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 30 points and are trading 0.2% below fair value, and the Dow Jones Industrial Average futures are down 20 points and are trading 0.1% below fair value.

Equity futures trade lower, but there's not a lot of conviction driving the moves. The market is still in wait-and-see mode in front of NVIDIA's (NVDA) earnings after today's close and participation remains light in front of Labor Day.

The weekly MBA Mortgage Application Index rose 0.5% versus last week's 10.1% drop. 

The 10-yr note yield is down two basis points to 3.81% and the 2-yr note yield is down five basis points to 3.85%. On a related note, the results of today's $70 billion 5-yr note sale are released at 1:00 p.m. ET.

In corporate news:

• Nordstrom (JWN 21.56, +0.42, +2.0%): beats by $0.25, reports revs in-line, comps +1.9%; guides FY25 EPS midpoint above consensus
• PVH (PVH 95.07, -9.39, -9.0%): beats by $0.72, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY25 EPS above consensus, reaffirms FY25 revs guidance
• Box (BOX 30.89, +2.07, +7.2%): beats by $0.04, reports revs in-line; guides Q3 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs above consensus; expands repurchase plan
• SentinelOne (S 25.10, +0.35, +1.4%): beats by $0.01, reports revs in-line; guides Q3 revs above consensus; guides FY25 revs above consensus
• Kohl's (KSS 20.09, +0.49, +2.5%): beats by $0.15, misses on revs, comparable sales decreased 5.1%; guides FY25 EPS above consensus, revs above consensus
• Chewy (CHWY 26.99, +1.13, +4.4%): beats by $0.22, reports revs in-line; guides Q3 revs below consensus; reaffirms FY25 revs guidance
• J.M. Smucker (SJM 118.01, -2.69, -2.2%): beats by $0.27, reports revs in-line; guides FY25 EPS below consensus, revs below consensus
• Foot Locker (FL 30.01, -2.80, -8.5%): beats by $0.02, reports revs in-line; reaffirms FY25 EPS guidance, revs guidance
• Bath & Body Works (BBWI 32.40, -2.32, -6.7%): beats by $0.01, beats on revs; guides Q3 revs in-line; guides FY25 EPS in-line, revs below consensus; increases share repurchase
• Abercrombie & Fitch (ANF 150.65, -15.66, -9.4%): beats by $0.28, beats on revs; guides Q3 revs above consensus; raises FY25 revs above consensus
• Ambarella (AMBA 62.98, +10.19, +19.3%): beats by $0.06, beats on revs; guides Q3 revs above consensus
• Semtech (SMTC 40.23, +2.07, +5.4%): beats by $0.02, beats on revs; guides Q3 EPS in-line, revs above consensus
• Costco (COST 910.95, +2.05, +0.2%): Over 150 fleet drivers vote to authorize a strike, according to Teamster.org
• Apple (AAPL 228.30, +0.27, +0.1%): aiming to eliminate jobs in online services group, according to Bloomberg

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Wednesday on a mostly flat note while Hong Kong's Hang Seng (-1.0%) lagged. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: -1.0%, China's Shanghai Composite: -0.4%, India's Sensex: +0.1%, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: -0.1%.
  • In economic data:
    • Japan's June Leading Index 109.0 (expected 108.6; last 111.2) and Coincident Indicator -3.9% m/m (expected -3.4%; last 1.9%)
    • Australia's July CPI 3.5% yr/yr (expected 3.4%; last 3.8%) and Q2 Construction Work Done 0.1% qtr/qtr (expected 0.8%; last -2.0%)
  • In news:
    • Australia's CPI decelerated to 3.5% in July from 3.8% in June, but that was still above expectations.
    • Chinese developer Country Garden is reportedly considering an additional delay to its yuan-denominated bond payments.
    • Bank of Japan Deputy Governor Himino said that the central bank will adjust the degree of easing if there is greater certainty.
• Major European indices trade on a mostly higher note amid light volume. STOXX Europe 600: +0.5%, Germany's DAX: +0.7%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.1%.
  • In economic data:
    • Eurozone's July M3 Money Supply 2.3% yr/yr (expected 2.7%; last 2.2%), July Loans to nonfinancials 0.6% yr/yr (last 0.7%), and July Private Sector Loans 0.5% yr/yr, as expected (last 0.3%)
    • France's August Consumer Confidence 92, as expected (last 91)
    • Italy's June Industrial Sales 0.1% m/m (last -1.0%); -3.7% yr/yr (last -4.8%)
    • Swiss August ZEW Expectations -3.4 (last 9.4)
  • In news:
    • British Prime Minister Starmer is meeting with German Chancellor Scholz to discuss a new cooperation treaty.
    • Hungary's central bank left its policy rate unchanged at 6.75%, as expected.