US EQUITY OPEN: Tech hit as NDX lags ahead of mega-cap earnings next week

OPEN: US indices opened in the red with the tech-heavy Nasdaq 100 underperforming, as Communications and Technology reside as the sectoral laggards as Chinese startup Moonshot AI unveiled a new model on Thursday, closing the gap with US AI rivals at a lower price. Overall, sectors are mixed with Consumer Staples and Energy sitting atop of the pile, with the latter supported by energy benchmarks firmer by c. USD 2/bbl given the latest attacks in the Middle East show no sign of stopping soon. The Dollar is mixed vs. G10 peers, with CHF and CAD gaining, whilst the AUD and GBP lag. Precious metals are divergent with spot gold paring all weakness in recent trade to now see gains, while Treasuries are firmer across the curve. On the data footing, housing starts soared, while building permits unexpectedly fell slightly. Import prices rose, against an expected fall, while export prices fell more than consensus. Ahead, UoM prelim for July is due at the top of the hour, as well as Baker Hughes.

• Alcoa (AA): Adj. EPS missed.
• SpaceX (SPCX): Starship aborted seconds before test-flight liftoff on 16th July.
• Intuitive Surgical (ISRG): Soft US Da Vinci procedure growth.
• Autoliv (ALV): Adj. EPS fell short of expectations.
• Simmons First National (SFNC): Adj. EPS & revenue missed.