Stock Market Update

Equity futures point to a higher open this morning as oil prices move firmly lower, which has in turn caused U.S. Treasury yields to move modestly lower as well. Crude oil is currently down $3.47 (-3.8%) to $89.39 per barrel amid reports that European countries have discussed releasing strategic diesel reserves.

Stocks finished mostly higher yesterday after an uneven session, as declining Treasury yields helped broaden gains beyond technology shares.

Expectations for a rate hike at the next FOMC meeting receded further yesterday following dovish Fed commentary, putting this morning's Employment Situation report in focus for any potential shift in the policy outlook.

Today's remaining economic calendar:

• 8:30 AM ET: September Nonfarm Payrolls; Briefing.com consensus 100K; prior 162K
• 8:30 AM ET: September Nonfarm Private Payrolls; Briefing.com consensus 100K; prior 127K
• 8:30 AM ET: September Unemployment Rate; Briefing.com consensus 4.1%; prior 4.1%
• 8:30 AM ET: September Average Hourly Earnings; Briefing.com consensus 0.3%; prior 0.3%
• 8:30 AM ET: September Average Workweek; Briefing.com consensus 34.3; prior 34.4
• 10:00 AM ET: August Factory Orders; Briefing.com consensus 0.0%; prior 0.9%

In corporate news:

• Amazon (AMZN 249.72, +1.49, +0.6%) is aiming to sell $8 billion in Nvidia (NVDA 234.70, +3.84, +1.7%) chips to outside investors
• Broadcom (AVGO 347.45, +3.81, +1.1%) is aiming to raise $60 billion in new financing to fund chips for Anthropic, according to Bloomberg.
• NIKE (NKE 32.06, -3.09, -8.79%) topped the quarterly earnings consensus, but guided fiscal 2027 EPS below consensus and expects revenue to decline by a high-single-digit percentage.
• onsemi (ON 86.38, +6.30, +7.87%) amended its agreement to acquire Synaptics in an all-cash transaction valued at about $5.7 billion, saying the revised structure is expected to be immediately accretive to non-GAAP EPS at closing.

Reviewing overnight developments:

According to Nikkei, markets in Japan and Hong Kong closed lower, while mainland China and India were closed for holidays. Elevated global bond yields and geopolitical concerns remained in focus.

In news:

• China's Shanghai market was closed for the National Day holiday, and the absence of Southbound Stock Connect flows weighed on Hong Kong trading.

In economic data:

• Japan's September Tokyo CPI 2.7% yr/yr (prior 1.9%); Tokyo Core CPI 2.7% yr/yr (expected 2.4%; prior 1.8%); Tokyo CPI ex-food and energy 2.7% yr/yr (prior 1.4%); August Unemployment Rate 2.5% (expected 2.4%; prior 2.4%)
• South Korea's September CPI 0.3% m/m (expected 0.4%; prior 0.2%) and 2.9% yr/yr (expected 2.9%; prior 3.1%)

Equity Markets:

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: -2.6%
• China's Shanghai Composite: closed for holiday
• India's Sensex: closed for holiday
• South Korea's Kospi: +0.5%
• Australia's All Ordinaries: +0.7%

European markets trade higher, with lower oil prices and easing bond yields helping stabilize sentiment after a volatile week.

In news:

• Reports of a possible release of European oil reserves helped ease some concerns about energy-driven inflation. France's fiscal outlook and diminished prospects for a U.S.-Iran truce remain in focus.

In economic data:

• Eurozone's September CPI 0.6% m/m (prior 0.4%) and 3.8% yr/yr (expected 3.7%; prior 3.2%); Core CPI 0.2% m/m (prior 0.2%) and 2.5% yr/yr (expected 2.5%; prior 2.4%)
• Spain's September Unemployment Change 23.6K (expected 17.6K; prior 44.4K)
• Italy's August Retail Sales 0.3% m/m (expected -0.1%; prior -0.4%) and 0.5% yr/yr (prior 1.0%)

Equity Markets:

• STOXX Europe 600 : +1.0%
• Germany's DAX : +1.0%
• U.K.'s FTSE 100 : +0.3%
• France's CAC 40 : +0.7%
• Italy's FTSE MIB : +0.2%
• Spain's IBEX 35 : +0.4%