US Futures Mixed, European Equities Up; Oil Rises on Hormuz Uncertainty; Earnings Season Continues

Lead US equity futures are mixed this morning, with S&P futures up 0.34% and Nasdaq futures down 0.03%. European equities are showing gains. Crude oil prices are rising amid conflicting reports on the Strait of Hormuz, with WTI crude up 1.14% and Brent crude up 1.97%. A busy earnings season continues with several companies reporting better-than-expected results and raising guidance. Session narrative European markets are trading higher at midday, extending gains from the previous session. US equity futures are mixed, with the S&P and Dow futures showing modest gains, while Nasdaq futures are slightly down. Geopolitical tensions remain a key focus, particularly around the Strait of Hormuz, where reports are conflicting. The US has signaled a deal to reopen the Strait could be days away, while Iran denies a reopening is imminent. These developments are contributing to the rise in crude oil prices. In other geopolitical news, Russia has reportedly struck Ukrainian cargo vessels, and Ukraine's President Zelenskiy noted air defense supplies are significantly lower than last year. Earnings season is in full swing, with a slew of companies reporting. Cencora announced Q3 adjusted EPS of $4.48, beating estimates, and raised its FY2026 adjusted EPS guidance. Thomson Reuters also reported Q2 revenue that surpassed estimates and raised its FY2026 sales guidance. Walt Disney raised its FY2026 adjusted EPS guidance, and BorgWarner increased its FY2026 adjusted EPS guidance and share repurchase authorization. CVS Health raised its FY2026 adjusted EPS guidance to $7.90-$8.10, and Zimmer Biomet Holdings also raised both its FY2026 adjusted EPS and sales guidance. Arista Networks saw its stock climb after reporting strong Q2 results driven by AI networking demand. Sandisk stock, however, saw a slight premarket dip after surging 10.84% yesterday, as traders await its earnings report after the close. Foxconn's July sales jumped 54% on AI demand. Analyst actions include Cantor upgrading BTDR to Overweight, Wells Fargo raising AMD's target price, and Citi raising MCD's target price, while also cutting CRWV and NBIS targets. Cross-asset check In the fixed income market, the US 10-year yield is down 1.26%, reflecting a move into safer assets. The US Dollar Index is down 0.03%, with EUR/USD up 0.07% and GBP/USD up 0.10%. Gold is up 1.49% and silver is up 2.01%, indicating increased demand for precious metals. Copper is down 0.02% and natural gas is up 0.15%. The VIX, a measure of market volatility, is down 0.97%. The US Dollar Index is down 0.03% to 99.83. EUR/USD is trading at 1.1542, up 0.07%, and GBP/USD is at 1.3465, up 0.10%. USD/JPY is down 0.02% to 157.744. The S&P 500 futures are at 7792.25, up 0.34%. Nasdaq futures are at 29855.5, down 0.03%. Dow futures are at 54416, up 0.27%. Russell futures are at 3050.4, up 0.19%. The US 10-year yield is at 4.63%, down 1.26%. The VIX is at 16.34, down 0.97%. The price of WTI crude is 76.63, up 1.14%. Brent crude is 80.92, up 1.97%. Gold is at 4214.5, up 1.49%. Silver is at 61.46, up 2.01%. Copper is at 6.64, down 0.02%. Natural gas is at 2.69, up 0.15%. The US Dollar Index is at 99.83, down 0.03%. Themes & continuing stories Geopolitical tensions, particularly concerning the Strait of Hormuz and the Russia-Ukraine conflict, continue to influence market sentiment, especially in energy markets. The ongoing corporate earnings season is providing significant company-specific news and guidance updates, driving individual stock movements and broader sector trends. What’s ahead After the closing bell, Sandisk Corporation and AppLovin Corporation are scheduled to report their quarterly earnings. These reports will be closely watched for insights into the tech and advertising sectors, respectively.