Stock Market Update

Equity futures are higher this morning following yesterday's rebound that saw the major averages reclaim a nice chunk of Friday's losses.

The market is currently evaluating a hefty batch of earnings reports since yesterday's close, with some notable names among the cohort. 

Palantir Technologies (PLTR 170.30, +9.64, +6.0%) is up nicely in the pre-market as the company beat expectations and issued upside guidance. A 48% increase in revenues year-over-year for the best-performing stock in the S&P 500 this year bodes well for the growth outlook of AI.

Macro headlines are subdued this morning, though it is expected that there will be trade developments throughout the week as several nations look to reposition before the August 7 deadline. The New York Times reports that Switzerland will propose "a more attractive offer" to President Trump to lower the 39% tariff rate that is set to take effect this week.

The market will also receive a few economic data releases this morning, including the Trade Balance for June at 8:30 ET, the final reading of the July S&P Global U.S. Services PMI at 9:45 ET, and ISM Services PMI at 10:00 ET.

In corporate news:

• BP (BP 33.27, +0.78, +2.4%) beat EPS expectations by $0.20 and beat revenue expectations.
• Caterpillar (CAT 418.00, -15.70, -3.6%) missed EPS expectations by $0.17 and beat revenue expectations. The miss marks the third earnings miss in the last four quarters.
• Marriott Vacations (VAC 75.90, +1.55, +2.1%) beat EPS expectations by $0.19, beat revenue expectations, and reaffirmed its FY25 guidance. 
• Palantir Technologies (PLTR 170.30, +9.64, +6.0%) beat EPS expectations by $0.02 and beat revenue expectations as revenues grew 48% year-over-year. The company guided Q3 and FY25 revenues above consensus.
• Pfizer (PFE 23.99, +0.46, +2.0%) beat EPS expectations by $0.20 and beat revenue expectations. The company raised its FY25 EPS and revenues guidance to in-line.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +0.6%, Hong Kong's Hang Seng: +0.7%, China's Shanghai Composite: +1.0%, India's Sensex: -0.4%, South Korea's Kospi: +1.6%, Australia's ASX All Ordinaries: +1.2%.

• Final July Services PMI readings from the region's major economies were better than expected.
• Japan's top trade negotiator is reportedly back in Washington, seeking a written confirmation of the trade deal reached with the U.S.
• Expectations for the next rate hike from the Bank of Japan have reversed significantly.
• China's Agriculture Ministry noted that this fall's grain production is expected to be pressured by floods and droughts.

In economic data:

• China's July S&P Global Services PMI 52.6 (expected 50.4; last 50.6)
• Japan's July Services PMI 53.6 (expected 53.5; last 51.7)
• South Korea's July CPI 0.2% m/m, as expected (last 0.0%); 2.1% yr/yr, as expected (last 2.2%)
• India's July Services PMI 60.5 (expected 59.8; last 60.4)
• Hong Kong's July Manufacturing PMI 49.2 (last 47.8)
• Singapore's June Retail Sales -1.2% m/m (last 1.0%); 2.3% yr/yr (last 1.3%)
• Australia's July ANZ Job Advertisements -1.0% m/m (last 1.6%) and July Services PMI 54.1 (expected 53.8; last 53.8)
• New Zealand's ANZ Commodity Price Index -1.8% m/m (last -2.4%)

Major European indices trade in the green. STOXX Europe 600: +0.5%, Germany's DAX: +0.9%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.1%.

In news:

• A European Commission official said that the trade deal with the U.S. is already being implemented, though he added that the joint statement is not legally binding.
• BP and Infineon reported strong results for the quarter.
• Germany's services sector returned to expansion in July (50.6) while Services PMI readings from the U.K. (51.8) and Spain (55.1) beat expectations.

In economic data:

• Eurozone's July Services PMI 51.0 (expected 51.2; last 50.5). June PPI 0.8% m/m (expected 0.9%; last -0.6%); 0.6% yr/yr (expected 0.5%; last 0.3%)
• Germany's July Services PMI 50.6 (expected 50.1; last 49.7) U.K.'s July Services PMI 51.8 (expected 51.2; last 52.8)
• France's July Services PMI 48.5 (expected 49.7; last 49.6). June Industrial Production 3.8% m/m (expected 0.8%; last -0.7%).June government budget deficit EUR100.4 bln (last deficit of EUR94.0 bln)
• Italy's July Services PMI 52.3 (expected 52.5; last 52.1)
• Spain's July Services PMI 55.1 (expected 52.6; last 51.9) and June Industrial Production 2.3% yr/yr (last 1.7%