Stock Market Update

Equity futures point to a modestly lower opening this morning following a broad rebound effort from stocks yesterday.

Crude oil is moving higher this morning, near $93 per barrel as hostilities continue in and around the Strait of Hormuz. However, U.S. Treasury yields are easing slightly, extending the stabilization seen yesterday after the recent surge in rates had emerged as a significant headwind for equities. That moderation helped provide some relief for stocks in Wednesday's session and could help offset some of the renewed pressure from rising oil prices this morning.

Investors had several notable tech earnings reports to assess after the bell yesterday, with Broadcom (AVGO 354.97, -12.27, -3.3%) moving lower despite a solid report and other semiconductor stocks following suit. However, there is some early momentum across software names after the latest round of earnings and pronounced weakness across the group yesterday.

Today's remaining economic calendar:

• 8:30 AM ET: July Trade Balance; Briefing.com consensus -$89.6B; prior -$73.3B
• 8:30 AM ET: Q2 Productivity-Rev.; Briefing.com consensus 1.4%; prior 1.4%
• 8:30 AM ET: Q2 Unit Labor Costs-Rev; Briefing.com consensus 1.3%; prior 1.3%
• 8:30 AM ET: 08/29 Initial Claims; Briefing.com consensus 205K; prior 203K
• 8:30 AM ET: 08/22 Continuing Claims; prior 1778K
• 9:45 AM ET: August S&P Global U.S. Services PMI - Final; prior 56.8
• 10:00 AM ET: August ISM Non-Manufacturing Index; Briefing.com consensus 54.1%; prior 54.1%
• 10:30 AM ET: 08/29 EIA Natural Gas Inventories; prior +15 bcf

In corporate news:

• Broadcom (AVGO 354.97, -12.27, -3.3%) beat EPS expectations by $0.10, beat revenue expectations, and guided Q4 revenues above consensus. 
• Snowflake (SNOW 379.06, +73.22, +23.94%) is sharply higher after beating quarterly earnings and revenue expectations and issuing third-quarter and full-year product revenue guidance.
• Five Below (FIVE 257.24, +14.16, +5.83%) beat quarterly expectations, reported comparable-sales growth of 14.1%, guided third-quarter earnings and revenue above consensus, and raised its full-year outlook.
• Ciena (CIEN 364.00, +9.84, +2.78%) topped quarterly earnings and revenue expectations and guided fourth-quarter revenue above consensus.

Reviewing overnight developments:

Asia-Pacific markets ended mixed, with most indices staying within narrow ranges. The yen rallied to its September high against the dollar amid speculation about a potential Bank of Japan rate hike. Japan's Nikkei: -0.2%, Hong Kong's Hang Seng: -0.4%, China's Shanghai Composite: UNCH, India's Sensex: -0.6%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: +0.4%.

In news:

• Treasury Secretary Bessent said he knows what Japan is planning, fueling speculation that he was foreshadowing a Bank of Japan rate hike.
• Japan's government is reportedly looking to increase the share of household assets held in equities, investment trusts, and bonds to 40% by 2040 from 25% currently.
• China Securities Journal expects the yuan to continue appreciating moderately this year.

In economic data:

• China's August RatingDog Services PMI 51.4 (expected 50.6; last 50.4)
• Japan's August Services PMI 52.5 (expected 52.3; last 51.2)
• Hong Kong's August Manufacturing PMI 49.5 (last 51.0)
• Australia's August Services PMI 53.2 (expected 52.9; last 53.6). July trade surplus AUD1.923 bln (expected surplus of AUD1.400 bln; last surplus of AUD2.341 bln). July Imports -2.5% m/m (last -0.7%) and Exports -3.3% m/m (last 9.1%)
• New Zealand's Q2 Terms of Trade Index -9.0% qtr/qtr (expected -2.1%; last -1.9%)
• India's August Services PMI 54.1 (expected 54.5; last 53.3)

Major European indices trade near their flat lines as investors digest mixed services data and look ahead to next week's ECB policy meeting. STOXX Europe 600: +0.2%, Germany's DAX: UNCH, U.K.'s FTSE 100: +0.3%, France's CAC 40: -0.3%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.4%.

In news:

• Germany's Chancellor Merz will meet with ECB officials ahead of next week's policy meeting, which is expected to result in a rate hike.
• Germany's IfW and ifo Institute raised their 2026 domestic growth forecasts.

In economic data:

• Eurozone's August Services PMI 51.6 (expected 51.7; last 51.7). July PPI 1.6% m/m (expected 1.2%; last -0.3%); 5.8% yr/yr (last 4.6%)
• Germany's August Services PMI 49.7 (expected 48.5; last 49.8)
• U.K.'s August Services PMI 52.5 (expected 52.8; last 52.1)
• France's August Services PMI 48.0 (expected 48.4; last 49.6)
• Italy's August Services PMI 55.2 (expected 53.6; last 52.5)
• Spain's August Services PMI 57.8 (expected 59.0; last 58.3) Swiss Q2 GDP 1.9% qtr/qtr (expected 1.5%; last 0.6%); 2.8% yr/yr (last 0.5%). August CPI 0.4% m/m (expected 0.0%; last -0.1%); 0.8% yr/yr (expected 0.5%: last 0.4%)