S&P futures vs fair value: -20.80. Nasdaq futures vs fair value: -125.00.
The S&P 500 futures are down 21 points and are trading 0.4% below fair value. The Nasdaq 100 futures are down 125 points and are trading 0.7% below fair value. The Dow Jones Industrial Average futures are down 45 points and are trading 0.1% below fair value.
The stock market is poised for a lower open after yesterday's retreat. Apple (AAPL) is down another 3.0% in pre-open action, hanging over the broader market, amid reports that China is aiming to broaden its iPhone ban.
Treasury yields are pulling back from yesterday's settlement levels, but the recent runup in yields remains top of mind for market participants. The 2-yr note yield is down four basis points to 5.00% and the 10-yr note yield is down three basis points to 4.27%.
Oil prices are inching lower this morning. WTI crude oil futures are down 0.6% to $87.01/bbl.
Separately, China reported an 8.8% year-over-year decline in exports and a 7.3% year-over-year decline in imports for August, both of which were better than expected.
Today's economic calendar features:
- 8:30 ET: Weekly Initial Claims (consensus 233,000; prior 228,000), Continuing Claims (prior 1.725 mln), revised Q2 Productivity ( consensus 3.7%; prior 3.7%), and revised Q2 Unit Labor Costs (consensus 1.6%; prior 1.6%)
- 10:30 ET: Weekly natural gas inventories (prior +32 bcf)
- 11:00 ET: Weekly crude oil inventories (prior -10.58 mln)
In corporate news:
- Apple (AAPL 178.06, -4.875, -2.7%): China aiming to broaden Apple (AAPL) iPhone ban to state and federal agencies, according to Bloomberg; expected to increase prices on premium iPhones next week by $100, according to the WSJ
- McDonald's (MCD 278.20, +2.76, +1.0%): upgraded to Overweight from Equal Weight at Wells Fargo
- Goldman Sachs (GS 322.00, +0.87, +0.3%): HSBC initiated coverage with a Buy rating
- C3.ai (AI 28.29, -3.17, -10.1%): beats by $0.08, beats on revs; guides Q2 revs in-line; reaffirms FY24 revs guidance
- Roku (ROKU 85.23, -0.96, -1.1%): downgraded to Hold from Buy at Loop Capital
- American Eagle (AEO 17.04, -0.16, -0.9%): beats by $0.09, reports revs in-line; guides Q3 revenue above consensus, raises FY24 revenue above consensus
- Yext (YEXT 7.94, -1.14, -12.6%): reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs in-line; guides FY24 EPS above consensus, revs in-line
- Verint Systems (VRNT 25.77, -5.10, -16.5%): misses by $0.09, misses on revs; guides FY24 EPS in-line, revs below consensus
- UiPath (PATH 16.98, +0.76, +4.7%): beats by $0.05, beats on revs; guides Q3 revs below consensus; guides FY24 revs above consensus; authorizes $500 mln for repurchases
- ChargePoint (CHPT 6.27, -0.79, -11.2%): reports Q2 (Jul) results, misses on revs; guides Q3 revs below consensus; guides FY24 revs below consensus
- Dutch Bros (BROS 26.30, -1.78, -6.3%): files mixed shelf securities offering; announces proposed public offering of $300 million Class A common stock
- BlackBerry (BB 4.92, -0.62, -11.2%): guides Q2 revs below consensus; reiterates FY24 sales outlook for Cybersecurity and Licensing segments
- Dave & Buster's (PLAY 36.50, -0.90, -2.4%): misses by $0.01, misses on revs, comps fell -6.3%; increases repurchase program by $100 mln
- WestRock (WRK 34.00, +2.12, +6.7%): and Smurfit Kappa (SMFKY) in discussions regarding key terms of potential combination
- Calavo Growers (CVGW 34.65, +3.39, +10.8%): beats by $0.10, misses on revs
- G-III Apparel (GIII 22.14, +2.84, +14.7%): beats by $0.38, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs above consensus
Reviewing overnight developments:
- Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: -0.8%, Hong Kong's Hang Seng: -1.3%, China's Shanghai Composite: -1.1%, India's Sensex: +0.6%, South Korea's Kospi: -0.6%, Australia's ASX All Ordinaries: -1.2%.
- In economic data:
- China's August trade surplus $68.36 bln (expected surplus of $73.90 bln; last surplus of $80.60 bln). August Imports -7.3% yr/yr (expected -9.0%; last -12.4%) and Exports -8.8% yr/yr (expected -9.2%; last -14.5%)
- Japan's July Leading Index -1.2% m/m (last -0.2%) and Coincident Indicator -1.1% m/m (last 0.9%)
- Australia's July trade surplus AUD8.04 bln (expected surplus of AUD10.0 bln; last surplus of AUD10.3 bln). July Imports 3.0% m/m (last -3.3%) and Exports -2.0% m/m (last -3.1%). July Building Approvals -8.1% m/m, as expected (last -7.9%)
- New Zealand's Q2 Manufacturing Sales Volume 2.9% qtr/qtr (last -1.8%)
- In news:
- Property stocks in Hong Kong rallied at the start of the session, but eventually retreated, ending in the red.
- South Korea issued its first yen-denominated bond, raising about $500 mln.
- Australia's Prime Minister Albanese will visit China later in the year.
- China's largest banks have reportedly confirmed that rates for first-time mortgages will be lowered on September 25.
- In economic data:
- Major European indices trade just above their flat lines. STOXX Europe 600: -0.1%, Germany's DAX: +0.1%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.3%, Italy's FTSE MIB: UNCH, Spain's IBEX 35: +0.3%.
- In economic data:
- Eurozone's Q2 Employment Change 0.2% qtr/qtr, as expected (last 0.6%); 1.3% yr/yr (expected 1.5%; last 1.6%). Q2 GDP 0.1% qtr/qtr (expected 0.3%; last 0.1%); 0.5% yr/yr (expected 0.6%; last 1.1%)
- Germany's July Industrial Production -0.8% m/m (expected -0.5%; last -1.4%)
- U.K.'s August Halifax House Price Index -1.9% m/m (expected -0.3%; last -0.4%); -4.6% yr/yr (expected -3.5%; last -2.5%)
- France's Q2 nonfarm payrolls 0.1% qtr/qtr (last 0.1%). July trade deficit -EUR8.1 bln (expected deficit of EUR6.8 bln; last deficit of EUR6.8 bln)
- Italy's July Retail Sales 0.4% m/m (expected 0.2%; last -0.2%); 2.7% yr/yr (last 3.9%)
- Spain's July Consumer Confidence 94.4 (expected 85.7; last 92.4)
- Swiss August Unemployment Rate 2.1%, as expected (last 2.1%)
- In news:
- The U.K.'s Halifax House Price Index fell 4.6% yr/yr in August, representing the sharpest rate fall since late 2009.
- Meanwhile, Bank of England Governor Bailey said that many indicators are pointing toward a marked slowdown in inflation.
- The BoE Decision Maker Panel survey showed a decrease in three-month inflation expectations to 4.9% from 5.2% while the year-ahead outlook was lowered to 4.9% from 5.4%. French Finance Minister Le Maire said that inflation is decelerating, but at a slow pace.
- In economic data: