Stock Market Update

The S&P 500 futures are up 11 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 12 points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are up 56 points and are trading 0.1% above fair value. 

The stock market is poised to start the final session of this strong week on solid footing. Contracts tied to the S&P 500, Nasdaq 100, and Dow industrials are higher. 

Corporate news since yesterday's close has garnered mixed responses. Adobe (ADBE) shares are sharply lower after reporting better-than-expected earnings, but below-consensus revenue guidance. RH (RH) also reported quarterly results, trading 20% higher ahead of the open. Boeing (BA) shares are under pressure after its machinist union voted 96% to authorize strike.

Today's economic lineup features:

• 8:30 ET: August Import Prices (prior 0.1%), Import Prices ex-oil (prior 0.1%), Export Prices (prior 0.7%), and Export Prices ex-agriculture (prior 1.0%)
• 10:00 ET: Final September University of Michigan Consumer Sentiment (prior 67.9)

The 10-yr yield is down two basis points to 3.66% and the 2-yr yield is down five basis points to 3.60%.

In corporate news:

• Adobe (ADBE 539.69, -46.86, -8.0%): beats by $0.12, reports revs in-line; guides Q4 EPS in-line, revs below consensus
• RH (RH 309.54, +53.05, +20.7%): beats by $0.13, reports revs in-line; guides Q3 revs in-line; guides FY25 revs in-line
• Boeing (BA 156.30, -6.47, -4.0%): machinist union voted 96% to authorize strike
• Oracle (ORCL 171.80, +10.42, +6.5%): up ahead of the open after remarks at Financial Analyst Meeting, including raising its sales outlook for FY26 to at least $66.0 bln from $65.0 bln, according to Bloomberg
• Interactive Brokers (IBKR 124.97, +1.37, +1.1%): plans to introduce election betting next week, according to WSJ

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: -0.7% (+0.5% for the week), Hong Kong's Hang Seng: +0.8% (-0.4% for the week), China's Shanghai Composite: -0.5% (-2.2% for the week), India's Sensex: -0.1% (+2.1% for the week), South Korea's Kospi: +0.1% (+1.2% for the week), Australia's ASX All Ordinaries: +0.4% (+1.3% for the week).
  • In economic data:
    • Japan's July Industrial Production 3.1% m/m (expected 2.8%; last -4.2%) and Capacity Utilization 2.5% m/m (last -3.1%)
    • South Korea's August Import Price Index 1.8% yr/yr (last 9.9%) and Export Price Index 5.7% yr/yr (last 13.0%)
    • New Zealand's August Business PMI 45.8 (last 44.4)
  • In news:
    • The Japanese yen continued climbing against the dollar, reaching its best level since late December.
    • There was ongoing speculation that roughly $5 trln worth of Chinese mortgages will be refinanced soon.
    • China will increase the retirement age for the first time since 1978.
    • South Korea plans to lift its short selling ban in March.
    • Markets in China, Japan, and South Korea will be closed on Monday with South Korea remaining closed through Wednesday while China's market will reopen on Wednesday.
• Major European indices trade in positive territory. STOXX Europe 600: +0.5% (+1.6% week-to-date), Germany's DAX: +0.6% (+1.7% week-to-date), U.K.'s FTSE 100: +0.3% (+1.0% week-to-date), France's CAC 40: +0.3% (+1.4% week-to-date), Italy's FTSE MIB: +0.2% (+0.6% week-to-date), Spain's IBEX 35: +0.8% (+2.8% week-to-date).
  • In economic data:
    • Eurozone's July Industrial Production -0.3% m/m (expected -0.6%; last -0.1%); -2.2% yr/yr (expected -2.7%; last -4.1%)
    • France's August CPI 0.5% m/m (expected 0.6%; last 0.2%); 1.8 yr/yr (expected 1.9%; last 2.3%)
  • In news:
    • Several European Central Bank policymakers voiced their concerns about inflation, stressing that the central bank has not committed to any decisions that will follow yesterday's rate cut.
    • The Bank of England is expected to hold its policy steady next week.