Stock Indexes Supported as Amazon Earnings Bolster Tech Stocks

The S&P 500 Index ($SPX) (SPY) today is closed up +0.23%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.32%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.75%.  September E-mini S&P futures (ESU26) are up +0.17%, and September E-mini Nasdaq futures (NQU26) are up +0.64%.

Stock indexes are moving higher today, with the S&P 500 and Nasdaq 100 posting 1-week highs.  Stocks are climbing today, led by strength in technology stocks as chipmakers rallied sharply for a second day.  Amazon.com is up more than +14% to bolster market sentiment after its cloud unit recorded the fastest quarterly revenue growth in 5 years, reassuring investors that its projected increase in capital spending will generate sufficient returns and that the global AI buildout will be sustained. 

On the negative side, Apple is down more than -8% after reporting disappointing service revenue and revenue from China.  It also gave a revenue forecast that was weaker than expected.

Also, the 10-year T-note yield is up +4 bp to 4.70% after the Q2 employment cost index rose +0.9%, stronger than expectations of +0.8%.

Weaker-than-expected Chinese economic news was negative for global growth prospects after the China July manufacturing PMI fell -1.1 to 49.2, weaker than expectations of 50.1 and the weakest level in 5 months.  Also, the July non-manufacturing PMI fell -1.2 to 49.0, weaker than expectations of 49.0 and the weakest level in 3.5 years.

Sep WTI crude oil prices (CLU26) are up more than +2% today even after there were no fresh attacks by the US and Iran against each other overnight.  However, Houthi leader Abdulmalik al-Houthi said today that there were indications the Saudis were heading toward "comprehensive escalation," which he said would be met with a fiercer campaign. 

Tensions remain high in the Middle East.  In addition to the Houthi attempt to blockade Saudi ports in the Red Sea, the US is maintaining a full maritime blockade of vessels calling at Iranian ports.  Also, Iran continues to menace shipping transiting the Strait of Hormuz.  In addition, diplomatic attempts to reopen the Strait of Hormuz appear to be at an impasse. 

The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks.  The markets are awaiting results from a raft of megacap technology companies this week, including Microsoft and Meta Platforms today, and Amazon.com and Apple on Thursday.  Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected.  AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 291 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data. 

The markets are discounting a 67% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.

Overseas stock markets are higher today.  The Euro Stoxx 50 climbed to a 3.5-week high and is up +0.46%. China's Shanghai Composite closed up +0.72%.  Japan's Nikkei-225 Stock Average closed up sharply by +4.03%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -11 ticks.  The 10-year T-note yield is up +3.1 bp to 4.704%.  T-notes are under pressure today amid reduced safe-haven demand with the sharp rally in stocks.  Also, today’s +2% increase in WTI crude oil prices is raising inflation expectations, a bearish factor for T-notes.  T-notes remained lower after the US Q2 employment cost index rose more than expected, a hawkish factor for Fed policy.

European government bond yields are moving higher today.  The 10-year German bund yield rose to a 1-week high of 3.203% and is up +2.7 bp to 3.182%.  The 10-year UK gilt yield is up +3.6 bp to 5.020%.

France Jul CPI rose +0.6% m/m and +2.1% y/y, stronger than expectations of +0.3% m/m and +1.8% y/y.

German Jul unemployment rose +6,000, showing a weaker labor market than expectations of +5,000.  The Jul unemployment rate unexpectedly rose +0.1 to 6.4%, showing a weaker labor market than expectations of no change at 6.3%.

The markets are discounting an 89% chance of a +25 bp ECB rate hike at their next policy meeting on September 10.

US Stock Movers

Chipmakers and AI-infrastructure stocks are extending Thursday’s sharp gains today following plans from hyperscalers to continue ramping up AI infrastructure.  The Philadelphia Stock Exchange Semiconductor Index ($SOX) is up more than +3%.  Marvell Technology (MRVL) is up more than +6%, and Western Digital (WDC), Seagate Technology Holdings Plc (STX),  and Intel (INTC) are up more than +5%.  Also, Advanced Micro Devices (AMD),  Applied Materials (AMAT), and Lam Research (LRCX) are up more than +4%, and Sandisk (SNDK) and Micron Technology (MU) are up more than +3%.

Cybersecurity stocks are climbing today.  Cloudflare (NET) is up more than +3%, and CrowdStrike Holdings (CRWD), Zscaler (ZS), and Okta (OKTA) are up more than +2%.  Also, Palo Alto Networks (PANW) is up more than +1%, and Fortinet (FTNT) is up +0.67%. 

Amazon.com (AMZN) is up more than +14% to lead gainers in the S&P 500, Nasdaq 100, and Dow Jones Industrials after reporting Amazon Web Services net sales of $42.23 billion, stronger than the consensus of $40.57 billion. 

Dexcom (DXCM) is up more than +11% after reporting Q2 revenue of $1.31 billion, better than the consensus of $1.29 billion, and raising its full-year revenue forecast to $5.18 billion to $5.25 billion from a previous forecast of $5.16 billion to $5.25 billion. 

Monolithic Power Systems (MPWR) is up more than +10% after reporting Q2 revenue of $980.6 million, well above the consensus of $903.3 million, and forecasting Q3 revenue of $1.14 billion to $1.16 billion, stronger than the consensus of $986.4 million. 

Ryan Specialty Holdings (RYAN) is up more than +8% after reporting Q2 total revenue of $916.6 million, well above the consensus of $867.7 million.

Mettler-Toledo International (MTD) is up more than +4% after boosting its full-year adjusted EPS forecast to $47.15 to $47.50 from a previous estimate of $46.30 to $46.95, stronger than the consensus of $46.68.

Roblox (RBLX) is down more than -26% after reporting Q2 daily active users of 123 million, well below the consensus of 128.71 million.

GoDaddy (GDDY) is down more than -24% to lead losers in the S&P 500after reporting Q2 total bookings of $1.42 billion, below the consensus of $1.43 billion. 

Reddit (RDDT) is down more than -17% after reporting Q2 US daily active users of 53.2 million, below the consensus of 54 million. 

Apple (AAPL) is down more than -8% to lead losers in the Dow Jones Industrials and Nasdaq 100 after reporting Q3 service revenue of $30.74 billion, weaker than the consensus of $31.36 billion, and Q3 Greater China revenue of $18.82 billion, below the consensus of $19.58 billion.

Stryker (SYK) is down more than -7% after reporting Q2 organic revenue growth of 9.00%, weaker than the consensus of 9.04%. 

AutoNation (AN) is down more than -6% after reporting Q2 revenue of $6.93 billion, below the consensus of $6.98 billion. 

Earnings Reports (7/31/2026)

AbbVie Inc (ABBV), AES Corp/The (AES), Ares Management Corp (ARES), Cboe Global Markets Inc (CBOE), Chevron Corp (CVX), Church & Dwight Co Inc (CHD), Colgate-Palmolive Co (CL), Dominion Energy Inc (D), Eaton Corp PLC (ETN), ExxonMobil Holdings Corp (XOM), Federal Realty Investment Trust (FRT), Franklin Resources Inc (BEN), Linde PLC (LIN), LyondellBasell Industries NV (LYB), Moderna Inc (MRNA), T Rowe Price Group Inc (TROW).