Stock Market Update

The S&P 500 futures are down six points and are trading 0.1% below fair value, the Nasdaq 100 futures are down ten points and are trading 0.1% below fair value, and the Dow Jones Industrial Average futures are down 11 points and are trading 0.1% below fair value. 

Equity futures trade flattish. The market still lacks major directional drivers ahead of NVIDIA's (NVDA) earnings report tomorrow afternoon. Investors are also in vacation-mode in front of Labor Day. Today's economic lineup features the release of the August Consumer Confidence Index at 10:00 ET, along with the June FHFA Housing Price Index and June S&P Case-Shiller Home Price Index at 9:00 ET.

The 10-yr note yield is up three basis points to 3.85% and the 2-yr note yield sits at 2.95%, which is two basis points higher than yesterday's settlement.

In corporate news:

• Apple (AAPL  226.42, -0.76, -0.3%): CFO Luca Maestri to transition from CFO role; names Kevan Parekh as new CFO
• HEICO (HEI 243.00, -2.90, -1.2%): beats by $0.05, reports revs in-line
• CAVA Group (CAVA 114.08, -11.72, -9.3%): Artal International S.C.A. filed notice of proposed sale of securities of 6,000,000 shares
• Amazon (AMZN 175.65, +0.15, +0.1%): aiming to introduce a delayed Alexa subscription for artificial intelligence in October, according to Washington Post
• JD.com (JD 26.75, +0.95, +3.7%): announces $5.0 billion new share repurchase program

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: -0.2%, India's Sensex: UNCH, South Korea's Kospi: -0.3%, Australia's ASX All Ordinaries: -0.2%.
  • In economic data:
    • China's July Industrial Profit 3.6% YTD (last 3.5%)
    • Japan's August Corporate Services Price Index 2.8% yr/yr (expected 2.9%; last 3.1%). June BoJ Core CPI 1.8% yr/yr (expected 2.1%; last 2.1%)
    • Hong Kong's July trade deficit $21.8 bln (last deficit of $55.7 bln). July Imports 9.9% m/m (last 9.0%) and Exports 13.1% m/m (last 10.7%)
  • In news:
    • The Chinese government issued 16,000 license plates for testing autonomous vehicles and designated some public roads for testing purposes.
    • South Korea's finance ministry expects that bond sales in 2025 will see a 20% increase over 2024. 
    • Japan's Prime Minister Kishida will visit South Korea at the end of next week.
• Major European indices trade with modest gains. STOXX Europe 600: UNCH, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.3%, France's CAC 40: UNCH, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: +0.3%.
  • In economic data:
    • Germany's Q2 GDP -0.1% qtr/qtr, as expected (last 0.2%); 0.0% yr/yr (expected -0.1%; last -0.2%). September GfK Consumer Climate -22.0 (last -18.6)
    • U.K.'s August CBI Distributive Trades Survey -27 (expected -11; last -43)
  • In news:
    • French President Macron has reportedly ruled out naming a prime minister from one of the left-wing parties and will continue searching for a candidate.
    • British Prime Minister Starmer acknowledged the existence of a GBP22 bln budget gap and said that the Autumn budget will be painful.