Morning Briefing
Published
S&P 500 futures point to a higher open, up roughly 0.7%, as optimism around US-China trade progress and a concentrated rally in chip stocks offset a choppy overnight session in oil and continued unrest in the Middle East.
Treasury Secretary Bessent met China's He Lifeng at JPMorgan's headquarters, calling the talks "fulsome" and framing them as preparation for a Trump-Xi summit set for September 24 in Washington, where trade, tariffs, technology and both ongoing wars are expected to be on the agenda. USTR Greer said the two sides are still negotiating a board-of-trade arrangement, while Bessent separately described progress on an AI dialogue with a proposed notification system between the countries. Iran's Foreign Minister Araghchi and President Pezeshkian are both traveling to New York for the UN General Assembly this week, and Trump is expected to meet Zelensky on Tuesday. In Germany, Chancellor Merz's CDU suffered its worst-ever state result in Mecklenburg-Western Pomerania, narrowly missing the 5% threshold, while the Left party topped the Berlin vote; Merz called the outcome a "disaster" but says he intends to stay on. In Yemen, a Houthi attack on Riyadh was reportedly met with a retaliatory strike in Sanaa, and forces are said to be encircling Taiz. WTI eased over $1 to $99.22 a barrel even as Brent rose roughly 1% on the Saudi attack, and gold is steady near $4,375 an ounce as traders weigh persistent inflation risk against the Fed's first hike since 2023.
Technology is the standout sector, up 1.1% premarket, led by Intel and Accenture, with the Philadelphia Semiconductor Index up more than 2% after Samsung shares jumped 3% in Asian trade. Financials are firmer as well, led by Coinbase and Robinhood, both up more than 5%. Energy is the weakest group, down 1.4% in step with crude, and the crude oil ETF is off 2.4%. Momentum and high-beta factors are leading the tape while the equal-weight S&P is flat, pointing to a rally concentrated in growth and chip names rather than a broad advance.
Company News
- Warner Bros. Discovery is up 7.4% and Paramount Skydance is up 5.8% amid reports Paramount is discussing a $1.5 billion California investment to help clear its merger, as New York's attorney general continues resisting deal terms.
- HP is down 2.2% after saying it is withholding fiscal 2027 guidance and flagging a planning assumption that industry-wide PC unit volumes could decline mid-single digits next year.
- Axon Enterprise priced $1.15 billion of 0% convertible notes due 2031 after underwriters exercised their full over-allotment option, alongside capped call transactions.
- Credit Acceptance reached consent judgments with 40 state attorneys general and Washington, D.C., agreeing to pay $15.5 million, fund a $60 million consumer remediation trust, and provide an estimated $634 million in customer debt relief.
- Constellation Brands entered a delayed-draw term loan facility of up to $300 million for general corporate purposes including debt repayment.
- Dillard's plans to move its NYSE listing to the Texas Stock Exchange, with trading set to shift the week of October 5.
US Economic Data Outlook
The week is dominated by diplomacy and Fed commentary as officials resume public remarks after the post-hike blackout. The Richmond Fed index is due Tuesday, global flash PMIs land Wednesday, and durable goods orders are due Friday alongside the planned Trump-Zelensky meeting in New York. The Trump-Xi summit in Washington on Thursday coincides with Germany's Ifo survey and central bank decisions from Norway, Sweden, Switzerland and Mexico.