US EQUITY OPEN: Indices see upside amid a deluge of earnings and strong US data

Analysis details (14:53)

OPEN: Indices opened with marginal gains amid a deluge of risk events on Thursday morning, with a hatful of US data (retail sales, jobless claims, import/export prices, Philly Fed) and numerous earnings (more below). US data was broadly strong - Retail Sales (Jun) printed way above expectations, as did control, although analysts highlight the strength was not as strong in real terms. The Philly Fed (Jul) headline rose above the top end of the forecast range, while initial jobless claims unexpectedly fell to 221k (exp. 235k, prev. 228k). Export prices rose 0.5% (exp. 0.0%, prev. -0.6%) and import prices only lifted 0.1% (exp. 0.3%), with the prior month revised notably lower to -0.4% from 0.0%. Sectors are largely in the green with only Health, Communication Services, and Energy in the red with the former hit by a disappointing Elevance Health (ELV) (-10.7%) report. Industrials and Consumer Staples sit atop of the pile and are buoyed by United Airlines (UAL) (+5.5%) and PepsiCo (PEP) (+6%), respectively. The Dollar Index is gaining to the detriment of all G10 FX peers with the Aussie underperforming following a soft Aussie jobs report. Treasuries are flat in the short-end, but strengthening in the long-end, with precious metals (XAU, XAG) seeing weakness. WTI and Brent are firmer by c. USD 0.20/bbl albeit seeing pressure in recent trade amid reports the Iraqi Government decides that Iraq's Kurdistan is to immediately deliver 230k bpd of oil to SOMO. Ahead, NAHB (Jul) is at the top of the hour ahead of Fed's Daly and Cook with dove Waller and Netflix earnings due after-hours.

EARNINGS:

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  TMSC (TSM): Net profit beat and rose to a record high driven by strong demand for AI chips; Strong next quarter revenue outlook.


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  Elevance Health (ELV): Profit missed, weak FY outlook and warned on costs.


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  GE Aerospace (GE): Top and bottom line beat alongside raising FY outlook.


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  PepsiCo (PEP): EPS and revenue topped.


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  United Airlines (UAL): Revenue missed with next quarter profit midpoint guide light.


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  US Bancorp (USB): EPS and revenue fell short with slightly disappointing next quarter NII view.


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  Marsh & McLennan (MMC): Major metrics surpassed Wall St. expectations

STOCK SPECIFICS:

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  Sarepta Therapeutics (SRPT) announced job cuts and restructuring plans.


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  Union Pacific (UNP) explores potential rival bid; CEO has expressed interest in a transcontinental railroad, implying possible interest in CSX (CSX) or Norfolk Southern (NSC).
  


• China’s Zangge Mining halted lithium prod. at a unit in Qinghai province on orders from local officials. Of note for Albemarle (ALB) and SQM (SQM).
  


• Major US corn syrup makers pressured after Trump said he has been speaking to Coca-Cola (KO) about using real cane sugar in Coke in the US and they agreed. Of note for Archer-Daniels-Midland (ADM) and Ingredion (INGR).
  


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  MP Materials (MP) announced USD 500mln underwritten public offering of common stock with shares priced between USD 54.50-56.00


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  Uber (UBER) to invest USD 300mln in Lucid Group (LCID) as part of robotaxi partnership.

17 Jul 2025 - 14:53- Fixed IncomeData- Source: Newsquawk