Stock Market Update

The S&P 500 futures are up five points and are trading 0.1% above fair value, the Nasdaq 100 futures are up ten points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are down ten points and are trading 0.1% below fair value.

The price action in equity futures has been muted so far. Contracts linked to the S&P 500, Nasdaq 100, and Dow industrials trade flattish. The lackluster action is in front of some influential events this week, including Tuesday night's presidential debate and Wednesday's release of the August Consumer Price Index at 8:30 ET.

Treasury yields are little changed from yesterday. The 10-yr note yield is up two basis points to 3.72% and the 2-yr note yield is up one basis point to 3.68%.

Today's economic lineup featured the NFIB Small Business Optimism Survey, which dropped to 91.2 from 93.7.

In corporate news:

• Apple (AAPL 218.40, -2.51, -1.1%): The EU Court of Justice sets aside the judgment of the General Court concerning tax rulings issued by Ireland in favour of Apple
• Alphabet (GOOG 149.90, +0.36, +0.2%): The EU Court of Justice upholds the fine of €2.4 billion imposed on Google for abuse of its dominant position by favouring its own comparison shopping service
• Oracle (ORCL 151.57, +11.60, +8.3%): beats by $0.06, reports revs in-line; guides NovQ EPS and revenue in-line
• Hewlett Packard Enterprise (HPE 16.69, -0.91, -5.2%): commences $1.35 bln offering of Series C Mandatory Convertible Preferred Stock   
• Under Armour (UAA 7.41, -0.05, -0.7%): announces an update to its FY25 restructuring plan; increases expectation for charges due to its new decision to exit one of its primary distribution facilities; co reaffirms FY25 adjusted EPS guidance
• Goldman Sachs (GS 484.95, -3.62, -0.7%): CEO says trading revs is heading for a 10% drop in Q3, according to Reuters

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: -0.2%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: +0.3%, India's Sensex: +0.4%, South Korea's Kospi: -0.5%, Australia's ASX All Ordinaries: +0.3%.
  • In economic data:
    • China's August trade surplus $91.02 bln (expected surplus of $81.40 bln; last surplus of $84.65 bln). August Imports 0.5% yr/yr (expected 2.0%; last 7.2%) and Exports 8.7% yr/yr (expected 6.5%; last 7.0%)
    • Japan's August Machine Tool Orders -3.5% yr/yr (last 8.4%)
    • Australia's September Westpac Consumer Sentiment -0.5% (last 2.8%). July Building Approvals 10.4% m/m, as expected (last -6.4%) and Private House Approvals 0.6% m/m, as expected (last -0.5%). August NAB Business Confidence -4 (last 1) and Business Survey 3 (last 6)
    • New Zealand's Q2 Manufacturing Sales Volume 0.6% qtr/qtr (last -0.3%)
  • In news:
    • China reported a larger-than-expected trade surplus for August as exports grew more than expected while import growth lagged, reflecting soft domestic demand.
    • Australia's government is expected to strike down the proposal put forth by Treasurer Chalmers to overhaul the board of the Reserve Bank of Australia.
    • Construction activity in New Zealand slowed to a four-year low in Q2.
• Major European indices are mixed. STOXX Europe 600: -0.1%, Germany's DAX: -0.3%, U.K.'s FTSE 100: -0.6%, France's CAC 40: +0.2%, Italy's FTSE MIB: -0.7%, Spain's IBEX 35: +0.1%.
  • In economic data:
    • Germany's August CPI -0.1% m/m, as expected (last 0.3%); 1.9% yr/yr, as expected (last 2.3%)
    • U.K.'s July Average Earnings Index + Bonus 4.0% yr/yr (expected 4.1%; last 4.6%). July three-month employment change 265,000 (expected 115,000; last 97,000) and July Unemployment Rate 4.1%, as expected (last 4.2%). August Claimant Count 23,700 (expected 95,500; last 102,300)
    • Italy's July Industrial Production -0.9% m/m (expected -0.2%; last 0.5%); -3.3% yr/yr (last -2.6%)
    • Spain's July Industrial Production -0.4% yr/yr (last 0.2%)
  • In news:
    • There is a growing focus on France's weak fiscal standing, as the country's budget manager warned that the situation remains worrying while Finance Minister Le Maire said that the deficit target (5.1% of GDP) must be met this year.
    • British Prime Minister Starmer is setting the stage for "unpopular" decisions in the autumn budget.
    • Former European Central Bank President Draghi published a report calling on the EU to engage in radical reforms that would cost around EUR800 bln per year.