Stock Market Update

Equity futures point to a modestly higher opening this morning after Oracle's (ORCL 334.70, +6.37, +1.9%) post-earnings report rally fueled record highs for the S&P 500 and Nasdaq Composite yesterday, though the DJIA never entered positive territory and stocks finished well off their session highs.

The market also benefitted from a surprise deflationary reading for August PPI (-0.1%; Briefing.com consensus 0.3%) and Core PPI (-0.1%; Briefing.com consensus 0.3%). Economic data and monetary policy will be in focus again today as the market will receive the August CPI report and weekly jobless claims data at 8:30 a.m. ET.

With the market fully pricing in a 25-basis point September rate cut, it is not likely that today's data will have an effect on rate cut probabilities for next week's FOMC meeting, though the market's expectations for two additional 25-basis points are not yet a certainty. 

Corporate headlines are relatively quiet this morning amid a slim batch of earnings.

On the trade front, Reuters reports that the EU is unlikely to impose 100% tariffs on China and India over Russian oil purchases as requested by President Trump.

In corporate news:

• Apple (AAPL 227.45, +0.66, +0.3%) will replace some Broadcom (AVGO 367.82, -1.75, -0.5%) chips with its own, according to Digitimes. 
• Apple is expected to continue iPhone price hikes, according to Bloomberg. 
• Cetene (CNC 32.61, +1.34, +4.3%) will reaffirm guidance at a meeting with investors. 
• PNC Financial (PNC 202.50, +0.61, +0.3%) CEO is determined to double the size of the bank, according to The Wall Street Journal.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note with Japan's Nikkei (+1.2%) reaching a fresh record with some help from a cool PPI reading for August. Japan's Nikkei: +1.2%, Hong Kong's Hang Seng: -0.4%, China's Shanghai Composite: +1.7%, India's Sensex: +0.2%, South Korea's Kospi: +0.9%, Australia's ASX All Ordinaries: -0.3%.

In news:

• Markets in Japan saw rate hike expectations increase despite the cool CPI reading.
• The Bank of Japan is reportedly preparing to start selling ETFs as part of its portfolio unwind.
• Mexico will increase its tariff on imports of vehicles from Asia to 50% from 20%.

In economic data:

• Japan's Q3 BSI Large Manufacturing Conditions 3.8 (expected -3.3; last -4.8). August PPI -0.2% m/m (expected -0.1%; last 0.3%); 2.7% yr/yr, as expected (last 2.5%)
• Australia's September MI Inflation Expectations 4.7% (last 3.9%)

Major European indices trade in the green ahead of the European Central Bank's policy update at 8:15 ET, though the market does not expect another rate cut until later this year. STOXX Europe 600: +0.4%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.4%, France's CAC 40: +0.8%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.5%.

In news:

• Germany's association of exporters expects 2025 export growth of just 2.5% while imports are expected to show 4.5% growth.
• Volkswagen pledged to resist China's entry into the European market.

There is no economic data today.