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On July 29th, Eastern Time, investors focused on the financial reports of some large technology stocks that will be released this week. Market sentiment fluctuated, and the three major U.S. stock indexes rose and fell mixedly.

Tesla surged 5.6%, replacing Ford as Morgan Stanley's "preferred" U.S. auto stock.

ON Semiconductor surged more than 11% after its results beat expectations.

International oil prices plummeted, with U.S. oil falling nearly 2%. Brent September crude oil futures fell below the $80 mark for the first time in nearly two months.

Markets anxiously await earnings reports from big tech stocks

The three major U.S. indices rose and fell

On July 29, Eastern Time, large technology stocks and "heavyweight stocks" such as Microsoft, Meta, Apple and Amazon are about to release their earnings reports this week, and the U.S. stock market is restless. In the end, the Dow Jones Industrial Average recorded a small decline, the S&P 500 index rose slightly, and the Nasdaq rose 1% during the session before turning down, but finally rose slightly.

As of the close, the Dow Jones Industrial Average fell 0.12% to 40,539.93 points; the S&P 500 rose 0.08% to 5,463.54 points; and the Nasdaq rose 0.07% to 17,370.2 points.

Large technology stocks were mixed. Apple rose 0.13%, Amazon rose 0.38%, Netflix fell 0.7%, Google rose 1.51%, Facebook was flat, Microsoft rose 0.34%, and Nvidia fell 1.3%.

“The market is going to be looking for pretty outperformance given the extent of the re-rating in valuations,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.

“The bar is pretty high for these tech stocks,” said Chuck Carlson, CEO of Horizon Investment Services. “People really need to surprise, and if you can’t do that, you’re likely to get sold off.”

S&P 500 earnings growth is on pace for its biggest gain in more than two years, according to analysts at UBS Global Wealth Management, who expect the S&P 500 to end the year at 5,900, about 8% above its current level.

"Investors should prepare for periodic market declines. Nevertheless, we still expect the S&P 500 to recover," UBS analysts said.

Tesla surged 5.6%

Became Morgan Stanley's "preferred" U.S. auto stock

On July 29, Eastern Time, Tesla surged 5.6% to $232.1, and its latest total market value was $740.212 billion.

Tesla has now replaced Ford as Morgan Stanley's preferred U.S. auto stock. Morgan Stanley analyst Adam Jonas and his team are optimistic about Tesla's prospects and have given it a target price of $310, suggesting a 40% upside for the stock price.

Morgan Stanley analysts believe that Tesla has made progress in controlling expectations for its automotive business and that emerging drivers of the company's value are strong. Jonas particularly highlighted Tesla's potential monopoly in the zero-emission vehicle (ZEV) credit market and its growing recurring service revenue.

Jonas also noted that Tesla is actively shifting resources, technology, talent and capital from car manufacturing to other areas. At the same time, he observed that Ford discussed electric vehicles much more than Tesla in its second-quarter conference call, which may reflect the industry's general interest in electric vehicles is rising.

Tesla CEO Elon Musk said on Monday that he expects to open the FSD function to Cybertruck next month.

ON Semiconductor surged more than 11%

On July 29, Eastern Time, chip stock ON Semiconductor's performance exceeded expectations and its stock price soared by more than 11%.

ON Semiconductor reported better-than-expected second-quarter results. The company's second-quarter adjusted earnings per share were $0.96, beating analysts' expectations of $0.92; revenue fell 17.1% year-over-year to $1.74 billion, but was slightly higher than the consensus estimate of $1.73 billion.

JPMorgan Chase released a report pointing out that the adjustment of Asian technology stocks in the past two weeks has caused the market to worry whether the upward cycle driven by generative AI has ended. The bank's answer is that it has not ended. This round of adjustment is similar to the mid-term adjustment from August to September 2023 and April 2024. It is believed that the expenditure on AI hardware will continue to grow in the next one to two years. After the significant adjustment in recent days, investors can re-focus on stocks with high profit growth, including TSMC.

International oil prices plummet

On July 29, Eastern Time, despite the unstable situation in the Middle East, international oil prices still fell on that day. When the U.S. stock market closed, WTI September crude oil futures closed down $1.35, a drop of nearly 1.75%, at $75.81 per barrel, falling below the 200-day moving average. It is currently around $75.69 per barrel.

Brent crude oil futures for September delivery closed down $1.35, or more than 1.66%, at $79.78 per barrel. This is the first time that Brent crude oil has fallen below the $80 mark since June 10. Brent crude oil futures are currently trading around $79.13 per barrel.

US Central Command says it shot down a Houthi drone in Yemen

According to CCTV News, on July 29 local time, the US Central Command said that in the past 24 hours, the US Central Command forces shot down a drone in the area controlled by the Houthi armed forces in Yemen.

(Compiled by Ivan)

Editor: Joey

Review: Xu Wen