US EQUITY OPEN: Nasdaq slides as INTC reverses but underlying market breadth is positive

OPEN: Stocks have opened mixed on Friday, with the Nasdaq sliding since the opening bell as Intel (INTC) reversed its initial post-earnings gains to trade lower, with elevated CapEx weighing on the stock and the broader semiconductor space (SOXX). Other US indices are flat to marginally firmer, while the equal-weight S&P 500 is higher alongside the majority of sectors, highlighting positive underlying breadth. Real Estate, Energy and Health Care outperform, while Technology, Consumer Discretionary and Financials lag.

Elsewhere, crude prices are lower following the sharp rally seen this week, with the pullback likely reflecting some position squaring ahead of the weekend rather than any meaningful improvement in the geopolitical backdrop. Reports around Thursday's close suggested the Iraqi President was travelling to Tehran with a US proposal, although Iran ultimately rejected it. The US also completed its 13th consecutive night of strikes against Iran, while the WSJ reported that Trump is losing patience amid a lack of a clear path towards ending the conflict.

In FX, the Antipodeans are marginally firmer, while the Franc and CAD lag slightly and the Dollar is flat, albeit off its earlier lows. On the data front, Eurozone and UK PMIs beat expectations this morning, while the US PMI data also topped forecasts. The US release ultimately had little market impact, although the stronger European data briefly supported the Euro and weighed on Bunds. The Yen was little changed following Nikkei source reports that the BoJ is set to leave rates unchanged next week, although some policymakers have called for further tightening following June's rate hike.

Treasury yields are tracking the pullback in crude, with yields lower across the curve following the pronounced bear flattening seen this week.

Attention remains firmly on geopolitical developments, although next week's FOMC decision and Chair Warsh's subsequent press conference will be key for the direction of rates and broader risk sentiment.

STOCK SPECIFICS

• Intel (INTC): Topped earnings expectations with strong guidance; saw fastest revenue growth in years
• American Express (AXP): Revenue and FY profit guidance missed
• Oracle (ORCL): Received a USD 3.31bln 5-year US Navy software contract; could be raised to USD 7bln
• SLB (SLB): Earnings beat
• Verizon Communications (VZ): Adjusted EPS and postpaid phone net additions beat; revenue missed
• Charter Communications (CHTR): Bigger-than-expected Q2 broadband customer decline
• SAP (SAP): Strong earnings and cloud growth
• Edwards Lifesciences (EW): Adjusted EPS and revenue topped expectations
• Tenet Healthcare (THC): Earnings beat; raised guidance