US Stocks-Nasdaq futures underpinned by strong AI forecasts; focus on earnings, data

The focus later in the day will shift to economic data. The Labor Department's Job Openings and Labor Turnover Survey, scheduled at 10 a.m. ET, is expected to show the economy created about 7.4 million jobs in June, lower than the 7.6 million in the month before. Other reports on factory orders and trade for June, along with remarks by Kansas City Fed President Jeffrey Schmid could also offer insights on the health of the economy. Investors will parse the reports to also gauge the outlook for interest rates at a time when the U.S.-Iran standoff in the Middle East is keeping crude prices elevated, while the Federal Reserve has offered little guidance on monetary policy. Traders see a 63.4% chance that the central bank will hike rates by at least 25 basis points when it meets next month, the CME FeWatch Tool showed. At 05:16 a.m. ET, Dow E-minis YMcv1 were up 34 points, or 0.06%, and S&P 500 E-minis EScv1 were up 5 points, or 0.07%. Nasdaq 100 E-minis NQcv1 were up 129.25 points, or 0.45%. Overall, this earnings season has so far been better than historical standards. Of the 304 companies in the S&P 500 that have reported second-quarter earnings as of Friday, 85.2% have beaten estimates, versus the long-term average of 67.5%. Snap SNAP.N jumped 8.1% after beating second-quarter revenue estimates, thanks to increased advertising spending during the FIFA World Cup and stronger campaign activity from large advertisers in North America. Big names that are due to report on Tuesday include drug makers Merck MRK.N and Pfizer PFE.N, global economy bellwether Caterpillar CAT.N, Marathon Petroleum MPC.N and fast-food giant McDonald's MCD.N. McDonald's results will be landing at a time when a cyclosporiasis outbreak potentially linked to lettuce has grown into the largest on record in the country, with Michigan hit hardest. Elon Musk's SpaceX SPCX.O will release its first earnings report since its public debut after markets close. Shares were up 1%. Nasdaq futures rose on Tuesday after strong forecasts from Palantir and ON Semiconductor reassured investors about AI-driven demand, while Middle East developments and U.S. earnings were also in focus to gauge the health of corporate America. Palantir Technologies PLTR.O gained 17.2% in premarket trading after raising its annual revenue forecast again, signaling strong government and commercial demand for its AI-powered data analytics software. Chipmaker On Semiconductor ON.O added 7.5% after forecasting quarterly revenue above expectations, betting on surging demand for power management chips used in AI data centers. Investors have been scrutinizing results from AI-linked companies this earnings season for signs that their billion dollar investments are yielding returns. Strong results from AI leaders Microsoft MSFT.O and Amazon AMZN.O last week were a relief and have underpinned gains on Wall Street since then. The benchmark S&P 500 .SPX is about 21 points from hitting its first record high since June, while the blue-chip Dow .DJI closed at a record high on Monday for the first time since July. Other AI-linked stocks such as Micron MU.O added 2.3%, Nvidia NVDA.O rose 0.7% and Marvell MRVL.O rose 4.4%.

US Stocks-Nasdaq futures underpinned by strong AI forecasts; focus on earnings, data

Economic data and rate outlook

Futures and earnings-season backdrop

Nasdaq futures rise on strong AI-linked forecasts

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