Stock Market Update

The S&P 500 futures are up 10 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 45 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are up 260 points and are trading 0.6% above fair value. 

There's a positive bias in early action. A solid pre-open gain in Salesforce (CRM) after reporting earnings has boosted futures linked to Dow industrials. S&P 500 and Nasdaq 100 futures are also trading higher despite a premarket decline in shares of NVIDIA (NVDA) following its earnings report. NVDA reported better-than-expected earnings and issued above-consensus guidance, but shares were already 153% higher for the year ahead of the results.

Other mega cap names are higher in early trading, contributing to the upside bias.

Treasury yields are little changed. The 10-yr note yield is down one basis point to 3.83% and the 2-yr note yield is down one basis point to 3.86%.

Today's economic lineup features:

• 8:30 ET: Q2 GDP -- second estimate (prior 2.8%), Q2 GDP Deflator -- second estimate (prior 2.3%), weekly Initial Claims (prior 232,000), Continuing Claims (prior 1.863 mln), advance July goods trade balance (prior -$96.6 bln), advance July Retail Inventories (prior -$96.8 bln), advance Retail Inventories (prior 0.7%), and advance Wholesale Inventories (prior 0.2%)
• 10:00 ET: July Pending Home Sales (Briefing.com consensus 1.2%; prior 4.8%)
• 10:30 ET: Weekly natural gas inventories (prior +35 bcf)

In corporate news:

• NVIDIA (NVDA 121.27, -4.35, -3.4%): beats by $0.03, beats on revs; guides Q3 revs above consensus; Blackwell samples shipping to customers; approves additional $50.0 bln for repurchases; In Q4 (Jan), expect to ship several billion dollars in Blackwell revenue
• Salesforce (CRM 271.25, +12.35, +4.8%): beats by $0.21, beats on revs; guides Q3 EPS in-line, revs below consensus; guides FY25 EPS above consensus, revs in-line; Also announces CFO transition
• CrowdStrike (CRWD 260.87, -3.33, -1.3%): beats by $0.07, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs below consensus
• Okta (OKTA 84.56, -11.98, -12.4%): beats by $0.11, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs above consensus
• HP Inc. (HPQ 33.65, -1.11, -3.2%): misses by $0.03, beats on revs; guides Q4 EPS in-line; increases repurchase plan to $10.0 bln

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: -0.5%, India's Sensex: +0.4%, South Korea's Kospi: -1.0%, Australia's ASX All Ordinaries: -0.3%.
  • In economic data:
    • Japan's August Household Confidence 36.7 (expected 36.9; last 36.7)
    • Australia's Q2 Building Capital Expenditure -3.8% qtr/qtr (last -0.9%), Q2 Plant/Machinery Capital Expenditure -0.5% qtr/qtr (last 3.7%), and Q2 Private New Capital Expenditure -2.2% qtr/qtr (expected 0.9%; last 1.9%)
    • New Zealand's August ANZ Business Confidence 50.6 (last 27.1)
  • In news:
    • Technology stocks faced some pressure after NVIDIA (NVDA) reported results that were strong, but not as strong as some had hoped.
    • Business confidence in New Zealand soared to levels last seen a decade ago.
    • Chinese banks struggled after Bank of Communications reported poor results.
• Major European indices trade in positive territory. STOXX Europe 600: +0.6%, Germany's DAX: +0.6%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.6%, Italy's FTSE MIB: +0.8%, Spain's IBEX 35: +0.4%.
  • In economic data:
    • Eurozone's August Business and Consumer Survey 96.6 (expected 95.8; last 96.0)
    • Spain's August CPI 0.0% m/m (expected 0.1%; last -0.5%); 2.2% yr/yr (expected 2.4%; last 2.8%). August Core CPI 2.7% yr/yr (last 2.8%). July Business Confidence -3.6 (last -4.2)
  • In news:
    • The Italian government is expected to signal commitment to reducing its deficit-to-GDP ratio below the EU's 3.0% target in 2026.
    • Sweden's Riksbank is on track to cut rates two or three more times this year, according to Deputy Governor Bunge.
    • Germany's flash CPI report for August will be released at 8:00 ET and is expected to show a deceleration in headline CPI to 2.1% yr/yr from 2.3% in July.