL). Instead, Wiz aims to generate $1B in annual recurring revenue and eventually go public. This move could potentially open the door for Microsoft (MSFT, Financial) to make its own acquisition in the cybersecurity space. Analyst Dan Ives noted that the recent CrowdStrike (CRWD, Financial) outage has highlighted the interconnected nature of cybersecurity software and the cloud ecosystem, potentially sparking an M&A cycle among large tech companies.
Investors are on edge as they await key earnings reports from tech giants Alphabet (GOOG, GOOGL) and Tesla (TSLA, Financial). The broader market saw a recovery on Monday, driven by optimism surrounding the earnings season and President Joe Biden's decision to step back from the presidential race. Analysts are particularly focused on how these tech behemoths will perform amidst a volatile market environment.
The cryptocurrency market is buzzing with the launch of spot ether ETFs, which have been approved by the SEC. Ethereum (ETH-USD) saw a 1.3% increase in early trade. The new ETFs will track Ethereum's performance, making it easier for both institutional and retail investors to buy and report on the asset due to increased liquidity and transparency. This follows the successful launch of spot bitcoin ETFs earlier this year, which saw net cumulative inflows of over $15.1B.
Apple (AAPL, Financial) is in the spotlight after Wells Fargo raised its price target on the tech giant. This follows Verizon's (VZ, Financial) report of a "record low" wireless upgrade rate in Q2, which impacted its wireless equipment sales. Despite this, Wells Fargo remains optimistic about a strong iPhone upgrade cycle, partly driven by Apple Intelligence. Analysts believe that Verizon's metrics do not change the outlook for an AI-driven upgrade cycle ahead.
Coca-Cola (KO, Financial) saw an uptick in early trading after surpassing organic sales estimates in its Q4 earnings report. The company reported a 15% increase in organic revenue, significantly higher than PepsiCo's (PEP) 2.9% growth for a similar period. Coca-Cola's performance was bolstered by strong gains in Latin America, EMEA, and North America, despite a slight decline in unit case volume in North America.
Microsoft (MSFT, Financial) also grabbed attention after Piper Sandler raised its price target, citing the company's robust cloud business driven by artificial intelligence. The firm believes Microsoft Cloud could add another $100B in revenue over the next three years, compressing critical data center investments. This growth could sustain double-digit top-line and bottom-line growth through 2030, making it a strong pick for growth investors.
HSBC Global Research downgraded CrowdStrike (CRWD, Financial) to Hold from Buy following last week's global IT outage. The firm also lowered its price target to $302 from $388. Analysts believe the company's long-term prospects remain intact but see near-term risks to results and guidance. The outage, triggered by a CrowdStrike software update, has raised new risks that could impact the company's near-term performance.
General Motors (GM, Financial) reported a 60% increase in Q2 profit, beating Wall Street expectations by $0.36. The company also raised its profit guidance for 2024, driven by strong U.S. demand for internal combustion engine vehicles. GM's market share in the U.S. rose to 16.6%, up from 16.4% in the previous quarter, thanks to a high-performing portfolio of trucks and SUVs.
Comcast (CMCSA, Financial) shares fell over 3% in premarket trading after reporting mixed Q2 results. The company's studios and parks business saw a 7.5% decline in revenue, impacted by tough comparisons to last year's release of The Super Mario Bros. Movie. Despite this, Comcast earned an adjusted $1.21 per share, slightly above analysts' expectations.
Johnson Controls International (JCI, Financial) announced it will sell its Residential and Light Commercial heating, ventilation, and air conditioning business to Bosch Group for $8.1B. The deal is expected to be accretive to Johnson Controls' profit margins and will enable the company to focus on comprehensive solutions for commercial buildings.
Philip Morris International (PM, Financial) saw its stock rise in premarket trading after setting full-year guidance ahead of expectations. The company's smoke-free business accounted for 38.1% of total revenue in Q2, up from 35.4% a year ago. Revenue from the smoke-free segment increased by 18.3%, contributing to a 34.2% rise in adjusted operating income.
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