Stock Market Update

The S&P 500 futures are down one point and are trading fractionally below fair value, the Nasdaq 100 futures are up 28 points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are down 30 points and are trading 0.1% below fair value.

Stock futures are flattish in front of some potentially market-moving data. The May Retail Sale report will be released at 8:30 ET, followed by the May Industrial Production and Capacity Utilization report. Treasury yields are little changed in front of the data. The 10-yr note yield is up one basis point to 4.29% and the 2-yr note yield is up one basis point to 4.77%.

Pre-open gains in some mega caps and semiconductor-related names has provided support to the broader market in early trading. 

In corporate news:

• Lennar (LEN 152.25, -4.26, -2.7%): beats by $0.22, beats on revs, new orders increased 19%; Issues Q3 guidance, including deliveries of 20,500-21,000
• La-Z-Boy (LZB 37.45, +3.36, +9.9%): beats by $0.25, beats on revs; expects industry to continue to be challenged in FY25
• NextEra Energy (NEE 69.00, -3.31, -4.6%): to sell $2.0 bln of equity units
• Chegg (CHGG 3.10, +0.49, +18.8%): announces restructuring plan and new vision for growth
• Boeing (BA 177.65, -0.74, -0.4%): Whistleblower says that Boeing (BA) lost track of 400 bad 737 parts, according to Bloomberg; Boeing CEO David Calhoun will testify to Senate today at 14:00 ET
• Occidental Petro (OXY 60.57, +0.37, +0.6%): 10% owner Berkshire Hathaway's (BRK.A) Warren Buffett bought 2,947,611 shares at $59.38 - $60.37 worth nearly $176 mln
• Tesla (TSLA 186.67, -0.77, -0.4%): CEO Elon Musk will give stock options to high performance employees, according to Reuters

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +1.0%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: +0.5%, India's Sensex: +0.4%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: +0.9%.
  • In economic data:
    • Singapore's May trade surplus $4.563 bln (last surplus of $4.516 bln). May non-oil exports -0.1% m/m (expected 1.7%; last 7.3%); -0.1% yr/yr (expected -0.9%; last -9.6%)
  • In news:
    • China's Premier Li expressed hope for improved relations with Australia.
    • There was speculation that the People's Bank of China will not make any changes to its loan prime rate this month.
    • China's National Development and Reform Commission noted that demand for electric vehicles has continued growing at a fast pace.
    • Hong Kong's exchange will stop imposing trading halts due to extreme weather.
    • The Reserve Bank of Australia left its cash rate at 4.35%, as expected.
• Major European indices trade in the green. STOXX Europe 600: +0.5%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.4%, Italy's FTSE MIB: +1.1%, Spain's IBEX 35: +0.6%.
  • In economic data:
    • Eurozone's May CPI 0.2% m/m, as expected (last 0.6%); 2.6% yr/yr, as expected (last 2.4%). May Core CPI 0.4% m/m, as expected (last 0.7%); 2.9% yr/yr, as expected (last 2.7%). June ZEW Economic Sentiment 51.3 (expected 47.8; last 47.0)
    • Germany's June ZEW Economic Sentiment 47.5 (expected 49.6; last 47.1) and Current Conditions -73.8 (expected -65.0; last -72.3)
  • In news:
    • Eurozone's CPI for May was left unrevised while the region's latest economic sentiment survey beat estimates despite a poor showing in Germany.
    • EU leaders failed to agree on appointments for top posts at the European Commission, European Council, and the foreign ministry, but they will continue debating next week.