Stock Market Update

Equity futures point to a higher open this morning as stocks look to build upon a solid start to the week.

Oil prices and Treasury yields are both moving lower this morning, adding to the constructive backdrop for equities. Crude oil is currently down $2.01 (-2.3%) to $87.42 per barrel amid more favorable reports of increased crude flows out of the Middle East, while the 10-year note yield is down five basis points to 5.26%.

While oil prices moved lower yesterday, Treasury yields continued to creep higher. The stock market appeared largely unfazed by the renewed rate pressure, however, as early strength in technology stocks broadened into a solid advance across the wider market as the session progressed. The Nasdaq Composite reached fresh record highs, while the S&P 500 finished less than half a percent below its own record closing high.

Today's remaining economic calendar:

• 8:30 AM ET: August Trade Balance; Briefing.com consensus -$93.7B; prior -$88.6B

In corporate news:

• Advanced Micro Devices (AMD 642.00, +10.25, +1.6%) is planning to increase supply next year, accoding to Reuters.
• Constellation Energy (CEG 285.25, +17.63, +6.59%) and Alphabet (GOOG 345.30, +1.47, +0.4%) signed a 20-year power purchase agreement supporting 890 MW of new nuclear capacity and more than $4.3 billion of investment.
• Option Care Health (OPCH 28.27, +4.90, +20.97%) is sharply higher after the Financial Times reported that McKesson (MCK 915.87, +0.42, +0.05%) and CD&R are nearing a deal involving the company.

Reviewing overnight developments:

Asian markets mostly finished higher, with technology and biotechnology shares contributing to the advance, according to Nikkei.

In news:

• China's Shanghai Composite remained closed for the National Day holiday.
• The yield at Japan's latest 10-year government bond auction rose to 3.101% from 2.995% previously.

In economic data:

• India's September HSBC Services PMI 55.2 (expected 55.8; prior 54.1) and Composite PMI 55.9 (expected 56.5; prior 54.3)
• Australia's October Westpac Consumer Sentiment -4.7% (prior -5.2%); September ANZ Job Advertisements +2.2% m/m (prior +2.6%)
• Hong Kong's September S&P Global Manufacturing PMI 49.2 (prior 49.5)

Equity Markets:

• Japan's Nikkei: +1.1%
• Hong Kong's Hang Seng: +1.0%
• China's Shanghai Composite: closed for holiday
• India's Sensex: +0.7%
• South Korea's Kospi: -0.9%
• Australia's All Ordinaries: +0.5%

European markets are trading higher, although weak regional economic data and concerns about France's fiscal position remain in focus.

In news:

• France's budget deficit widened through August as the government sought to reassure markets about its 2027 budget.

In economic data:

• Eurozone's August Retail Sales 0.1% m/m (expected 0.2%; prior -0.6%) and 0.8% yr/yr (expected 1.0%; prior 0.4%); September HCOB Construction PMI 43.4 (prior 43.0)
• Germany's August Factory Orders -10.6% m/m (expected -0.9%; prior 3.2%); September HCOB Construction PMI 43.5 (prior 48.7)
• France's August Industrial Production -0.3% m/m (expected 0.2%; prior -0.6%) and Government Budget Balance -EUR159.6 bln (prior -EUR145.9 bln); September HCOB Construction PMI 39.8 (prior 37.3)
• U.K.'s September S&P Global Construction PMI 46.1 (expected 45.0; prior 44.3)
• Italy's September HCOB Construction PMI 46.5 (prior 41.7)
• Spain's August Industrial Production 1.5% yr/yr (prior 2.5%)

Equity Markets:

• STOXX Europe 600 : +0.7%
• Germany's DAX : +0.6%
• U.K.'s FTSE 100 : +0.4%
• France's CAC 40 : +0.5%
• Italy's FTSE MIB : +0.7%
• Spain's IBEX 35 : +0.8%