Stock Market Update

Equity futures point to a higher opening amid a relatively quiet Friday morning ahead of the long weekend.

Despite some intraday volatility tied to swings in oil prices, the major averages finished higher yesterday, putting the indices on pace for a higher week-to-date finish. Action has been choppy this week, but if the S&P 500 can maintain its week-to-date gain, it will be the eighth straight for the index.

Not much has changed regarding the state of talks between the U.S. and Iran, with CNBC reporting that both sides suggest progress has been made, but key differences remain.

Investors have just a few earnings reports to assess this morning to cap off a week that was modest in the number of companies that reported but included some notable names.

On the policy front, Kevin Warsh will be sworn in as Chairman of the Federal Reserve, coming to the helm at a time when the recent surge in oil prices has ignited inflation concerns and shifted the market's expectations for policy easing.

In corporate news:

• Estee Lauder (EL 89.50, +10.59, +13.4%) is sharply higher in the premarket after ending merger discussions with Puig regarding a potential business combination.
• Ross Stores (ROST 229.67, +12.48, +5.8%) beat EPS expectations by $0.29, beat revenue expectations, saw comparable sales rise 17%, guided Q2 EPS above consensus, and raised its FY27 EPS above consensus.
• Workday (WDAY 130.30, +8.45, +6.9%) beat EPS expectations by $0.15 and reported revenues in-line.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a higher note. Japan's Nikkei: +2.7%, Hong Kong's Hang Seng: +0.9%, China's Shanghai Composite: +0.9%, India's Sensex: +0.3%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: +0.4%.

In news:

• Japan's CPI decelerated in April with Core CPI growing at its slowest pace in more than four years.
• China's National Development and Reform Commission pushed back on reports that technology firms were told not to accept foreign investment.
• There has been some speculation about a potential currency intervention from Japan's Ministry of Finance after the yen returned toward this year's low against the dollar in the 160 area.

In economic data:

• Japan's April National CPI 0.1% m/m (last 0.4%); 1.4% yr/yr (last 1.5%). April National Core CPI 1.4% yr/yr (expected 1.7%; last 1.8%)
• South Korea's May Consumer Confidence 106.1 (last 99.2)
• New Zealand's Q1 Retail Sales 0.9% qtr/qtr (expected 0.5%; last 0.9%) and Core Retail Sales 1.0% qtr/qtr (expected 0.8%; last 1.5%)

Major European indices trade in the green. STOXX Europe 600: +0.6%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.2%.

In news:

• European Central Bank President Lagarde said that the central bank is particularly attentive to second-round effects of inflation while policymaker Demarco said that a June rate hike is likely.
• Germany's defense minister said that his country's defense spending will exceed 4% of GDP this year.
• Euronext said that it is not interested in merging with Deutsche Boerse.

In economic data:

• Germany's Q1 GDP 0.3% qtr/qtr, as expected (last 0.2%); 0.4% yr/yr (expected 0.3%; last 0.4%). June GfK Consumer Climate -29.8 (expected -33.7; last -33.1). May ifo Business Climate Index 84.9 (expected 84.2; last 84.5). May Current Assessment 86.1 (expected 85.1; last 85.4) and Business Expectations 83.8 (expected 83.5; last 83.5)
• U.K.'s April Retail Sales -1.3% m/m (expected -0.6%; last 0.6%); 0.0% yr/yr (expected 1.3%; last 1.4%). April Core Retail Sales -0.4% m/m (expected -0.3%; last 0.1%); 1.1% yr/yr (expected 1.5%; last 1.5%). April Public Sector Net Borrowing GBP24.30 bln (expected GBP20.70 bln; last GBP11.50 bln)
• France's May Business Survey 102 (expected 100; last 100)