Y'all Street Daily
Crude keeps climbing into an 11th night of US strikes on Iran, adding an inflation worry beneath the day's earnings test.
Market Snapshot
Futures pointed lower before the open, with Nasdaq contracts down around 0.7% as traders squared up ahead of the earnings test.
That followed a solid Tuesday, when the Dow added around 0.74% and the S&P around 0.83% while the Nasdaq finished roughly flat.
Oil kept climbing and gold and silver held their bid as the Middle East risk premium stayed firmly in place.
Earnings and the crude rally are setting the single-name tone.
Alphabet slipped around 1.38% into its print, Tesla ran up around 3.46% after posting a 25% jump in Q2 deliveries, and Exxon added around 2.10% as higher oil lifted the energy majors.
Main Story
The bigger force under the tape is an oil market that keeps grinding higher as the US-Iran conflict drags into its 11th night.
US Central Command struck Iranian military and maritime targets for an 11th straight night while Iran hit back in the Gulf and Jordan, and an attack on a tanker has brought traffic through the Strait of Hormuz, once around a fifth of the world's oil, close to a standstill.
The mainstream read is simple, that traders are pricing a widening war premium into crude, with WTI up around 2.20% toward the mid-$80s and Brent pushing past $90 in Asian hours.
What the tape may be missing is the exit ramp, as Defense Secretary Hegseth told Congress the war has cost around $37.5 billion so far and mediators in Pakistan are still floating a ceasefire, so the next leg may hinge more on diplomacy than on the strikes.
Chart of the Day
Crude has round-tripped from a July slump back to a full rally in barely three weeks.
WTI bottomed around $66.28 before the renewed conflict drove it back toward the mid-$80s.
The climb has carried price up through the descending trendline that had capped it since the spring.
Technical Trading
The crude tape is strong but starting to look stretched heading into fresh headlines.
WTI is trading around $85.45, holding above the 50% Fibonacci retracement at $82.23 and pressing toward the 61.8% level near $85.99 (FXStreet).
The 14-day RSI sits around 64, firm but approaching the overbought zone that has capped recent rallies (FX Leaders).
First support comes in around $83.45, with the upper Bollinger Band near $85.95 as first resistance and the 100-day moving average at $88.05 the next hurdle above (FXStreet).
Global News
US struck Iran for an 11th straight night and a tanker attack has all but halted Strait of Hormuz shipping, keeping a firm bid under oil and haven assets.
President Trump is set to replace expiring 10% global tariffs with more permanent duties, including a possible 100% tariff on imported generic drugs, while a new 25% tariff on Brazil took effect Wednesday.
Supermicro shares jumped in premarket after the AI server maker flagged a record backlog, while IBM reports after the close following last week's pre-earnings warning.
The dollar index held around 101, near its strongest level in a week, as oil-driven inflation worries offset a softer tone in stocks.
Texas News
Texas-based Exxon Mobil added around 2.10% as the crude rally lifted the energy majors ahead of its July 31 earnings, where analysts expect a sharp jump in quarterly profit.
The move showed how the Middle East premium is flowing straight into the state's largest producers.
Looking Ahead
Wednesday, July 22: Alphabet, Tesla and Texas Instruments all report after the close, the marquee session in a week stacked with more than 400 earnings.
Thursday, July 23: Intel reports after the close, with its foundry and AI-chip outlook the main draw for the chip trade.
Friday, July 24: The expiring 10% global tariffs are set to lapse, clearing the way for Trump's more permanent duties.
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Prices from Yahoo Finance, CNBC and Fortune. Technical levels from FXStreet and Barchart. News from Yahoo Finance, Reuters and NPR.
For informational purposes only. Not investment advice. Prices are indicative opening levels and may differ from your broker.