US Open: AMD and SpaceX failed to impress, but the broader market remains resilient

The start of today’s Wall Street session maintains a relatively positive tone. The major US indices are slightly higher, extending the recent rebound and renewed risk appetite. Market sentiment continues to be supported primarily by easing tensions in the Middle East and lower oil prices, which have reduced concerns about a renewed increase in inflationary pressures.

The technology sector is performing somewhat weaker today following the market reaction to AMD and SpaceX earnings. Both companies delivered solid results, but in the current environment, simply beating expectations is not always enough to sustain a positive stock market reaction. In AMD’s case, investors focused on the exceptionally high expectations surrounding the AI segment, while for SpaceX, the main concern was the rising level of investment spending related to infrastructure development. This highlights that, given current valuations, investors are increasingly looking beyond revenue growth and are paying closer attention to capital efficiency and future profitability.

Today’s macroeconomic data also provided a mixed picture of the US economy. The ADP report showed private sector employment growth of 44,000 jobs, significantly below market expectations. While this is only one indicator of labor market conditions, it points to a gradual cooling after a period of very strong employment growth.

At the same time, the services sector remains resilient. The ISM Services PMI rose to 54.1 points in July, remaining above the 50-point threshold that indicates expansion. The data suggests that the largest part of the US economy continues to grow at a stable pace, although companies continue to highlight pressure from financing costs, inflation, and previously elevated energy prices.

Today’s data set therefore does not provide a clear-cut picture. On one hand, the labor market is beginning to show signs of moderation, while on the other, the services sector remains relatively strong. For now, Wall Street is interpreting weaker labor data more as a potential support factor for future Federal Reserve policy rather than as a significant concern about economic weakness. As a result, major indices remain in positive territory today, despite some pressure on technology stocks following earnings releases.

Source: XTB Research

S&P 500 futures (US500) are gaining today, supported by strong quarterly results from Wall Street companies, which in most cases continue to demonstrate the resilience of the US corporate sector. The technology sector remains a key driver, with results from major companies linked to artificial intelligence and digital transformation highlighting sustained demand and the strength of this market segment. Despite some individual disappointments and more cautious investor reactions to certain earnings reports, the ongoing earnings season remains one of the main factors supporting positive sentiment on Wall Street. Investors are once again focusing on company fundamentals and long-term growth prospects, allowing major indices to remain close to historical highs.

Source: xStation5

Company News

AMD (AMD.US) shares remain under pressure today despite the company reporting relatively strong quarterly results that exceeded market expectations. Revenue reached a record $11.54 billion compared with forecasts of around $11.3 billion, while adjusted earnings per share (EPS) came in at $1.66. However, investors considered that expectations for the AI segment were already extremely high, and the market was looking for an even stronger performance and clearer signs of AMD strengthening its position in competition with Nvidia.

SpaceX (SPCX.US) shares are down around 6% today following the release of the company’s first earnings report, despite revenue significantly exceeding market expectations. The company generated $7.8 billion in revenue compared with forecasts of approximately $6.9 billion, but investors were concerned about the scale of spending related to infrastructure development and the reported net loss of $541 million. The market was looking not only for strong revenue growth but also for further improvement in profitability, meaning that solid results proved insufficient given the very high expectations surrounding the company.

Arista Networks (ANET.US) shares are rising strongly today after the company reported very strong quarterly results that exceeded market expectations. Revenue came in at approximately $3.04 billion versus forecasts of $2.83 billion, while adjusted earnings per share reached $1.02 compared with expectations of $0.89. The company also maintained an optimistic outlook, pointing to continued strong demand for networking infrastructure used in AI data centers. Investors viewed the results as confirmation that the artificial intelligence boom is benefiting not only chip manufacturers but also companies providing critical infrastructure required for the expansion of this market.

Eli Lilly (LLY.US) shares are moving higher today after the company reported quarterly results that exceeded analysts’ expectations. The company benefited from strong demand for GLP-1 therapies used in diabetes and obesity treatment, while positive developments surrounding its newly launched weight-loss pill Foundayo provided an additional boost for investors. The results once again highlight Eli Lilly’s advantage over its main competitor Novo Nordisk in the rapidly growing obesity treatment market.

Shopify (SHOP.US) shares are posting an impressive gain of nearly 22% today following the release of quarterly results that significantly exceeded market expectations. Revenue increased by more than 30% year over year to $3.58 billion, beating analyst forecasts by approximately $140 million, while gross merchandise volume on the platform rose to $115.6 billion. The strong performance was driven by continued merchant growth, higher transaction volumes, and improved profitability, which helped the company increase net income to $1.5 billion.