Stock Market Update

The S&P 500 futures are up 20 points and are trading 0.4% above fair value, the Nasdaq 100 futures are up 100 points and are trading 0.5% above fair value, and the Dow Jones Industrial Average futures are up 30 points and are trading 0.1% above fair value.

There's a positive bias is early trading driven by pre-open gains in many mega cap names. NVIDIA (NVDA) is a standout in that respect, showing a 3% gain ahead of the open. 

Treasury yields are little changed this morning. The 2-yr note yield is up three basis points to 4.73% and the 10-yr note yield is up three basis points to 4.25%.

Separately, the Swiss National Bank unexpectedly lowered its policy rate by 25 bps to 1.25% while the Bank of England kept its bank rate at 5.25%, which was expected. Also, the People's Bank of China made no changes to its one-year and five-year loan prime rates, as expected.

The weekly MBA Mortgage Applications Index was released yesterday, showing a 0.9% increase following last week's 15.6% increase. The June NAHB Housing Market Index was also released, falling to 43 (Briefing.com consensus 45) versus 45 in May.

Today's economic lineup features:

• 8:30 ET: May Housing Starts (Briefing.com consensus 1.358 mln; prior 1.360 mln), Building Permits (Briefing.com consensus 1.455 mln; prior 1.440 mln), weekly Initial Claims (Briefing.com consensus 237,000; prior 242,000), Continuing Claims (prior 1.820 mln), Q1 Current Account Balance (Briefing.com consensus -$203.0 bln; prior -$194.8 bln), and June Philadelphia Fed survey (Briefing.com consensus 6.5; prior 4.5)
• 11:00 ET: Weekly crude oil inventories (prior +3.73 mln)

In corporate news:

• Apple (AAPL 213.68, -0.62, -0.3%): Hacker claims breach of Apple source code, according to Forbes
• Accenture (ACN 305.98, +20.63, +7.2%): misses by $0.03, reports revs in-line; guides Q4 revs in-line; lowers FY24 EPS guidance; narrows FY24 revenue guidance; announces intent to acquire Fibermind to strengthen fiber and mobile 5G Network Services
• KB Home (KBH 69.40, +1.36, +2.0%): beats by $0.35, beats on revs, raises low end of FY24 housing revenue guidance; expects Q3 housing revs of $1.65-1.75 bln, does not compare to consensus; projecting overall average selling price of approximately $482,000
• Darden Restaurants (DRI 158.16, +6.20, +4.1%): beats by $0.04, reports revs in-line, consolidated same-restaurant sales of 0.0%; guides FY25 EPS in-line, revs below consensus
• Winnebago (WGO 54.25, -2.45, -4.3%): misses by $0.18, misses on revs
• NVIDIA (NVDA 140.11, +4.53, +3.3%): up another 3% in premarket action; Stifel raised its price target to $165 from $114
• Advanced Micro (AMD 156.50, +1.87, +1.2%): lower as chip maker investigates claim from cybercriminal organization that it stole information in a hack, according to Bloomberg
• Boeing (BA 174.14, -0.85, -0.5%): 737 Max crash victims want $25 bln fine, according to Bloomberg

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: -0.5%, China's Shanghai Composite: -0.4%, India's Sensex: +0.2%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: UNCH.
  • In economic data:
    • Singapore's Q1 Unemployment Rate 2.1%, as expected (last 2.0%)
    • Hong Kong's May Unemployment Rate 3.0% (last 3.0%)
    • New Zealand's Q1 GDP 0.2% qtr/qtr (expected 0.1%; last -0.1%); 0.3% yr/yr (expected 0.2%; last -0.2%). Q1 GDP Expenditure 0.1% qtr/qtr (last 0.1%)
  • In news:
    • Japan's Lower House struck down a no-confidence vote against Prime Minister Kishida.
    • New Zealand emerged from a brief technical recession after reporting its first quarter of growth since Q2 2023.
    • The People's Bank of China made no changes to its one-year and five-year loan prime rates, as expected.
    • China Securities Regulatory Commission plans to accelerate the overseas listing process for Chinese companies.
• Major European indices trade in positive territory. STOXX Europe 600: +0.5%, Germany's DAX: +0.5%, U.K.'s FTSE 100: +0.4%, France's CAC 40: +0.9%, Italy's FTSE MIB: +1.0%, Spain's IBEX 35: +0.4%.
  • In economic data:
    • Germany's May PPI 0.0% m/m (expected 0.1%; last 0.2%); -2.2% yr/yr (expected -2.0%; last -3.3%)
    • Swiss May trade surplus CHF5.811 bln (expected surplus of CHF3.840 bln; last surplus of CHF4.339 bln)
  • In news:
    • The European Commission put France and Italy on Excessive Deficit Procedure watch.
    • The Swiss National Bank unexpectedly lowered its policy rate by 25 bps to 1.25% while the Bank of England kept its bank rate at 5.25%, which was expected.
    • Norges Bank kept its policy rate at 4.50% but raised its rate outlook.
    • Pre-election polls from the U.K. suggest that the Conservative party is on track for its largest loss in history.
    • Germany's ifo Institute raised its domestic growth forecast for 2024 to 0.4% from 0.2%.