[BRIEFING.COM] The Dow Jones Industrial Average (+1.87%) is in second place on Tuesday afternoon, up about 992 points.

A look inside the DJIA shows that Caterpillar (CAT 884.02, +53.99, +6.50%), Cisco (CSCO 120.82, +4.96, +4.28%), and Goldman Sachs (GS 1059.67, +32.61, +3.18%) are holding solid gains.

Meanwhile, Nike (NKE 41.79, -0.85, -1.99%) is underperforming.

The DJIA is +3.21% higher week-to-date.

[BRIEFING.COM] The S&P 500 (+1.7%), DJIA (+1.9%), and Nasdaq Composite (+2.3%) are charting session highs just after midday, with the S&P 500 and DJIA also notching fresh all-time highs. The advance is fueled by a sharp rebound in semiconductor stocks, strong post-earnings gains across several influential names, and another sizable decline in oil prices.

After a particularly rough month of July, semiconductor stocks are off to a more jubilant start to August, with the PHLX Semiconductor Index up 6.5% today. The move comes after a more volatile session for the group yesterday that saw an early loss steadily turn into a modest gain. Coherent (COHR 335.36, +47.22, +16.39%) and Marvell (MRVL 221.29, +27.52, +14.20%) lead the advance, while Sandisk (SNDK 1440.93, +152.90, +11.87%) and Advanced Micro Devices (AMD 524.29, +39.65, +8.18%) also post solid gains ahead of their respective earnings releases later this week.

Unsurprisingly, the information technology sector (+4.0%) is a standout, with software names also contributing to the advance. Palantir Technologies (PLTR 162.69, +37.04, +29.48%) leads all S&P 500 components after a blowout earnings report, and the iShares Expanded Tech-Software Sector ETF (IGV) is up 4.3%.

Outside of technology, gains are more modest, though market breadth has strengthened steadily throughout the session. Advancers outpace decliners by roughly a 2-to-1 ratio on the NYSE and a nearly 3-to-1 margin on the Nasdaq.

Of the five S&P 500 sectors trading higher, several cyclical groups are among the market's leaders. The materials sector (+1.9%) is supported by gains in names such as Freeport-McMoRan (FCX 67.31, +3.66, +5.76%) as precious metals prices rise, while the industrials sector (+1.6%) benefits from a rebound in electrical equipment stocks and a strong post-earnings gain in Caterpillar (CAT 885.23, +55.20, +6.65%) after the company delivered a beat-and-raise quarter.

The financials sector (+1.0%) also moves higher, with major banking names such as Goldman Sachs (GS 1062.49, +35.43, +3.45%) and JPMorgan Chase (JPM 360.90, +8.26, +2.34%) contributing to the DJIA's record push today.

Elsewhere, losses across the remaining six S&P 500 sectors have narrowed throughout the session. The defensive utilities (-0.5%) and consumer staples (-0.2%) sectors continue to lag as investors favor higher-growth areas of the market, while the energy sector (-0.3%) retreats again as crude oil continues to move lower. WTI crude oil is currently down $4.21 (-5.2%) to $76.12 per barrel after Treasury Secretary Scott Bessent said the U.S. and Iran could soon reach an agreement to reopen the Strait of Hormuz. 

Additionally, the consumer discretionary sector (-0.5%) lags as Amazon (AMZN 278.75, -5.27, -1.86%) gives back some of yesterday's strong advance.

Today's rally reinforces the market's improving tone following last week's earnings-driven rebound, with semiconductor stocks attempting to reclaim leadership after a difficult July. Investors will continue to monitor another busy slate of technology earnings this week, though today's combination of stronger chip stocks, encouraging corporate results, and easing geopolitical tensions is providing a supportive backdrop for the major averages.

Reviewing today's data:

• June Trade Balance -$73.3 bln (Briefing.com consensus -$73.0 bln); Prior -$77.6 bln
  • The key takeaway from the report is that, while the real goods deficit narrowed to $94.5 billion in June from $99.8 billion in May, the Q2 average is still 18% greater than the Q1 average, so it will be factored in as a drag on Q2 GDP.
• June Factory Orders -0.3% (Briefing.com consensus 0.2%); Prior was revised to -1.1% from -1.3%
  • The key takeaway from the report is rooted in the strong business investment activity, which shows up in the 1.2% increase in new orders for capital goods, excluding aircraft, that followed a 1.9% increase in May.
• June JOLTs - Job Openings 7.359 mln; Prior was revised to 7.537 mln from 7.594 mln

[BRIEFING.COM] The S&P 500 (+1.5%), Nasdaq Composite (+2.1%), and DJIA (+1.8%) steadily move even higher as gains across tech names continue to widen while the broader market also improves from earlier levels.

While only four S&P 500 sectors trade higher, breadth is firmly positive, with advancers outpacing decliners by a roughly 2-to-1 ratio on the NYSE and a greater than 3-to-1 clip on the Nasdaq.

The financials sector (+1.0%) now sits at its best levels of the session, with strength in major banking names such as Goldman Sachs (GS 1061.65, +34.59, +3.37%) and JPMorgan Chase (JPM 360.68, +8.04, +2.28%) contributing to the DJIA's record push.

[BRIEFING.COM] The major averages are steadily charting session highs at midday.

Palantir Technologies (PLTR 158.65, +33.00, +26.26%) remains the top performing S&P 500 component after its Q2 results significantly exceeded expectations. Adjusted EPS of $0.41 was nicely above, while revenue surged 93% year-over-year to $1.94 billion, its highest growth ever and roughly $136 million above the midpoint of its guidance. The stock continues to accelerate, fueled by its U.S. business, where revenue increased 115% year-over-year, 23% sequentially, to $1.57 billion. U.S. government revenue rose 90% year-over-year to $809 million, while U.S. commercial revenue jumped 149% to $764 million. Demand and customer expansion indicators were also strong. U.S. commercial TCV bookings reached a record $2.13 billion, up 153% yr and 81% sequentially; net dollar retention increased to 157%, and RPO more than doubled to $4.9 billion. The strength across commercial and government customers reflects broader adoption of Palantir's platform to operationalize AI. AIP connects models with proprietary data, security, and workflows, enabling customers to retain control over their data, logic, and actions as AI moves into core operations.

Palantir raised its FY26 revenue guidance by nearly $500 million to $8.15-$8.16 billion and now expects U.S. commercial revenue to exceed $3.42 billion, representing at least 134% growth. Q3 revenue guidance of $2.160-$2.164 billion implies a roughly 12% sequential increase.

[BRIEFING.COM] The major averages are following up yesterday's rally with another strong showing today, pushing the S&P 500 (+1.3%) and DJIA (+1.5%) to fresh record highs while the Nasdaq Composite (+1.8%) posts an even wider daily gain.

If yesterday's session belonged to the "Magnificent Seven," the ball is firmly in the court of semiconductor stocks today. The PHLX Semiconductor Index is up 5.9%, pushing the information technology sector (+3.5%) firmly higher. The sector is also supported by a 3.7% surge in the iShares GS Software ETF (+3.8%), with Palantir Technologies (PLTR 158.85, +33.20, +26.42%) leading all S&P 500 names after a blowout earnings report.

Elsewhere, there are some solid gains across several cyclical sectors, including the materials (+1.1%), financials (+0.9%), and industrials (+0.9%) sectors, with Caterpillar (CAT 876.80, +46.78, +5.64%) another standout after topping earnings expectations.

Meanwhile, more defensive sectors continue to lag as investors continue to rotate into growth-oriented tech names, while the energy sector (-0.8%) slides amid another retreat in crude oil prices after Treasury Secretary Scott Bessent said the U.S. and Iran could soon reach an agreement to reopen the Strait of Hormuz.

Outside the S&P 500, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.2%) hold gains similar to those across the major averages.

[BRIEFING.COM] The major averages remain at session highs, supported by solid gains across tech names and relative improvements across the broader market.

Caterpillar (CAT 874.69, +44.66, +5.38%) is jumping after delivering a much larger-than-expected Q2 beat while demonstrating broad-based strength across its major business segments and significantly stronger-than-expected margin expansion. The results reinforce management's increasingly bullish 2026 outlook, as record backlog, all-time record orders, accelerating demand for power-generation equipment tied to data centers, and solid execution more than offset ongoing tariff and investment headwinds.

The biggest takeaway from today's report is that Caterpillar is converting exceptional backlog and order momentum into both revenue growth and expanding profitability more effectively than investors anticipated. The central debate heading into earnings was whether Power & Energy and Construction demand could continue outpacing tariffs, inflation, and higher investment spending, and this quarter provides encouraging evidence that pricing, productivity, and favorable mix remain powerful offsets. Just as important, the results reinforce the view that Caterpillar's current earnings cycle is benefiting not only from traditional construction and mining markets, but also from long-duration secular demand tied to AI data centers, power generation, and infrastructure investment. Going forward, investors will be watching for continued backlog conversion, stable dealer inventory trends, sustained pricing power, and further proof that tariff mitigation and productivity initiatives can preserve margins as the company continues investing for long-term growth

[BRIEFING.COM] The S&P 500 (+0.9%), Nasdaq Composite (+1.6%), and DJIA (+1.1%) remain firmly higher as tech stocks continue to outperform.

Factory orders decreased 0.3% month-over-month in June (Briefing.com consensus: 0.2%) following an upwardly revised 1.1% decline (from -1.3%) in May. Excluding transportation, factory orders decreased 0.4% on the heels of a 2.0% increase in May. Shipments of manufactured goods fell 0.2% after increasing 1.6% in May.

The key takeaway from the report is rooted in the strong business investment activity, which shows up in the 1.2% increase in new orders for capital goods, excluding aircraft, that followed a 1.9% increase in May.

[BRIEFING.COM] The S&P 500 (+0.9%), Nasdaq Composite (+1.5%), and DJIA (+1.1%) are off to a solid start this morning, with renewed momentum across semiconductor stocks and several notable post-earnings moves driving the S&P 500 and DJIA to record highs despite some weakness in the broader market.

The information technology sector (+2.6%) is out in front, supported by a 4.8% surge in the PHLX Semiconductor Index, with large chipmakers, memory names, and other AI-infrastructure stocks posting strong gains this morning.

Elsewhere in the sector, Palantir Technologies (PLTR 153.61, +27.96, +22.25%) is the best performing S&P 500 name this morning after a beat-and-raise earnings report.

Caterpillar (CAT 886.74, +56.70, +6.83%) is another post-earnings standout, helping keep the industrials sector (+0.4%) in positive territory.

Elsewhere, more defensive sectors such as the utilities (-1.5%) and consumer staples (-0.7%) sectors continue to struggle as tech continues to outperform this week. However, some of yesterday's mega-cap tech standouts, such as Amazon (AMZN 277.39, -6.63, -2.33%) and Meta Platforms (META 585.28, -4.96, -0.84%), are giving back some of the previous session's gains, with the consumer discretionary sector (-1.1%) lagging as a result.

Meanwhile, the energy sector (-1.7%) posts the widest loss as crude oil retreats $4.47 (-5.6%) to $75.86 per barrel amid reports that the U.S. and Iran could reach a short-term peace deal.

On the data front, factory orders decreased 0.3% in June (Briefing.com consensus 0.2%) from an upwardly revised 1.1% decrease (from -1.3%) in May.

The June job openings and labor turnover survey saw 7.359 million job openings in June, from a downwardly revised prior level of 7.537 million (from 7.594 million).

Equity futures point to a higher opening as easing oil prices and renewed momentum across semiconductor names have the major averages on the doorstep of fresh record highs.

On the data front, the trade deficit narrowed to $73.3 billion in June (Briefing.com consensus: -$73.0 billion) from $77.6 billion in May. Both exports and imports declined month-over-month, but the narrowing deficit was the result of imports (-$7.3 billion) declining more than exports (-$2.9 billion).

The key takeaway from the report is that, while the real goods deficit narrowed to $94.5 billion in June from $99.8 billion in May, the Q2 average is still 18% greater than the Q1 average, so it will be factored as a drag on Q2 GDP.

The S&P 500 futures currently trade three points above fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. SK Hynix is negotiating the terms of its bonus payout plan with its workers union to avoid a potential strike. There was speculation that Japan's Ministry of Finance intervened in the foreign exchange market once again on Monday. China Securities Times expects the domestic property market to continue recovering during the second half of the year. Westpac abandoned its forecast for two more rate hikes from the Reserve Bank of Australia due to softening inflation.

• In economic data:
  • Japan's July Monetary Base -13.8% yr/yr (expected -13.0%; last -13.7%)
  • South Korea's July CPI -0.2% m/m (expected 0.1%; last 0.1%); 2.8% yr/yr (expected 3.0%; last 3.2%)
  • Hong Kong's June Retail Sales 4.6% yr/yr (last 7.9%)
  • Australia's July Commodity Prices -15.4% yr/yr (last 14.6%)

---Equity Markets---

• Japan's Nikkei: +0.3%
• Hong Kong's Hang Seng: -0.6%
• China's Shanghai Composite: +0.3%
• India's Sensex: -0.3%
• South Korea's Kospi: +1.6%
• Australia's ASX All Ordinaries: +1.5%

Major European indices trade near their flat lines while Italy's MIB (+1.1%) outperforms, extending to a fresh record high. Bayer, BP, and HSBC beat their respective profit expectations for the second quarter. Tiremaker Continental warned of an upcoming cost increase while Lufthansa lowered its profit forecast and noted that uncertainty is on the rise.

• In economic data:
  • France's June government budget deficit EUR106.8 bln (last deficit of EUR93.3 bln)
  • Italy's June Retail Sales -0.1% m/m (expected 0.3%; last 0.2%); 3.1% yr/yr (last 2.2%)

---Equity Markets---

• STOXX Europe 600: +0.7%
• Germany's DAX: +0.4%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +0.2%
• Italy's FTSE MIB: +1.2%
• Spain's IBEX 35: UNCH

The S&P 500 futures currently trade five points above fair value.

Just released, the trade deficit narrowed to $73.3 billion in June (Briefing.com consensus -$73.0 billion) from the prior level of -$77.6 billion.

Equity futures point to a higher open this morning as strong earnings and easing oil prices continue to lead the market higher.

Stocks are coming off a winning session that saw the major averages each advance by more than 1%, with the S&P 500 closing above the 7,600 mark for the first time since June 2 while the DJIA notched a record closing high. Mega-cap tech names, several of which reported strong earnings last week, were a key driver of the index-level advance.

There is some earnings buzz this morning as another busy week ramps up, with Caterpillar (CAT 921.57, +91.54, +11.0%) and Palantir (PLTR 144.50, +18.85, +15.0%) among the standouts.

On the macro front, oil is retreating again today after initially moving higher, with reports from Qatar that a potential peace deal between the U.S. and Iran has been drafted acting as a catalyst. Additionally, Treasury Secretary Scott Bessent told CNBC, "There is a chance" the U.S. might have a deal with Iran to reopen the Strait of Hormuz today or tomorrow.

Today will be lighter when it comes to economic data, with the 8:30 a.m. release of the June trade balance the most notable release.

In corporate news:

• Alphabet (GOOG 368.01, -4.46, -1.2%) created a large infrastructure finance program to supply $150 billion in chips to Anthropic, according to the Financial Times.
• Caterpillar (CAT 921.57, +91.54, +11.0%) beat EPS by $1.95 and beat revenue expectations.
• McDonald's (MCD 270.00, +4.77, +1.8%) beat EPS expectations by $0.06 and reported revenues in line. The company saw global comparable sales increase 1.3%.
• Palantir (PLTR 144.50, +18.85, +15.0%) beat EPS expectations by $0.07, beat revenue expectations, and guided Q3 and FY26 revenues above consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: -0.6%, China's Shanghai Composite: +0.3%, India's Sensex: -0.3%, South Korea's Kospi: +1.6%, Australia's ASX All Ordinaries: +1.5%.

In news:

• SK Hynix is negotiating the terms of its bonus payout plan with its workers union to avoid a potential strike.
• There was speculation that Japan's Ministry of Finance intervened in the foreign exchange market once again on Monday.
• China Securities Times expects the domestic property market to continue recovering during the second half of the year.
• Westpac abandoned its forecast for two more rate hikes from the Reserve Bank of Australia due to softening inflation.

In economic data:

• Japan's July Monetary Base -13.8% yr/yr (expected -13.0%; last -13.7%)
• South Korea's July CPI -0.2% m/m (expected 0.1%; last 0.1%); 2.8% yr/yr (expected 3.0%; last 3.2%)
• Hong Kong's June Retail Sales 4.6% yr/yr (last 7.9%)
• Australia's July Commodity Prices -15.4% yr/yr (last 14.6%)

Major European indices trade higherwhile Italy's MIB (+1.2%) outperforms, extending to a fresh record high. STOXX Europe 600: +0.8%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.4%, Italy's FTSE MIB: +1.2%, Spain's IBEX 35:+0.3%.

In news:

• Bayer, BP, and HSBC beat their respective profit expectations for the second quarter.
• Tiremaker Continental warned of an upcoming cost increase while Lufthansa lowered its profit forecast and noted that uncertainty is on the rise.

In economic data:

• France's June government budget deficit EUR106.8 bln (last deficit of EUR93.3 bln)
• Italy's June Retail Sales -0.1% m/m (expected 0.3%; last 0.2%); 3.1% yr/yr (last 2.2%)

[BRIEFING.COM] The first trading session of August belonged to mega-cap technology stocks, as investors built on last week's strong earnings-driven momentum and embraced easing geopolitical tensions. The S&P 500 rose 1.5%, closing above the 7,600 level for the first time since June 2, while the Nasdaq Composite climbed 2.1% and the DJIA advanced 1.3% to notch an all-time closing high.

Leadership once again came from the market's largest companies. Six of the seven "Magnificent Seven" components finished firmly higher, lifting the Vanguard Mega Cap Growth ETF 2.2%. The communication services sector (+4.3%) paced the market as Alphabet (GOOG 372.47, +15.82, +4.44%) extended its recovery from a recent post-earnings selloff and Meta Platforms (META 590.24, +33.53, +6.02%) continued its rebound from multi-month lows.

The consumer discretionary sector (+2.7%) also turned in a strong performance as Tesla (TSLA 322.08, +10.87, +3.49%) attracted another round of buy-the-dip buying, while Amazon (AMZN 284.02, +12.44, +4.58%) built on last week's earnings-fueled surge and became the latest U.S. company to surpass a $3 trillion market capitalization.

The top-weighted information technology sector (+1.6%) was another standout, supported by continued strength in Microsoft (MSFT 487.65, +22.93, +4.93%) following last week's earnings report and a solid gain in NVIDIA (NVDA 206.64, +5.89, +2.93%), which reclaimed its 50-day moving average (205.85).

The sector steadily improved throughout the session due to a sharp reversal in semiconductor stocks. After opening with losses approaching 3%, the PHLX Semiconductor Index fought back to finish 1.1% higher, while software shares also enjoyed a strong session, lifting the iShares Expanded Tech-Software Sector ETF (IGV) 3.0%.

Investors now turn their attention to another busy stretch of tech earnings, with Palantir Technologies (PLTR 125.65, +2.59, +2.10%) set to report after the close, while Advanced Micro Devices (AMD 484.64, +8.49, +1.78%) and several memory companies including Sandisk (SNDK 1288.03, +73.20, +6.03%) report in the coming days.

Although mega-cap technology once again accounted for much of the index-level advance, participation remained healthy across the broader market. The S&P 500 Equal Weight Index climbed 1.0%, eight of the 11 S&P 500 sectors finished higher, and advancers comfortably outpaced decliners throughout the session. Smaller-cap stocks also participated, with the Russell 2000 rising 1.7% and the S&P Mid Cap 400 gaining 1.1%.

Lower oil prices provided another tailwind for equities. WTI crude oil futures settled $4.21 lower (-5.0%) at $80.36 per barrel after President Trump called off planned strikes against Iran. Reports also indicated that discussions between U.S. and Iranian officials remain ongoing, although Iranian officials have continued to publicly downplay or deny the extent of those talks. The energy sector (-1.5%) finished as the session's primary laggard, with Exxon Mobil (XOM 155.05, -0.39, -0.25%) and Chevron (CVX 193.18, -3.65, -1.85%) also pressured after President Trump said oil companies were earning excessive profits and should lower retail gasoline prices.

Elsewhere, the consumer staples (-0.3%) and health care (-0.2%) sectors posted modest losses as investors rotated away from more defensive areas of the market in favor of higher-growth opportunities.

The market's leadership remained firmly tilted toward mega-cap technology stocks, but today's session also offered encouraging signs beneath the surface. Solid breadth, a sharp recovery across semiconductor stocks after an early selloff, and easing geopolitical concerns combined to give equities a strong start to August, leaving the S&P 500 at its highest closing level in two months as another busy week of earnings gets underway.

U.S. Treasuries began August with a rally that lifted the 10-year and 30-year note yields off their worst levels of the year. The 2-year note yield settled down four basis points to 4.25%, and the 10-year note yield settled down six basis points to 4.69%. 

• Russell 2000: +20.2% YTD
• S&P Mid Cap 400: +15.0% YTD
• Nasdaq Composite: +11.5% YTD
• S&P 500: +11.0% YTD
• DJIA: +10.6% YTD

Reviewing today's data:

• July S&P Global U.S. Manufacturing PMI - Final 53.9; Prior 53.8
• June Construction Spending -0.1% (Briefing.com consensus 0.3%); Prior was revised to 0.0% from 0.1%
  • The key takeaway from the report is that the softness was driven entirely by residential spending.
• July ISM Manufacturing Index 55.6% (Briefing.com consensus 54.0%); Prior 53.3%
  • The key takeaway from the report is that manufacturing activity picked up steam in July, with the PMI logging its highest reading since May 2022.