Stock Market Update

Equity futures are pointing to a higher open, underpinned by a 10% gain in Microsoft (MSFT) following its better-than-expected quarterly results and outlook that is helping to offset weakness in Meta Platforms (META) and Qualcomm (QCOM) after their earnings reports.

Some easing in oil prices (WTI -1.0% to $83.59/bbl), buy-the-dip interest, and speculation that yesterday's post-FOMC retreat was overdone have acted as underpinning factors for the rebound trade.

Still, there are a lot of moving parts to consider, including reports after the close from Apple (AAPL) and Amazon (AMZN), the continuing upward drift in long-term rates, the Bank of England's decision (6 to 3) to leave its key lending rate unchanged at 3.75%, the ongoing military strikes between the U.S. and Iran, and a large slate of economic data that includes the Advance Q2 GDP, June Personal Income and Spending, and Weekly Initial and Continuing Jobless Claims reports at 8:30 a.m. ET.

In corporate news:

• Meta Platforms (META 530.31, -55.61, -9.3%): misses by $1.01, reports revs in-line; guides Q3 revs in-line, narrows FY26 CapEx guidance, raises low end of total expense guidance
• Microsoft (MSFT 429.66, +39.12, +10.0%): beats by $0.50, beats on revs; Azure growth of +43% vs +39-40% CC prior guidance; SepQ revenue above consensus; guides to Azure +45% CC
• Qualcomm (QCOM 146.90, -8.78, -5.6%): misses by $0.02, beats on revs; guides Q4 EPS below consensus, revs in-line
• Starbucks (SBUX 110.56, +6.42, +6.2%): beats by $0.19, beats on revs; raises FY26 EPS above consensus; Q3 North America comps +8.1%

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a mixed note with South Korea's Kospi (-1.2%) giving up an intraday gain even though Samsung reported strong results. Japan's Nikkei: +0.7%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: -0.6%, India's Sensex: +0.4%, South Korea's Kospi: -1.2%, Australia's ASX All Ordinaries: -0.8%.

In news:

• Japan's cabinet lowered its domestic growth forecast for FY26 to 0.9% from 1.3% and raised the CPI outlook to 2.2% from 1.9%.
• The Bank of Japan will release its latest policy Statement overnight, but a hike is not expected at this time.
• Japan's Prime Minister Takaichi ordered the lowering of a food sales tax to 1% from 8%, starting in April, as expected.
• The Hong Kong Monetary Authority kept its policy rate at 4.00%, following in the footsteps of the Fed.

In economic data:

• Japan's July Household Confidence 34.9 (expected 34.2; last 33.8)
• Australia's June Building Approvals 7.2% m/m (expected -0.7%; last -1.6%); 8.9% yr/yr (last 5.5%). Q2 Import Price Index 5.7% qtr/qtr (expected 0.0%; last 0.1%) and Export Price Index 1.1% qtr/qtr (last 0.5%)
• New Zealand's July ANZ Business Confidence 56.1 (last 36.6)

Major European indices trade in the green. STOXX Europe 600: +0.4%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.2%, France's CAC 40: +0.9%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +1.5%.

In news:

• The eurozone's flash Q2 GDP (0.4%; expected 0.2%) was ahead of expectations thanks to above-consensus growth in Germany, Italy, and Spain.
• Italy's Unemployment rate unexpectedly jumped to 5.7% from 5.3%, which will be scrutinized if the jump is sustained in the coming months.
• Several large European companies raised their guidance today, led by Adidas, Rolls-Royce, Sanofi, and Accor.
• The Bank of England voted 6-3 to hold its bank rate at 3.75%, as expected.

In economic data:

• Eurozone's Q2 GDP 0.4% qtr/qtr (expected 0.2%; last -0.2%); 1.0% yr/yr (expected 0.5%; last 0.3%). June Unemployment Rate 6.3% (expected 6.2%; last 6.3%). July Business and Consumer Survey 96.9 (expected 96.0; last 95.4)
• Germany's Q2 GDP 0.2% qtr/qtr (expected 0.1%; last 0.3%); 0.9% yr/yr (expected 0.6%; last 0.4%)
• France's Q2 GDP 0.2% qtr/qtr, as expected (last -0.1%); 0.7% yr/yr (expected 0.8%; last 0.8%). June Consumer Spending 0.4% m/m (expected -0.1%; last 0.3%). Q2 nonfarm payrolls -0.1% qtr/qtr, as expected (last 0.0%)
• Italy's Q2 GDP 0.2% qtr/qtr (expected 0.1%; last 0.3%); 1.0% yr/yr (expected 0.7%; last 0.8%). June Unemployment Rate 5.7% (expected 5.0%; last 5.3%)
• Spain's Q2 GDP 0.7% qtr/qtr (expected 0.6%; last 0.6%); 2.7% yr/yr (expected 2.5%; last 2.7%). July CPI 0.2% m/m, as expected (last 0.6%); 3.0% yr/yr (last 2.9%)
• Swiss July KOF Leading Indicators 103.5 (expected 100.9; last 102.1)