Stock Market Update

Equity futures point to a mostly higher open this morning after yesterday's earnings-fueled rally pushed the S&P 500 and Nasdaq Composite to fresh record highs. The market still has plenty of earnings to digest this morning, with Apple (AAPL 282.20, +10.85, +4.0%) keeping the momentum rolling across "magnificent seven" names after turning in a solid report.

Headlines are relatively quiet elsewhere after a notably busy week that included an FOMC meeting, earnings reports from several of the market's largest components, and a full slate of economic data.

Not much has changed on the geopolitical front, with Bloomberg reporting that President Trump is vowing to maintain the blockade against Iran. Still, oil prices are modestly lower again this morning.

On the data front, the market will receive the final S&P Global U.S. Manufacturing PMI for April at 9:45 a.m. ET, and the ISM Manufacturing Index for April (Briefing.com consensus 53.1%) at 10:00 a.m. ET.

In corporate news:

• Apple (AAPL 282.20, +10.85, +4.0%) beat EPS expectations by $0.06, beat revenue expectations, saw iPhones roughly in line with estimates, increased its dividend by 4%, and authorized an additional program to repurchase up to $100 billion of common stock.
• Exxon Mobil (XOM 155.60, +1.27, +0.8%) beat EPS by $0.18 and beat revenue expectations.
• Moderna (MRNA 49.39, +3.45, +7.5%) beat EPS expectations by $1.05 and beat revenue expectations.
• Sandisk (SNDK 1,032.58, -60.53, -5.5%) beat EPS expectations by $8.79, beat revenue expectations, and guided Q4 EPS and revenues above consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mixed note though markets in China, Hong Kong, South Korea, India, and Singapore were closed for holidays, resulting in lower overall volume. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: CLOSED, China's Shanghai Composite: CLOSED, India's Sensex: CLOSED, South Korea's Kospi: CLOSED, Australia's ASX All Ordinaries: +0.8%.

In news:

• Japanese shipper Mitsui expects that traffic through the Strait of Hormuz will normalize in the next couple months.
• Japan's Tokyo Core CPI decelerated in April despite the sharp rise in energy prices while April Manufacturing PMI (55.1) expanded at its fastest pace in more than a decade.
• Taiwan's Q1 GDP grew 13.7%, a pace not seen since 1987.
• A bipartisan delegation will visit China this weekend ahead of President Trump's planned trip to Beijing later this month.

In economic data:

• Japan's April Tokyo CPI 1.5% yr/yr (last 1.4%) and Tokyo Core CPI 1.5% yr/yr (expected 1.8%; last 1.7%). April Manufacturing PMI 55.1 (expected 54.9; last 51.6)
• South Korea's April trade surplus $23.77 bln (expected surplus of $23.00 bln; last surplus of $26.24 bln). April Imports 16.7% yr/yr (expected 14.5%; last 13.2%) and Exports 48.0% yr/yr (expected 45.3%; last 49.2%)
• Australia's April Manufacturing PMI 51.3 (expected 51.0; last 49.8). Q1 PPI 0.4% qtr/qtr (expected 0.9%; last 0.8%); 3.0% yr/yr (last 3.5%). April Commodity Prices 15.7% yr/yr (last 12.7%)
• New Zealand's March Building Consents -1.3% m/m (last 2.8%)

Most major European markets are closed for Labor Day while the U.K.'s FTSE (-0.5%) trades in negative territory amid weakness in consumer, industrial, and mining names. STOXX Europe 600: -0.1%, Germany's DAX: CLOSED, U.K.'s FTSE 100: -0.5%, France's CAC 40: CLOSED, Italy's FTSE MIB: CLOSED, Spain's IBEX 35: CLOSED.

In news:

• Expectations for up to two rate hikes from the European Central Bank are solidifying while the Bank of England is seen as likely to announce a rate hike by July, followed by another one in September.

In economic data:

• U.K.'s April Nationwide HPI 0.4% m/m (expected -0.3%; last 0.9%); 3.0% yr/yr (expected 2.2%; last 2.2%). April Manufacturing PMI 53.7 (expected 53.6; last 51.0). March Mortgage Lending GBP6.15 bln (expected GBP4.20 bln; last GBP5.22 bln) and March Net Lending to Individuals GBP8.000 bln (expected GBP5.900 bln; last GBP6.800 bln)
• Swiss March Retail Sales 0.5% yr/yr (expected 0.6%; last 0.4%)