Stock Market Update

The S&P 500 futures are up 12 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 70 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are up 32 points and are trading 0.1% above fair value.

Stock futures indicate a higher open following another record finish for the major indices yesterday. Pre-open gains in some mega cap names have contributed to the upside bias. There's still a wait-and-see vibe in play ahead of inflation data this week and in front of Fed Chair Powell's semiannual monetary policy testimony to Congress, which begins today before the Senate Banking Committee. 

Today's economic data was limited to the NFIB Small Business Optimism Survey, which rose to 91.5 in June from 90.5.

Treasury yields are slightly higher. The 10-yr note yield is up three basis points to 4.30% and the 2-yr note yield is up two basis points to 4.64%. 

In corporate news:

• NVIDIA (NVDA 130.08, +1.88, +1.5%): price target raised to $180 from $130 at KeyBanc
• Disney (DIS 97.47, +0.10, +0.1%): will introduce new China cruise ship, according to Reuters
• KKR (KKR 105.48, +0.41, +0.4%): aiming to lower stake in Kokusai Electric, according to Reuters
• Netflix (NFLX 688.10, +2.36, +0.3%): price target raised to $778 from $725 at TD Cowen
• Bank of America (BAC 40.87, +0.25, +0.6%): upgraded to Neutral from Underweight at Piper Sandler 

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +2.0%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: +1.3%, India's Sensex: +0.5%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: +0.8%.
  • In economic data:
    • Japan's June M2 Money Stock 1.5% yr/yr (expected 2.0%; last 1.9%). May Machine Tool Orders 9.7% yr/yr (last 4.2%)
    • Australia's July Westpac Consumer Sentiment -1.1% (last 1.7%). June NAB Business Confidence 4 (last -2) and Business Survey 4 (last 6)
  • In news:
    • Japan's Nikkei (+2.0%) reaching a fresh record high.
    • The Bank of Japan's meeting with bond market participants produced a suggestion to reduce monthly purchases.
    • New Zealand's Treasury warned that weak economic indicators suggest that a contraction took place in Q2.
    • Bank of Korea Governor Rhee testified in parliament that he expects the disinflationary trend to continue.
    • China's auto-related exports to countries that are part of the Belt & Road Initiative were up 13.3% yr/yr during the first five months of 2024.
• Major European indices are mostly lower. STOXX Europe 600: -0.3%, Germany's DAX: -0.5%, U.K.'s FTSE 100: -0.3%, France's CAC 40: -1.0%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -0.7%.
  • No data today
  • In news:
    • France's new National Assembly will convene before next Thursday, though it is uncertain what policies the new government will prioritize or if the three main parties are able to agree on a common course.
    • European Central Bank policymaker Panetta said that the central bank can gradually cut rates while Italy's economy minister Giorgetti said that domestic growth could reach 0.9% this year.