Stock Market Update

The S&P 500 futures are up 15 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 50 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are up 100 points and are trading 0.2% above fair value.

Stock futures indicate a higher open for the major indices. The upside bias is a continuation of rebound activity that started in yesterday's session, leading the S&P 500 to close higher. Treasuries have supported the positive action in equities. The 10-yr yield is down one basis point to 4.79% and the 2-yr is down one basis point to 4.39%.

Pre-open gains in mega caps and chipmakers, which have logged outsized losses since the start of the year, have helped support the broader equity market this morning.

The NFIB Small Business Optimism survey rose to 105.1 in December from 101.7. Other data today includes the December Producer Price Index at 8:30 ET.

In corporate news: 

• Apple (AAPL 234.84, +0.44, +0.2%): revamped app developer fees trigger scrutiny from EU antitrust regulators, according to Bloomberg
• KB Home (KBH 70.27, +6.19, +9.7%): beats by $0.08, reports revenue growth of 19.5%; FY25 housing revs expected to be $7.0-7.5 bln
• H&E Equipment (HEES 91.00, +47.06, +107.1%): to be acquired by United Rentals (URI) for $92/share in cash
• Danaher (DHR 243.00, +3.12, +1.3%): issues Q4 revenue guidance; expects low-single digit percent growth yr/yr
• Amazon (AMZN 219.06, +0.60, +0.3%): wants to re-introduce Alexa as artificial intelligence product, according to FT
• BP (BP 30.66, -0.56, -1.8%): releases Q4 trading update
• Pfizer (PFE 26.86, +0.06, +0.2%): CEO Chief Executive Officer Albert Bourla says Starboard wants minimal changes, according to Bloomberg

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: -1.8%, Hong Kong's Hang Seng: +1.8%, China's Shanghai Composite: +2.5%, India's Sensex: +0.2%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: +0.5%.
  • In economic data:
    • China's December New Loans CNY990.0 bln (expected CNY890.0 bln; last CNY580.0 bln). December Outstanding Loan Growth 7.6% yr/yr, as expected (last 7.7%) and December total social financing CNY2.86 trln (expected CNY2.00 trln; last CNY2.34 trln)
    • Japan's December Bank Lending 3.1% yr/yr, as expected (last 2.9%). November Current Account surplus JPY3.03 trln (expected surplus of JPY2.59 trln; last surplus of JPY2.41 trln). December Economy Watchers Current Index 49.9 (expected 49.4; last 49.4)
    • India's December WPI Inflation 2.37% yr/yr (expected 2.30%; last 1.89%) and WPI Manufacturing Inflation 2.14% (last 2.00%)
    • Australia's January Westpac Consumer Sentiment -0.7% (last -2.0%). November Building Approvals -3.6% m/m, as expected (last 5.2%) and Private House Approvals -1.7% m/m, as expected (last -4.0%)
    • New Zealand's Q4 NZIER Business Confidence 16% (last -1%)
  • In news:
    • China's Shanghai Composite (+2.5%) rose off levels last seen at the end of September after China Securities Regulatory Commission vowed to stabilize the market. In addition, China reported a much larger-than-expected increase in total social financing for December.
    • Bank of Japan Deputy Governor Himino delivered a speech that was deemed as dovish ahead of next Friday's policy update, though he added that the central bank does not like to tip its hand when it comes to upcoming decisions.
• Most major European indices are rebounding from Monday's retreat. STOXX Europe 600: +0.5%, Germany's DAX: +0.7%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.9%, Italy's FTSE MIB: +0.9%, Spain's IBEX 35: +0.5%.
  • In economic data:
    • France's November government budget deficit EUR172.5 bln (last deficit of EUR157.4 bln)
    • Italy's November Industrial Production 0.3% m/m (expected 0.0%; last 0.1%); -1.5% yr/yr (last -3.5%)
  • In news:
    • Italy's MIB (+0.9%) showed relative strength after underperforming yesterday while the U.K.'s FTSE (-0.1%) lagged.
    • European Central Bank policymaker Rehn said that rate cuts will continue taking place, though the threat of tariffs from the incoming Trump administration poses a risk to the overall outlook.
    • Bank of France continues expecting no growth in the domestic economy for Q4.
    • BP reduced its outlook for upstream production for Q4.
    • Spain is reportedly planning a 100% tax for property purchases by non-EU residents.