Stock Market Update

The S&P 500 futures are up eight points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 70 points and are trading 0.4% above fair value, and the Dow Jones Industrial Average futures are down 50 points and are trading 0.2% below fair value.

Contracts linked to the Dow Jones Industrial Average are lower in early trading while S&P 500 and Nasdaq 100 futures are higher. A pre-open gain in NVIDIA (NVDA) following solid declines in recent sessions has supported the broader market so far this morning. 

Treasury yields are lower in front of some market-moving events today. The 2-yr note yield is down one basis point to 4.72% and the 10-yr note yield is down four basis points to 4.21%. Today's calendar includes the June Consumer Confidence (Briefing.com consensus 100.0; prior 102.0) report at 10:00 a.m. ET. Also, the U.S. Treasury will hold a $69 billion 2-yr Treasury note offering today with results at 1:00 p.m. ET.

Other economic data include the 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%) at 9:00 ET.

In corporate news:

• Apple (AAPL 209.51, +1.37, +0.7%): wants to reduce headcount at some iPhone assembly makers by 50%, according to The Information; rebuffed Meta (META) artificial intelligence partnership, according to Bloomberg
• Oracle (ORCL 139.32, -0.57, -0.4%): believes a ban of TikTok will negatively impact its business, according to CNBC
• NVIDIA (NVDA 120.75, +2.64, +2.2%): higher in premarket trading after solid losses in recent sessions 
• Boeing (BA 177.10, -2.00, -1.1%): proposed funding Spirit AeroSystems (SPR) acquisition with stock at a $35/share valuation, according to Bloomberg; awarded a not-to-exceed $210.9 mln US Navy order
• Tesla (TSLA 183.50, +0.92, +0.5%): aiming to recall thousands of Cybertrucks to fix wiper and trim issues, according to Reuters
• Pool (POOL 296.00, -41.91, -12.4%): lowers FY24 EPS guidance below consensus, says seasonally significant Q2 revenues are below previous expectations, guides Q2 EPS below consensus
• SolarEdge Technologies (SEDG 27.53, -5.72, -17.2%): files for $300 mln convertible notes offering; reaffirms Q2 revenue guidance
• Walt Disney (DIS 102.49, +0.51, +0.5%): Goldman Sachs initiated coverage with a Buy rating and a price target of $125
• Uber (UBER 71.43, +0.89, +1.3%): Piper Sandler reiterated its Overweight rating and raised its price target to $88 from $86

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: +1.0%, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: -0.4%, India's Sensex: +0.9%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: +1.3%.
  • In economic data:
    • Japan's June Corporate Price Services Index 2.5% yr/yr (expected 3.0%; last 2.7%). April BoJ Core CPI 2.1% yr/yr (expected 1.9%; last 1.8%). May Leading Index 110.9 (expected 111.6; last 112.2) and Coincident Indicator 1.0% m/m, as expected (last 2.1%)
    • South Korea's June Consumer Confidence 100.9 (last 98.4)
    • Hong Kong's May trade deficit $12.1 bln (last deficit of $10.0 bln). May Imports 9.6% m/m (last 3.7%) and Exports 14.8% m/m (last 11.9%) o Australia's June Westpac Consumer Sentiment 1.7% (last -0.3%)
  • In news:
    • The Chinese government is willing to offer perks to German carmakers in order to prevent the EU's planned implementation of tariffs on imported electric vehicles.
    • China's Premier Li expressed confidence that the domestic economy will grow about 5.0%.
    • Big Chinese telecom companies are reportedly being probed by the Biden administration.
    • Moody's does not expect Japan to reach its FY25 budget target.
• Major European indices trade in the red. STOXX Europe 600: -0.3%, Germany's DAX: -1.0%, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.7%, Italy's FTSE MIB: -0.4%, Spain's IBEX 35: -0.4%.
  • In economic data:
    • Spain's Q1 GDP 0.8% qtr/qtr (expected 0.7%; last 0.7%); 2.5% yr/yr (expected 2.4%; last 2.4%). May PPI -4.6% yr/yr (last -6.7%)
  • In news:
    • Airbus is down more than 10% after cutting its guidance for the year, which has also weighed on engine maker Rolls-Royce.
    • Merck is also down sharply after discontinuing a drug study.
    • Latest polls from France suggest that Marine Le Pen's party remains on track to gain about 36% of the vote in the first round of the looming election while President Macron's party is polling around 20.5%.