Stock Market Update

Equity futures point to a flat opening this morning after mega-cap tech strength led the major averages to fresh record highs yesterday. 

Headlines are once again quiet this morning, though the market will receive a few economic data points. The Q2 Current Account Balance (Briefing.com consensus: -$302.1B) releases at 8:30 a.m. ET, followed by the preliminary September S&P Global US Manufacturing and Services PMI at 9:45 a.m. ET.

The market will also hear from Fed Chair Jerome Powell (FOMC voting member) and Fed Governor Michelle Bowman (FOMC voting member) today on the heels of last week's 25-basis point rate cut.

On the earnings front, Micron (MU 166.60, +1.98, +1.2%) trades higher ahead of its report after the close, which is the most anticipated earnings release of the week. Chipmakers contributed to yesterday's index level gains, with the PHLX Semiconductor Index advancing 1.6%.

In Washington, Politico reports that President Trump is set to meet with House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer ahead of the government funding deadline. 

In corporate news:

• Amazon (AMZN 228.39, +0.76, +0.3%) files a lawsuit to block a New York labor law, according to Reuters. 
• AutoZone (AZO 4,035, -86.00, -2.1%) missed EPS expectations by $1.98 and reported revenues in-line. 
• CoreWeave (CRWV 136.00, +2.77, +2.1%) was upgraded to Buy from Hold at Melius Research with a target of $165 and upgraded to Overweight from Equal Weight at Wells Fargo with a target of $170.
• Medical experts push back on claims that prenatal use of Kenvue's (KVUE 17.75, +0.78, +4.6%) Tylenol is linked to autism, according to CBS News.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region were mixed on Tuesday, with Japan's Nikkei closed in observance of the Autumn Equinox. Japan's Nikkei: holiday, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: -0.2%, India's Sensex: -0.1%, South Korea's Kospi: +0.5%, Australia's All Ordinaries: +0.4%.

In news:

• Several contenders for Japan's prime minister position spoke of the need to maintain fiscal discipline.
• South Korea's Kospi followed suit with major indices in the U.S. and advanced to a new record high.
• Chinese markets were on the softer side after an acknowledgment from PBOC Governor Pan that policy is appropriately loose and that there are no systemic financial risks. That was interpreted to mean that additional stimulus won't be forthcoming soon.
• Separately, press reports suggest New Zealand could announce the appointment of a new RBNZ governor as soon as tomorrow.

Major European indices are modestly higher but have pulled back from better levels following the release of some weak preliminary manufacturing PMI readings for September. STOXX Europe 600: +0.3%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.6%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.3%.

In news:

• Manufacturing PMIs for Germany, France, the UK, and the eurozone were all in the sub-50 contraction zone, and activity was weaker than the prior month in all cases.
• Services PMI readings for the eurozone and Germany, however, were above 50 and signaled an acceleration from the prior month.
• Sweden's Riksbank cut its policy rate by 25 basis points to 1.75%, saying the rate will likely remain there "for some time to come" if the outlook for inflation and economic activity holds.
• Separately, UK home improvement retailer Kingfisher is a standout winner after raising its guidance on better domestic demand.

In economic data: 

• Eurozone's September HCOB Manufacturing PMI 49.5 (expected 50.7; prior 50.7) and HCOB Services PMI 51.4 (expected 50.6; prior 50.5)
• Germany's September HCOB Manufacturing PMI 48.5 (expected 50.0; prior 49.8) and HCOB Services PMI 52.5 (expected 49.5; prior 49.3)
• France's September HCOB Manufacturing PMI 48.1 (expected 50.2; prior 50.4) and HCOB Services PMI 48.9 (expected 49.7; prior 49.8)
• UK's September S&P Global Manufacturing PMI 46.2 (expected 47.1; prior 47.0) and S&P Global Services PMI 51.9 (expected 53.4; prior 54.2); September CBI Industrial Trends Orders -27 (expected -30; prior -0.33)
• Spain's July Trade Balance -EUR4.01B (prior -EUR3.59B)