Stock Market Update

The S&P 500 futures are up 11 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 60 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are down five points and are trading 0.1% below fair value.

Contracts tied to the S&P 500 and Nasdaq 100 are higher, supported by pre-open gains in mega cap names. There's still an element of hesitation in play this morning in front of market-moving events later in the week. Earnings news since yesterday's close received mixed responses. Pfizer (PFE) and PayPal (PYPL) are higher ahead of the open in response to earnings while Procter & Gamble (PG) shares slide in pre-open action. 

Today's economic calendar features the July Consumer Confidence Index at 10:00 ET. Other data include: May FHFA Housing Price Index and May S&P Case-Shiller Home Price Index at 9:00 ET, and June JOLTS Job Openings at 10:00 ET.

Treasury yields are little changed. The 10-yr note yield is down one basis points to 4.17% and the 2-yr note yield is unchanged from yesterday at 4.39%.

In corporate news:

• Pfizer (PFE 31.02, +0.30, +1.0%): beats by $0.14, beats on revs; raises FY24 EPS above consensus, revs in-line
• Merck (MRK 125.15, -2.63, -2.1%): beats by $0.12, beats on revs; lowers FY24 EPS guidance to reflect negative impact from one-time charge for acquisition of EyeBio, slightly raises rev guidance
• PayPal (PYPL 61.99, +3.05, +5.2%): beats by $0.20, reports revs in-line; guides Q3 EPS above consensus, revs in-line; raises FY24 EPS above consensus
• Stanley Black & Decker (SWK 101.85, +5.42, +5.6%): beats by $0.25, reports revs in-line; guides FY24 EPS in-line
• Procter & Gamble (PG 162.75, -7.18, -4.2%): beats by $0.03, reports revs in-line; guides FY25 EPS in-line, revs in-line
• Archer-Daniels (ADM 62.82, -0.48, -0.8%): misses by $0.19, misses on revs; reaffirms FY24 EPS guidance
• SoFi Technologies (SOFI 7.44, +0.11, +1.5%): beats by $0.01, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY24 EPS in-line, revs above consensus
• Lattice Semi (LSCC 46.49, -8.47, -15.4%): misses by $0.01, misses on revs; guides Q3 revs below consensus
• CrowdStrike (CRWD 247.20, -11.61, -4.5%): Delta (DAL) wants compensation from Microsoft (MSFT) and CrowdStrike for technology outage, according to CNBC

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: -1.4%, China's Shanghai Composite: -0.4%, India's Sensex: +0.1%, South Korea's Kospi: -1.0%, Australia's ASX All Ordinaries: -0.6%.
  • In economic data:
    • China's June FDI -29.1% YTD (last -28.2%)
    • Japan's June Unemployment Rate 2.5% (expected 2.6%; last 2.6%) and jobs/applications ratio 1.23 (expected 1.24; last 1.24)
    • Australia's June Building Approvals -6.5% m/m (expected -2.1%; last 5.7%); 9.8% yr/yr (last 15.0%). June Private House Approvals -0.5% m/m (last 1.9%)
  • In news:
    • The Bank of Japan will release its latest policy statement overnight and there is still some speculation that the central bank could announce a rate hike and a plan to reduce its bond purchases.
    • Japan's Economic Council called on the Bank of Japan and the government to be mindful of yen weakness when guiding policy.
    • Citigroup lowered its 2024 growth forecast for China to 4.8% from 5.0%.
• Major European indices trade on a mostly higher note. STOXX Europe 600: +0.4%, Germany's DAX: +0.4%, U.K.'s FTSE 100: -0.2%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.5%.
  • In economic data:
    • Eurozone's flash Q2 GDP 0.3% qtr/qtr (expected 0.2%; last 0.3%); 0.6% yr/yr, as expected (last 0.4%). July Business and Consumer Survey 95.8 (expected 95.4; last 95.9)
    • Germany's flash Q2 GDP -0.1% qtr/qtr (expected 0.1%; last 0.2%); -0.1% yr/yr (expected 0.0%; last -0.2%)
    • France's flash Q2 GDP 0.3% qtr/qtr (expected 0.2%; last 0.3%); 1.1% yr/yr (last 1.5%). June Consumer Spending -0.5% m/m (expected -0.2%; last 0.8%)
    • Italy's Q2 GDP 0.2% qtr/qtr, as expected (last 0.3%); 0.9% yr/yr (expected 0.8%; last 0.6%)
    • Spain's flash Q2 GDP 0.8% qtr/qtr (expected 0.5%: last 0.8%). July CPI -0.5% m/m (last 0.4%); 2.8% yr/yr (expected 3.0%; last 3.4%). July Core CPI 2.8% yr/yr (last 3.0%)
    • Swiss July KOF Leading Indicators 101.0 (expected 102.6; last 102.7)
  • In news:
    • Flash Q2 GDP readings from Spain and France exceeded expectations while Germany missed estimates, reporting a slight contraction.
    • British Chancellor Reeves said that he is planning GBP5.5 bln worth of spending cuts to narrow a budget gap.