US EQUITY OPEN: Indices open in the red as Trump flaunts no Iranian progress in light trade

OPEN: US indices opened in the red, with sectors mixed, as the equal weighted S&P is currently flat. Newsflow has been light once again in thin summer trading conditions and a lack of tier 1 US data, but the most notable update came recently from US President Trump. He said there are no talks or conversations going on, or scheduled, with Iran and the Naval Blockade remains in full force and effect. Following this, immediate risk-off was seen but the moves swiftly pared. Back to sectors, Health outperforms, while the mega-cap sectors of Tech and Communications sit at the bottom of the pile. US yields are rising once again, which is the catalyst for the broader hit to US indices while USD FX performance is mixed against G10 peers. The Aussie ekes out slight gains, while NZD and CHF notice marginal losses. WTI and Brent are firmer by c. USD 0.50/bbl, and precious metals are modestly lower. The calendar ahead is quiet, as private inventory metrics after-hours and pending home sales at the top of the hour are the highlights. STOCK SPECIFICS: Fabrinet (FN): Strong Q metrics & guidance were overshadowed by investor concerns around margins, heavy capital spending & pace of future growth, following a strong run in shares Home Depot (HD): EPS, rev. & SSS beat Einride (ENRD) to deploy 500 TSLA Semi trucks on its SAGA AI platform to serve customers across the US, incl. AMZN Bath & Body Works (BBWI) was upgraded at Citi Abercrombie & Fitch (ANF) was downgraded at Raymond James to Market Perform from Outperform. Klarna (KLAR): GMV light w/ dismal next Q & FY outlook