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 47 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are up 31 points and are trading 0.1% above fair value.

Stock futures are higher after yesterday's record finish for the Dow Jones Industrial Average. Market participants are digesting mostly better than expected earnings news from Dow component UnitedHealth (UNH), Bank of America (BAC), and Morgan Stanley (MS).

Participants are also waiting on the Retail Sales report for June at 8:30 ET. 

Treasury yields are lower in front of the data. The 10-yr note yield is down six basis points to 4.17% and the 2-yr note yield is down three basis points to 4.42%.

In corporate news:

• UnitedHealth (UNH 513.00, -2.37, -0.5%): beats by $0.14, reports revs in-line; reaffirms FY24 EPS guidance; provides cyberattack update
• Bank of America (BAC 42.90, +1.01, +2.4%): beats by $0.03, reports revs in-line
• Morgan Stanley (MS 102.32, -2.94, -2.8%):  beats by $0.17, beats on revs
• PNC (PNC 169.51, +0.49, +0.3%): beats by $0.40, reports revs in-line
• Charles Schwab (SCHW 74.07, -1.00, -1.3%): beats by $0.01, reports revs in-line
• Match Group (MTCH 35.03, +3.01, +9.4%): Starboard Value sends letter to Match Group regarding opportunities to substantially increase shareholder value
• Shopify (SHOP 66.57, +2.36, +3.7%): upgraded to Buy from Neutral at Bank of America
• Dollar Tree (DLTR 102.23, -1.60, -1.5%): downgraded to Neutral from Overweight 
• Verizon (VZ 40.89, +0.10, +0.3%): mulling sale of thousands of US towers, according to Bloomberg; Record labels file lawsuit against Verizon, according to Rolling Stone 

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: -1.6%, China's Shanghai Composite: +0.1%, India's Sensex: +0.1%, South Korea's Kospi: +0.2%, Australia's ASX All Ordinaries: -0.2%.
  • In economic data:
    • Japan's May Tertiary Industry Activity Index -0.4% m/m (expected 0.1%; last 2.2%)
    • South Korea's June Import Price Index 9.7% yr/yr (last 4.7%) and Export Price Index 12.2% yr/yr (last 7.6%)
  • In news:
    • Chinese Insurer Ping An Insurance lost more than 5.0% in Hong Kong after issuing $3.5 bln wort of convertible notes.
    • The People's Bank of China conducted its largest liquidity injection on record, adding CNY733 bln through open market operations.
    • Expectations for another rate hike rate from the Reserve Bank of Australia have receded significantly in recent weeks.
• Major European indices trade in the red. STOXX Europe 600: -0.4%, Germany's DAX: -0.6%, U.K.'s FTSE 100: -0.5%, France's CAC 40: -0.8%, Italy's FTSE MIB: -0.4%, Spain's IBEX 35: -0.9%. 
  • In economic data:
    • Eurozone's May trade surplus EUR13.9 bln (expected surplus of EUR18.0 bln; last surplus of EUR14.2 bln). July ZEW Economic Sentiment 43.7 (expected 48.1; last 51.3)
    • Germany's July ZEW Economic Sentiment 41.8 (expected 41.2; last 47.5) and Current Conditions -68.9 (expected -74.3; last -73.8)
    • France's May Current Account deficit EUR3.10 bln (last deficit of EUR3.50 bln)
    • Italy's June CPI 0.1% m/m, as expected (last 0.2%); 0.8% yr/yr, as expected (last 0.8%). May trade surplus EUR520 mln (last deficit of EUR210 mln)
  • In news:
    • The European Central Bank's lending survey for Q2 showed the first increase in demand for consumer loans since 2022.
    • Germany's ZEW Economic Sentiment survey recorded the first decrease in economic expectations in a year.
    • Roberta Metsola will continue leading the European Parliament for the next 2.5 years.
    • Hugo Boss lowered its outlook for the year due to weak sales in China and the United Kingdom.