Stock Market Update

Equity futures are mostly higher after yesterday's session resulted in a new all-time high for the Nasdaq Composite, with the S&P 500 and DJIA in striking distance of their own record levels.

While the technology sector finished flat yesterday, Oracle's (ORCL 322.00, +80.49, +33.3%) earnings report after the close lived up to the hype of being the most anticipated earnings release this week. The stock surged higher after the company reported a slight EPS miss of $0.01 but disclosed the signing of four multi-billion contracts with three customers, boosting the company's RPO backlog 359% to $455 billion. 

The market will receive the August PPI report today, which, in tandem with tomorrow's CPI report, is perhaps the most influential data release this week in relation to monetary policy. With market participants fully pricing in a 25-basis point rate cut in September, the data is not expected to move near-term expectations, but better-than-feared inflation readings could bolster the odds of further cuts in October and December. 

In other Fed-related news, a federal judge has prevented the firing of Fed Governor Lisa Cook, though an appeal by the Trump administration is expected.

On the trade front, President Trump now pushes the EU to impose 100% tariffs on China and India, according to Yahoo! Finance.

Similarly, The New York Times reports President Trump will seek to limit the flow of pharmaceutical imports from China. 

The MBA Mortgage Applications Index increased 9.2% for the week ended September 6, from a decrease of 1.2% the week prior. 

In corporate news:

• President Trump looks to restrict drug advertising on TV, according to The New York Times.
• Alphabet (GOOG 240.10, +0.16, +0.1%) forecasts strong revenue growth by 2027 for Google Cloud.
• Chewy (CHWY 38.60, -3.40, -8.1%) beat EPS expectations by $0.19 and reported revenues in-line. 
• Meta Platforms (META 764.58, -1.12, -0.2%) and TikTok successfully challenge EU tech fees, according to Reuters.
• Oracle (ORCL 322.00, +80.49, +33.3%) misses EPS expectations by $0.01, reports revenues in-line, and reports RPO of $455 billion, up 359%. The stock was upgraded to Buy from Neutral at Bank of America Securities.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a higher note with South Korea's Kospi (+1.7%) rallying to a fresh record. Japan's Nikkei: +0.9%, Hong Kong's Hang Seng: +1.0%, China's Shanghai Composite: +0.1%, India's Sensex: +0.4%, South Korea's Kospi: +1.7%, Australia's ASX All Ordinaries: +0.2%.

In news:

• China reported no month-over-month inflation for August with the CPI now down 0.4% year-over-year.
• The Bank of Japan is expected to hold its policy at next week's meeting, but another rate hike is likely before the end of the year.
• Betting markets see Japan's Agriculture Minister Shinjiro Koizumi as the likely winner of next month's LDP leadership contest.

In economic data:

• China's August CPI 0.0% m/m (expected 0.1%; last 0.4%); -0.4% yr/yr (expected -0.2%; last 0.0%). August PPI -2.9% yr/yr, as expected (last -3.6%)
• Japan's September Reuters Tankan Index 13 (last 9)
• South Korea's August Unemployment Rate 2.6% (last 2.5%)
• New Zealand's July Visitor Arrivals 2.6% m/m (last -2.2%)

Major European indices trade in the green. STOXX Europe 600: +0.4%, Germany's DAX: flat, U.K.'s FTSE 100: +0.2%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +1.3%.

In news:

• Multiple Russian drones were shot down in Polish airspace overnight after they crossed the border with Ukraine.
• French President Macron named Sebastien Lecornu as new prime minister.
• Inditex, which owns Zara, trades higher after reporting accelerating sales growth.

In economic data:

• Italy's July Industrial Production 0.4% m/m (expected 0.1%; last 0.2%); 0.9% yr/yr (last -0.7%)
• Spain's July Industrial Production 2.5% yr/yr (last 1.9%)