Stock Market Update

Equity futures are modestly higher this morning after yesterday's retreat in response to some softened economic data, with a fresh wave of earnings reports underlying most of the morning chatter.

While this week's earnings reports lack the mega-cap luster of the prior week, there are still many important industry leaders on the docket.

This morning features earnings from a cohort of household names that includes McDonald's (MCD 309.00, +10.23, +3.4%), Shopify (SHOP 146.00, +19.00, +15.0%), Uber Technologies (UBER 88.60, -0.77, -0.9%), and Walt Disney (DIS 117.00, -1.32, -1.3%).

Yesterday afternoon's earnings included several semiconductor names and the Dow component Amgen (AMGN 298.50, -1.58, -0.5%).

There is a lack of other notable developments this morning, and on the data side, there is only the MBA Mortgage Applications Index for the week ending August 2, which increased 3.1% after decreasing 3.8% the prior week.

On the trade front, President Trump's envoy Steve Wilkoff met with Russian President Vladimir Putin to discuss an end to the war with Ukraine ahead of possible secondary sanctions on Russia.

In corporate news:

• Advanced Micro Devices (AMD, 163.63, -10.74, -6.2%) reported EPS in-line and beat revenue expectations. The company saw its Data Center revenue increase 14% year-over-year and guided Q3 revenues above consensus
• Amgen (AMGN 298.50, -1.58, -0.5%) bear EPS expectations by $0.74, beat revenue expectations, and raised FY25 guidance
• Cirrus Logic (CRUS 108.60, +3.63, +3.5%) beat EPS expectations by $0.41, beat revenue expectations, and guided SepQ revenues above consensus.
• McDonald's (MCD 309.00, +10.23, +3.4%) beat EPS expectations by $0.05 and beat revenue expectations.
• Shopify (SHOP 146.00, +19.00, +15.0%) beat EPS expectations by $0.40 and beat revenue expectations
• Uber Technologies (UBER 88.60, -0.77, -0.9%) reported EPS in-line, beat revenue expectations, and issued a new share repurchase program authorized up to an additional $20 billion of common stock.
• Walt Disney (DIS 117.00, -1.32, -1.3%) beat EPS expectations by $0.16, reported revenues in-line, and guided FY25 EPS above consensus

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Wednesday on a mostly higher note. Japan's Nikkei: +0.6%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: +0.5%, India's Sensex: -0.2%, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: +0.9%.

In news:

• Japan's wage growth was weaker than expected in June with real cash earnings decreasing for the sixth consecutive month.
• Japan's cabinet office is expected to lower its domestic growth forecast for the fiscal year.
• Bank of Korea Governor Rhee will not attend the Fed's Jackson Hole Economic Symposium later this month.

In economic data:

• Japan's June Average Cash Earnings 2.5% yr/yr (expected 3.2%; last 1.4%)
• Australia's July AIG Construction Index -1.3 (last -14.9) and AIG Manufacturing Index -23.9 (last -29.3)
• New Zealand's Q2 Employment Change -0.1% qtr/qtr, as expected (last 0.1%). Q2 Labor Cost Index 0.6% qtr/qtr (expected 0.5%; last 0.4%); 2.2% yr/yr (expected 2.3%; last 2.5%). Q2 Participation Rate 70.5% (expected 70.7%; last 70.8%) and Q2 Unemployment Rate 5.2% (expected 5.3%; last 5.1%)

Major European indices trade in the green. STOXX Europe 600: -0.1%, Germany's DAX: -0.2%, U.K.'s FTSE 100: +0.2%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.6%.

In news:

• European Central Bank policymaker Holzmann said that there is no reason for another rate cut from the ECB.
• Meanwhile, Times shadow Monetary Policy Committee voted in favor of a 25-basis point cut from the Bank of England on Thursday.
• Germany's government is reportedly preparing a EUR100 bln fund to invest in strategic sectors like defense, energy, and critical materials.

In economic data:

• Eurozone's June Retail Sales 0.3% m/m (expected 0.4%; last -0.3%); 3.1% yr/yr (expected 2.6%; last 1.9%)
• Germany's June Factory Orders -1.0% m/m (expected 1.2%; last -0.8%)
• France's Q2 Nonfarm Payrolls 0.0% qtr/qtr (expected 0.1%: last -0.1%)
• Italy's June Industrial Production 0.2% m/m (expected -0.1%; last -0.8%); -0.9% yr/yr (last -1.0%)