Morning Bid: Earnings overload

• Palantir surged over 10% in extended trading on strong government contracts, while U.S. manufacturing growth hit its fastest pace despite high input prices
• SpaceX stock has pulled back sharply since its June IPO, with today's earnings providing the first test of whether Starlink profits can sustain the company's growing AI and space capex
• Oil stabilized after Monday's 7% decline amid confusion over potential U.S.-Iran talks, while traffic through Gulf shipping chokepoints Hormuz and Bab el-Mandeb remains minimal

Market Summary: Earnings Overload

Market Overview:

Global markets stabilized Tuesday following Monday's selloff and oil price decline. Asian stocks recovered while Wall Street futures pointed slightly higher as investors digested ongoing earnings reports and economic data.

Key Corporate Developments:

• Palantir surged 10% in extended trading, driven by strong government contract wins
• SpaceX earnings (after market close) will be closely watched, focusing on Starlink profitability and whether it can fund the company's expanding AI capital expenditures. The stock has declined sharply since its June IPO at $86 billion valuation (77x forecast revenue)
• HSBC reported strong profit growth and announced a stock buyback, mirroring robust quarters from other major global banks
• Other companies reporting: AMD, Pfizer, Merck, Apollo, Caterpillar

Economic Indicators:

U.S. manufacturing showed impressive growth last month, running at fastest pace despite elevated input prices. Key data releases scheduled include June JOLTS job openings, factory orders, trade balance, and the critical July employment report on Friday.

Commodities & Currency:

Oil prices steadied after Monday's 7% decline amid uncertainty over Gulf tensions. President Trump claimed Iran talks would occur, which Tehran denied, stating only Oman discussions regarding the Strait of Hormuz are ongoing. Another ship was attacked near the critical waterway Monday.

The Japanese yen eased slightly against the dollar but held near recent 40-year lows following last week's joint Tokyo-Washington intervention.

Market Implications:

Earnings season continues driving significant volatility, with investors assessing whether strong results justify elevated valuations amid economic resilience and persistent inflationary pressures.