Stock Market Update

Equity futures point to a lower opening as the market navigates several notable developments this morning.

Oil is moving lower after last week's surge, providing some reprieve to the broader market ahead of Treasury Secretary Scott Bessent's 1:00 p.m. ET press conference, at which he will reveal economic sanctions against Iran. On a related note, CNN reports the U.S. Navy is escorting ships through the Strait of Hormuz at night with their transponders off, and Oil traffic could be double what Wall Street analysts and tracking sites suggest.

Treasury yields are moving modestly lower with oil this morning, though elevated yields, particularly in longer-dated Treasuries, continue to be a headwind for the market. CNBC reports that Treasury Secretary Scott Bessent could tap into Treasury's $1 trillion General Account to buy back bonds.

Meanwhile, weakness across semiconductor components continues to limit growth at the index level, with NVIDIA (NVDA 214.67, -0.04, -0.0%) set to release its earnings Wednesday after the close.

There is no economic data of note on the calendar today, but the market will receive an important inflation reading with the July Personal Income and Spending Report on Wednesday.

In corporate news:

• Anthropic's Fable 5 is seeing weak demand from corporate clients, according to Financial Times.
• Hims and Hers (HIMS 32.87, -0.91, -2.7%) put on notice by Visa (V) for excessive complaints in its weight loss subscription unit, according to Bloomberg. 
• NVIDIA (NVDA 214.67, -0.04, -0.0%) customers were notified of artificial intelligence price increases of 15%, 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 (-3.1%) showing relative weakness. Japan's Nikkei: -0.7%, Hong Kong's Hang Seng: -1.9%, China's Shanghai Composite: -0.6%, India's Sensex: -0.2%, South Korea's Kospi: -3.1%, Australia's ASX All Ordinaries: +0.5%.

In news: 

• Japan's Ministry of Finance is expected to set the assumed interest rate for FY27/28 at 3.8% for debt cost calculations.
• Anticipation is building ahead of Thursday's scheduled speech from Bank of Japan Deputy Governor Himino, who is likely to hint at more rate hikes.
• Alibaba lost nearly 10% in Hong Kong after pricing a $10 bln share offering.

In economic data: 

• Singapore's July CPI -0.2% m/m (last 0.0%); 2.2% yr/yr (last 1.9%)
• New Zealand's Q2 Retail Sales -0.5% qtr/qtr (expected 0.1%; last 1.0%) and Core Retail Sales 0.7% qtr/qtr (expected 0.3%; last 1.1%)

Major European indices trade near their flat lines with Spain's IBEX (+0.4%) showing relative strength. STOXX Europe 600: +0.1%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: +0.4%.

In news: 

• Overall action has been restrained by anticipation ahead of Treasury Secretary Bessent's press conference about the economic pressure campaign against Iran.
• British Prime Minister Burnham visited Ukraine, pledging additional military help.
• European Central Bank policymaker Cipollone said that he does not see any signs of stagflation.

There is no economic data of note today.