Stock Market Update

Equity futures point to a higher open to today's market, bolstered by the news that NVIDIA (NVDA) is getting approval to sell its H20 chips again in China.

Several large financial institutions have also released their earnings results.

In addition to the aforementioned developments, the 8:30 ET release of June CPI data will be a key catalyst for today's open, as it will shape the market's views on inflation (and tariff-driven inflation) and the path for monetary policy.

Trade developments have been sparse so far this morning, but Politico is reporting that the EU is preparing countermeasures to respond to tariffs, which will target cars and planes, though this has not been enough to sway equity futures as they await more key catalysts today.

• Alphabet (GOOG 183.26, +0.45, +0.3%) signs a deal with Brookfield Asset Management (BAM 57.80, +0.78, +1.4%) for a first-of-its-kind Hydro Framework Agreement to deliver up to 3,000 megawatts of carbon-free hydroelectric capacity across the United States, which will be the world's largest corporate clean power deal for hydroelectricity. 
• BlackRock (BLK 1,090.00, -21.46, -1.9%) beats EPS expectations by $1.27 and reports revenues in line
• JPMorgan Chase (JPM 287.57, -1.13, -0.4%) beats EPS expectations by $0.48 and beats on revenues. 
• NVDIA (NVDA 171.66, +7.59, +4.6%) is trading higher pre-market after announcing a new fully compliant GPU to be sold in China. 
• Trade Desk (TTD 86.07, +10.39, +13.77%) will replace ANSYS (ANSS) in the S&P 500 effective prior to the opening of trading on Friday, July 18.
• Wells Fargo (WFC 81.44, -1.99, -2.39%) beats EPS expectations by $0.19 and reports revenues in line. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region were mostly higher on Tuesday. Hong Kong's Hang Seng (+1.6%) led the pack, paced by its technology components. The focal point, though, was China's package of economic data that featured better-than-expected Q2 GDP and mixed results for June retail sales, industrial production, and fixed asset investment. Strikingly, the Shanghai Composite (-0.4%) was the lone loser among the major indices, as the Q2 GDP print reportedly tempered the prospect of further fiscal stimulus. In Japan, JGB yields continued their ascent, with the 10-yr reaching its highest levels (1.60%) since October 2008. The 20-yr and 30-yr yields moved to multi-year highs, as market participants expressed their concerns about the LDP possibly losing its ruling coalition in the upper house and ceding such control to opposition parties pushing populist agendas that would lead to more bond issuance. NVIDIA is rallying in pre-market trading after getting approval to resume sales of its H20 AI chip to China.

• In economic data:
  • China's Q2 GDP 1.1% qtr/qtr (expected 0.9%; last 1.2%) and 5.3% YTD (expected 5.1%; last 5.4%); June Industrial Production 6.8% yr/yr (expected 5.6%; last 5.8%); June Retail Sales 4.8% yr/yr (expected 5.2%; last 6.4%); June Fixed Asset Investment 2.8% yr/yr (expected 3.6%; last 3.7%); June Unemployment Rate 5.0% (expected 5.0%; last 5.0%); June House Prices -3.2% yr/yr (last -3.5%)
  • Australia's July Westpac Consumer Sentiment 0.6% (last 0.5%)

Major European indices are mixed, trading little changed on either side of the unchanged mark. Some hesitation in front of the release of the June CPI report in the U.S., which will drive interest rate and currency markets. Other focal points include reports that the EU is readying countermeasures on the U.S. that will target cars and planes if a deal cannot be struck, Germany seeing a pickup in economic sentiment, and eurozone industrial production being stronger than expected in May. Separately, France's prime minister is advancing a deficit reduction plan that includes tax increases and EUR40 bln of spending cuts that some suggest could spark a government collapse, according to Bloomberg.

• In economic data:
  • Eurozone's May Industrial Production 1.7% m/m (expected 1.1%; last -2.2%) and 3.7% yr/yr (expected 2.9%; last 0.2%); July ZEW Economic Sentiment 36.1 (expected 37.8; last 35.3)
  • Germany's July ZEW Economic Sentiment 52.7 (expected 50.8; last 47.5)
  • Spain's June CPI 0.7% m/m (expected 0.6%; last 0.1%) and 2.3% yr/yr (expected 2.2%; last 2.0%); Core CPI 2.2% (expected 2.2%; last 2.2%)