(Editor’s note: The headline, lede and ETFs, stocks and futures data have been updated.)
U.S. stock futures edged higher on Tuesday, extending the previous session’s gains, thanks to strong earnings reports and a drop in oil prices.
Speaking on CNBC’s Squawk Box, Treasury Secretary Scott Bessent said Washington was in discussions with Iran, adding that “There is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict.”
U.S. West Texas Intermediate (WTI) crude futures fell about 3% to around $77.95 a barrel after the comments, while Brent crude, the global benchmark, dropped roughly 2% to about $81 a barrel.
Wall Street had rallied on Monday, with the Dow Jones Industrial Average closing at a record high as falling crude prices and strength in heavyweight technology stocks lifted sentiment and after President Donald Trump said he would halt further military strikes on Iran, easing fears of a wider conflict in the Middle East and sending oil prices sharply lower.
Investors will now shift their focus to a fresh batch of corporate earnings from Pfizer (NYSE:PFE), Caterpillar (NYSE:CAT), McDonald’s (NYSE:MCD), Advanced Micro Devices (NASDAQ:AMD) and Elon Musk-led SpaceX (NASDAQ:SPCX), which is due to report its first quarterly results since its record-breaking IPO.
On the economic front, traders will also monitor June factory orders and U.S. international trade data for further clues on the strength of the economy, while assessing whether easing geopolitical tensions continue to support the recent rebound in equities.
Meanwhile, the 10-year Treasury bond yielded 4.69%, and the two-year bond was at 4.26%. The CME Group’s FedWatch tool’s projections show markets pricing a 62.7% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
| Index | Performance (+/-) |
| Dow Jones | 1.22% |
| S&P 500 | 0.35% |
| Nasdaq 100 | 1.10% |
| Russell 2000 | 0.46% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Monday. The SPY was up 0.34% at $760.28, while the QQQ advanced by 1.05% to $707.41.
Stocks In Focus
McDonald’s Corp
- McDonald’s Corporation (NYSE:MCD) stock was trading just 0.7% higher premarket as the fast food giant missed U.S. sales growth expectations for the second quarter. Analysts expected McDonald’s to report revenue of $7.13 billion, up from $6.84 billion in last year’s second quarter, according to data from Benzinga Pro.
- Benzinga’s Edge Stock Rankings indicate that MCD maintains a weak price trend in the short, long, and medium terms, with a good growth score.
Caterpillar
- Caterpillar Inc‘s (NYSE:CAT) stock jumped over 11% to $925 premarket trading on Tuesday, after the industrial giant reported better-than-expected second-quarter earnings and raised its revenue growth forecast.
- Benzinga’s Edge Stock Rankings indicate that CAT maintains a weak price trend in the short and medium terms, but strong in the long term. Its quality, growth and momentum score are favourable.
Advanced Micro Devices
- Advanced Micro Devices Inc (NASDAQ:AMD) shares are up 2.34% in premarket trading on Tuesday as the chip giant gears up to report quarterly earnings after markets close. Analysts are projecting second-quarter revenue of $11.28 billion alongside adjusted earnings of $1.61 per share, according to Benzinga Pro.
- Benzinga’s Edge Stock Rankings indicate that AMD maintains a weak price trend in the short term, but the medium and long term look solid, with a good growth, quality and momentum score.
ON Semiconductor
- ON Semiconductor Corp’s (NASDAQ:ON) stock rose 8% to $86.50 in trading before the bell after the company posted strong quarterly earnings on the back of steady AI demand.
- Benzinga’s Edge Stock Rankings indicate that ON maintains a weak price trend in the short, long, and medium terms, with a good growth and momentum score.
Palantir Technologies
- Palantir Technologies Inc. (NASDAQ:PLTR) stock climbed nearly 16% to $145.90 in premarket trading on Tuesday, after the company posted stellar earnings and raised its forecast.
- Benzinga’s Edge Stock Rankings indicate that PLTR maintains a weak price trend in the short, long, and medium terms, with a good growth score.
Cues From Last Session
The communications services and tech sectors led the rally. Amazon (NASDAQ:AMZN) surpassed a $3 trillion market capitalisation for the first time, while Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) all posted strong gains.
| Index | Performance (+/-) | Value |
| Dow Jones | 1.32% | 53,178.41 |
| S&P 500 | 1.48% | 7,600.50 |
| Nasdaq Composite | 2.13% | 25,913.90 |
| Russell 2000 | 1.73% | 2,981.91 |
Upcoming Economic Data
Here’s what investors will be keeping an eye on this week.
- The U.S. trade deficit in goods and services saw a monthly decrease of 5.6% to $73.3 billion in June, the Census Bureau and Bureau of Economic Analysis (BEA) said.
- June’s JOLTS job openings and June’s factory orders data at 10:00 a.m. ET.
- Kansas City Fed President Jeff Schmid is due to speak at 8.15 p.m. EST.
Crypto And Global Equity Markets
Gold Spot US Dollar tripped 0..05% to hover around $4,053.21 per ounce. The U.S. Dollar Index spot was 0.11% higher at the 100.01 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.72% higher at $63,510.10 per coin over the last 24 hours.
Asian markets rose on Monday, as Japan’s Nikkei 225, South Korea’s Kospi, China’s CSI 300 and Australia’s ASX 200 indices all closed higher. However, Hong Kong’s Hang Seng index fell 0.60% and India’s Nifty 50 was 1.27% lower. European markets were mostly higher in early trade.
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