Stock Market Update

The S&P 500 futures are up 13 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 83 points and are trading 0.4% above fair value, and the Dow Jones Industrial Average futures are up 31 points and are trading 0.1% above fair value.

A positive bias in early action has been driven by carryover momentum and pre-open gains in mega cap names. Things may shift, though, after a slate of economic data this morning. The weekly jobless claims report is released at 8:30 ET, the preliminary August S&P Global Manufacturing and Services PMIs are released at 9:45 ET, and the July Existing Home Sales report is released at 10:00 ET.

Treasury yields are slightly higher in front of the data. The 2-yr note yield is up six basis points to 3.98% and the 10-yr note yield is up five basis points to 3.83%.

In corporate news:

• Agilent (A 142.80, +2.81, +2.0%): beats by $0.06, beats on revs; guides Q4 EPS below consensus, revs in-line
• Synopsys (SNPS 577.50, +12.82, +2.3%): beats by $0.15, reports revs in-line; guides Q4 EPS above consensus, revs in-line
• Urban Outfitters (URBN 36.60, -4.88, -11.8%): beats by $0.24, reports revs in-line; comps +2.0%
• Zoom Video (ZM 61.58, +1.35, +2.2%): beats by $0.18, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs above consensus; CFO Kelly Steckelberg to resign; will continue to serve as CFO through the release of Q3 (Oct) results
• Snowflake (SNOW 121.35, -13.81, -10.2%): beats by $0.02, beats on revs, slightly raises FY25 product revenue guidance, reaffirms non-GAAP operating margin guidance; Authorized the repurchase of additional $2.5 bln of common stock
• Wolfspeed (WOLF 14.70, +1.19, +8.8%): reports Q4 (Jun) results, revs in-line; guides Q1 EPS below consensus, revs in-line
• Baidu (BIDU 88.98, -0.76, -0.9%): beats by $2.45, reports revs in-line
• Advance Auto (AAP 55.00, -6.92, -11.2%): misses by $0.18, reports revs in-line; guides FY24 EPS below consensus, revs below consensus; announces sale of Worldpac to Carlyle (CG) for $1.5 billion
• Peloton (PTON 3.75, +0.39, +11.6%): beats by $0.08, beats on revs; guides Q1 revs below consensus; guides FY25 revs below consensus
• Charles Schwab (SCHW 61.95, -2.62, -4.1%): TD Bank takes further provision of $2.6 bln in Q3 results; sells 40,500,000 shares of common stock of Charles Schwab, reducing its ownership interest to 10.1% from 12.3%

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Japan's Nikkei: +0.7%, Hong Kong's Hang Seng: +1.4%, China's Shanghai Composite: -0.3%, India's Sensex: +0.2%, South Korea's Kospi: +0.2%, Australia's ASX All Ordinaries: +0.3%.
  • In economic data:
    • Japan's flash August Manufacturing PMI 49.5 (expected 49.8; last 49.1) and flash Services PMI 54.0 (last 53.7)
    • India's flash August Manufacturing PMI 57.9 (last 58.1) and flash Services PMI 60.4 (last 60.3)
    • Australia's flash August Manufacturing PMI 48.7 (last 47.5) and flash Services PMI 52.2 (last 50.4)
  • In news:
    • Bank of Japan Governor Ueda will take part in a parliamentary Q&A session tomorrow.
    • Flash August Manufacturing PMI readings from Japan (49.5) and Australia (48.7) remained in contraction while India's reading (57.9) remained well above 50.0, indicating ongoing expansion.
    • China's Commerce Ministry has launched an anti-subsidy probe into dairy imports from the EU.
    • The Bank of Korea left its repurchase rate at 3.50%, as expected, and lowered its 2024 CPI forecast to 2.5% from 2.6%.
• Major European indices trade on a modestly higher note while Spain's IBEX (+0.7%) outperforms with consumer and industrial names contributing to the strength. STOXX Europe 600: +0.5%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.2%, France's CAC 40: +0.2%, Italy's FTSE MIB: UNCH, Spain's IBEX 35: +0.7%.
  • In economic data:
    • Eurozone's flash August Manufacturing PMI 45.6 (expected 45.7; last 45.8) and flash Services PMI 53.3 (expected 51.7; last 51.9)
    • Germany's flash August Manufacturing PMI 42.1 (expected 43.4; last 43.2) and flash Services PMI 51.4 (expected 52.3; last 52.5)
    • U.K.'s flash August Manufacturing PMI 52.5 (expected 52.1; last 52.1) and flash Services PMI 53.3 (expected 52.8; last 52.5). August CBI Industrial Trends Orders -22 (expected -26; last -32)
    • France's flash August Manufacturing PMI 42.1 (expected 44.4; last 44.0) and flash Services PMI 55.0 (expected 50.2; last 50.1)
  • In news:
    • Final August Manufacturing PMI readings from Germany (42.1) and France (42.1) showed a deeper-than-expected contraction while the U.K.'s reading (52.5) remained in expansion, exceeding estimates.
    • Federal and state tax revenue in Germany was down 7.9% yr/yr this year.
    • Norway's central bank raised its one-year inflation outlook to 3.1% from 2.8% while the 2-3 year outlook was increased to 4.1% from 4.0%.