Stock Market Update

Equity futures point to a lower open this morning as mega-cap tech names continue to face pressure.

The stock market's retreat yesterday was the first day this week the S&P 500 did not touch a new intraday high and was the second consecutive day that the major averages closed with losses.

All of the "magnificent seven" stocks are trading lower in the pre-market, as investors reassess stretched valuations with the broader market sitting at historically elevated levels.

Headlines are once again quiet this morning as the market looks for its next directional driver. 

The market will receive a sizable batch of economic data this morning, with some of the more prominent data points being the weekly jobless claims report at 8:30 ET, August durable orders data at 8:30 ET, and August Existing Home Sales data at 10:00 ET.

Additionally, several FOMC members are set to speak today ahead of tomorrow's release of the August PCE Price Index, one of the most important inflation gauges. 

In corporate news:

• President Trump will sign the finalized TikTok deal today, according to NBC News.
• The Trump Administration is exploring taking additional stakes in companies that produce critical minerals, according to The Information.
• Accenture (ACCN 239.00, -0.08, -0.0%) beat EPS expectations by $0.05, beat revenue expectations, and guided FY26 EPS in-line.
• KB Home (KBH 62.00, -0.37, -0.6%) beat EPS expectations by $0.11, beat revenue expectations, and lowered its FY25 housing revenue guidance. 
• Oracle (ORCL 298.76, -9.70, -3.1%) initiated with a Sell at Rothschild & Co Redburn, with a target of $175

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: UNCH, India's Sensex: -0.7%, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: +0.1%.

In news:

• Rate cut expectations are firming in Japan with former Bank of Japan policymaker Sakurai now saying that he sees a potential for an increase in October.
• Some South Korean officials are hesitant to commit to the investment deal with the U.S. unless safeguards like currency swaps are put into place.
• Japan is planning to reduce its issuance of longer-dated JGBs.
• China's Ministry of Commerce aims to increase digital consumption.

In economic data:

• Japan's August Corporate Services Price Index 2.7% yr/yr (expected 2.9%; last 2.6%)
• Hong Kong's August trade deficit $25.4 bln (last deficit of $34.1 bln). August Imports 11.5% m/m (last 16.5%) and Exports 14.5% m/m (last 14.3%)

Major European indices trade in the red. STOXX Europe 600: -0.6%, Germany's DAX: -1.1%, U.K.'s FTSE 100: -0.5%, France's CAC 40: -0.7%, Italy's FTSE MIB: -0.4%, Spain's IBEX 35: -0.3%.

In news:

• H&M's quarterly report showed a strong improvement in margins in Q3, though the outlook for Q4 was somewhat cautious.
• Bank of England policymaker Greene spoke in favor of a cautious approach to rate cuts due to current uncertainty and risks.
• European Central Bank policymaker Kazimir said that the ECB's inflation target has been met.
• The Swiss National Bank left its policy rate at 0.00%, as expected.

In economic data:

• Eurozone's August M3 Money Supply 2.9% yr/yr (expected 3.3%; last 3.4%), August Private Sector Loans 2.5% yr/yr (expected 2.3%; last 2.4%), and August loans to nonfinancials 3.0% yr/yr (last 2.8%)
• Germany's October GfK Consumer Climate -22.3 (expected -23.3; last -23.5)
• U.K.'s September CBI Distributive Trades Survey -29 (expected -31; last -32)
• France's September Consumer Confidence 87, as expected (last 87)