Stock Market Update

Equity futures point to a mostly flat opening as the market awaits the August Employment Report at 8:30 a.m. ET, though some early momentum across semiconductor names has the Nasdaq Composite on track for a firmly higher open.

Investors will be particularly attuned to the report as it has the potential to move the market's implied odds of the FOMC's next move. The odds that the Fed keeps rates on hold at the next meeting returned to near coin-flip chances yesterday (after previously moving lower) following what the market deemed dovish commentary from Fed Governor Christopher Waller (a voting FOMC member).

Combined with an easing in Treasury yields, stocks posted broad gains yesterday and enjoyed exceptional leadership from mega-cap stocks, leaving the major averages with modest week-to-date gains entering today's session.

Today's remaining economic calendar:

• 8:30 AM ET: August Nonfarm Payrolls; Briefing.com consensus 45K; prior -23K
• 8:30 AM ET: August Nonfarm Private Payrolls; Briefing.com consensus 45K; prior 30K
• 8:30 AM ET: August Unemployment Rate; Briefing.com consensus 4.2%; prior 4.1%
• 8:30 AM ET: August Average Hourly Earnings; Briefing.com consensus 0.2%; prior 0.1%
• 8:30 AM ET: August Average Workweek; Briefing.com consensus 34.3; prior 34.3

In corporate news:

• Samsara (IOT 44.20, +5.45, +14.06%) is a notable premarket gainer after beating second-quarter earnings and revenue estimates, with revenue increasing 29.9% year-over-year.
• DocuSign (DOCU 67.00, +1.03, +1.56%) is higher after reporting better-than-expected second-quarter earnings and revenue and issuing in-line third-quarter and fiscal-year revenue guidance.
• Lululemon athletica (LULU 86.74, -25.03, -20.6%) beat EPS estimates by $1.13 but missed on revenue, guided Q3 EPS and revenue below consensus, and lowered its FY27 EPS and revenue outlook below consensus.
• United Microelectronics (UMC 20.57, +0.71, +3.58%) is higher after reporting that August sales increased 30.7% year-over-year, lifting sales through the first eight months of the year by 14.7%.

Reviewing overnight developments:

JGBs across the curve extended their bounce from this year's lows during the regional session. Japan's Nikkei: +1.3%, Hong Kong's Hang Seng: +1.7%, China's Shanghai Composite: -0.3%, India's Sensex: +0.5%, South Korea's Kospi: +1.6%, Australia's ASX All Ordinaries: UNCH.

In news:

• Japan's Finance Minister Katayama confirmed that the fiscal 2027-28 budget will reach a record JPY143 trillion.

In economic data:

• Japan's July Household Spending 0.5% m/m (expected 2.6%; last -6.4%); -3.6% yr/yr (expected -1.6%; last -3.3%)
• South Korea's July Current Account $42.08 bln (last surplus of $49.73 bln)

The regional session featured attention on sovereign-asset allocation and energy policy, while economic data were mixed. STOXX Europe 600: +0.1%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: UNCH.

In news:

• Norway's sovereign wealth fund is reportedly considering reducing the Treasury share of its U.S. holdings to 50% from 70%.
• The U.K. is looking to approve new oil-drilling efforts in the North Sea.

In economic data:

• Eurozone's July Retail Sales -0.6% m/m (expected 0.3%; last 0.2%); 0.6% yr/yr (expected 1.1%; last 1.4%)
• Germany's July Factory Orders 2.5% m/m (expected 0.3%; last 3.7%)
• Italy's July Retail Sales -0.4% m/m (expected 0.2%; last -0.2%); 0.8% yr/yr (last 3.1%)