Key facts
- Global markets showed quiet trading with Asian stocks steady and U.S. futures slightly up.
- Palantir's stock surged over 10% after reporting earnings that beat estimates.
- U.S. manufacturing activity reached its fastest pace in four years.
- Oil prices saw a slight increase after a significant prior-day decline.
- HSBC reported a profit jump and resumed share buybacks.
- SpaceX is set to release its first earnings report since its IPO.
- U.S. June JOLTS job openings data is expected today.
Global markets experienced a period of quiet trading on Tuesday, following a recent equity rally and a decline in oil prices. Asian stock markets remained steady, while Wall Street futures indicated a slight upward trend.
U.S. corporate earnings season is well underway, with attention turning to the first earnings report from Elon Musk's SpaceX. The company's results are expected to provide insights into Starlink profits and the extent to which they can fund SpaceX's growing artificial intelligence capital expenditure. SpaceX shares have seen a significant pullback since their $86 billion IPO in June, with investors questioning the valuation of 77 times forecast revenue.
In other earnings news, Palantir's stock surged over 10% in extended trading after the tech group beat estimates, largely due to substantial government contracts. HSBC also reported a jump in profits and resumed share buybacks, mirroring the strong quarters seen by other major banks.
The broader U.S. manufacturing sector showed resilience, with recent surveys indicating factory growth at its fastest pace in four years, despite high input prices. Oil prices saw a slight uptick on Tuesday after a 7% drop the previous day, amidst confusion surrounding potential talks with Iran. Tehran denied claims of imminent talks, stating that discussions were ongoing with Oman regarding the Strait of Hormuz. Another ship was attacked near this critical waterway on Monday.
The Japanese yen saw some quiet trading after significant joint intervention by Tokyo and Washington last week to support the currency. While the yen eased slightly against the dollar early Tuesday, it remained well above recent 40-year lows. This period may involve a testing of Tokyo's resolve to stabilize the currency.
Looking ahead, the week's U.S. labor market data will commence with June job openings data, followed by the July employment report on Friday. Key events today include the release of U.S. June JOLTS job openings, factory orders, and trade balance data, as well as a 30-year TIPS auction. Kansas Fed's Jeffrey Schmid is also scheduled to speak.