Stock Market Update

Equity futures point to a higher opening this morning after a tech-driven selloff on Friday that snapped a nine-week win streak for the S&P 500.

Investors are stepping in to Friday's weakness this morning, with many of the largest chipmaker names poised for solid opening gains.

On the geopolitical front, Israel and Iran exchanged strikes over the weekend, which sent oil prices higher, but they are now retreating after Iran's state media said Iran's armed forces will end military operations against Israel.

There is no economic data of note on the calendar today, but this week will feature the May CPI report (Breifing.com consensus 0.5%) on Wednesday, with PPI (Briefing.com consensus 0.7%) to follow on Thursday. The inflation readings will be of particular interest given that newly minted Fed Chairman Kevin Warsh will head his first FOMC meeting later this month.

In an interview with NBC News, President Trump said he doesn't want to have a big influence on Fed Chairman Kevin Warsh, though he added there is "no reason" to increase interest rates and says rates should be lowered.

In corporate news:

• Apple (AAPL 308.70, +1.36, +0.4%) will introduce a new artificial intelligence strategy today, according to Bloomberg.
• Marvell Technology (MRVL 286.11, +22.64, +8.6%) trades higher in the premarket following news it will join the S&P 500.
• NVIDIA (NVDA 209.29, +4.19, +2.1%) CEO Jensen Huang said the recent selloff in tech is a good buying opportunity, according to Bloomberg

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a broadly lower note with South Korea's Kospi (-8.3%) deepening last week's reversal from a record high. Japan's Nikkei: -3.9%, Hong Kong's Hang Seng: -1.3%, China's Shanghai Composite: -1.7%, India's Sensex: -1.0%, South Korea's Kospi: -8.3%, Australia's ASX All Ordinaries: HOLIDAY.

In news:

• There were some renewed concerns about the direction of the conflict between Iran and the U.S., reflected by a rebounding price of oil.
• China's President Xi made a State visit to North Korea.
• Japan's Q1 GDP was left unrevised at the headline level (0.5% qtr/qtr) while GDP Deflator was revised down to 3.2% from 3.4%.

In economic data:

• Japan's Q1 GDP 0.5% qtr/qtr, as expected (last 0.3%), Q1 GDP Annualized 1.8% qtr/qtr (expected 2.1%; last 0.7%). Q1 GDP Price Index 3.2% yr/yr (expected 3.4%; last 3.4%), Q1 GDP Capital Expenditure -0.7% qtr/qtr (expected 0.3%; last 0.1%), Q1 GDP Private Consumption 0.3% qtr/qtr, as expected (last 0.1%), Q1 GDP External Demand 0.3% qtr/qtr, as expected (last 0.0%). April Current Account surplus JPY4.21 trln (expected JPY3.26 trln; last JPY3.90 trln), May Bank Lending 5.7% yr/yr (expected 5.6%; last 5.4%), and May Economy Watchers Current Index 43.6 (expected 41.9; last 40.8)

Major European indices trade on a mostly lower note while Italy's MIB (+0.6%) outperforms, holding a modest gain. STOXX Europe 600: -0.3%, Germany's DAX: -0.3%, U.K.'s FTSE 100: +0.1%, France's CAC 40: UNCH, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.2%.

In news:

• Germany reported a sharper-than-expected drop in April Factory Orders (-3.8%; expected -2.2%), though the market still expects a 25-basis point rate hike from the European Central Bank on Thursday.
• Italy's Intesa Sanpaolo offered EUR30.6 bln to purchase Monte dei Pachi di Siena, looking to form the second-largest lender in the eurozone.

In economic data:

• Eurozone's June Sentix Investor Confidence -13.4 (expected -13.8; last -16.4)
• Germany's April Factory Orders -3.8% m/m (expected -2.2%; last 4.5%)