Stock Market Update

The S&P 500 futures are flat and are trading in line with fair value, the Nasdaq 100 futures are up 20 points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are down 24 points and are trading 0.1% below fair value.

Stock futures are mixed and trade flattish. There's a wait-and-see mentality in play following the holiday break and in front of the release of the June Employment Report at 8:30 ET. Some mega cap names are trading higher ahead of the open, providing some support to the broader market.

Treasury yields are lower ahead of the jobs report. The 2-yr note yield is down four basis points to 4.68% and the 10-yr note yield is down three basis points to 4.33%.

In other news, Keir Starmer's Labour Party prevailed in yesterday's snap elections in the UK and Prime Minister Sunak submitted his resignation.

In corporate news:

• Tesla (TSLA 251.25, +4.84, +2.0%): is now included on a Chinese local government's list of EVs allowed to be purchased by the public, according to FT; CEO Elon Musk stops contact with India over investment, according to Bloomberg
• Nvidia (NVDA 128.48, +0.20, +0.1%): expected to sell $12 bln in artificial intelligence chips in China in 2024, according to FT
• Elevance Health (ELV 531.00, +0.61, +0.1%): digital pharmacy sent out incorrect prescriptions, according to WSJ
• Macy's (M 19.20, +1.27, +7.1%): Arkhouse Management raises bid for Macy's, according to WSJ
• Coinbase (COIN 214.98, -9.96, -4.4%): dropping premarket after Bitcoin briefly fell below $55,000

Reviewing overnight development:

• Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: UNCH (+3.4% for the week), Hong Kong's Hang Seng: -1.3% (+0.5% for the week), China's Shanghai Composite: -0.3% (-0.6% for the week), India's Sensex: -0.1% (+1.2% for the week), South Korea's Kospi: +1.3% (+2.3% for the week), Australia's ASX All Ordinaries: -0.1% (+0.7% for the week).
  • In economic data:
    • Japan's May Household Spending -0.3% m/m (expected 0.5%; last -1.2%); -1.8% yr/yr (expected 0.2%; last 0.5%). May Leading Index 111.1, as expected (last 110.9) and Coincident Indicator 1.3% m/m (last 1.0%)
    • South Korea's May Current Account surplus $8.92 bln (last deficit of $290 mln)
    • Singapore's May Retail Sales 2.4% m/m (last -2.6%); 2.2% yr/yr (last -1.2%)
  • In news:
    • Japan's Nikkei tagged a fresh record high before giving back its gain.
    • Samsung reached a three-year high in response to strong preliminary results for Q2.
    • China sold 30-yr special Treasury bonds and the People's Bank of China is reportedly preparing to sell hundreds of billions worth of bonds after the recent slide to record lows in yields.
• Major European indices are on course for a mostly higher finish. STOXX Europe 600: +0.4% (+1.6% week-to-date), Germany's DAX: +0.7% (+1.9% week-to-date), U.K.'s FTSE 100: UNCH (+0.9% week-to-date), France's CAC 40: +0.2% (+3.1% week-to-date), Italy's FTSE MIB: +0.1% (+3.0% week-to-date), Spain's IBEX 35: -0.4% (+0.7% week-to-date).
  • In economic data:
    • Eurozone's May Retail Sales 0.1% m/m (expected 0.2%; last -0.2%); 0.3% yr/yr (expected 0.1%; last 0.6%)
    • Germany's May Industrial Production -2.5% m/m (expected 0.2%; last 0.1%); -6.7% yr/yr (last -3.7%)
    • U.K.'s June Halifax House Price Index -0.2% m/m (expected 0.2%; last 0.0%; 1.6% yr/yr (last 1.6%)
    • France's May Industrial Production -2.1% m/m (expected -0.6%; last 0.6%). May trade deficit EUR8.0 bln (expected deficit of EUR7.2 bln; last deficit of EUR7.6 bln)
    • Swiss June SECO Consumer Climate -37 (expected -35; last -38)
    • Italy's May Retail Sales 0.4% m/m (expected 0.2%; last -0.1%); 0.4% yr/yr (last -1.7%)
    • Spain's May Industrial Production 0.4% yr/yr (expected 1.4%; last 0.2%). May Consumer Confidence 83.8 (last 84.5)
  • In news:
    • Spain's IBEX (-0.4%) lags with banks contributing to the weakness.
    • British Prime Minister Sunak submitted his resignation today after his party was trounced by Labour in yesterday's snap election.
    • The second round of French elections will be completed this weekend.
    • New tariffs on imports of Chinese electric vehicles into the European Union took effect today.
    • Germany's ruling coalition has reportedly agreed on a draft budget for 2025.