Stock Market Update

The S&P 500 futures are down 23 points and are trading 0.5% below fair value, the Nasdaq 100 futures are down 125 points and are trading 0.6% below fair value, and the Dow Jones Industrial Average futures are down 145 points and are trading 0.4% below fair value.

There's a negative bias in early action. Pre-open losses in the mega cap space have contributed to the downside bias. The jump in Treasury yields over the last few sessions has also kept pressure on equities, but yields are holding steady this morning. 

The 10-yr note yield is down three basis points to 4.45% and the 2-yr note yield is down two basis points to 4.75%.

Today's economic data include the May Job Openings report at 9:00 ET.

In corporate news:

• Microsoft (MSFT 454.68, -2.05, -0.5%): aims to consolidate retail channels in China, according to Reuters
• Moderna (MRNA 116.50, +0.55, +0.5%): will be awarded $176 mln from US government to help develop mRNA bird flu vaccine, according to Bloomberg
• Blackstone (BX 121.50, -0.73, -0.6%): to sell Alinamin to MBK Partners for an estimated $2.2 bln, according to Nikkei
• Paramount (PARA 10.46, +0.32, +3.2%): Barry Diller mulling bid to take control of Paramount, according to NY Times
• Tesla (TSLA 206.80, -3.06, -1.5%): reporting Q2 deliveries today
• Spirit Airlines (SAVE 3.56, +0.02, +0.6%): announces appointment of Fred Cromer as Executive Vice President and Chief Financial Officer, effective July 8, 2024
• CrowdStrike (CRWD 382.41, -9.74, -2.5%): downgraded to Neutral from Overweight at Piper Sandler

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: +1.1%, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: +0.1%, India's Sensex: UNCH, South Korea's Kospi: -0.8%, Australia's ASX All Ordinaries: -0.4%.
  • In economic data:
    • Japan's June Monetary Base 0.6% yr/yr (expected 1.0%; last 0.9%)
    • South Korea's June CPI -0.2% m/m (expected 0.1%; last 0.1%); 2.4% yr/yr (expected 2.7%; last 2.7%)
    • Hong Kong's May Retail Sales -11.5% yr/yr (last -14.7%)
    • New Zealand's May Building Consents -1.7% m/m (last -2.1%). Q2 NZIER Business Confidence -44% (last -25%)
  • In news:
    • Continued pressure on the Japanese yen sent the currency to its lowest level against the dollar since late 1986.
    • South Korea reported cooler-than-expected inflation for June with the Bank of Korea describing the report as positive.
    • The latest policy Minutes from the Reserve Bank of Australia showed that policymakers see inflation as consistent with returning to target in 2026.
    • There was some speculation that the People's Bank of China could lower its reserve requirement ratio due to a growing supply of bonds.
• Major European indices trade in the red. STOXX Europe 600: -0.7%, Germany's DAX: -1.3%, U.K.'s FTSE 100: -0.4%, France's CAC 40: -0.9%, Italy's FTSE MIB: -1.2%, Spain's IBEX 35: -1.7%.
  • In economic data:
    • Eurozone's June CPI 0.2% m/m (last 0.2%); 2.5% yr/yr, as expected (last 2.6%). June Core CPI 0.3% m/m (last 0.4%); 2.9% yr/yr (expected 2.8%; last 2.9%). May Unemployment Rate 6.4%, as expected (last 6.4%)
    • Italy's May Unemployment Rate 6.8% (expected 6.9%; last 6.8%)
    • Spain's June Unemployment Change -46,800 (expected -50,900; last -58,700)
  • In news:
    • Several European Central Bank officials made comments at the Sintra conference in Portugal, but the comments were in line with expectations, as policymakers repeated that there is no pre-set rate path while President Lagarde said that a soft landing is not guaranteed.
    • German industrial conglomerate Siemens plans to hire 10,000 new employees in its electricity division.