Stock Market Update

The market is on track for a higher opening with only modest gains necessary to eclipse the all-time high mark for the S&P 500. The index closed yesterday's session at 6,141.02, just three points shy of the all-time closing high, which was briefly surpassed in the afternoon before encountering resistance at the all time high mark of 6,147.43. Currently S&P 500 futures are trading 24 points above fair value.

On the news front, President Trump and China's Ministry of Commerce confirm they reached a consensus in principle on the framework for implementing Geneva consensus.

The market will receive a batch of economic data at 8:30 ET that includes May Personal Income (Briefing.com consensus 0.4%, prior 0.8%), May Personal Spending (Briefing.com consensus 0.2%, prior 0.2%), May PCE Prices (Briefing.com consensus 0.1%, prior 0.1%), and May Core PCE Prices (Briefing.com consensus 0.1%, prior 0.1%). At 10:00 ET the data slate will be capped by the release of the final June reading of the University of Michigan's Consumer Sentiment Index (Briefing.com consensus 60.5, prior 52.2).

In U.S. corporate news:

• Amazon (AMZN 219.58, +2.46, +1.1%): BNP Paribas Exane upgraded the stock to Outperform from Neutral with a $254 target.
• AeroVironment (AVAV 286.99, +14.62, +5.4%): company's unmanned aircraft system achieved developmental milestones.
• Boeing (BA 204.88, +2.30, +1.1%): upgraded to Buy from Neutral at Rothschild & Co with a $275 target.
• NIKE (NKE 68.85, +6.31, +10.1%): beat Q4 expectations and issued above-consensus revenue guidance for Q1. HSBC upgraded the stock to Buy from Hold with an $80 target.

Reviewing overnight developments:

• Asian markets ended mixed. Japan's Nikkei +1.4%, Hong Kong's Hang Seng -0.2%, China's Shanghai Composite -0.7%
  • In economic data:
    • China's May Industrial Profit -1.1% YTD (last 1.4%)
    • Japan's June Tokyo CPI 3.1% yr/yr (last 3.4%) and Tokyo Core CPI 3.1% yr/yr (expected 3.3%; last 3.6%). May Jobs/Applications Ratio 1.24 (expected 1.26; last 1.26), May Unemployment Rate 2.5%, as expected (last 2.5%), and May Retail Sales 2.2% yr/yr (expected 2.4%; last 3.5%)
  • In news:
    • Tokyo Electron CEO said that his company's technology edge over Chinese counterparts will increase.
    • Chinese authorities are reportedly delaying approvals for sales of critical rare earth elements to Western companies.
• Major European indices trade in the green. Germany's DAX +0.7%, U.K.'s FTSE +0.6%, France's CAC +1.3%
  • In economic data:
    • Eurozone's June Business and Consumer Survey 94.0 (expected 95.1; last 94.8)
    • France's June CPI 0.3% m/m (expected 0.1%; last -0.1%); 0.9% yr/yr (expected 0.7%; last 0.7%). May PPI -0.8% m/m (last -4.2%); 0.2% yr/yr (last 0.7%). May Consumer Spending 0.2% m/m (expected 0.1%; last 0.5%)
    • Italy's June Business Confidence 87.3 (expected 87.0; last 86.6) and Consumer Confidence 96.1 (expected 97.0; last 96.5). May PPI -0.7% m/m (last -2.2%); 1.7% yr/yr (last 2.6%). April Industrial Sales 1.5% m/m (last -1.6%); 1.1% yr/yr (last -1.2%)
    • Spain's June CPI 0.6% m/m (expected 0.4%; last 0.1%); 2.2% yr/yr (expected 2.0%; last 2.0%). June Core CPI 2.2% yr/yr (last 2.2%). May Retail Sales 4.8% yr/yr (last 4.1%)
  • In news:
    • The Bank of England is facing growing pressure to reduce its bond sales due to a concern that the sales are leading to increased borrowing costs.
    • Germany's minimum wage will increase in two increments from EUR12.82 to EUR14.60 by 2027.
    • European Central Bank policymaker Knot said that the central bank might have to keep rates at their current levels for some time, but he would not rule out another rate cut.