US equity futures are lower with Tech underperforming as oil prices / bond yields move higher (although off session highs), both in response to an acceleration in "kinetic hostilities" in the Middle East. As of 8:00am ET, S&P futures are down 0.1%, off session lows, while Nasdaq futures rise 0.4% after Dell shares jumped after the company boosted its annual sales forecast by $25 billion. In premarket trading, Semis / Memory are weaker and AVGO is -53bp with earnings after the Close today. Mag7 are mostly lower as are Software names with Hardware buoyed by earnings. Defensives and Energy gain while Cyclicals drop. According to JPM's Market Intel team, which on Monday turned Neutral on stocks (from Bullish), equities will continue to struggle until crude / rates stabilize. Europe’s Stoxx 600 retreated 0.7%, while Asian stocks fell the most in two weeks. WTI trades around $90/bbl as the yield curve steepens, having erased gains from Bessent’s "Treasury Twist". The Dollar is also higher as the Debasement trade continues to struggle. Commodities are mostly lower with Energy the lone bright spot and Ags underperforming Metals; keep an eye on gold to see if $4,300 acts as support. Today’s macro data focus is on the August ADP employment change (8:15am) and July factory orders (10am). Fed calendar is blank apart from Beige Book release at 2pm
In premarket trading Mag 7 stocks are mixed (Alphabet +0.1%, Apple +0.2%, Tesla +0.1%, Nvidia -0.1%, Meta -0.2%, Amazon -0.2%, Microsoft -0.4%)
- Credo Technology (CRDO) falls 9%, suggesting that the communications equipment company’s second-quarter revenue forecast beat was not good enough to impress investors after the stock’s 44% rally this year.<
