Key Highlights

  • September S&P 500 E-Mini futures up +0.30%
  • September Nasdaq 100 E-Mini futures up +0.59%
  • Micron Technology up over +4%

Market Rebound Ahead of Earnings

US stocks are set to open higher as chipmakers rebound, with investors focused on corporate earnings and economic data. September S&P 500 E-Mini futures are up +0.30%, while September Nasdaq 100 E-Mini futures have gained +0.59%. The rebound is led by chipmakers, with Micron Technology up over +4% and Advanced Micro Devices rising more than +2%.

Marvell Technology has also gained about +2%. The gains come ahead of a busy week of corporate earnings, with investors closely watching for signs of economic growth.

Chipmakers Lead the Charge

The chipmaker sector has been a key driver of the market rebound, with investors betting on a recovery in the tech sector. Micron Technology's +4% gain is a significant boost to the sector, while Advanced Micro Devices' +2% rise is also a positive sign. Marvell Technology's +2% gain rounds out the top performers in the sector.

The gains come despite a decline in WTI crude prices on Monday, which had weighed on the market earlier in the week. The benchmark 10-year yield has risen two basis points to 4.57%, but this has not deterred investors from buying into the chipmaker sector. Consumer sentiment index rising to 54.4.

This is a 5-month high and stronger than expectations of 51.0. Industrial production rose +0.1% month-over-month in June, although this was weaker than expectations of +0.2%. Manufacturing production was unchanged month-over-month, which was also weaker than expectations of +0.1%.

The import price index unexpectedly rose +0.3% month-over-month in June, which was stronger than expectations of -0.7%. The data suggests that the economy is still growing, albeit at a slower pace.

Earnings Season in Focus

With earnings season in full swing, investors are closely watching for signs of economic growth. The market is expecting a strong earnings season, with the S&P 500 expected to post an average +24% gain. However, some companies have already reported disappointing results, with Meta Platforms falling over -2% and Alphabet declining over -2%.

Applied Materials has slid over -5%, while KLA Corp. has dropped more than -3%. Intuitive Surgical has tumbled over -14%, although Travelers Cos.

Has climbed more than +9%. The market will be closely watching the earnings reports from major companies, including 3M, Lockheed Martin, and Charles Schwab. Based on market data as of July 28.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.