Strong earnings, resilient AI spending and improving fundamentals continue to support the broader market, even as momentum shifts beyond the biggest technology names. Plus, investors are finding new opportunities in industrials, power infrastructure, small caps and value stocks as AI investment expands across the economy. Later, inflation, interest rates and earnings from companies like Netflix and UnitedHealth will help determine whether the rally broadens through the second half of the year.<br><br>Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

AI momentum, earnings and market rotation in focus 7/16/26

Morning Call

Chips get crunched despite Taiwan Semi's earnings winning streak rolling on. I'm Dominic Chiu in for Morgan Brennan and this is your Morning Call. Good morning. U.S. equity futures right now are wavering between gains and losses after another choppy day for stocks in yesterday's session.

As you can see here, it's modest moves, modest moves at best. The Dow's implied higher by just 12 points, the S&P down by 12 points and the Nasdaq down by just about 88 points. The indices are basically flat on the week so far in this Thursday session. Now, Treasuries ahead of today's June retail sales read and the latest pending home sales report are showing some signs of life. Bond prices moving lower, yields moving higher. The benchmark 10-year note yield 4.57 percent.

The two-year note yield just a hair below 4.16 percent. And then the 30-year long bond 5.107 percent as well. On energy, looking to pull back after settling at a one-month high yesterday. You can see U.S. benchmark West Texas intermediate prices down roughly one-half of 1 percent, $79.25. Ice Brent crude futures, the world gauge, down about three-quarters of 1 percent to $84.28. We'll have much more on that energy trade in just a moment.

And, of course, the epicenter arguably of the market these days, that chip trade, hit hard again as memory sells off. We're watching some of the bigger losers on the NASDAQ 100 in the pre-market trade. You can see here SanDisk, Armholding, Seagate, Western Digital among some of the bigger losers so far in the pre-market trade. Stay tuned. We've got more on that story coming up. Two big stock stories we're watching today. United Airlines, second quarter earnings beating Wall Street expectations.

AI momentum, earnings and market rotation in focus 7/16/26

Read the full transcript

The candid version is on a podcast,
not the earnings call.

AI momentum, earnings and market rotation in focus 7/16/26

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.