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Exchange-Traded Funds, Equity Futures Lower Pre-Bell Thursday Amid Major Tech Stocks Sell-Off

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The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.6%, and the actively traded Invesco QQQ Trust (QQQ) retreated 0.9% in Thursday's premarket activity, as a selloff in major technology stocks follows corporate earnings.

US stock futures were also lower, with S&P 500 Index futures down 0.3%, Dow Jones Industrial Average futures slipping 0.3%, and Nasdaq futures retreating 0.3% before the start of regular trading.

US initial jobless claims decreased to a level of 187,000 in the employment survey week ended July 18, the lowest level since 1969, from an upwardly revised 209,000 level in the previous week, compared with expectations for an increase to 210,000 in a survey of analysts compiled by Bloomberg.

Weekly natural gas stocks are due to be released at 10:30 am ET, followed by the Kansas City Fed's manufacturing index for July at 11:00 am ET.

In premarket action, bitcoin was down by 0.7%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.9% lower, Ether ETF (EETH) retreated 0.04%, and Bitcoin & Ether Market Cap Weight ETF (BETH) declined by 0.02.

Power Play:

Technology

The State Street Technology Select Sector SPDR ETF (XLK) retreated 0.7%, the iShares US Technology ETF (IYW) was 1.1% lower, and the iShares Expanded Tech Sector ETF (IGM) was down 0.4%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was up 0.1%, while the iShares Semiconductor ETF (SOXX) fell by 1.9%.

STMicroelectronics (STM) shares were down more than 13% in premarket activity even after the company reported higher Q2 non-GAAP earnings and revenue.

Winners and Losers:

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.4%, the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was up 1.3%, and the iShares US Consumer Staples ETF (IYK) was inactive. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 1.8%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) was 1.2% lower.

Tesla (TSLA) shares fell more than 7% pre-bell after the electric vehicle manufacturer reported an unexpected year-over-year decline in its Q2 earnings, weighed down by higher operating expenses related to research and development and artificial intelligence initiatives.

Financial

The State Street Financial Select Sector SPDR ETF (XLF) was down 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.7%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.4% higher.

Ameriprise Financial (AMP) shares traded up 2% in early-hours activity after the company reported higher Q2 adjusted earnings and revenue.

Energy

The iShares US Energy ETF (IYE) rose 1.2%, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 1.8%.

TotalEnergies (TTE) stock was up more than 2% before market open after the company reported higher Q2 adjusted earnings and revenue.

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.1%, the Vanguard Industrials Index Fund (VIS) was 0.04% lower, and the iShares US Industrials ETF (IYJ) was up 1%.

Union Pacific Railroad (UNP) and Canadian National Railway (CNI) shares rose more than 1% before the opening bell after the companies signed a binding memorandum of understanding establishing a framework for CN to secure competitive access in connection with the proposed merger between Union Pacific and Norfolk Southern (NSC). Norfolk Southern shares were 0.7% lower.

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.2%, the Vanguard Health Care Index Fund (VHT) was up 0.1%, while the iShares US Healthcare ETF (IYH) slipped 0.4%. The iShares Biotechnology ETF (IBB) was 0.1% lower.

AstraZeneca (AZN) stock was down more than 1% premarket following a 0.2% gain at the prior close. The company said that the European Commission approved its experimental drug, Etcamah, in combination with a CDK4/6 inhibitor, for adults with a type of breast cancer harboring an ESR1 mutation that emerges during first-line endocrine therapy, after the Phase 3 SERENA-6 trial met its primary endpoint.

Commodities

Front-month US West Texas Intermediate crude oil advanced by 4.3% to $90.56 per barrel on the New York Mercantile Exchange. Natural gas was up by 1.1% to $2.96 per 1 million British Thermal Units. The United States Oil Fund (USO) was up 4.8%, while the United States Natural Gas Fund (UNG) was 1.8% higher.

Gold futures for July retreated 1.5% to $4,087.80 an ounce on the Comex. Silver futures were down 2.5% to $58.81 an ounce. SPDR Gold Shares (GLD) decreased 1.7%, and the iShares Silver Trust (SLV) was 3% lower.

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Update: US Equity Indexes Fall as Treasury Yields, Crude Oil Gains Reflect Concern Over Widening Disruption to Energy Supplies

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes fell on Wednesday as government bond yields followed crude oil prices higher amid concern that disruption to energy supplies is likely to both extend and expand in the Middle East.The Nasdaq Composite declined 0.6% to 25,690.90, with the S&P 500 down 0.1% to 7,498.96, while the Dow Jones Industrial Average leaned slightly lower to 52,218.58. Communication services and consumer discretionary led decliners while utilities and energy topped the gainers.Alphabet (GOOG, GOOGL) and Tesla (TSLA), both a part of the so-called Magnificent-7 group of stocks with a significant index sway, reported after the bell on Wednesday.Alphabet reported Q2 earnings of $9.11 per diluted share, up from $2.31 a year earlier. Analysts polled by FactSet expected $2.88. Revenue for the three months ended June 30 was $119.80 billion, up from $96.43 billion a year earlier. Analysts expected $117.06 billion.Tesla reported Q2 adjusted earnings of $0.33 per diluted share, versus $0.40 a year ago. Analysts polled by FactSet expected $0.53. Sales for the quarter were $28.24 billion, up from $22.50 billion a year earlier. Analysts expected $26.42 billion.In geopolitical news, the US plans to destroy an Iranian bridge or power plant, including those in and around Tehran, every time it attacks ships in the Strait of Hormuz, President Donald Trump said in a social media post on Wednesday. US Central Command has struck Iran for 11 consecutive nights to degrade the Iran Revolutionary Guards Corps' ability to attack maritime traffic in the chokepoint to about a fifth of global crude oil and gas flows.Meanwhile, seven tankers have changed course in the Red Sea to avoid the Bab el-Mandeb Strait since the Houthis' threat on Tuesday to block Saudi oil exports, Reuters reported. The Iran-aligned Houthis have reportedly completed preparations to target vessels near the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and Arabian Sea. The Bab el-Mandeb Strait is an alternative route to the Strait of Hormuz, which remains effectively closed due to tensions between the US and Iran."Any aggression against Iran, including our infrastructure, will compel a powerful and decisive response," Iran's Foreign Minister Abbas Araghchi posted on X, formerly Twitter, on Wednesday. "Those who contribute to such aggression, whatever the kind of support, will also be considered as legitimate targets."The front-month US West Texas Intermediate climbed 2.5% to $86.41 a barrel, and global benchmark North Sea Brent jumped 3% to $93.75 a barrel.US Treasury yields rose, extending gains from Tuesday. The 10-year marched 3.1 basis points higher to 4.66%, its strongest level in a month. The two-year jumped 4.3 basis points to 4.3% after yields hit the highest in 52 weeks.Markets are pricing in a more hawkish path for central banks, with yields moving higher around the world as a result, a Deutsche Bank note said, referring to the recent moves in real yields.Next week, the probability of the Federal Reserve leaving its policy unchanged for July slumped to 66% from 89% a week ago, the CME FedWatch tool showed Wednesday. The likelihood of a pause continuing across September, October, and December also declined.In precious metal markets, gold futures jumped 1.5% to $4,136.1, and silver futures advanced 1.5% to $59.98.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL$TSLA
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Update: US Equity Indexes Mixed as Treasury Yields Jump With Crude Oil Amid Red Sea Chokepoint Disruption

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes traded mixed as government bond yields followed crude oil prices higher amid worsening Iran geopolitics and a disruption of maritime traffic in the Red Sea chokepoint.The Nasdaq Composite slipped less than 0.1% to 25,826.1 after midday Wednesday. The S&P 500 rose 0.1% to 7,519.5, and the Dow Jones Industrial Average climbed 0.3% to 52,369.4.In geopolitical news, the US will destroy an Iranian bridge or power plant, including those in and around Tehran, every time it attacks ships in the Strait of Hormuz, President Donald Trump said in a social media post on Wednesday.Iran's Islamic Revolutionary Guard Corps said it hit Jordan's King Faisal and Prince Hassan bases with missiles and drones, claiming to target US military equipment in response to recent American strikes, CNN reported. The US Central Command said Tuesday it struck Iran for the 11th consecutive evening.Seven tankers have changed course in the Red Sea to avoid the Bab el-Mandeb Strait since the Houthis' threat on Tuesday to block Saudi oil exports, Reuters reported. The Iran-aligned Houthis have reportedly completed preparations to target vessels near the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and Arabian Sea. The Bab el-Mandeb Strait is an alternative route to the Strait of Hormuz, which remains effectively closed due to tensions between the US and Iran.The front-month US West Texas Intermediate climbed 2.4% to $86.40 a barrel, and global benchmark North Sea Brent jumped 2.8% to $93.52 a barrel.US Treasury yields rose, extending gains from Tuesday. The 10-year marched 1.8 basis points higher to 4.65%, its strongest level in a month. The two-year jumped 3.7 basis points to 4.3% after yields hit the highest in 52 weeks.Markets are pricing in a more hawkish path for central banks, with yields moving higher around the world as a result, Jim Reid, global head of macro and thematic research at Deutsche Bank, said in a note Wednesday, referring to the recent moves in real yields. The US 30-year real yield at over 1.0 basis point reached a post-2008 high on Tuesday, he added.Next week, the probability of the Federal Reserve leaving its policy unchanged for July slumped to 66% from 89% a week ago, the CME FedWatch tool showed Wednesday. The likelihood of a pause continuing across September, October, and December also declined. The possibility of a Fed rate increase had surged earlier this month following soft consumer and producer price inflation data.Alphabet (GOOG, GOOGL) and Tesla (TSLA) will report quarterly earnings after the bell on Wednesday.Shares of Super Micro Computer (SMCI) soared 24% after the company said it expects fiscal Q4 GAAP and non-GAAP gross margins in the range of 15% to 17%, significantly above its 8.2% to 8.4% forecast due to a favorable customer and product mix. The stock was the top gainer on the S&P 500.In precious metal markets, gold futures jumped 2% to $4,159.3, and silver futures advanced 2.6% to $60.64.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL$SMCI$TSLA
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Exchange-Traded Funds, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM fell and IVV rose. Actively traded Invesco QQQ Trust (QQQ) eased 0.1%.US equity indexes traded mixed ahead of quarterly earnings from Alphabet (GOOG, GOOGL) and Tesla (TSLA) and as government bond yields followed crude oil prices higher amid worsening Iran geopolitics.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added about 1.2%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) rose fractionally; iShares US Technology ETF (IYW) shed less than 0.1%, and iShares Expanded Tech Sector ETF (IGM) was down 0.1%.The State Street SPDR S&P Semiconductor (XSD) rose 1%, and iShares Semiconductor (SOXX) advanced 1%.FinancialThe State Street Financial Select Sector SPDR (XLF) shed 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 0.3%.CommoditiesCrude oil rose 2.6%, and the United States Oil Fund (USO) added 2.4%. Natural gas gained 1.9%, and the United States Natural Gas Fund (UNG) was up 2.1%.Gold on Comex added 1.8%, and the State Street SPDR Gold Shares (GLD) gained 1.4%. Silver was up 2%, and iShares Silver Trust (SLV) climbed 2%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) added 0.5%. The Vanguard Consumer Staples ETF (VDC) gained 0.4%, and iShares Dow Jones US Consumer Goods (IYK) was up 0.9%.The State Street Consumer Discretionary Select Sector SPDR (XLY) slipped 0.5%. VanEck Retail ETF (RTH) dipped 0.7%, and the State Street SPDR S&P Retail (XRT) was up 0.4%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) shed 0.3% and iShares US Healthcare (IYH) eased 0.3%, and Vanguard Health Care ETF (VHT) fell 0.5%. IShares Biotechnology ETF (IBB) was down 0.8%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 0.4%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were higher as well.CryptocurrencyIn midday activity, bitcoin (BTC-USD) dipped 0.7%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) fell 0.8%, ProShares Ether ETF (EETH) was up 1%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 0.1% higher.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH