Stock Market Update

The S&P 500 futures are up 23 points and are trading 0.4% above fair value, the Nasdaq 100 futures are up 94 points and are trading 0.5% above fair value, and the Dow Jones Industrial Average futures are up 209 points and are trading 0.5% above fair value.

Stock futures are higher amid rising Treasury yields. The early price action is related to the assassination attempt on Former President Trump at a rally in Butler, PA on Saturday and implications for the November election. Pre-open gains in the mega cap space are also boosting the broader market.

The 10-yr note yield is up five basis points to 4.24%.

Market participants are also digesting earnings results from Goldman Sachs (GS) and Blackrock (BLK), which have garnered positive responses in early trading.

In corporate news:

• Goldman Sachs (GS 480.09, +2.21, +0.5%): beats by $0.27, beats on revs
• BlackRock (BLK 834.12, +6.15, +0.7%): beats by $0.40, reports revs in-line
• Apple (AAPL 234.67, +4.10, +1.8%): sales in India reach $8 bln, according to Bloomberg; upgraded to Buy from Hold at Loop Capital
• Google (GOOG 186.55, -0.23, -0.1%): in discussions to acquire cybersecurity startup Wiz for $23 bln, according to WSJ
• Boeing (BA 182.85, +0.54, +0.3%): started 777X certification testing, according to Air Current
• NVIDIA (NVDA 130.80, +1.56, +1.2%): TD Cowen raised its price target to $165 from $140
• TSMC (TSM 189.14, +1.79, +1.0%): reiterated Buy rating and price target raised to $210 from $168 at Needham

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a mixed note while Japan's Nikkei was closed for Marine Day. Japan's Nikkei: HOLIDAY, Hong Kong's Hang Seng: -1.5%, China's Shanghai Composite: +0.1%, India's Sensex: +0.2%, South Korea's Kospi: +0.1%, Australia's ASX All Ordinaries: +0.7%.
  • In economic data:
    • China's June House Prices -4.5% yr/yr (last -3.9%). Q2 GDP 0.7% qtr/qtr (expected 1.1%; last 1.5%); 4.7% yr/yr (expected 5.1%; last 5.3%). June Fixed Asset Investment 3.9% yr/yr, as expected (last 4.0%), June Industrial Production 5.3% yr/yr (expected 4.9%; last 5.6%), and June Retail Sales 2.0% yr/yr (expected 3.3%; last 3.7%). June Unemployment Rate 5.0%, as expected (last 5.0%)
    • South Korea's June trade surplus $7.99 bln (last surplus of $8.00 bln). June Imports -7.5% yr/yr (last -7.5%) and Exports 5.1% yr/yr (last 5.1%)
    • India's June trade deficit $20.98 bln (last deficit of $23.78 bln). June WPI Inflation 3.36% (expected 3.50%; last 2.61%)
  • In news:
    • China reported weaker-than-expected growth for Q2 due in part to weak consumption.
    • China's third plenum began today and will continue through Thursday, but expectations for major policy shifts are low.
• Major European indices trade in the red. STOXX Europe 600: -0.3%, Germany's DAX: -0.6%, U.K.'s FTSE 100: -0.3%, France's CAC 40: -0.7%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: -0.5%.
  • In economic data:
    • Eurozone's May Industrial Production -0.6% m/m (expected -0.9%; last -0.1%); -2.9% yr/yr (last -3.1%)
    • Swiss June PPI 0.0% m/m (expected 0.1%; last -0.3%); -1.9% yr/yr (last -1.8%)
  • In news:
    • The new French parliament should convene by this Thursday.
    • The leader of France's audit court said that the deficit level is unacceptable.
    • Bank of England policymaker Dhingra said that the time is right for starting the rate normalization process.
    • Burberry is down sharply in London after forecasting a loss for the first half of 2024.
    • Airbus raised its demand forecast for the year.