(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

August 4 (Reuters) -

What matters in U.S. and global markets today

By Mike Dolan, Editor-at-Large, Finance and Markets

World markets turned quieter on Tuesday after yesterday's equity

rally and oil price decline, with Asian stock markets steady and

Wall Street futures pointing up slightly.

Well over halfway through the booming U.S. corporate earnings

season, attention today will turn to the first earnings report

of Elon Musk's SpaceX.

I'll get into that and more below.

But first, check out my latest column on the overstimulated U.S.

economy and what the bond market may do about it.

And give us your thoughts on the corporate earnings outlook in

ROI's latest LinkedIn poll.

Finally, listen to today's episode of the Morning Bid daily

podcast, where we discuss the latest sign of U.S. economic

resilience.

EARNINGS OVERLOAD

The earnings season continues to generate significant price

moves. Palantir beat estimates overnight, largely thanks to

large government contracts, lifting the tech group's stock more

than 10% in extended trading.

The broad picture of U.S. manufacturing last month was similarly

impressive, with yesterday's latest surveys showing factory

growth running at its fastest pace in four years, despite

sky-high input prices.

Oil ticked up slightly on Tuesday after dropping 7% yesterday,

amid confusion about what could happen next in the Gulf.

President Donald Trump's claim that talks with Iran would take

place on Monday was denied by Tehran, which said the only talks

underway were with Oman over the Strait of Hormuz.

Another ship was attacked near this critical waterway on Monday.

Traffic through Hormuz and the Bab el-Mandeb strait has remained

minimal and largely unchanged recently.

Meantime, the yen story went somewhat quiet after Tokyo and

Washington's heavy joint intervention to lift the ailing

Japanese currency last week. The yen eased slightly against the

dollar early on Tuesday but stayed well above recent 40-year

lows.

We may now be entering a period in which markets and

authorities play something of a cat-and-mouse game to test

Tokyo's resolve to draw a line under the currency. But for now,

things are calmer.

Elsewhere, results season saw HSBC profits jump and the bank

resume buybacks, echoing the bumper quarter enjoyed by the

world's other big banks.

Later today, SpaceX's earnings, due after the bell, will shed

light on Starlink profits and how far they can bankroll the

rocket maker's growing AI capex.

And, finally, the week's U.S. labor market releases will

kick off later today with job openings data for June, ahead of

the July employment report on Friday.

Chart of the day

SpaceX's first earnings report since its IPO will provide an

early gauge of whether Starlink's profits can sustain the

company's rapidly growing spending on AI and space ventures.

The results will give SpaceX's limited pool of public

investors their first chance to judge whether the financial case

behind the company's lofty valuation supports CEO Elon Musk's

vision of creating a powerhouse spanning AI, space and

telecommunications.

SpaceX shares have pulled back sharply since the company's $86

billion IPO in June, as investors questioned whether its pricing

at 77 times forecast revenue can be justified.

Today's events to watch

* U.S. June JOLTS job openings (10 a.m. EDT), June factory

orders (10 a.m. EDT), June trade balance (8:30 a.m. EDT)

* 30-year TIPS auction (1 p.m. EDT)

* Kansas Fed's Jeffrey Schmid speaks (8:15 p.m. EDT)

* U.S. corporate earnings: SpaceX, AMD, Pfizer, Merck,

Apollo, Caterpillar

Want to receive the Morning Bid in your inbox every weekday

morning? Sign up for the newsletter here. You can find ROI on

the Reuters website, and you can follow us on LinkedIn and X.

Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.