Stock Market Update

The S&P 500 futures are up 29 points and are trading 0.5% above fair value, the Nasdaq 100 futures are up 153 points and are trading 0.8% above fair value, and the Dow Jones Industrial Average futures are up 154 points and are trading 0.4% above fair value.

There's a positive bias in early trading supported by pre-open gains in mega cap stocks and positive responses to some earnings news. Workday (WDAY) and Ross Stores (ROST) are sharply higher in front of the open after pleasing results and guidance.

The vibe could shift, though, in reaction to Fed Chair Powell's speech at the Jackson Hole Symposium at 10:00 ET. Recent gains that had the S&P 500 within 1.0% of its all-time high were partially predicated on an optimistic view of the Fed's rate cut path. So, participants will be listening for commentary that corroborates that thinking.

In central bank related news, European Central Bank policymaker Kazaks said that he is open to a discussion about a September rate cut.

The 10-yr Treasury note yield is down one basis point at 3.85% and the 2-yr note yield is unchanged at 4.01%.

Today's economic data is limited to the uly New Home Sales report at 10:00 ET.

In corporate news:

• Workday (WDAY 261.70, +30.62, +13.3%): beats by $0.10, reports revs in-line, reaffirms FY25 subscription revenue guidance, increases non-GAAP operating margin guidance; also announces new partnership with Equifax
• Intuit (INTU 669.55, +4.26, +0.6%): beats by $0.14, beats on revs; guides OctQ EPS and revs below consensus; guides FY25 EPS above consensus, revs in-line
• Ross Stores (ROST 160.76, +8.24, +5.4%): beats by $0.09, reports revs in-line, comps of +4%; guides Q3 EPS in-line; guides Q4 (Jan) EPS in-line, FY25 EPS in-line; issues FY25 revenue guidance on the call; expects growth in-line with consensus
• CAVA Group (CAVA 111.17+, 9.19, +9.0%): beats by $0.04, beats on revs; comps +14.4%; increases FY24 adjusted EBITDA outlook and raises comp guidance
• Uber (UBER 72.39, -0.92, -1.3%): and Cruise (GM) sign multiyear partnership to bring Cruise autonomous vehicles to Uber platform
• Paramount Global (PARA 11.03, -0.15, -1.3%): Skydance accuses PARA's committee of directors of violating terms of deal, according to WSJ

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: +0.4% (+0.8% for the week), Hong Kong's Hang Seng: -0.2% (+1.0% for the week), China's Shanghai Composite: +0.2% (-0.9% for the week), India's Sensex: UNCH (+0.8% for the week), South Korea's Kospi: -0.2% (+0.2% for the week), Australia's ASX All Ordinaries: -0.1% (+0.7% for the week).
  • In economic data:
    • Japan's July National CPI 0.2% m/m (last 0.3%); 2.8% yr/yr (last 2.8%). July National Core CPI 2.7% yr/yr, as expected (last 2.6%)
    • Singapore's July CPI -0.3% m/m (last -0.2%); 2.4% yr/yr (expected 2.5%; last 2.4%). July Core CPI 2.5% yr/yr (expected 2.9%; last 2.9%)
    • New Zealand's Q2 Retail Sales -1.2% qtr/qtr (expected -1.0%; last 0.4%) and Core Retail Sales -1.0% qtr/qtr (expected -0.8%; last 0.3%)
  • In news:
    • Bank of Japan Governor Ueda appeared in parliament, but his remarks did not include any surprises.
    • The central bank governor said that there is no difference of opinion between him and Deputy Governor Uchida who recently said that the BoJ will not hike during market instability.
    • Japan's CPI report for July showed that core-core CPI slipped below the BoJ's 2.0% target for the first time in nearly two years.
    • Chinese officials are reportedly planning tariffs for vehicles with large engines.
• Major European indices are looking for a positive finish to the week. STOXX Europe 600: +0.3% (+1.2% week-to-date), Germany's DAX: +0.7% (+1.6% week-to-date), U.K.'s FTSE 100: +0.4% (+0.1% week-to-date), France's CAC 40: +0.6% (+1.6% week-to-date), Italy's FTSE MIB: +1.0% (+1.8% week-to-date), Spain's IBEX 35: +0.7% (+2.6% week-to-date).
  • In economic data:
    • France's August Business Survey 99 (expected 96; last 95)
  • In news:
    • European Central Bank policymaker Kazaks said that he is open to a discussion about a September rate cut and that policy would remain restrictive even after a couple additional cuts.
    • The latest consumer expectations survey for the eurozone showed that year-ahead CPI expectations ticked up to 2.8% from 2.7% while the three-year outlook rose to 2.4% from 2.3%.