Daily Brief - July 31, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are showing gains ahead of the market open, with the Dow Jones, S&P 500, and Nasdaq 100 futures all advancing. This positive sentiment follows a solid close on Thursday and is supported by cooler-than-expected June PCE inflation data and a slower-than-anticipated Q2 GDP report. The Nasdaq 100 futures are notably up by approximately 300 points, driven by optimism in the technology sector despite some individual stock weaknesses. In Asia, markets posted gains with South Korea’s Kospi surging over 16%, marking its best day in months, fueled by rebounds in chipmakers Samsung and SK Hynix. However, China’s factory activity unexpectedly contracted in July, ending a four-month expansion streak, which may temper enthusiasm for Chinese equities. Japan’s Bank of Japan held rates steady at 1.00%, maintaining a hawkish stance and signaling potential further hikes, which contributed to yen weakness after intervention-led gains. Overall, the market sentiment is cautiously optimistic, balancing strong earnings reports and AI-driven tech optimism against geopolitical tensions and mixed economic data. Key overnight developments include significant earnings from tech giants and energy companies, as well as regulatory actions impacting crypto and prediction markets. ## Top Stories Moving Markets - **Apple Inc. (AAPL)** reported strong Q3 earnings with a 22% surge in iPhone sales. Despite beating analyst estimates, shares fell 7.4% in pre-market trading due to supply chain issues and a cautious forecast from CEO Tim Cook, who is stepping down soon. This “sell the news” reaction will weigh on tech sentiment today. - **Amazon.com, Inc. (AMZN)** delivered robust Q2 results, with AWS growth exceeding expectations and a positive outlook on AI spending. Shares surged 12% pre-market, providing a boost to the tech sector and Nasdaq futures. - **Coinbase Global, Inc. (COIN)** shares dropped after reporting Q2 revenue below estimates, despite mixed analyst ratings. Rosenblatt maintained a Buy rating but lowered the price target to $200, while BTIG cut the price target citing weak crypto trading volumes. The crypto exchange’s performance will be closely watched amid broader crypto market weakness. - **Bitcoin (BTC)** and **Ethereum (ETH)** prices declined overnight, with BTC down 1.71% to $63,620.51 and ETH down 2.18% to $1,875.13. Analysts warn that BTC could test $60,000 and ETH may fall toward $1,686, signaling bearish momentum in the crypto space that could impact related stocks. - **Chevron Corporation (CVX)** and **ExxonMobil (XOM)** posted strong earnings, with Chevron recording its highest quarterly profit in six years, beating estimates amid rising oil prices driven by geopolitical tensions around Iran. ExxonMobil’s Q2 profit fell slightly short of forecasts, causing shares to slide. Energy sector dynamics will influence market direction today. ## Stocks to Watch Today - **$AAPL** – Shares down 7.4% pre-market despite strong Q3 earnings and iPhone sales growth; supply chain concerns and cautious guidance weigh on sentiment. - **$AMZN** – Shares up 12% pre-market following strong Q2 results and upbeat AWS/AI outlook, supporting tech sector gains. - **$COIN** – Shares falling after Q2 revenue miss; mixed analyst ratings with lowered price targets; crypto market weakness adds pressure. - **$SYK (Stryker)** – Shares moving lower pre-market despite earnings beat; watch for healthcare sector impact. - **$ILMN (Illumina)** – Barclays maintains Underweight rating but raises price target to $160; cautious sentiment on diagnostics. - **$AGCO** – Truist reiterates Buy rating but lowers price target to $135; watch for agricultural equipment sector reaction. - **$SNDR (Schneider National)** – Susquehanna maintains Neutral rating and lowers price target to $36; trucking sector under pressure. - **$SKX (Skechers)** – data not available; skip. - **$MSTR (MicroStrategy)** – impacted by crypto price declines; data not available for specific price moves. - **$RBLX (Roblox)** – shares down after earnings; data not available for specific moves. - **$VCYT (Veracyte)** – strong earnings reported; watch for healthcare sentiment. - **$WDAY (Workday)** – shares moving lower pre-market; data not available for specific catalyst. ## Sector Setup - **Technology:** Mixed outlook. While Amazon’s strong earnings and AI growth support the sector, Apple’s supply chain issues and cautious guidance weigh on sentiment. Semiconductor stocks like Samsung and SK Hynix are surging, bolstered by AI demand, which could offset some weakness. - **Energy:** Positive momentum driven by Chevron’s record profits and rising oil prices amid geopolitical tensions. ExxonMobil’s slight miss tempers enthusiasm but overall energy sector poised for gains. - **Healthcare:** Mixed signals as Stryker and Illumina show cautious sentiment despite earnings beats. Veracyte’s strong results may provide some support. - **Financials:** Limited notable news; Truist’s rating action on AGCO and Susquehanna’s on Schneider National may have minor sector impact. ## Economic Calendar & Fed No major U.S. economic data releases or Fed events are scheduled for today. Market focus remains on earnings and geopolitical developments. Recent cooler inflation data and slower GDP growth have set a cautious tone, but no fresh data points are expected to shift policy expectations immediately. ## Crypto & Commodities Bitcoin is down 1.71% at $63,620.51, and Ethereum is down 2.18% at $1,875.13. Both cryptocurrencies are flashing bearish signals, with analysts warning of potential further declines to $60,000 for BTC and $1,686 for ETH. This bearish crypto environment is pressuring related equities such as Coinbase. Oil prices have surged, lifting energy stocks like Chevron, which posted its highest quarterly profit in six years. The rise is linked to geopolitical tensions involving Iran and improved tanker traffic through the Strait of Hormuz. Gold edged lower but is on track for its first monthly gain in five months. ## Trading Game Plan - Monitor tech sector volatility closely, especially **$AAPL** and **$AMZN**, as earnings reactions diverge sharply. - Favor energy stocks like **$CVX** and **$XOM** on strong earnings and geopolitical-driven oil price strength. - Be cautious on crypto-related equities such as **$COIN** amid weak crypto prices and lowered analyst targets. - Watch semiconductor stocks, particularly South Korean chipmakers, for momentum driven by AI demand. - Keep an eye on healthcare names with mixed earnings signals, including **$SYK**, **$ILMN**, and **$VCYT**. - No major economic data today, so focus on earnings and geopolitical developments for market direction. - Upcoming earnings to watch include several mid-cap and specialty companies; however, no major market-moving releases are scheduled.