WS #13049

The US-Iran conflict continues to escalate with new developments: a drone strike hit a US-owned LNG vessel at Egypt's Damietta port, marking the first attack on Egyptian soil and widening energy infrastructure attacks. Saudi Arabia accused Iran-backed militias of a drone attack on the Abqaiq oil refinery. IRGC claims destruction of three F-35s at a Jordan base (unconfirmed). Germany's CPI rose to 2.8% in July from 2.3%, adding to inflation concerns. The Bank of England held rates at 3.75% as previously reported. On earnings, Meta Platforms (META) fell ~10% after Q2 miss and increased AI spending guidance, a major MAG7 negative. Mastercard (MA) beat Q2 estimates with EPS $5.04 vs $4.77, revenue $9.3B vs $9.07B. Ferrari (RACE) raised FY guidance after Q2 beat. Federal Signal (FSS) raised FY guidance. Bristol-Myers (BMY) raised FY outlook. Rolls-Royce and BAE Systems lifted guidance on defense spending. Intercontinental Exchange (ICE) to acquire MarketAxess in $5.7B deal. Qualcomm (QCOM) shares slid on higher costs and Apple-related weakness. The dominant theme is ESCALATING geopolitical risk with second-order effects on oil, inflation, and defense stocks, while tech faces headwinds from Meta's disappointment and semiconductor weakness.