The Dow Jones (+1.1%), the S&P500 (+1.4%) and the Nasdaq (+1.2%) rallied sharply at the start of trading on Wall Street on Tuesday, following a session in which the Dow Jones fell by 2.6%.

Fears generated by the latest US employment report, which last Friday rekindled the spectre of a US recession, appear to be subsiding on the world's stock markets, as demonstrated by Tokyo's rebound of over 10% on Tuesday.

Despite the weakness of the latest labor market data, we believe that a soft landing remains the most likely outcome for the economy", says Stephen Brown, Deputy Chief Economist for North America at Capital Economics.

Nevertheless, the risk of a hard landing has increased, while the market's disorderly reaction - if it continues - could prompt the Fed to ease policy sooner than expected", he continues.

The only macroeconomic data of the day in the US, the trade deficit narrowed slightly by 2.5% to $73.1 billion in June, with a 1.5% rise in exports more than offsetting a 0.6% increase in imports.

In terms of quarterly publications, construction equipment giant Caterpillar reported an increase in adjusted EPS to $5.99 for the second quarter of 2024, despite sales and revenues down 4%.

Yum! Brands reports Q2 2024 EPS excluding exceptional items of $1.35, down 4% year-on-year, but adjusted operating profit up 10%.

Uber Technologies reports Q2 2024 net profit, group share, up 158% year-on-year to just over $1 billion, and adjusted EBITDA up 71% to $1.57 billion.

New Street Research upgrades its recommendation on Nvidia to 'buy' with a price target of $120, noting that the stock is down 26% since its June peak and has underperformed most other semiconductor stocks exposed to data center AI.

Wedbush confirms its 'outperform' rating on Alphabet (Google) stock, with an unchanged 12-month price target of $205 .

The analyst recalls that yesterday, the U.S. District Court ruled in favor of the DOJ (Department of Justice) in the case of United States vs. Google, concluding that Google was a monopoly and had acted to maintain that position.

The Court's decision mainly denounced the distribution agreements that enabled Google to place its search engine by default with major browser developers (e.g. Firefox), mobile device manufacturers (e.g. Apple, Android) and telecom operators (e.g. Verizon).

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