Stock Market Update

Equity futures are slightly lower this morning following yesterday's session that saw stocks retreat from Friday's highs, though several mega-cap names mitigated losses among the major averages.

President Trump posted a letter to Truth Social removing Fed Governor Lisa Cook (FOMC voting member), citing allegations of mortgage fraud that arose last week, though Ms. Cook issued a statement saying she will not resign and will continue to carry out her duties as Fed Governor, according to NBC News. 

This morning brings about several headlines on the trade front, with Bloomberg reporting that President Trump will not change the terms of the trade deal with South Korea after President Lee Jae-myung's visit to the White House yesterday. 

Senior Chinese trade negotiator Li Chenggang will travel to the U.S. this week to resume trade talks, according to The Wall Street Journal. 

Commerce Secretary Howard Lutnick will provide an update on Japan's promised U.S. investments next week, according to Reuters. 

Though not a new development, the additional 25% tariff on India will go into effect tomorrow.

Today's economic data includes Durable Orders at 8:30 ET, the FHFA Housing Price Index and S&P Case-Shiller Home Price Index at 9:00 ET, and Consumer Confidence at 10:00 ET.

The market still largely awaits the PCE Price Index on Friday, which is an important piece of inflationary data.

In corporate news:

• President Trump announced via Truth Social that he will impose "substantial additional tariffs" on countries that "attack" U.S. technology companies with digital taxes and regulations unless those taxes and regulations are removed.
• AT&T (T 28.85, +0.11, +0.4%) will acquire spectrum licenses from EchoStar (SATS 50.71, +20.83, +69.7%) for a total of approximately $23 billion.
• Eli Lilly (LLY 709.27, +13.94, +2.0%) announced positive topline results from the Phase 3 ATTAIN-2 trial, evaluating orforglipron, an investigational oral GLP-1 receptor agonist, in adults with obesity or overweight and type 2 diabetes.
• Lululemon Athletica (LULU 203.10, +0.66, +0.3%) appoints Ranju Das as the company's first chief AI & technology officer.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a lower note. Japan's Nikkei: -1.0%, Hong Kong's Hang Seng: -1.2%, China's Shanghai Composite: -0.4%, India's Sensex: -1.0%, South Korea's Kospi: -1.0%, Australia's ASX All Ordinaries: -0.4%.

In news:

• South Korea's President Lee met with President Trump yesterday, confirming that South Korean companies will invest $150 billion into the U.S. as part of a trade deal.
• President Trump threatened to impose a 200% tariff on imports from China if China does not accelerate exports of rare-earth magnets.
• The latest policy minutes from the Reserve Bank of Australia showed an agreement that policy is still somewhat restrictive and that the pace of cuts will be determined by incoming data and the balance of global risks.

In economic data:

• Japan's July Corporate Services Price Index 2.9% yr/yr (expected 3.2%; last 3.2%). June BoJ Core CPI 2.0% yr/yr (expected 2.4%; last 2.3%)
• South Korea's August Consumer Confidence 111.4 (last 143.0)
• Singapore's July Industrial Production 8.2% m/m (expected 1.1%; last -0.8%) o Hong Kong's July trade deficit HKD34.1 bln (last deficit of HKD58.9 bln). July Imports 16.5% m/m (last 11.1%) and Exports 14.3% m/m (last 11.9%)

Major European indices trade in the red with France's CAC (-1.7%) showing relative weakness after Finance Minister Lombard cautioned that the IMF could intervene if Prime Minister Bayrou's minority government does not survive a confidence vote in two weeks. STOXX Europe 600: -0.7%, Germany's DAX: -0.4%, U.K.'s FTSE 100: -0.5%, France's CAC 40: -1.7%, Italy's FTSE MIB: -1.1%, Spain's IBEX 35: -0.7%.

In news:

• Continued weakness in British gilts has lifted the 30-year yield into the 5.60% area, with the April high (5.642%) not far above.
• The selling comes amid growing worries about the country's fiscal standing leading into the Autumn budget.

In economic data:

• France's August Consumer Confidence 87 (expected 90; last 88)