US EQUITY OPEN: Stocks gain at the open on reduced geopolitical risk; tech outperforms

OPEN: Stocks open higher, boosted by positive reporting about the Middle East conflict while software gains follow a Palantir (PLTR) earnings beat and guidance raise. Oil prices faded the initial upside on recent reports pointing towards an upcoming announcement regarding arrangements for the full reopening of the Strait of Hormuz. As such, energy is the worst-performing sector, followed by Real Estate and Utilities. Meanwhile, tech is outperforming amid strength in semiconductors, memory, and software. US yields are tracking the move lower in crude prices, resulting in the curve steepening as the short end outperforms.

Given the pullback in the US 2yr yield, the dollar has seen pressure against some major currency pairs; AUD and NZD outperform. Meanwhile, JPY is seeing marginal weakness, despite positive commentary from US Treasury Secretary Bessent on the currency.

US data saw JOLTS fall more than expected in June to 7.359mln from 7.594mln (exp. 7.45mln); vacancy rate was unchanged at 4.5%, and quits rate stood at 2.0%. Meanwhile, Factory Orders unexpectedly declined 0.3% in June (exp. +0.2%). No reaction was seen on the data.

• Palantir (PLTR): Earnings beat & raised guidance
• Caterpillar (CAT): Earnings beat
• Amazon (AMZN): Founder Jeff Bezos plans to sell up to 15M AMZN shares
• On Semiconductor (ON): Earnings & revenue topped expectations
• Spotify (SPOT): Q3 MAU outlook missed.
• Snap (SNAP): Earnings & user metrics beat
• Intuit (INTU): Downgraded at Truist to 'Hold' from 'Buy'.
• Nike (NKE): Downgraded at JPMorgan to 'Underweight' from 'Neutral'.