Stock Market Update

The S&P 500 futures have edged lower following yesterday's sharp decline, trading four points, or 0.1%, below fair value. Futures have traded in a tight-ranged session. 

Economic data will be of interest today, as growth concerns have resurfaced amid a lack of a fiscal stimulus deal and reports of rising coronavirus cases in some parts of the U.S. and Europe. The weekly Initial Claims report (Briefing.com consensus 825,000) will be released at 8:30 a.m. ET, followed by New Home Sales for August (Briefing.com consensus 875,000) at 10:00 a.m. ET.

Apple (AAPL 106.17, -0.95, -0.9%) has had a rough month, down 22.4% from its record high, and it's down another 1% in pre-market action. The latest headwind for the company is uncertainty surrounding its App Store rules, with several other high-profile companies reportedly joining the fight against Apple's practices. 

Elsewhere, Treasury yields remain stuck at historically low levels and have been at these levels for nearly six months. The U.S. Dollar Index is trading at its highest level since July with a 0.1% gain to 94.50. The 2-yr yield is flat at 0.13%, and the 10-yr yield is up down one basis point to 0.67%. WTI crude futures are flat at $39.95/bbl.

In U.S. Corporate news:

• Apple (AAPL 106.17, -0.95): -0.9% amid news that more companies, including Spotify (SPOT 235.05, unch), have joined the fight against the company's App Store rules. 
• Wells Fargo (WFC 23.01, +0.18): +0.8% alongside many other bank stocks, but WFC was also added to the Fresh Pick List at Robert W. Baird.
• CarMax (KMX 106.28, +0.35): +0.3% after beating top and bottom-line estimates. 
• Scripps (SSP 15.10, +4.63): +44.2% after agreeing to buy national broadcast network ION Media for $2.65 billion. 

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a lower note. Japan's Nikkei: -1.1%, Hong Kong's Hang Seng: -1.8%, China's Shanghai Composite: -1.7%, India's Sensex: -3.0%, South Korea's Kospi: -2.6%, Australia's ASX All Ordinaries: -0.9%.
  • In economic data:
    • Japan's August BoJ Core CPI 0.0% yr/yr (last 0.0%)
    • Hong Kong's August trade deficit HKD14.60 bln (last deficit of HKD29.80 bln). August Imports -5.7% m/m (last -3.4%) and Exports -2.3% m/m (last -3.0%)
    • New Zealand's August trade deficit NZD353 mln (last surplus of NZD447 mln)
  • In news:
    • Independently published China Beige Book noted that while the Chinese economy is recovering, smaller companies in Western and Central provinces are bouncing back at a much slower pace than larger entities in Beijing and Shanghai.
    • Japan's Prime Minister, Yosihide Suga, reportedly told South Korea's President, Moon Jae-in, that relations between the two countries must improve.
    • Chinese officials reportedly banned two Australian scholars from entering China.

• Major European indices trade in mixed fashion. STOXX Europe 600: -0.4%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.4%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.4%.
  • In economic data:
    • Germany's September ifo Business Climate Index 93.4 (expected 93.8; last 92.5). September Current Assessment 89.2 (expected 89.5; last 87.9) and Business Expectations 97.7 (expected 98.0; last 97.2)
    • U.K.'s September CBI Distributive Trades Survey 11 (expected -10; last -6)
    • France's September Business Survey 96 (expected 95; last 92)
    • Italy's non-EU trade surplus EUR3.27 bln (last surplus of EUR6.69 bln)
  • In news:
    • The latest Economic Bulletin from the ECB showed that job losses continued in Q3 and there were few signs of an improvement in demand for consumer goods.
    • The latest survey from Germany's ifo Institute pointed to a continued improvement in the domestic economy, though sentiment surrounding the tourism industry remained weak.
    • The Swiss National Bank left its policy rate at -0.75%, as expected.