Stock Market Update

Equity futures point to a higher opening this morning after a federal judge ruled in the Alphabet (GOOG 223.55, +12.20, +5.8%) antitrust case that the company will not have to sell its Chrome browser, according to Bloomberg.

Bloomberg also reports that the EU has decided to pause its planned punishment of Alphabet for its supremacy over advertising technology over fears of U.S. retaliation.

The upward move in futures comes after yesterday's slide that saw stocks finish lower but finish substantially improved after some afternoon buy-the-dip activity bounced the major averages off their session lows.

Today's economic data slate features the JOLTS Job Openings and Factory Orders for July at 10:00 a.m. ET, followed by the September Beige Book at 2:00 p.m. ET.

The MBA Mortgage Applications Index for the week ended August 30 decreased 1.2%, from a prior decrease of 0.5%.

In Fed news, The Wall Street Journal reports that Treasury Secretary Scott Bessent is set to begin interviewing candidates for the role of Fed Chair.

Rate cut expectations are holding steady, with the CME FedWatch tool assigning a 91.7% probability of a 25-basis point cut at the September FOMC meeting. 

In corporate news:

• The Financial Times reports that a potential air cargo capacity shortage is on the horizon.
• Alphabet (GOOG 223.55, +12.20, +5.8%) Judge rules that Google can retain Chrome but cannot enter into exclusive search agreements, according to CNBC.
• Campbell Soup (CPB 31.77, +0.31, +1.0%) beat EPS expectations by $0.06, reported revenues in-line, and guided FY26 EPS below consensus. 
• Dollar Tree (DLTR 106.80, -4.55, -4.1%) beat EPS expectations by $0.35, beat revenue expectations, guided Q3 EPS above consensus, and guided FY26 EPS in-line with revenues above consensus.
• Kraft Heinz (KHC) was upgraded to Equal Weight from Underweight at Morgan Stanley, with a target of $29
• Macy's (M 15.01, +1.52, +11.3%) beat EPS expectations by $0.22, beat revenue expectations, and guided FY26 EPS in-line with revenues above consensus. 

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Wednesday on a mixed note. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: -0.6%, China's Shanghai Composite: -1.2%, India's Sensex: +0.5%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: -1.7%.

In news:

• Japan's JGBs struggled overnight, lifting the 30-yr yield to a fresh record near 3.18% while the 20-yr yield climbed to 2.66%, a level not seen in 26 years.
• Japan's Prime Minister Ishiba repeated that he intends to maintain his post, but his party may call a leadership election.
• Q2 GDP reports from Australia and South Korea were slightly better than expected.

In economic data:

• China's August S&P Global Services PMI 53.0 (expected 52.4; last 52.6)
• Japan's August Services PMI 53.1 (expected 52.7; last 52.7)
• South Korea's Q2 GDP 0.7% qtr/qtr (expected 0.6%; last 0.6%); 0.6% yr/yr (expected 0.5%; last 0.5%)
• India's August Services PMI 62.9 (expected 65.6; last 60.5)
• Hong Kong's August Manufacturing PMI 50.7 (last 49.2)
• Australia's Q2 GDP 0.6% qtr/qtr (expected 0.5%; last 0.3%); 1.8% yr/yr (expected 1.6%; last 1.4%). August Services PMI 55.8 (expected 55.1; last 54.1) and August AIG Manufacturing Index -20.9 (last -23.9)

Major European indices trade in the green. STOXX Europe 600: +0.6%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.9%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.1%.

In news:

• The U.K.'s Gilts faced some more pressure today that lifted yields on longer tenors to fresh highs for the year before bouncing.
• Final August Services PMI readings were mixed relative to expectations with the eurozone reading dipping to 50.5 from 50.7 in the flash reading.
• European Central Bank policymaker de Cos acknowledged the weakening growth outlook but also said that the central bank's main priority is fighting inflation.

In economic data:

• Eurozone's August Services PMI 50.5 (expected 50.7; last 51.0). July PPI 0.4% m/m (expected 0.2%; last 0.8%); 0.2% yr/yr (expected 0.1%; last 0.6%)
• Germany's August Services PMI 49.3 (expected 50.1; last 50.6)
• U.K.'s August Services PMI 54.2 (expected 53.6; last 51.8)
• France's August Services PMI 49.8 (expected 49.7; last 48.5) Italy's August Services PMI 51.5 (expected 52.1; last 52.3)
• Spain's August Services PMI 53.2 (expected 54.4; last 55.1)