Stock Market Update

The S&P 500 futures are up nine points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 40 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are up 20 points and are trading 0.1% above fair value.

There's a positive bias in early trading. Pre-open gains in some mega caps have contributed to the upside action, along with carryover momentum after last week's solid move higher in the major indices. 

The 2-yr note yield is unchanged from Friday at 3.57% and the 10-yr yield is up two basis points to 3.75%.

Elsewhere, Soft Manufacturing and Services PMIs from the eurozone boosted speculation about an October rate cut from the European Central Bank. 

Today's US economic data include the S&P Global US Manufacturing and Services PMIs at 9:45 ET.

In corporate news:

• Qualcomm (QCOM 167.67, -10.26, -0.7%): not looking to acquire Intel at any cost, according to FT
• Boeing (BA 153.73, +0.44, +0.3%): Defense Chief leaving, according to Bloomberg'
• General Motors (GM 47.76, -1.12, -2.3%): playing layoffs in Kansas, according to Reuters
• Southwest Air (LUV 29.03, -0.01, -0.03%): looking to restore profitability, according to Bloomberg

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a mostly higher note while markets in Japan were closed for a holiday. Japan's Nikkei: HOLIDAY, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: +0.4%, India's Sensex: +0.5%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: -0.6%.
  • In economic data:
    • India's flash September Manufacturing PMI 56.7 (last 57.5) and flash Services PMI 58.9 (last 60.9)
    • Singapore's August CPI 0.7% m/m (last -0.3%); 2.2% yr/yr, as expected (last 2.4%). August Core CPI 2.7% yr/yr (expected 2.5%; last 2.5%)
    • Australia's flash September Manufacturing PMI 46.7 (last 48.5) and flash Services PMI 50.6 (last 52.5)
    • New Zealand's August trade deficit NZD2.20 bln (expected deficit of NZD155 mln; last deficit of NZD1.02 bln)
  • In news:
    • The People's Bank of China lowered its 14-day reverse repurchase rate by ten basis points to 1.85%.
    • Australia's Manufacturing PMI (46.7) remained in contraction in the flash reading for September while Services PMI (50.6) expanded at a slight pace.
    • The U.S. will look to ban vehicle software and hardware made in China.
    • The Reserve Bank of Australia will meet overnight but a policy change is not expected at this time.
• Major European indices trade near their flat lines, holding up relatively well despite the release of weak flash Manufacturing and Services PMI readings for September. STOXX Europe 600: +0.2%, Germany's DAX: +0.5%, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: +0.3%.
  • In economic data:
    • Eurozone's flash September Manufacturing PMI 44.8 (expected 45.7; last 45.8) and flash Services PMI 50.5 (expected 52.3; last 52.9)
    • Germany's flash September Manufacturing PMI 40.3 (expected 42.4; last 42.4) and flash Services PMI 50.6 (expected 51.1; last 51.2)
    • U.K.'s flash September Manufacturing PMI 51.5 (expected 52.3; last 52.5) and flash Services PMI 52.8 (expected 53.5; last 53.7). September CBI Industrial Trends Orders -35 (expected -23; last -22)
    • France's flash September Manufacturing PMI 44.0 (expected 44.3; last 43.9) and flash Services PMI 48.3 (expected 53.0; last 55.0)
  • In news:
    • Eurozone's Manufacturing PMI (44.8; prior 45.8) contracted at an accelerating rate while Services PMI growth (50.5; prior 52.9) decelerated to represent a near-standstill. The poor reports have boosted speculation about an October rate cut from the European Central Bank.
    • British Chancellor Reeves said that the Autumn budget will not call for austerity while French Prime Minister Barnier ruled out raising taxes on all earners.