Stock Market Update

The stock market is once again on track for a higher opening despite a lack of news catalysts amid the ongoing government shutdown. 

Yesterday's action saw the S&P 500 and Nasdaq Composite notch record intraday and closing highs, while the DJIA captured a closing high of its own.

The market will not receive what was set to be a highly anticipated Employment Situation Report, though Wednesday's September ADP Payrolls Report (-32k; Briefing.com consensus: 40k) already cemented the odds of another rate cut later this month.

With additional easing on the near-term horizon and continued strength in AI-related names, the market is poised to expand further into record territory ahead of Q3 earnings.

In corporate news:

• Alphabet (GOOG 246.37, -0.06, -0.0%) looks to sell its life sciences unit, according to Bloomberg.
• Boeing's (BA 217.85, +0.42, +0.2%) new 777x jet will likely be delayed until 2027, according to Bloomberg.
• NVIDIA (NVDA 189.65, +0.76, +0.4%) faces delays to a deal that would send its chips to the UAE, according to The Wall Street Journal.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly higher finish to the week while markets in China and South Korea were closed for holidays. Japan's Nikkei: +1.9%, Hong Kong's Hang Seng: -0.5%, China's Shanghai Composite: HOLIDAY, India's Sensex: +0.3%, South Korea's Kospi: HOLIDAY, Australia's ASX All Ordinaries: +0.5%.

In news:

• Hitachi had a strong showing in Japan after signing an infrastructure deal with OpenAI.
• Bank of Japan Governor Ueda said that the central bank must maintain accommodative policy, which was seen as a slight pushback to rising rate hike expectations.
• Japan's LDP leadership vote will take place tomorrow with Agriculture Minister Shinjiro Koizumi still seen as a slight favorite.

In economic data:

• Japan's August Unemployment Rate 2.6% (expected 2.4%; last 2.3%) and jobs/applications ratio 1.20 (expected 1.22; last 1.22). September Services PMI 53.3 (expected 53.0; last 53.1)
• Singapore's August Retail Sales 0.5% m/m (last 3.9%); 5.2% yr/yr (last 4.6%)
• Australia's September Services PMI 52.4 (expected 52.0; last 55.8)

Major European indices trade mostly higher. STOXX Europe 600: +0.4%, Germany's DAX: -0.3%, U.K.'s FTSE 100: +0.6%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.6%.

In news:

• France's socialist party is seeking to prevent pension reform or push through a tax on individuals with high net worth.
• U.K.'s Office of Budget Responsibility will publish some forecasts today that will help shape the autumn budget statement on November 26.
• Italy lowered its growth forecast for 2025 to 0.5% from 0.6% while the outlook for 2026 was reduced to 0.7% from 0.8%.
• The 2025 budget deficit target was lowered to 3.0% from 3.3% due to strong tax revenues.

In economic data:

• Eurozone's September Services PMI 51.3 (expected 51.4; last 50.5). August PPI -0.3% m/m (expected -0.1%; last 0.3%); -0.6% yr/yr (expected -0.4%; last 0.2%)
• Germany's September Services PMI 51.5 (expected 52.5; last 49.3)
• U.K.'s September Services PMI 50.8 (expected 51.9; last 54.2)
• France's August Industrial Production -0.7% m/m (expected 0.3%; last -0.1%). September Services PMI 48.5 (expected 48.9; last 49.8)
• Italy's September Services PMI 52.5 (expected 51.5; last 51.5). August Retail Sales -0.1% m/m (expected 0.0%; last 0.0%); 0.5% yr/yr (last 1.8%). Q2 Public Deficit 2.0% (last 8.1%)
• Spain's September Services PMI 54.3 (expected 53.3; last 53.2)