Stock Market Update

Equity futures point to a higher opening this morning as crude oil prices move lower and Treasury yields retreat from their overnight highs, providing some relief from two of the primary headwinds that pressured stocks yesterday.

Crude oil is moving lower amid renewed indications of potential diplomatic progress between the U.S. and Iran. Iranian Foreign Minister Abbas Araghchi presented a new proposal that would reopen the Strait of Hormuz within seven days and restart negotiations toward a "final deal." A White House official responded that the U.S. remains in a strong position and is in no rush to reach an agreement, according to CNN.

Treasury yields are also easing from their overnight highs following another sharp increase yesterday. The recent backup in rates continues to filter through the economy, with the 30-year fixed mortgage rate reaching 7.45%, according to CNBC.

The major averages enter Friday on track for a mixed week-to-date finish following considerable volatility in oil prices, Treasury yields, and technology stocks. The DJIA is on pace for a fourth consecutive weekly decline.

Today's remaining economic calendar:

• 8:30 AM ET: August Durable Orders; Briefing.com consensus -0.4%; prior 1.1%
• 8:30 AM ET: August Durable Goods –ex transportation; Briefing.com consensus 0.5%; prior 0.4%
• 10:00 AM ET: September Univ. of Michigan Consumer Sentiment - Final; Briefing.com consensus 47.8; prior 47.8

In corporate news:

• Senate Republicans planning vote on House-passed data center Ratepayer Protection Act next week, according to Politico.
• Akamai Technologies (AKAM 132.00, +21.59, +19.55%) signed an $11.6 billion, seven-year cloud deal with Anthropic, with potential expansion of up to $9 billion.
• Costco (COST 890.00, -6.48, -0.7%) beat EPS expectations by $0.21, reported revenues in-line, and reported comparable sales on an adjusted basis of +6.7%

Reviewing overnight developments:

According to Nikkei, trading in the Asia-Pacific region was mixed, while mainland Chinese and South Korean markets were closed for holidays.

In news:

• Nikkei reported that Japan's 10-year yield eased from its highest level since 1996, while the yen weakened after President Trump reportedly expressed concern about the currency.
• According to Nikkei, investors digested the Trump-Xi summit and awaited China's PMI data.

In economic data:

• There was no economic data of note

Equity Markets

• Japan's Nikkei: +1.4%
• Hong Kong's Hang Seng: -1.0%
• China's Shanghai Composite: closed for holiday
• India's Sensex: +0.4%
• South Korea's Kospi: closed for holiday
• Australia's All Ordinaries: -0.6%

European trading has featured strength in banks, miners, and selected technology shares, while energy shares have lagged alongside lower crude oil prices.

In news:

• Reports of a potential phased U.S.-Iran agreement that could reopen the Strait of Hormuz have contributed to lower oil prices and government bond yields.

In economic data:

• Germany's October Gfk Consumer Climate -30.6 (expected -27.1; prior -26.8)
• U.K.'s September Gfk Consumer Confidence -13 (expected -16; prior -14)
• France's Q2 nonfarm payrolls -0.1% qtr/qtr (expected -0.1%; prior -0.1%)
• Spain's Q2 GDP 0.7% qtr/qtr (expected 0.7%; prior 0.6%) and 2.6% yr/yr (expected 2.7%; prior 2.7%)

Equity Markets:

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.7%
• U.K.'s FTSE 100: +0.3% Frances's CAC 40: +0.2%
• Italy's FTSE MIB: +1.0%
• Spain's IBEX 35: +1.1%