Stock Market Update

Equity futures point to a mixed opening this morning as the stock market is poised to see a continuation of yesterday's trends.

While oil prices are just modestly higher after yesterday's spike, the U.S. and Iran continue to exchange fire, with Bloomberg reporting that traffic in the Strait of Hormuz remains at a near standstill. The re-escalation in tensions put broad pressure on the market yesterday, and sent many oil-and rate-sensitive stocks sharply lower.

The S&P 500 and DJIA retreated, though the Nasdaq Composite logged a modestly higher finish due to a solid rotation back into semiconductor stocks. So far, chipmakers are seeing a continuation of that momentum, with futures tied to the Nasdaq firmly higher as a result.

On the data front, the market is set to receive weekly initial jobless claims data at 8:30 a.m. ET (Briefing.com consensus 220,000) followed by June existing home sales (Briefing.com consensus 4.20 million) at 10:00 a.m. ET.

In corporate news:

• AstraZeneca (AZN 174.22, -15.07, -8.0%) is sharply lower after a drug in its pipeline misses its primary endpoint in a clinical trial.
• Levi Strauss (LEVI 23.35, -1.02, -4.2%) beat EPS expectations by $0.04, beat revenue expectations, raised its FY26 EPS expectations, and increased its dividend.
• Meta Platforms (META 587.74, -15.38, -2.6%) will place AI chip into production in September as it aims to double computing capacity, according to Reuters.
• PepsiCo (PEP 140.00, -2.49, -2.1%) beat EPS expectations by $0.02, reported revenues in-line, and reaffirmed FY26 guidance.
• SK Hynix's (SKHY) U.S. listing is more than 7 times oversubscribed, according to Bloomberg.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly higher showing on Thursday. Japan's Nikkei: +1.4%, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: +1.7%, India's Sensex: +0.3%, South Korea's Kospi: +0.6%, Australia's ASX All Ordinaries: -0.2%.

In news:

• South Korea's Kospi (+0.6%) hit a seven-week low before bouncing.
• Shares of SK Hynix will begin trading in the U.S. tomorrow with the listing reportedly oversubscribed by more than 7x.
• Alibaba's preliminary Q1 results showed renewed growth in the company's e-commerce business.
• China's June CPI was cooler than expected, continuing a prolonged trend.
• Former Bank of Japan official Watanabe said that the BoJ could raise its policy rate above 2.0%.
• New Zealand's Manufacturing PMI for June expanded at its fastest pace since 2021.

In economic data:

• China's June CPI -0.3% m/m (expected -0.2%; last -0.1%); 1.0% yr/yr (expected 1.1%; last 1.2%). June PPI 4.1% yr/yr, as expected (last 3.9%)
• Japan's June Machine Tool Orders 0.9% m/m (expected -0.3%; last 0.8%)
• New Zealand's June Manufacturing PMI 59.7 (last 51.3)

Major European indices trade in the green while the U.K.'s FTSE (-0.6%) lags with AstraZeneca down nearly 10% after a drug in its pipeline failed clinical trials. STOXX Europe 600: +0.1%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.6%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.8%, Spain's IBEX 35: +1.2%.

In news:

• The U.K.'s probable next prime minister will reportedly focus on aiding small businesses and improving the cost of living.
• Hugo Boss rejected a $2.2 bln takeover offer from Frasers.

In economic data:

• Germany's May trade surplus EUR19.1 bln (expected EUR14.9 bln; last EUR14.7 bln). May Imports -2.5% m/m (expected 0.1%; last 1.1%) and Exports 0.9% m/m (expected -0.3%; last 0.8%)