Morning Bid: From payrolls to profits

By Anna Szymanski

July 6 (Reuters) -

What matters successful U.S. and planetary markets contiguous

By Anna Szymanski, Editor-in-Charge, Reuters Open Interest

Markets began the week connected a mixed note, with Asian shares easing and Wall Street futures ticking up earlier the doorbell connected Monday up of the archetypal question of second-quarter net reports this week.

Investors returning from the U.S. July 4 vacation and 250th ‌anniversary celebrations volition beryllium digesting those net alongside a softer-than-expected U.S. jobs study past week, which prompted markets to standard backmost rate-hike bets and helped propel planetary stocks higher connected the week.

I'll ‌get into that and much below.

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FROM PAYROLLS TO PROFITS

Tech stocks and the wellness of the AI roar volition stay apical of caput for investors this week arsenic trading gets backmost to mean aft the U.S. holiday. Chip stocks, which soared successful the archetypal fractional of the twelvemonth adjacent arsenic the alleged Magnificent Seven lagged, were swept up successful past week's tech selloff and could look a further trial this week.

The chip-heavy KOSPI scale eased 0.5% connected Monday up of Samsung Electronics' net connected Tuesday. The South Korean tech elephantine is expected to station an 18-fold leap successful nett connected soaring request for AI memory, though tremendous bonus payouts could measurement connected earnings.

Meanwhile, rival chipmaker SK Hynix is preparing to ‌launch its U.S. listing connected Monday with a presumption to raising $28 billion, with ⁠its shares acceptable to commencement trading connected the Nasdaq connected Friday. Also successful tech news, Elon Musk's SpaceX is acceptable to articulation the Nasdaq connected Tuesday.

The net play volition footwear disconnected this week, with S&P 500 companies expected to present robust maturation of much than 24% successful the 2nd quarter. Among the archetypal large companies to ⁠report stateside aboriginal successful the week volition beryllium Delta Air Lines and PepsiCo, some of which could shed airy connected the wellness of the U.S. consumer.

That volition beryllium peculiarly important fixed past week's ascendant marketplace story: the downside astonishment of the U.S. June jobs report. It showed nonfarm payrolls roseate by conscionable 57,000, good abbreviated of expectations for a 110,000 increase. April and May payroll figures were besides revised down by a combined 74,000.

The brushed people led investors to dial ​back ​expectations for Federal Reserve tightening arsenic soon arsenic September and helped assistance immoderate U.S. equities connected Thursday, though a tech ​selloff continued to measurement connected the Nasdaq. Global shares went connected to station their ‌best play show successful 2 months, with MSCI's broadest scale of satellite shares climbing immoderate 2%.