Stock Market Update

30-Aug-24 08:00 ET
Good earnings news lifts futures market
Market is Closed
[BRIEFING.COM] S&P futures vs fair value: +24.00. Nasdaq futures vs fair value: +141.00.

The S&P 500 futures are up 23 points and are trading 0.4% above fair value, the Nasdaq 100 futures are up 138 points and are trading 0.7% above fair value, and the Dow Jones Industrial Average futures are up 88 points and are trading 0.2% above fair value.

The positive bias in the equity futures trade has been underpinned by the favorable response to earnings results from the likes of Dell (DELL), Autodesk (ADKS), Lululemon Athletica (LULU), Marvell (MRVL), and MongoDB (MDB).

Attention will soon shift to the July Personal income and Spending Report at 8:30 a.m. ET, which contains the Fed's preferred inflation gauge in the PCE Price Index. Participants will be reviewing the report as a guidepost for the Fed's policy path. Currently, the probability of a 50-basis points rate cut at the September FOMC meeting is 32.5% versus 34.0% yesterday, according to the CME FedWatch Tool. A 25-basis pints rate cut is fully priced in. 

As a reminder, U.S. markets are closed Monday in observance of Labor Day.

Today's economic lineup features:

  • 08:30 ET: July Personal Income (Briefing.com consensus o.2%; prior 0.2%), Personal Spending (Briefing.com consensus 0.5%; prior 0.3%), PCE Price Index (Briefing.com consensus 0.2%; prior 0.1%), and Core-PCE Price Index (Briefing.com consensus 0.1%; prior 0.2%)
  • 10:00 ET: Final August University of Michigan Index of Consumer Sentiment (Briefing.com consensus 67.8; prior 67.8)

In corporate news:

  • Elastic (ESTC 74.41, -29.23, -28.2%): beats by $0.10, reports revs in-line; guides Q2 EPS above consensus, revs below consensus; guides FY25 EPS above consensus, revs below consensus
  • MongoDB (MDB 283.50, +37.78, +15.4%): beats by $0.21, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs above consensus
  • Marvell (MRVL 77.31, +7.47, +10.7%): reports EPS in-line, beats on revs; guides Q3 EPS in-line, revs in-line
  • Ulta Beauty (ULTA 335.88, -31.70, -8.6%): misses by $0.17, misses on revs, comps down -1.2%; guides FY25 EPS below consensus, revs below consensus, lowers comp guidance
  • Autodesk (ADSK 271.12, +12.89, +5.0%): beats by $0.15, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY25 EPS above consensus, revs above consensus
  • Dell (DELL 115.93, +5.19, +4.7%): beats by $0.19, beats on revs; expects Q3 earnings below consensus, revs in-line; expects FY25 earnings in-line with consensus, revs in-line
  • Lululemon Athletica (LULU 270.30, +11.29, +4.4%): beats by $0.22, reports revs in-line, comparable sales increased 3% in CC; guides Q3 EPS in-line, revs below consensus; lowers FY25 EPS and revenue guidance
  • Alibaba (BABA 84.64, +3.58, +4.4%): China antitrust officials say that BABA has ceased monopolistic behavior, according to Bloomberg
  • Intel (INTC 20.76, +0.63, +3.1%): mulling split of product and foundry units, according to Bloomberg

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Friday on a higher note. Japan's Nikkei: +0.7%, Hong Kong's Hang Seng: +1.1%, China's Shanghai Composite: +0.7%, India's Sensex: +0.3%, South Korea's Kospi: +0.5%, Australia's ASX All Ordinaries: +0.6%.
    • In economic data:
      • Japan's August Tokyo CPI 2.6% yr/yr (last 2.2%) and Tokyo Core CPI 2.4% yr/yr (expected 2.2%; last 2.2%). July jobs/applications ratio 1.24 (expected 1.23; last 1.23) and July Unemployment Rate 2.7% (expected 2.5%; last 2.5%). July Industrial Production 2.8% m/m (expected 3.6%; last -4.2%) and July Retail Sales 2.6% yr/yr (expected 2.8%; last 3.8%). July Housing Starts -0.2% yr/yr (expected -1.1%; last -6.7%) and Construction Orders 62.8% yr/yr (last -19.7%)
      • South Korea's July Industrial Production -3.6% m/m (expected -0.4%; last 0.7%); 5.5% yr/yr (expected 7.0%; last 3.8%). July Retail Sales -1.9% m/m (last 1.0%)
      • Hong Kong's July Retail Sales -11.8% yr/yr (last -9.7%)
      • Australia's July Housing Credit 0.5% m/m (last 0.4%) and Private Sector Credit 0.5% m/m, as expected (last 0.6%). July Retail Sales 0.0% m/m (expected 0.3%; last 0.5%)
      • New Zealand's July Building Consents 26.2% m/m (last -17.0%)
    • In news:
      • Chinese property names had a strong showing amid speculation that the government is preparing to offer $5.4 trln to refinance mortgages to lower borrowing costs.
      • People's Bank of China Governor Pan said that monetary policy will remain supportive and that more policies to boost the economy will be studied.
      • Japan's Tokyo Core CPI accelerated to 2.4% yr/yr, its fastest pace of growth since March
  • Major European indices trade in positive territory. STOXX Europe 600: +0.3%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.6%.
    • In economic data:
      • Eurozone's flash August CPI 0.2% m/m (last 0.0%); 2.2% yr/yr, as expected (last 2.6%). August Core CPI 0.3% m/m (last -0.2%); 2.8% yr/yr, as expected (last 2.9%). July Unemployment Rate 6.4% (expected 6.5%; last 6.5%)
      • Germany's July Import Price Index -0.4% m/m (expected 0.1%; last 0.4%); 0.9% yr/yr (expected 1.5%; last 0.7%). August Unemployment Change 2,000 (expected 17,000; last 17,000) and Unemployment Rate 6.0%, as expected (last 6.0%)
      • U.K.'s August Nationwide HPI -0.2% m/m (expected 0.2%; last 0.3%); 2.4% yr/yr (expected 2.9%; last 2.1%). July BoE Consumer Credit GBP1.215 bln (expected GBP1.300 bln; last GBP869 mln), July Mortgage Lending GBP2.79 bln (expected GBP2.45 bln; last GBP2.63 bln), and July Net Lending to Individuals GBP4.001 bln (expected GBP3.400 bln; last GBP3.494 bln)
      • France's Q2 nonfarm payrolls 0.0% qtr/qtr, as expected (last 0.0%). Q2 GDP 0.2% qtr/qtr (expected 0.3%; last 0.2%); 1.0% yr/yr (expected 1.1%; last 1.1%). July Consumer Spending 0.3% m/m (expected 0.4%; last -0.6%) and July PPI 0.2% m/m (last -0.2%); -5.4% yr/yr (last -5.9%). Flash August CPI 0.6% m/m (expected 0.5%; last 0.2%); 1.9% yr/yr (expected 1.8%; last 2.3%)
      • Italy's July Unemployment Rate 6.5% (expected 7.0%; last 6.9%). Flash August CPI 0.2% m/m (expected 0.3%; last 0.4%); 1.1% yr/yr (expected 1.2%; last 1.3%). August Business Confidence 87.1 (expected 87.5; last 87.6) and Consumer Confidence 96.1 (expected 99.2; last 98.9)
      • Spain's July Retail Sales 1.0% yr/yr (expected 0.3%; last 0.4%). June Current Account surplus EUR5.02 bln (last surplus of EUR5.56 bln)
      • Swiss August KOF Leading Indicators 101.6 (expected 100.6; last 100.6)
    • In news:
      • European Central Bank policymaker Schnabel said that conditions are in place for inflation to reach target by the end of 2025 while policymakers Rehn and Kazaks spoke favorably about a potential rate cut in September.
      • Germany's engineering association reported a 5.0% drop in orders for July.
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