Stock Market Update

Equity futures point to a mostly higher open to kick off the last session of a holiday-abbreviated week. Stocks finished mixed in yesterday's action as semiconductor names pulled back after two sharply higher sessions, though rotation into other pockets of the market alongside solid gains in other mega-cap tech names kept things muted at the index level.

Semiconductors are weaker in the premarket again today, with South Korean semiconductor names finishing sharply lower overnight.

Meanwhile, the major averages are on pace for solid weekly gains across the board, with plenty of analyst commentary highlighting the healthiness of this week's rotational action.

Crude oil is on pace for its fourth consecutive weekly decline, adding to the market's positive sentiment. Bloomberg reports that oil continues to flow through the Strait of Hormuz, which underscores Iran's limited ability to halt shipping.

On the data front, investors have plenty of employment data to assess this morning, with the June Employment Situation Report slated for 8:30 a.m. ET alongside weekly jobless claims data.

In corporate news:

• OpenAI discussed giving the U.S. government a 5% stake, according to Financial Times.
• Apple (AAPL 295.20, +0.82, +0.3%) is lobbying the U.S. to purchase chips from two Chinese companies amid the global memory shortage, according to Bloomberg.
• The EU Court of Justice upheld Alphabet's (GOOG 354.39, -3.50, -1.0%) fine of around €4.1 billion.

Reviewing overnight developments:

Equity indices had a mixed showing on Thursday with South Korea's Kospi (-7.9%) falling past it 50-day moving average to a three-week low amid weakness in Samsung and SK Hynix. Japan's Nikkei: -2.5%, Hong Kong's Hang Seng: +0.8%, China's Shanghai Composite: -2.0%, India's Sensex: +0.8%, South Korea's Kospi: -7.9%, Australia's ASX All Ordinaries: UNCH.

In news:

• Japanese officials are reportedly considering a shift away from hinting at interventions before they take place.
• Japan's Prime Minister Takaichi is visiting India, looking to form some reciprocal agreements on investment.
• Berkshire Hathaway has reportedly continued increasing its stakes in top Japanese trading houses.
• Japan's final tax revenue for the last fiscal year is expected to reach a six-year high.

In economic data:

• Japan's June Monetary Base -13.7% yr/yr (expected -10.0%; last -12.2%)
• South Korea's June CPI 0.1% m/m, as expected (last 0.5%); 3.2% yr/yr, as expected (last 3.1%)
• Hong Kong's May Retail Sales 7.9% yr/yr (last 8.6%)
• Australia's May trade deficit AUD3.018 bln (expected surplus of AUD2.190 bln; last surplus of AUD1.383 bln). May Imports 2.6% m/m (last 0.2%) and Exports -6.9% m/m (last 7.2%)
• New Zealand's May Building Consents -4.0% m/m (last 11.1%)

Major European indices trade in the green. STOXX Europe 600: +0.6%, Germany's DAX: +0.8%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.9%, Italy's FTSE MIB: +1.2%, Spain's IBEX 35: +1.1%.

In news:

• The European Central Bank's policy forum in Portugal concluded, leading the market to believe that not just the Federal Reserve, but the Bank of England and the European Central Bank are also looking to pull back from giving constant forward guidance.
• Germany's Chancellor Merz said that a pension overhaul will be complete by the end of the year, adding that income tax cuts amounting to about EUR10 bln are in the cards.

In economic data:

• Eurozone's May Unemployment Rate 6.2% (expected 6.3%; last 6.2%)
• France's May government budget deficit EUR93.3 bln (last deficit of EUR69.6 bln)
• Italy's May Unemployment Rate 5.0% (expected 5.1%; last 5.1%)
• Spain's June Unemployment Change -28,700 (expected -40,800; last -36,300)
• Swiss June CPI 0.0% m/m (expected 0.1%; last 0.2%); 0.5% yr/yr, as expected (last 0.6%)