Stock Market Update

The S&P 500 futures are up three points and are trading 0.1% above fair value, the Nasdaq 100 futures are down 29 points and are trading 0.1% below fair value, and the Dow Jones Industrial Average futures are up 100 points and are trading 0.2% above fair value.

There's a mixed disposition in early trading. There's not a lot of conviction from either buyers or sellers after a solid run for the major indices this month. 

The 10-yr note yield is up one basis point to 4.27% and the 2-yr note yield is up two basis points to 4.75%.

There is no US economic data of note today. Tuesday's calendar features:

• 9:00 ET: April FHFA Housing Price Index (prior 0.1%) and April S&P Case-Shiller Home Price Index (Briefing.com consensus 6.9%; prior 7.4%)
• 10:00 ET: June Consumer Confidence (Briefing.com consensus 100.0; prior 102.0)

In corporate news:

• Apple (AAPL 207.65, +0.15, +0.1%): EU commission sends preliminary findings to Apple and opens additional non-compliance investigation against Apple under the Digital Markets Act
• Meta (META 496.73, +1.95, +0.4%): and Apple discussed artificial intelligence partnership, according to WSJ; mislead public about risks to young users, according to NY Times
• ResMed (RMD 185.10, -20.73, -10.1%): shares down 12% following Eli Lilly (LLY) tirzepatide trial results; Citigroup analyst says RMD"s trial assumptions might be "optimistic" based on this data
• Boeing (BA 175.00, -1.56, -0.9%): US prosecutors will recommended DOJ criminally charge Boeing (BA), according to Reuters
• Broadcom (AVGO 1661.00, +7.62, +0.5%): working with ByteDance to develop advanced AI chip. according to Reuters

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a mixed note with China's Shanghai Composite (-1.2%) falling to its lowest level since late February. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: -1.2%, India's Sensex: +0.2%, South Korea's Kospi: -0.7%, Australia's ASX All Ordinaries: -0.8%.
  • In economic data:
    • China's May FDI -28.2% YTD (last -27.9%)
    • Singapore's May CPI 0.7% m/m (last 0.1%); 3.1% yr/yr (expected 3.0%; last 2.7%). May Core CPI 3.1% yr/yr (expected 3.0%; last 3.1%)
    • New Zealand's May trade surplus NZD204 mln (expected surplus of NZD155 mln; last deficit of NZD3 mln). May Credit Card Spending 0.0% yr/yr (last -0.8%)
  • In news:
    • China's fiscal revenue for the first five months of the year was down 2.8% yr/yr while expenditures were up 3.4%.
    • The Bank of Japan will hold a meeting with bond market participants on July 9 and 10.
    • Japan's Prime Minister Kishida said that gasoline subsidies will be maintained through the end of the year.
• Major European indices are starting the week on a higher note. STOXX Europe 600: +0.6%, Germany's DAX: +0.5%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.8%, Italy's FTSE MIB: +1.3%, Spain's IBEX 35: +0.8%.
  • In economic data:
    • Germany's June ifo Business Climate 88.6 (expected 89.4; last 89.3). June Current Assessment 88.3 (expected 89.4; last 89.3) and Business Expectations 89.0 (expected 91.0; last 90.3)
    • U.K.'s June CBI Industrial Trends Orders -18 (expected -26; last -33)
  • In news:
    • Germany's Economy Minister Habeck said that the European Union is willing to negotiate the specifics of electric vehicle tariffs with China.
    • European Central Bank policymaker Schnabel said that the central bank will not commit to a specific policy path since there is a potential for price shocks.