Stock Market Update

Equity futures point to a higher opening this morning after the major averages secured a clean sweep of record closing highs in yesterday's action, with the S&P 500 and DJIA also notching record intraday highs.

Stocks were supported by an intraday reversal in oil prices following reports that the U.S. and Iran have agreed to a memorandum of understanding that is awaiting final approval. Axios reports that Vice President JD Vance said the two sides are very close to reaching a deal, though Iran says it is not yet finalized. Still, crude oil is down below the $88 per barrel mark this morning, helping create a constructive backdrop for equities.

Tech stocks, which led yesterday's advance, are poised for opening gains following the latest round of earnings reports, with Dell (DELL 424.33, +107.28, +33.7%) surging in the premarket.

Today will be lighter on the data front, though it will feature several Fed speakers, with Kansas City Fed President Jeffrey Schmid (FOMC non-voter) saying he wants Fed officials to signal a commitment to bring down inflation, according to Bloomberg.

In corporate news:

• Costco (COST 987.56, -7.64, -0.8%) missed EPS expectations by $0.05 and slightly beat revenue expectations.
• Dell (DELL 424.33, +107.28, +33.7%) beat EPS expectations by $1.90, beat revenue expectations, and guided Q2 and FY27 EPS and revenues above consensus. 
• SpaceX (SPCX) is targeting an IPO valuation of $1.8 trillion, according to Bloomberg.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mixed note with Japan's Nikkei (+2.5%) and South Korea's Kospi (+3.6%) reaching fresh records. Japan's Nikkei: +2.5%, Hong Kong's Hang Seng: +0.7%, China's Shanghai Composite: -0.7%, India's Sensex: -1.4%, South Korea's Kospi: +3.6%, Australia's ASX All Ordinaries: +1.7%.

In news:

• Japan's Tokyo CPI decelerated in May despite higher energy prices.
• Japan's Finance Minister Katayama warned that a currency intervention is possible at any time with the yen back near this year's low against the dollar in the 160 area.
• The People's Bank of China called on banks to increase lending amid ongoing weakness in credit issuance.

In economic data:

• Japan's May Tokyo CPI 1.4% yr/yr (last 1.5%) and Tokyo Core CPI 1.3% yr/yr (expected 1.5%; last 1.5%). April Industrial Production 0.8% m/m (expected -0.4%; last -0.4%), April Retail Sales 2.1% yr/yr (expected 1.4%; last 1.4%), April jobs/applications ratio 1.18, as expected (last 1.18), and April Unemployment Rate 2.5% (expected 2.7%; last 2.7%). April Housing Starts 11.4% yr/yr (expected 14.7%; last -29.3%) and Construction Orders -32.3% yr/yr (last -14.4%). May Household Confidence 33.6 (expected 32.3; last 32.2)
• South Korea's April Retail Sales -3.6% m/m (last 1.9%), April Industrial Production -0.7% m/m (expected 0.3%; last 0.6%); 1.5% yr/yr (expected 2.2%; last 3.9%). April Service Sector Output -1.0% m/m (last 1.5%)
• Singapore's April Bank Lending SGD908.4 bln (last SGD902.3 bln)

Major European indices are tracking a higher finish to the week. STOXX Europe 600: +0.6%, Germany's DAX: +0.1%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.7%, Italy's FTSE MIB: +0.7%, Spain's IBEX 35: +0.8%.

In news:

• U.K.'s Andy Burnham, who could become the next prime minister, said that there should be more state involvement in the economy.
• Bank of England Governor Bailey said that rate cuts should not be expected at this time and that policy has been tightened sufficiently.
• Germany's flash CPI report for May will be released at 8:00 ET and is expected to show a month-over-month increase of 0.1%, keeping the year-over-year growth rate at 2.9% that was reported in April.

In economic data:

• Germany's May Unemployment Change -12,000 (expected 11,000; last 20,000) and May Unemployment Rate 6.3% (expected 6.4%; last 6.4%). April Import Price Index 1.2% m/m, as expected (last 3.6%); 5.3% yr/yr, as expected (last 2.3%)
• France's Q1 GDP -0.1% qtr/qtr (expected 0.0%; last 0.2%); 0.9% yr/yr (expected 1.1%; last 1.3%). May CPI 0.1% m/m (expected 0.2%; last 1.0%); 2.4% yr/yr (expected 2.5%; last 2.2%). April Consumer Spending -0.5% m/m (expected -0.1%; last 0.9%). Q1 nonfarm payrolls 0.0% qtr/qtr (expected -0.1%; last -0.1%)
• Italy's May CPI 0.4% m/m (expected 0.1%; last 1.1%); 3.2% yr/yr, as expected (last 2.7%). Q1 GDP 0.3% qtr/qtr (expected 0.2%; last 0.3%); 0.8% yr/yr (expected 0.7%; last 0.8%). April Unemployment Rate 5.1% (expected 5.3%; last 5.2%)
• Spain's May CPI 0.1% m/m (expected 0.2%; last 0.4%); 3.2% yr/yr (expected 3.3%; last 3.2%). May Core CPI 2.9% yr/yr (last 2.8%). March Current Account surplus EUR4.61 bln (last surplus of EUR4.04 bln)
• Swiss May KOF Leading Indicators 98.0, as expected (last 97.8)