Stock Market Update

The S&P 500 futures are down five points and are trading 0.1% below fair value, the Nasdaq 100 futures are down 55 points and are trading 0.3% below fair value, and the Dow Jones Industrial Average futures are down 12 points and are trading 0.1% below fair value.

Equity futures are slightly lower after a choppy week. The S&P 500 and Dow Jones Industrial Average settled yesterday's session fractionally below all-time highs, so there's an element of profit-taking in the early negative bias.

Pre-open softness in some mega cap names has also contributed to the downside bias. Tesla (TSLA) is a standout in that respect, sharply lower ahead of the open after announcing a new Robotaxi named "CyberCab" that will be priced under $30,000. Production is estimated to begin before 2027.

Market participants are digesting some earnings news from the bank space. JPMorgan Chase (JPM) and Wells Fargo (WFC) are higher ahead of the open after beating earnings estimates.

Treasuries are little changed in front of another inflation reading in the form of the September Producer Price Index at 8:30 ET. The 10-yr yield is unchanged at 4.10% and the 2-yr yield is down two basis points to 3.98%.

Other data today include the preliminary October University of Michigan Consumer Sentiment survey at 10:00 ET.

In corporate news:

• Tesla (TSLA 224.57, -14.20, -6.0%): announces new Robotaxi named "CyberCab", will be priced under $30,000, will begin production before 2027
• JPMorgan Chase (JPM 214.99, +2.15, +1.0%): beats by $0.38, beats on revs
• Bank of America (BAC 40.60, +0.63, +1.6%): 10% owner Berkshire Hathaway's (BRK.A / BRK.B) Warren Buffett sold another 9,549,933 shares at $39.74 - $40.38 worth approx. $382.4 mln
• Wells Fargo (WFC 59.66, +1.91, +3.3%): beats by $0.14, reports revs in-line
• Fastenal (FAST 73.09, +3.10, +4.4%): beats by $0.01, reports revs in-line
• Uber (UBER 82.69, +4.77, +6.1%) and Lyft (LYFT 12.83, +0.42, +3.4%): notably higher following Tesla (TSLA) Robotaxi unveiling

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a mostly lower note while Hong Kong's Hang Seng was closed for a holiday. Japan's Nikkei: +0.6% (+2.5% for the week), Hong Kong's Hang Seng: HOLIDAY (-6.5% for the week), China's Shanghai Composite: -2.6% (-3.6% for the week), India's Sensex: -0.3% (-0.4% for the week), South Korea's Kospi: -0.1% (+1.1% for the week), Australia's ASX All Ordinaries: -0.1% (+0.9% for the week).
  • In economic data:
    • Japan's September M2 Money Stock 1.3% yr/yr (expected 1.5%; last 1.3%)
    • New Zealand's September Business PMI 46.9 (last 45.8). September Visitor Arrivals -4.3% m/m (last 2.2%), and September FPI 0.5% m/m (last 0.2%)
  • In news:
    • China's Ministry of Finance will brief the press tomorrow on planned fiscal policy adjustments.
    • Japan's Fast Retailing had a strong showing after increasing its guidance for the year.
    • The Bank of Korea lowered its policy rate by 25 basis points to 3.25%, as expected.
• Major European indices trade near their flat lines. STOXX Europe 600: UNCH (+0.2% week-to-date), Germany's DAX: +0.3% (+0.7% week-to-date), U.K.'s FTSE 100: -0.2% (-0.7% week-to-date), France's CAC 40: +0.2% (+0.2% week-to-date), Italy's FTSE MIB: +0.2% (+1.7% week-to-date), Spain's IBEX 35: +0.4% (+0.3% week-to-date).
  • In economic data:
    • Germany's September CPI 0.0% m/m, as expected (last -0.1%); 1.6% yr/yr, as expected (last 1.9%)
    • U.K.'s August GDP 0.2% m/m, as expected (last 0.0%); 1.0% yr/yr (expected 1.4%; last 0.9%). August Construction Output 0.4% m/m (expected 0.5%; last -0.4%); 0.3% yr/yr (expected -0.3%; last -1.4%). August Industrial Production 0.5% m/m (expected 0.2%; last -0.7%); -1.6% yr/yr (expected -0.5%; last -2.2%). August Manufacturing Production 1.1% m/m (expected 0.3%; last -1.2%); -0.3% yr/yr (expected -0.4%; last -2.0%). August trade deficit GBP15.06 bln (expected deficit of GBP18.80 bln; last deficit of GBP18.87 bln)
    • Swiss October SECO Consumer Climate -34 (expected -33; last -35)
  • In news:
    • The French government announced a draft budget for 2025, aiming for a 5% budget deficit, but the plan also calls for a six-month freeze on state pensions, which is being opposed by all legislative blocks.
    • Germany is reportedly planning a 10% increase to its debt issuance in 2025.
    • BP raised its production outlook for Q3.