Stock Market Update

Equity futures point to a higher opening this morning as the market looks to rebound from yesterday's selloff that followed the June FOMC meeting. The FOMC left rates unchanged, but analysts are referring to the decision as a "hawkish pause" as the dot plot showed nearly half of participants expecting a rate hike by year's end, while inflation estimates increased.

Stocks are supported by retreating oil prices this morning after President Trump officially signed the 60-day memorandum of understanding with Iran, which was touted as immediately reopening the Strait of Hormuz while lifting Iran's naval blockade.

Elsewhere, chipmaker stocks (which were largely resilient to yesterday's selloff) are posting solid gains in the premarket.

The market has several economic data releases on the calendar this morning, including the weekly initial jobless claims report (Briefing.com consensus 226,000).

As a reminder, this will be the stock market's last session of the week, as the market will be closed for the Juneteenth holiday tomorrow.

In corporate news:

• Apple (AAPL 296.54, +0.59, +0.2%) is expected to raise prices due to supply costs, according to The Wall Street Journal.
• Intel (INTC 132.86, +11.76, +9.7%) is sharply higher in the premarket after President Trump confirmed Apple (APPL) will work with Intel to design and build its chips in America.
• Kroger (KR 60.00, -1.82, -2.9%) missed EPS expectations by $0.01, beat revenue expectations, and reaffirmed its FY27 EPS guidance.

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region ended Friday on a mixed note with Japan's Nikkei (+1.7%) and South Korea's Kospi (+2.3%) reaching fresh records. Japan's Nikkei: +1.7%, Hong Kong's Hang Seng: -1.6%, China's Shanghai Composite: -0.4%, India's Sensex: +0.3%, South Korea's Kospi: +2.3%, Australia's ASX All Ordinaries: -0.6%.

In news:

• Overall sentiment was supported by news that President Trump signed the peace deal with Iran.
• China launched the third round of its consumer goods trade-in program after a contraction in May Retail Sales.
• Bank of Japan Deputy Governor Himino will take part in a semiannual monetary policy testimony tomorrow.
• Australian Securities and Investments Commission warned about the quality of private credit.
• Central banks in Indonesia and Philippines raised their policy rates.

In economic data:

• New Zealand's Q1 GDP 0.8% qtr/qtr, as expected (last 0.5%); 1.5% yr/yr (expected 1.1%; last 1.5%)

Major European indices trade on a mostly lower note. STOXX Europe 600: -0.5%, Germany's DAX: flat, U.K.'s FTSE 100: -1.0%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -0.5%.

In news:

• The Bank of England left its bank rate at 3.75%, which was expected, though two policymakers voted for a rate hike.
• The Swiss National Bank left its policy rate at 0.00%, which was also expected.
• Finally, Norges Bank left its policy rate at 4.25%, but hinted at a rate hike later this year.
• European Central Bank policymaker Kocher said that inflation will stay higher for some time and that the ECB remains ready to act.

In economic data:

• Eurozone's April Current Account surplus EUR15.7 bln (expected surplus of EUR18.5 bln; last surplus of EUR14.9 bln). April Construction Output 0.6% m/m (last 1.8%)
• U.K.'s April three-month Employment Change 100,000 (expected 75,000; last 148,000), April Average Earnings Index + Bonus 4.4% yr/yr (expected 4.0%; last 4.4%). April Unemployment Rate 4.9% (expected 5.0%; last 5.0%), and May Claimant Count Change 31,200 (expected 25,800; last 8,300)