Stock Market Update

Equity futures point to a higher opening this morning after stocks started the holiday-abbreviated week on a mostly higher note, with the S&P 500 notching fresh record highs.

Stocks were supported by lower oil prices and a rally across semiconductor names, with Micron (MU 972.79, +76.91, +8.6%) surpassing $1 trillion market capitalization after UBS raised its price target on the stock to $1,625 from $535 and reiterated its Buy rating.

Both of those catalysts are contributing to this morning's enthusiasm as Micron trades sharply higher in the premarket while crude oil moves $3.22 (-3.4%) lower to $90.67 per barrel despite a relatively quiet morning of geopolitical headlines.

Meanwhile, SK Hynix has added to the AI-enthusiasm overnight by crossing the $1 trillion market capitalization threshold as well, sending South Korea's Kospi to record highs.

Headlines are fairly muted elsewhere, though the market does have several earnings reports to assess this morning.

Today's data slate is limited to the release of the MBA Mortgage Applications Index for the week ended May 23, which decreased 8.5% from a prior decrease of 2.3%.

In corporate news:

• Bath & Body Works (BBWI 19.63, +1.90, +10.7%) beat EPS expectations by $0.03, beat revenue expectations, guided Q2 EPS and revenues in-line, and reaffirmed its FY27 EPS and revenue guidance.
• Dick's Sporting Goods (DKS 224.00, -9.13, -3.9%) beat EPS expectations by $0.01, beat revenue expectations, and reaffirmed its FY27 EPS and revenue guidance.
• Regulators will likely approve Paramount's (PSKY 10.37, +0.0, +0.0%) takeover of Warner Bros. Discovery (WBD 27.05, +0.05, +0.2%), according to Semafor.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly lower showing on Wednesday while South Korea's Kospi (+2.3%) continued its record run with SK Hynix seeing its market cap grow past $1 trillion. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: -1.1%, China's Shanghai Composite: -1.3%, India's Sensex: -0.2%, South Korea's Kospi: +2.3%, Australia's ASX All Ordinaries: +0.7%.

In news:

• Samsung's unionized workers approved the wage and bonus deal offered by the company.
• Japan's services inflation unexpectedly decelerated in April.
• Japan sold 40-yr JGBs to weak demand even though the auction size was reduced.
• The Reserve Bank of New Zealand left its official cash rate at 2.25%, as expected. Three out of seven policymaker voted for a hike, so a rate increase is expected in the coming months.

In economic data:

• China's April Industrial Profit 18.2% YTD (last 15.5%)
• Japan's April Corporate Services Price Index 3.0% yr/yr (expected 3.3%; last 3.3%)
• Australia's April MI Leading Index 0.0% m/m (last -0.1%). Q1 Construction Work Done 3.4% qtr/qtr (expected 0.8%; last 0.2%) and April CPI Indicator 4.2% yr/yr (expected 4.4%; last 4.6%)

Major European indices trade in the green. STOXX Europe 600: +0.3%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.8%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: +0.2%.

In news:

• The European Central Bank's latest Financial Stability review warned that high government spending needs and high hedge fund exposure to sovereign debt could amplify financial instability.
• European Central Bank policymaker Stournaras said that a June rate hike is likely.
• French Finance Minister Lescure said that a budget without tax increases will be presented with the deficit target remaining below 5%.

In economic data:

• France's May Consumer Confidence 82 (expected 83; last 84)
• Italy's March Industrial Sales 2.0% m/m (last 0.5%); 4.4% yr/yr (last 0.5%)
• Swiss May ZEW Expectations -11.1 (last -30.3)