Earnings Round-Up So Far: SK Hynix, STMicro, Lockheed, Nasdaq Set Market Tone

As earnings season pushes deeper into the week, newly reported results are adding nuance to trader positioning. The latest 24 hours delivered notable updates from semiconductors, defence contractors, and market infrastructure firms. While the tech-driven Nasdaq rally remains intact, cracks in hardware and manufacturing are starting to surface. Here's what traders are watching next.

SK Hynix Delivers Record Quarter, Signals AI-Driven Capex Surge

South Korea's SK Hynix (KRX: 000660) posted a record second-quarter profit, led by a rebound in DRAM pricing and continued AI infrastructure demand. More importantly for markets, the chipmaker announced plans to sharply increase capital expenditure for AI-related memory, reinforcing investor optimism around the generative AI supply chain. The company cited sustained demand from hyperscalers and data centers as core drivers.

Shares rose following the update, offering support to broader semiconductor sentiment, particularly among memory suppliers.

STMicro Posts Surprise Loss on Restructuring Costs

In contrast, STMicroelectronics (EPA: STM) reported a rare second-quarter operating loss of $190 million—its first in over a decade. The miss was driven by higher-than-expected restructuring and impairment charges tied to factory optimization efforts in Europe. Management reaffirmed its long-term margin targets but flagged elevated costs through year-end.

The result weighed on regional chip stocks and added to concerns that even diversified semiconductor firms are not immune to cyclical pressure and execution risk.

Lockheed Martin Beats Q2 But Trims Outlook

Lockheed Martin (NYSE: LMT) topped earnings estimates on solid cash flow and stable program execution. However, the defense contractor reduced its full-year EPS forecast, citing cost inflation and delays in certain defense programs. The mixed update underscores the tension between steady demand for defense hardware and operational bottlenecks in the supply chain.

Investor reaction was muted, with shares holding steady as traders assess the balance between geopolitical tailwinds and margin erosion.

Nasdaq Inc. Rises on Strong Tech-Driven Profit Growth

Nasdaq Inc. (NASDAQ: NDAQ) delivered adjusted EPS of $0.85 on revenue of $2.09 billion, up 17% year-over-year and ahead of expectations. The exchange operator saw growth across listing services, data analytics, and index licensing. While trading volumes remain uneven, the expansion of high-margin tech services drove profitability higher.

Shares gained post-report as investors looked for exposure to financial infrastructure plays with embedded technology leverage.

Market Rotation Picking Up Pace

The current round of earnings is showing growing divergence. While AI infrastructure and financial services linked to data flow and indexing remain strong, hardware manufacturing is feeling the drag of margin compression and restructuring costs. The absence of broad sector strength is putting more pressure on individual stock selection and earnings quality.

Investors appear willing to reward forward-looking capex and stable fee-based models, but are penalizing firms where execution risks are unresolved. This dynamic may shape trading behavior across indices, especially as large-cap tech earnings approach.

Tips for Traders

• SK Hynix (KRX: 000660) signals sustained DRAM upcycle—watch peers in AI memory for continued upside momentum.

• STMicro (EPA: STM) shows structural volatility—caution warranted unless restructuring costs moderate in Q3.

• Lockheed Martin (NYSE: LMT) remains a defensive core play—track contract flows and margin recovery for entry signals.

• Nasdaq Inc. (NASDAQ: NDAQ) could attract rotation into financial tech—steady revenue mix supports long setups.

• US100 and US500 will be guided by earnings breadth, not just beats—expect volatility around guidance and margins.