Stock Market Update

The S&P 500 futures are up 36 points and are trading 0.7% above fair value, the Nasdaq 100 futures are up 158 points and are trading 0.9% above fair value, and the Dow Jones Industrial Average futures are up 214 points and are trading 0.6% above fair value.

There's a positive bias in early trading after sharp declines in recent sessions. Pre-open gains in semiconductor names and mega cap stocks have supported the upside moves, along with price action in the bond market and in overseas equity markets. Japan's Nikkei surged 10.2% following its 12% slump on Monday. 

The 10-yr note yield is up six basis points to 3.85% and the 2-yr note yield is up ten basis points to 3.98%.

Today's economic lineup is limited to the June Trade Balance at 8:30 ET.

In corporate news:

• Palantir Technologies (PLTR 26.56, +2.47, +10.3%): beats by $0.01, beats on revs; guides Q3 revs above consensus; guides FY24 revs above consensus
• ZoomInfo (ZI 8.42, -1.38, -14.1%): misses by $0.07, misses on revs; guides Q3 EPS below consensus, revs below consensus; lowers FY24 EPS below consensus, revs below consensus; announces the appointment of Domenic Maida and Owen Wurzbacher to its Board of Directors, effective August 6, 2024
• CSX (CSX 33.54, +0.54, +1.6%): beats by $0.01, reports revs in-line
• Avis Budget (CAR 82.49, -1.47, -1.8%): reports Q2 (Jun) results, misses on revs
• Caterpillar (CAT 331.00, +14.20, +4.5%): beats by $0.43, misses on revs
• Yum China (YUMC 32.44, +2.64, +8.9%): beats by $0.08, misses on revs; reiterates FY24 targets; announces that Andy Yeung, who has served as the Company's Chief Financial Officer since October 2019, intends to resign as the Company's Chief Financial Officer for personal reasons
• Lucid Group (LCID 3.34, +0.34, +11.3%): misses by $0.02, beats on revs; announces public investment fund commitment of $1.5 billion
• Uber (UBER 61.53, +3.05, +5.2%): beats by $0.16, beats on revs, gross bookings increased 19% yr/yr; Guides forQ3 adjusted EBITDA of $1.58-$1.68 bln
• NVIDIA (NVDA 103.55, +3.10, +3.1%): bouncing back after sharp declines

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note with Japan's Nikkei (+10.2%) recovering the bulk of its loss from Monday. Japan's Nikkei: +10.2%, Hong Kong's Hang Seng: -0.3%, China's Shanghai Composite: +0.2%, India's Sensex: -0.2%, South Korea's Kospi: +3.3%, Australia's ASX All Ordinaries: +0.4%.
  • In economic data:
    • Japan's June Household Spending 0.1% m/m (expected 0.2%; last -0.3%); -1.4% yr/yr (expected -0.9%; last -1.8%). June overall wage income 4.5% yr/yr (expected 2.3%; last 2.0%)
    • Australia's July ANZ Job Advertisements -3.0% m/m (last -2.7%). June Building Approvals -6.5% m/m, as expected (last 5.5%), and June Private House Approvals -0.5% m/m, as expected (last 1.9%)
  • In news:
    • Chipmakers bounced after a poor outing on Monday and the rally triggered a brief trading halt in the Nikkei.
    • Japan reported much stronger than expected earnings growth for June.
    • The Reserve Bank of Australia left its cash rate at 4.35%, as expected. The central bank expects to keep the cash rate steady into the middle of next year.
• Major European indices trade in mixed fashion. STOXX Europe 600: +0.2%, Germany's DAX: +0.3%, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: -0.4%.
  • In economic data:
    • Eurozone's June Retail Sales -0.3% m/m (expected 0.0%; last 0.1%); -0.3% yr/yr (expected 0.1%; last 0.5%)
    • Germany's June Factory Orders 3.9% m/m (expected 0.4%; last -1.7%)
    • France's Q2 nonfarm payrolls 0.0% qtr/qtr (expected 0.2%; last 0.3%)
    • Swiss July Unemployment Rate 2.5%, as expected (last 2.4%). June Retail Sales -2.2% yr/yr (expected 0.5%; last -0.2%)
  • In news:
    • The Bank of England released its resolvability assessment of major banks, noting that if one of the eight major British banks were to fail, the failure would be absorbed by the system.
    • Drugmaker Bayer reported mixed results for the quarter and affirmed its guidance for the year.