Stock Market Update

Equity futures point to a higher open this morning as investors assess a decent-sized batch of earnings reports while monitoring developments on the geopolitical front.

Stocks opened to broad strength yesterday, though the semiconductor cohort gave up the bulk of its early gains while rising oil prices and Treasury yields added pressure to the broader market. Crude oil is currently up $1.33 (+1.6%) to $83.81 per barrel after the U.S. completed strikes against Iran again last night.

However, the major averages are set for another solid opening, which is largely due to another rebound attempt across the semiconductor space.

On the earnings front, the bulk of this morning's reports topped expectations, though the market reaction has been mixed.

There is no economic data of note today.

In corporate news:

• Equifax (EFX 159.89, -20.19, -11.2%) beat EPS expectations by $0.05, reported revenues in-line, guided Q3 EPS below consensus with revenues in-line, and guided FY26 revenues and EPS in-line. The company signed an agreement to acquire Círculo de Crédito.
• 3M (MMM 169.00, +9.89, +6.22) beat EPS expectations by $0.15, beat revenue expectations, and raised its FY26 EPS above consensus.
• General Motors (GM 77.06, +1.26, +1.7%) beat EPS expectations by $0.38 and beat revenue expectations.
• Novo Nordisk (NVO 49.25, -0.36, -0.7%) is suing Eli Lily (LLY 1,141.06, -5.84, -0.5%) for multiple violations of federal and state false advertising and unfair competition laws.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note with South Korea's Kospi (+3.6%) and Japan's Nikkei (+3.3%) showing some strength. Japan's Nikkei: +3.3%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: +1.8%, India's Sensex: -0.3%, South Korea's Kospi: +3.6%, Australia's ASX All Ordinaries: UNCH.

In news:

• Japan's cabinet approved the general economic framework, which prioritizes fiscal sustainability.
• Chinese memory maker CXMT is aiming for an IPO in Shanghai early next week.
• China's National Development and Reform Commission called for stronger development of the private economy and the services sector.

In economic data:

• Hong Kong's June CPI 0.0% m/m (last 0.0%); 2.0% yr/yr (last 2.0%)
• New Zealand's Q2 CPI 1.5% qtr/qtr (expected 1.4%; last 0.9%); 4.1% yr/yr (expected 4.0%: last 3.1%)

Major European indices trade in the green.

In news:

• New British Prime Minister Burnham named former defense secretary John Healy as Chancellor, which was a headline surprise, though Gilts have seen limited movement.
• The latest bank lending survey from the European Central Bank showed tighter access to credit in Q2 due to geopolitical instability with additional tightening expected in Q3.

In economic data:

• Eurozone's July ZEW Economic Sentiment 23.4 (expected 11.2; last 9.5)
• Germany's July ZEW Economic Sentiment 26.3 (expected 15.1; last 10.5) and ZEW Current Conditions -77.6 (expected -77.8; last -81.0)
• U.K.'s May three-month employment change 147,000 (expected 85,000; last 100,000), May Claimant Count Change 6,700 (expected 29,400; last 1,300). May Average Earnings Index + Bonus 4.3% yr/yr (expected 4.5%; last 4.4%). May Unemployment Rate 4.9%, as expected (last 4.9%)
• Spain's May trade deficit EUR8.24 bln (last deficit of EUR5.20 bln)
• Swiss June trade surplus CHF5.224 bln (last surplus of CHF5.989 bln)