Stock Market Update

Equity futures point to a mixed, flattish opening this morning as momentum across semiconductor stocks cools while oil prices stabilize.

The major averages have enjoyed two consecutive sessions of solid gains from the semiconductor group, with today's modest early weakness likely a mechanical pullback. SK Hynix (SKHY) will begin trading on the Nasdaq today, with its IPO priced at $149 per ADS. Some analysts predict that the South Korean memory heavyweight could put pressure on other memory names that have surged recently.

Outside of tech, oil prices are just modestly higher this morning after yesterday's pullback. Bloomberg reports that technical talks between the U.S. and Iran will continue despite renewed tensions.

Corporate news items are relatively quiet this morning, though Delta Air Lines (DAL 87.50, -1.50, -1.7%) kicked off the Q2 earnings season, which will ramp with major banking names next week.

There is no economic data of note today.

In corporate news:

• Delta Air Lines (DAL 87.50, -1.50, -1.7%) beat EPS expectations by $0.07, beat revenue expectations, guided Q3 EPS in-line, and reaffirmed its FY26 EPS guidance.
• Meta Platforms (META 654.49, +23.01, +3.6%) trades higher amid some positive commentary around its position in the frontier AI race, according to SemiAnalysis.
• SK Hynix (SKHY) prices IPO at $149 per ADS, raising approximately $26 billion in proceeds, according to Bloomberg.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly higher finish to the week with South Korea's Kospi (+2.5%) narrowing this week's loss to 7.6% while markets in New Zealand were closed for a holiday. Japan's Nikkei: +1.2%, Hong Kong's Hang Seng: +0.6%, China's Shanghai Composite: -1.0%, India's Sensex: +1.1%, South Korea's Kospi: +2.5%, Australia's ASX All Ordinaries: +0.5%.

In news:

• The Japanese yen and JGBs climbed after Finance Minister Katayama said that she will encourage pension funds to increase their exposure to domestic assets.
• The Japanese government is expected to release the framework for its economic plan on July 21.
• Malaysia's central bank left its policy rate at 2.75%, as expected.

In economic data:

• Japan's June PPI 0.4% m/m (expected 0.3%; last 1.1%); 7.1% yr/yr (expected 6.8%; last 6.6%)

Major European indices are looking for a higher finish to the week. STOXX Europe 600: +0.1%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.4%.

In news:

• Expectations for a September rate hike from the European Central Bank are on the rise due to the understanding that the U.S. ceasefire with Iran is essentially over.
• Bank of France raised its domestic growth forecast for Q2 to 0.2% from 0.0% while Bank of England Chief Economist Pill said that the bank rate will need to be raised this year.

In economic data:

• Germany's June CPI -0.3% m/m, as expected (last -0.2%); 2.3% yr/yr, as expected (last 2.6%)
• France's June CPI -0.3% m/m (expected -0.2%; last 0.1%); 1.8% yr/yr, as expected (last 2.4%)
• Italy's May Industrial Production -0.3% m/m (expected -0.1%; last 0.4%); 1.1% yr/yr (expected 1.3%; last 1.1%)
• Swiss June SECO Consumer Climate -36 (expected -35; last -38)