The S&P 500 Index ($SPX) (SPY) is up +0.16%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.32%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.16%.

Market Overview

Stocks are showing mixed results as they recover from overnight losses due to a global IT disruption. The outage, caused by a faulty update to CrowdStrike Holdings’ cybersecurity software, affected Microsoft’s Windows operating systems, impacting businesses and public service organizations worldwide. Travel stocks are facing particular pressure due to flight delays and cancellations. Additionally, several international companies, including banks, insurers, and healthcare systems, reported technical difficulties stemming from the outage.

Positive corporate news has lessened some losses in the overall market. Cybersecurity stocks are rising following the IT outage, and Intuitive Surgical shares have climbed by more than +7% after reporting better-than-expected Q2 adjusted EPS.

Markets are currently anticipating a 5% chance of a -25 bp rate cut at the next FOMC meeting on July 30-31, and a 99% chance at the following meeting on September 17-18.

Global Market Performance

Overseas markets are mixed. The Euro Stoxx 50 fell to a 5-week low, down -0.70%. China’s Shanghai Composite climbed to a 2-week high, closing up +0.17%. Japan’s Nikkei 225 Index fell to a 2-1/2 week low, closing down -0.16%.

Interest Rates

September 10-year T-notes (ZNU24) are down -8 ticks, with the 10-year T-note yield up +2.9 bp at 4.231%. T-notes are under pressure due to a decline in European government bonds and rising US inflation expectations, with the 10-year breakeven inflation rate reaching a 2-week high of 2.310%. Furthermore, upcoming supply pressures from a $213 billion auction of T-notes and floating-rate notes next week are weighing on the market.

European government bond yields are increasing, with the 10-year German bund yield up +3.5 bp at 2.466% and the 10-year UK gilt yield up +4.8 bp at 4.112%.

Economic Data

The German June PPI fell -1.6% y/y, aligning with expectations, marking the twelfth consecutive month of year-over-year price declines. ECB Governing Council member Simkus indicated that if inflation converges as anticipated and no unforeseen events occur, monetary-policy easing will be considered in upcoming ECB meetings. Markets are anticipating a 78% chance of a -25 bp rate cut by the ECB at the September 12 meeting.

US Stock Movers

Cybersecurity stocks are on the rise after CrowdStrike Holdings’ faulty update triggered a global IT outage. SentinelOne (NYSE:S) is up more than +9%, and Palo Alto Networks (NASDAQ:PANW) is up more than +2%.

CrowdStrike Holdings (NASDAQ:CRWD) is down more than -11%, leading losses in the S&P 500 and Nasdaq 100, following the cybersecurity software failure. Microsoft (NASDAQ:MSFT) is also down more than -2%.

Airline stocks are facing pressure due to global IT outages causing flight delays and cancellations. American Airlines Group (NYSE:AAL), Delta Air Lines (NYSE:DAL), United Airlines Holdings (NYSE:UAL), and Southwest Airlines (NYSE:LUV) are down nearly -1%.

Intuitive Surgical (NYSE:ISRG) is up more than +7%, leading gains in the S&P 500 and Nasdaq 100, after reporting Q2 adjusted EPS of $1.78, surpassing the consensus of $1.54.

Huntington Bancshares (NYSE:HBAN) is up more than +3% after reporting Q2 total deposits of $154.37 billion, exceeding the consensus of $152.72 billion.

Eli Lilly (NYSE:LLY) is up more than +2% after China approved its for weight loss.

Accenture Plc (NYSE:ACN) is up more than +2% after UBS upgraded the stock to buy from neutral.

Hawaiian Electric Industries (NYSE:HE) is up more than +40% following reports that the company has tentatively agreed to a $4 billion settlement for lawsuits over the Maui wildfires last year.

Surgery Partners (NYSE:SGRY) is up more than +2% after Bain Capital-backed chain of surgical facilities announced exploring strategic options, including a potential sale.

Netflix (NASDAQ:NFLX) is up nearly +1% after reporting Q2 streaming paid memberships of 277.65 million, exceeding the consensus of 273.78 million.

Halliburton (NYSE:HAL) is down more than -7% after reporting Q2 revenue of $5.83 billion, missing the consensus of $5.95 billion.

Travelers Cos (NYSE:TRV) is down more than -4%, leading Dow Jones Industrials’ losses, after reporting Q2 revenue of $11.28 billion, below the consensus of $11.46 billion.

American Express (NYSE:AXP) is down more than -3% after reporting Q2 revenue of $16.3 billion, below the consensus of $16.6 billion.

Comerica (NYSE:CMA) is down more than -10% after revising its full-year net interest income loss estimate to -14% from a prior estimate of -11%.

PPG Industries (NYSE:PPG) is down more than -2% after cutting its full-year adjusted EPS estimate to $8.15-$8.40 from $8.34-$8.59, below the consensus of $8.41.