US EQUITY OPEN: US indices opened in the green but have pared gains amid soaring US Treasury yields
OPEN: US indices opened the final trading session of the week in the green as the Nasdaq 100 outperformed and was buoyed by Amazon surging after earnings. As such, Consumer Discretionary is the clear outperforming sector, with only Communication Services and Industrials the other ones in the green. Materials and Health are the sectoral laggards. Separately, Apple is declining following its quarterly report as weak services, iPad and China sales, below-forecast revenue guidance and warnings of severe supply constraints all weigh on shares. However, since the open, US indices have seen pressure following the broader market moves of soaring US Treasury yields. Hawkish dissenters Hammack and Kashkari gave their reasoning, as we wait to hear from Logan. WTI and Brent are firmer by c. USD 2/bbl, and in recent trade US Treasury yields have seen notable gains (30-year above 5.25%), which in turn is lifting the Greenback and weighing on precious metals. The Yen remains the outperformer and continues following Thursday's hefty gains, which sparked intervention speculation. Nikkei sources yesterday said Japan's government and BoJ intervened in the FX market yesterday by buying yen and selling dollars, while desks conducted rate checks.
STOCK SPECIFICS:
- Apple (AAPL): Weak services, iPad and China sales, below-forecast revenue guidance and warnings of severe supply constraints weigh on shares
- Amazon (AMZN): Reported faster AWS growth; stronger-than-expected revenue reassured investors that heavier AI and data centre spending is being matched by accelerating cloud demand
- ExxonMobil (XOM): Adj. EPS missed
- Chevron (CVX): Adj. EPS & rev. beat
- AbbVie (ABBV): Cut FY26 profit guidance
- Linde (LIN): FY EPS view fell short
- Eaton (ETN): Earnings beat; raised FY26 guidance
- Stryker (SYK): FY profit outlook failed to offer meaningful upside after cyber-incident recovery progress
- Coinbase (COIN): Reported wider-than-expected loss and a revenue miss
- Roblox (RBLX): Revenue miss; Q3 sales guidance below forecasts; withdrew its annual guidance amid persistent monetisation softness.
- Reddit (RDDT): Soft Q3 sales guidance
- Replimune (REPL): FDA advisory committee backed RP1 plus nivolumab in advanced melanoma.
A session wrap of this kind, equities fading an earnings-driven pop as long-end yields push through a round level, follows a well-worn sequence: the discount-rate channel reasserts itself over single-stock news, duration-heavy megacap leadership narrows, the dollar firms in tandem with yields, and rate-sensitive sectors (here Materials, Health) lag while the earnings winner's sector carries the tape. The long end moving while the Fed complex is in focus typically reflects either term-premium repricing or hawkish read-throughs from official commentary; named dissenters explaining their stance is the kind of colour that extends a hawkish repricing rather than reverses it, and pending remarks from another known hawk are the next tell. The single-stock pattern is also standard late-in-season: cloud and AI-spend names are being judged on whether capex is matched by demand, with beats rewarded and guidance cuts punished more harshly than in-line prints. The yen leg is the less routine element: suspected intervention followed by outsized currency gains has historically produced two-way volatility rather than a sustained reversal, with rate checks and official sourcing the markers desks have used to distinguish actual operations from verbal pressure. Worth watching into the close is whether the yield move holds or fades once the speaker calendar is exhausted, and whether any confirmation or denial on the Japan side emerges.