Stock Market Update

Equity futures are pointing to a modestly lower open as investors monitor the latest geopolitical developments amid a fairly quiet morning of corporate news.

Crude oil is moving higher this morning following an uptick in hostilities between the U.S. and Iran, with Axios reporting that the U.S. struck launchers that were preparing to deploy mines in the Strait of Hormuz. Iran fired missiles at a U.S. base in Jordan in retaliation, and crude oil is currently up $2.97 (+3.6%) to $86.39 per barrel.

Stocks are coming off a winning week, with the major averages supported by strength in technology stocks after NVIDIA (NVDA 218.76, +1.21, +0.6%) and a host of software names delivered impressive earnings.

There are no U.S. economic releases scheduled today. However, the August Employment Report looms on Friday, with the market eager to see whether the data will once again reshape monetary policy expectations following Fed Chair Kevin Warsh’s somewhat hawkish tone at last week’s Jackson Hole Symposium.

In corporate news:

• President Trump to discuss high fuel prices with oil refiners this week, according to Bloomberg. 
• Science Applications (SAIC 136.77, +10.81, +8.58%) beat fiscal second-quarter earnings and revenue expectations and raised its fiscal 2027 guidance.
• GDEV (GDEV 11.56, +0.69, +6.35%) launched a cash self-tender offer for up to $20 million of its ordinary shares.
• IperionX (IPX 21.93, +0.92, +4.38%) received a second U.S. Army task order under its existing contract supporting domestic titanium production.

Reviewing overnight developments:

Asia-Pacific markets ended the session mixed as China's August business surveys remained in contraction territory. Japan's Nikkei: -0.1%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: +0.9%, India's Sensex: -0.4%, South Korea's Kospi: +0.5%, Australia's ASX All Ordinaries: -0.3%.

In news:

• The Reserve Bank of New Zealand will release its latest policy statement on Wednesday.
• The approval rating of Japan Prime Minister Takaichi's cabinet remained at 53%, according to an Asahi poll.

In economic data:

• China's August Manufacturing PMI 49.8 (expected 49.5; last 49.2) and Non-Manufacturing PMI 49.0 (expected 49.5; last 49.0)
• Japan's July Retail Sales 4.0% yr/yr (expected 3.2%; last 0.6%). July Housing Starts 8.2% yr/yr (expected 7.2%; last 18.6%) and Construction Orders -13.4% yr/yr (last 2.3%)
• South Korea's July Retail Sales -2.4% m/m (last 2.7%) and July Service Sector Output -1.3% m/m (last 0.7%). July Industrial Production 0.2% m/m (last 6.7%); 3.6% yr/yr (last 6.0%)
• Hong Kong's July Retail Sales 4.5% yr/yr (last 4.6%)
• Australia's Q2 Company Gross Operating Profits 1.8% qtr/qtr (expected 2.0%: last -1.5%) and Pre-tax Profits 12.5% qtr/qtr (last -4.1%). July Private Sector Credit 0.6% m/m (expected 0.7%; last 0.8%) and Housing Credit 0.5% m/m (last 0.6%). August MI Inflation Gauge 0.5% m/m (last 1.0%)
• New Zealand's August ANZ Business Confidence 53.7 (last 56.1)
• India's Q1 GDP 7.8% yr/yr (expected 7.1%; last 7.8%)

Major European markets are mixed while the U.K. market is closed for a bank holiday. STOXX Europe 600: -0.1%, Germany's DAX: -0.7%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.2%.

In news:

• Fitch affirmed France's A+ rating with a stable outlook.
• Iceland voted against reopening accession talks with the European Union.

In economic data:

• Spain's June Current Account surplus EUR2.41 bln (last surplus of EUR1.84 bln)