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Stocks Rise Pre-Bell as Traders Await Latest Batch of Earnings, Monitor Middle East Developments

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Stocks Rise Pre-Bell as Traders Await Latest Batch of Earnings, Monitor Middle East Developments

The benchmark US stock measures were pointing higher before the opening bell Monday as investors await earnings from several major companies this week and monitor developments in the Middle East.

The S&P 500 and the Dow Jones Industrial Average rose 0.3% each in premarket activity, while the Nasdaq added 0.6%. The indexes finished Friday's trading session lower.

Alphabet (GOOG, GOOGL) and electric vehicle manufacturer Tesla (TSLA) are scheduled to release their quarterly earnings after the markets close Wednesday. Intel (INTC), Philip Morris International (PM), American Express (AXP), T-Mobile US (TMUS), International Business Machines (IBM), AT&T (T) and Verizon Communications (VZ) are also expected to post their results this week.

Shares of Domino's Pizza (DPZ) spiked 7.1% pre-bell as the pizza restaurant chain reported better-than-expected fiscal second-quarter revenue. Alibaba's (BABA) US-listed stock rebounded 3.4% after closing Friday down 2.1%.

West Texas Intermediate crude oil edged down 0.8% to $81.87 a barrel before the open, while Brent slipped 0.1% to $88.05.

Iran's foreign ministry spokesman Esmail Baghaei said that Tehran could resume negotiations with the US based on national interests, CNBC reported. Baghaei told reporters that US intermediaries had continued to exchange messages with Iran.

The US Central Command said Sunday its forces completed their ninth consecutive evening of strikes against Iran. In a separate statement, CENTCOM confirmed the passing of three US service members, while a missing fourth member's remains were found in Jordan.

"Energy and refined fuel flows through the Strait of Hormuz continues to slow amid the escalating conflict between the US and Iran," Saxo Bank said in a Friday report. "The renewed disruption has interrupted the recent recovery in regional supply, reviving concerns about tighter global markets."

Treasury yields were trending upwards in premarket action, with the two-year rate increasing 1.5 basis points to 4.19% and the 10-year rate gaining 2.1 basis points to 4.56%.

Consumer sentiment this month hit its highest level since February amid easing price pressures at the pump, though renewed tensions in the Middle East could weigh on confidence going forward, according to a survey released Friday by the University of Michigan.

Gold nudged up 0.2% to $4,026 per troy ounce, while bitcoin decreased 0.3% to $64,234.

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HDFC Bank (NSE:HDFCBANK, BOM:500180) reported a 5% increase in net profit for the fiscal first quarter ended June 30 to 190.60 billion rupees from 181.55 billion rupees a year earlier.Earnings per share rose to 12.35 rupees from 11.79 rupees, according to filings with the Indian bourses on Saturday.Net revenue for the quarter, however, shrank to 463.6 billion rupees from 531.7 billion rupees. The year-ago figure included 91.3 billion rupees in transaction gains from the IPO of its subsidiary, HDB Financial Services (NSE:HDBFS, BOM:544429), HDFC said.Net interest income in the latest reporting period edged up 6.7% to 335.3 billion rupees. Net interest margin shrank to 3.26% on total assets from 3.4% a year prior.On the earnings call, CEO Sashidhar Jagdishan said the lender faced "certain challenges over the last four months."CFO Srinivasan Vaidyanathan told analysts that the bank does not expect net interest margins to improve quickly, citing the country's liquidity scenario and the elevated costs of non-retail deposits."Non-retail deposit costs have been elevated. And similarly, the borrowing mix has not come off yet. We still remain at about 11%. That continues to be a space that we keep watching. But again, it doesn't change in the short term and doesn't change in a hurry," Vaidyanathan said.During the call, Deputy Managing Director Kaizad Bharucha said the bank had disbursed close to 140 billion rupees under the government's Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 scheme as of June 30."I believe that's amongst the highest in terms of the participating banks because of the spread of customers and the quality of the portfolio that we have out over there," Bharucha said.

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Update: Equities Fall Amid Netflix Sell-Off; Oil Climbs as Middle East Tensions Rise
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Update: Equities Fall Amid Netflix Sell-Off; Oil Climbs as Middle East Tensions Rise

(Updates with market moves at the end of the day and weekly index changes.)US equities declined Friday as Netflix (NFLX) shares sold off, capping a losing week for Wall Street amid renewed tensions in the Middle East that drove oil prices higher.The Nasdaq Composite shed 1.4% to close at 25,520.24, while the S&P 500 dropped 1% to 7,457.69. The Dow Jones Industrial Average lost 0.8% to settle at 52.146.42. Barring energy, all sectors ended in the red, led by communication services.Netflix (NFLX) shares slumped 7.3% Friday, among the worst performers on the S&P 500. The steaming giant's move to annual engagement reporting and its soft US and Canada revenue in the second quarter apparently weighed on the stock, BofA Securities said in a note.Netflix's June-quarter revenue fell short of Wall Street's estimate, results released late Tuesday showed.West Texas Intermediate crude oil was up 4% at $82.14 a barrel in Friday late-afternoon trade, while Brent rose 4.3% to $87.82. The WTI was headed for its biggest weekly gain since early March, while Brent was on track for its steepest weekly rise since mid-April.Iran has hit Jordan, Kuwait and Qatar, while Tehran also claimed it targeted US military assets in Oman and Bahrain, CNN reported Friday."Energy and refined fuel flows through the Strait of Hormuz continues to slow amid the escalating conflict between the US and Iran," Saxo Bank said in a report. "The renewed disruption has interrupted the recent recovery in regional supply, reviving concerns about tighter global markets."US Treasury yields were mixed, with the two-year rate up 2.7 basis points at 4.18% and the 10-year rate falling 1.8 basis points to 4.55%.This week, the Nasdaq and the S&P 500 fell 2.9% and 1.6%, respectively, following their two consecutive weekly gains. The Dow dipped 0.9% to log its second straight weekly decline."Beyond concerns about the latest flare-up in oil, arguably the bigger concern for policymakers is the inflationary impact of the boom in (artificial intelligence) spending," Douglas Porter, chief economist at BMO Financial Group, said in a report Friday.In other corporate news, Intuitive Surgical (ISRG) shares sank 14% Friday, the steepest decline on the S&P 500. Growth in the company's da Vinci robotic surgery procedures in the US moderated due in part to changes in Affordable Care Act premium subsidies, even as it reported better-than-expected quarterly results late Thursday.SpaceX (SPCX) share fell 5.4%. The company's Starship rocket triggered an "automatic launch abort," with the next launch to be rescheduled possibly in a few days, SpaceX Chief Executive Elon Musk said in a Thursday post on X.Travelers (TRV) shares jumped 9.2%, the top gainer on the S&P 500 and the Dow. The property and casualty insurer's second-quarter earnings unexpectedly increased year over year, while its written premiums came in ahead of market estimates.In economic news, US consumer sentiment this month hit its highest level since February amid easing price pressures at the pump, though renewed tensions in the Middle East could weigh on confidence going forward, according to a survey by the University of Michigan.US housing starts increased more than expected last month amid a sharp jump in multi-family projects, government data showed.Gold was up 0.7% to $4,020.50 per troy ounce, while silver gained 0.5% to $56.44 per ounce.

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Lodging Sector Set For Second-Quarter Beats Amid US RevPAR Acceleration, Morgan Stanley Says
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