Briefing.com Summary:
*Semiconductor stocks are on the rebound again.
*Treasury yields and oil prices remain elevated, with inflation worries festering.
*3M is a winning standout after reporting its Q2 results and issuing better-than-expected FY26 guidance.
The stock market is primed to give a semiconductor stock-led rebound effort another try. Yesterday’s effort fell by the wayside after a robust start that saw the Philadelphia Semiconductor Index increase as much as 3.4% before closing with a more modest 0.6% gain.
The inability to hold the stronger gains, after the SOX Index dropped 10% last week, was a pox on investor sentiment along with rising Treasury yields and elevated oil prices.
Pre-open trading has favored the semiconductor stocks. South Korea’s Kospi gained 3.6%, while Japan’s Nikkei jumped 3.3%. Neither the Treasury market nor the oil market, however, has found much favor of its own.
The 10-yr note yield is unchanged at the pesky 4.60% level, and WTI crude futures are up 2.0% to $84.92/bbl as a ceasefire between the U.S. and Iran remains elusive. Inflation worries are festering, stoked in part by the Trump administration announcing a 50% tariff on certain Canadian goods that takes effect August 20.
Currently, the S&P 500 futures are up 31 points and are trading 0.3% above fair value, the Nasdaq 100 futures are up 392 points and are trading 1.3% above fair value, and the Dow Jones Industrial Average futures are up 122 points and are trading 0.2% above fair value.
Dow component 3M (MMM) is doing its part to turn the market’s attention back to the encouraging earnings picture. It is up 6.8% after besting Q2 consensus EPS and revenue estimates and issuing better-than-expected FY26 guidance.
Other notable companies topping estimates include General Motors (GM), Danaher (DHR), Charles Schwab (SCHW), Halliburton (HAL), Equifax (EFX), and Northrop Grumman (NOC). GM is up modestly, but the others are all trading lower ahead of the open.
The weakness has been a constraint on the broader market, giving it some reason to be a little suspect of the semiconductor stock move, which looks almost too easy given the lack of a specific news catalyst to account for it.
In other words, after yesterday’s disappointment, it comes with some skepticism that the early rally effort is only being rented by the buy-the-dip crowd and not being owned by it. That will likely prove to be the case if Treasury yields and oil prices keep trending higher like they did yesterday.
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Originally Posted July 21, 2026 – Semiconductor stocks ready to try, try again
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