Stock Market Update

Equity futures point to a higher open this morning after yesterday's action saw the major averages shed the bulk of their hefty early losses, ultimately finishing mixed. 

The turnaround was broad-based, though tech and certain mega-cap stocks still lagged and limited growth at the index level. Several of those same names, including NVIDIA (NVDA 183.83, +3.82, +2.1%) and Tesla (TSLA 434.05, +4.81, +1.1%), are up nicely in the pre-market today. 

The financials sector was a standout yesterday as a slate of major banking names beat earnings expectations. The market is currently receiving another sizable batch of earnings reports. 

Trade concerns with China still linger after President Trump threatened retaliation for China's soybean boycott yesterday afternoon. 

In Washington, Politico reports that Senate Republicans will hold votes on three bills that fund various government agencies as the shutdown persists. 

The market heard from several FOMC officials yesterday, which kept rate cut expectations elevated for both the October and December FOMC meetings. The Fed's Beige Book is set for release at 2:00 p.m. ET. 

The MBA Mortgage Applications Index for the week ended October 11 decreased 1.8% from a prior decrease of 4.7%.

In corporate news: 

• OpenAI is working on new lines of revenue as part of a five-year plan, according to The Financial Times.
• Bank of America (BAC 52.50, +2.41, +4.8%) beat EPS expectations by $0.11 and beat revenue expectations.
• Morgan Stanley (MS 160.57, +5.23, +3.4%) beat EPS expectations by $0.70 and beat revenue expectations.
• PNC (PNC 186.19, -3.54, -1.9%) beat EPS expectations by $0.30, beat revenue expectations, and guided Q4 revenues below consensus. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a higher showing on Wednesday with South Korea's Kospi (+2.7%) reaching a fresh record. Japan's Nikkei: +1.8%, Hong Kong's Hang Seng: +1.8%, China's Shanghai Composite: +1.2%, India's Sensex: +0.7%, South Korea's Kospi: +2.7%, Australia's ASX All Ordinaries: +1.0%.

In news:

• Japan's new LDP leader Takaichi is still struggling to find coalition partners for her new government with reports indicating that some opposition parties back another candidate for prime minister.
• South Korea's national security office met to discuss ensuring a stable supply of rare earth elements.
• Standard & Poor's affirmed New Zealand's AA+ rating.

In economic data:

• China's September CPI 0.1% m/m (expected 0.2%; last 0.0%); -0.3% yr/yr (expected -0.2%; last -0.4%). September PPI -2.3% yr/yr, as expected (last -2.9%). September New Loans CNY1.290 bln (expected CNY1.460 bln; last CNY590 bln), September Outstanding Loan Growth 6.6% yr/yr (expected 6.7%; last 6.8%), and September total social financing CNY3.53 trln (expected CNY3.32 trln; last CNY2.57 trln)
• Japan's August Industrial Production -1.5% m/m (expected -1.2%; last -1.2%) and Capacity Utilization -2.3% m/m (last -1.1%)
• South Korea's September trade surplus $9.53 bln (expected surplus of $9.56 bln; last surplus of $6.51 bln). September Imports 8.2% yr/yr, as expected (last -4.1%) and Exports 12.6% yr/yr (expected 12.7%; last 1.2%)
• Australia's September MI Leading Index 0.0% m/m (last -0.1%)

Major European indices trade mostly higher with France's CAC (+2.2%) showing relative strength with help from LVMH after strong quarterly results. STOXX Europe 600: +0.6%, Germany's DAX: +0.1%, U.K.'s FTSE 100: -0.4%, France's CAC 40: +2.2%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.6%.

In news:

• French Prime Minister Lecornu will reportedly abandon pension reform plans in an attempt to appease his opposition.
• Meanwhile, British Chancellor Reeves said that she is considering tax hikes and spending cuts in the upcoming Autumn budget.

In economic data:

• Eurozone's August Industrial Production -1.2% m/m (expected -1.6%; last 0.5%); 1.1% yr/yr (last 2.0%)
• France's September CPI -1.0% m/m, as expected (last 0.4%); 1.2% yr/yr, as expected (last 0.9%)
• Spain's September CPI -0.3% m/m (expected -0.4%; last 0.0%); 3.0% yr/yr (expected 2.9%; last 2.7%). September Core CPI 2.4% yr/yr (expected 2.3%; last 2.4%)