Stock Market Update

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

Contracts linked to the S&P 500, Nasdaq 100, and Dow Jones Industrial Average are flat in early action. Market participants are digesting earnings results from some big banks, which have garnered mostly negative reactions. JPMorgan Chase (JPM) and Wells Fargo (WFC) show pre-open declines after reporting earnings and Citigroup (C) shows a gain in response to quarterly results. 

The market receives another read on inflation today in the form the June Producer Price Index at 8:30 ET. Treasury yields are higher in front of the report. The 10-yr note yield is up three basis points to 4.22% and the 2-yr note yield is unchanged at 4.51%.

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

In corporate news:

• JPMorgan Chase (JPM 204.10, -3.35, -1.6%): beats by $0.24 on GAAP EPS; beats on revs
• Wells Fargo (WFC 56.50, -3.66, -6.0%): beats by $0.04, beats on revs
• BNY Mellon (BK 61.80, +0.33, +0.5%): beats by $0.09, beats on revs
• Fastenal (FAST 65.58, +1.41, +2.2%): reports EPS in-line, revs in-line
• AT&T (T 18.48, -0.38, -2.0%): provides cybersecurity update; does not believe that this incident is reasonably likely to materially impact AT&T's financial condition or results of operations
• Estee Lauder (EL 102.63, +1.02, +1.0%): CFO to retire
• Lockheed Martin's (LMT 461.86, +1.48, +0.3%): Sikorsky awarded $251 mln U.S. Army contract modification
• Boeing (BA 183.88, -0.03, -0.02%): warned 737 Max customers of additional delays, according to Bloomberg

Reviewing today's economic data:

• Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: -2.5% (+0.7% for the week), Hong Kong's Hang Seng: +2.6% (+2.8% for the week), China's Shanghai Composite: UNCH (+0.7% for the week), India's Sensex: +0.8% (+0.7% for the week), South Korea's Kospi: -1.2% (-0.2% for the week), Australia's ASX All Ordinaries: +0.9% (+1.7% for the week).
  • In economic data:
    • China's June trade surplus $99.05 bln (expected surplus of $85.10 bln; last surplus of $82.62 bln). June Imports -2.3% yr/yr (expected 2.8%; last 1.8%) and Exports 8.6% yr/yr (expected 8.0%; last 7.6%). June M2 Money Stock 6.2% yr/yr (expected 6.8%; last 7.0%), June New Loans CNY2.13 trln (expected CNY1.05 trln; last CNY950.0 bln), and June total social financing CNY3.30 trln (last CNY2.07 trln). June FDI -29.1% YTD (last -28.2%)
    • Japan's May Industrial Production 3.6% m/m (expected 2.8%; last -0.9%) and Capacity Utilization 4.1% m/m (last 0.3%)
    • Singapore's Q2 GDP 0.4% qtr/qtr (last 0.3%); 2.9% yr/yr (expected 2.7%; last 3.0%)
    • New Zealand's June Business NZ PMI 41.1 (last 47.2). June Electronic Card Retail Sales -0.6% m/m (last -1.2%); -4.9% yr/yr (last -1.6%)
  • In news:
    • Japan's Nikkei (-2.5%) underperformed, reversing from a record high after yesterday's reported intervention in the foreign exchange market.
    • Japanese officials did not admit to taking action to support the yen.
    • Manufacturing activity in New Zealand contracted at its fastest pace since August 2021, according to the June Manufacturing PMI (41.1).
    • Reserve Bank of India Governor Das said that inflation in June is expected around 5.0% and that it is too early to discuss rate cuts.
• Major European indices are looking for a higher finish to the week. STOXX Europe 600: +0.4% (+0.9% week-to-date), Germany's DAX: +0.4% (+0.7% week-to-date), U.K.'s FTSE 100: +0.3% (+0.5% week-to-date), France's CAC 40: +0.7% (+0.1% week-to-date), Italy's FTSE MIB: +0.5% (+1.5% week-to-date), Spain's IBEX 35: +0.5% (+1.9% week-to-date).
  • In economic data:
    • Germany's June WPI -0.3% m/m (expected 0.2%; last 0.1%); 0.6% yr/yr (last -0.7%)
    • France's June CPI 0.1% m/m, as expected (last 0.0%); 2.2% yr/yr (expected 2.1%; last 2.3%)
    • Spain's June CPI 0.4% m/m (expected 0.3%; last 0.3%); 3.4% yr/yr, as expected (last 3.6%). Core CPI 3.0% yr/yr, as expected (last 3.0%)
  • In news:
    • Reports from France suggest that left wing parties have not been able to agree on a candidate for prime minister.
    • There is some growing political uncertainty in Spain after Vox Party withdrew from five regional coalition governments with People's Party due to a dispute over migration.
    • Norwegian Air reported stronger than expected results for Q2 while Swiss nylon manufacturer EMS Chemie lowered its guidance for the year due to a strong franc and the lack of improvement in global manufacturing.