Stock Market Update

Equity futures point to a lower opening to the week after stocks posted solid gains in the previous week, despite plenty of volatility. 

Friday's action was particularly choppy following the Supreme Court's ruling against President Trump's IEEPA tariffs. In response, President Trump has raised global tariffs to 15% from 10% for 150 days to replace the IEEPA tariffs that the Supreme Court invalidated. The White House has detailed several product and country exemptions, and the Commerce Department is expected to start various 301 investigations to impose permanent tariffs on specific countries.

Bloomberg reports that the EU will propose freezing ratification of the trade deal with the U.S. until it receives details from the Trump administration on trade policy.

Elsewhere in foreign policy, the U.S. and Iran are set to hold another round of nuclear talks on Thursday, with President Trump's advisors urging him against a strike, according to Axios. 

Today will be light on the data front, with the 10:00 a.m. release of December Factory Orders (Briefing.com consensus 0.9%) the only release of note. 

The market will have another relatively busy week of earnings reports, which features NVIDIA (NVDA 189.60, -0.22, -0.1%) on Wednesday. 

In corporate news:

• Gilead (GILD 150.15, -1.25, -0.8%) announced that it has entered into a definitive agreement to acquire Arcellx (ACLX 115.00, +50.89, +79.4%) for $115 per share in cash at closing and one contingent value right of $5 per share, which represents an implied equity value of $7.8 billion payable at closing.
• Novo Nordisk A/S (NVO 40.98, -6.44, -13.6%) new weight-loss drug, posts disappointing results, sending shares of Eli Lilly (LLY 1,040.02, +30.50, +3.0%) higher. 
• NVIDIA (NVDA 189.60, -0.22, -0.1%) will introduce chips for laptops this year, according to The Wall Street Journal. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mostly higher note while markets in China and Japan were closed for holidays. Japan's Nikkei: CLOSED, Hong Kong's Hang Seng: +2.5%, China's Shanghai Composite: CLOSED, India's Sensex: +0.6%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: -0.6%.

In news:

• South Korea's Kospi (+0.7%) hit another record while Hong Kong's Hang Seng (+2.5%) outperformed with trade-sensitive names showing strength.
• U.S. Trade Representative Greer said that the effective tariff on imports from China has decreased to 40% from 45% after Friday's opinion from the Supreme Court.
• South Korea's exports through the first 20 days of February were up 23.5% yr/yr with chip exports jumping 16.4%.
• Former Bank of Japan policymaker Sakurai said that a March rate hike is possible if the yen faces renewed weakness.

In economic data:

• New Zealand's Q4 Retail Sales 0.9% qtr/qtr (expected 0.6%; last 1.9%) and Core Retail Sales 1.5% qtr/qtr (expected 0.4%; last 1.2%). January Credit Card Spending 1.0% yr/yr (last -0.2%)
• Singapore's January CPI -0.5% m/m (last 0.3%); 1.4% yr/yr (last 1.2%). January Core CPI 1.0% yr/yr (last 1.2%)

Major European indices are mixed with Spain's IBEX (+0.9%) showing strength thanks to outperformance in banks while Germany's DAX (-0.6%) has been pressured by military contractors and automakers. STOXX Europe 600: -0.2%, Germany's DAX: -0.6%, U.K.'s FTSE 100: +0.1%, France's CAC 40: -0.2%, Italy's FTSE MIB: +0.8%, Spain's IBEX 35: +0.9%.

In news:

• Germany's auto association noted that Friday's tariff ruling in the U.S. does not apply to main tariffs affecting the auto industry. German Chancellor Merz was reelected as CDU leader by a wide margin.

In economic data:

• Germany's February ifo Business Climate Index 88.6 (expected 88.4; last 87.6). February Current Assessment 86.7 (expected 86.1; last 85.7) and Business Expectations 90.5, as expected (last 89.6)
• Italy's January CPI 0.4% m/m, as expected (last 0.2%); 1.0% yr/yr, as expected (last 1.2%)
• Swiss January PPI -0.2% m/m (expected 0.1%; last -0.2%); -2.2% yr/yr (last -1.8%)