US Market Roundup, PreMarket Movers, & Earnings Today

US markets were split yesterday, as the return came for the tech sector to prop up markets after Monday's pullback in notable mega cap tech names. The S&P 500 Index saw a modest gain, marking an upward trajectory by +0.19%.

Despite much of earnings season being behind us, on the earnings docket today we have Blackberry (BB), Micron (MU) and General Mills (GIS) as the leading names to watch.

Despite the gains in the S&P, 500, and the Nasdaq100 (+0.63%), the Dow Jones Industrials (DJIA) edged lower by -0.43%. It is evident that the strength exhibited by mega-cap tech stocks has played a pivotal role in elevating the broader market, despite the mixed sentiment that investors are navigating.

The spotlight shone brightly on Carnival stock (NYSE: CCL) which soared more than +5% after reporting revenues that surpassed consensus expectations, along with a positive outlook on expected Ebitda. This uptick is a beacon showcasing the encouraging performance in select sectors amidst variable market conditions.

Also reporting after the bell was Fedex (FDX), which has soared high on EPS and revenue beats. 14% gains leading in to the open are impressive, but not as strong as those of Rivian (RIVN). The EV company has seen a ~40% boost in share price after a deal with Volkswagen Group was announced.

Further shaping the day's financial narrative, hawkish comments from Federal Reserve Governor Bowman stirred the markets, as she emphasized the persistent upside risks to the inflation outlook with clear indications that rate cuts are off the table for the year. Consequently, bond yields climbed higher, responding to the tightening monetary stance and the auction of $211 billion worth of Treasury notes.

While the hawkish tone prevails, the U.S. consumer confidence index for June subtly declined by -0.9 to 100.4, a figure still noted to be stronger than many had anticipated. Additionally, the Richmond Fed manufacturing survey fell significantly, beating negative forecasts and underscoring the complexity of economic indicators.

Close attention is also directed towards the housing market, where the U.S. April S&P CoreLogic composite-20 home price index signaled a deceleration to +7.20% year-on-year, yet this was still above market expectations, painting a somewhat robust picture for real estate valuations.

Investors now rest their gaze towards Friday's key economic release – the U.S. May core PCE deflator, with hopes to decipher the trajectory of inflation and the Federal Reserve's monetary policy decisions including potential changes in interest rates.

While the Federal Reserve's hawkish inclination casts a shadow on the market, the buoyancy in technology stocks and positive corporate earning reports offer counterweights, keeping investor sentiment in a delicate balance. The market awaits further economic indicators to gauge the path ahead with a keen eye on inflation metrics and central bank cues.