Morning Briefing
Published
S&P 500 futures point to a firmer open, up about 0.4%, as traders continue to digest Wednesday's combination of stronger growth data and cooler inflation that pared bets on an October Fed rate cut, even as a handful of single-name shocks dominate the pre-market tape.
The geopolitical backdrop remains noisy. Trump confirmed the final US troop withdrawal from Iraq, framing the end of Operation Inherent Resolve as a clean exit, and separately said Iran's economy will have "nothing" left within two weeks, citing Treasury Secretary Bessent. He also announced a $350 billion Korea Strategic Trade and Investment Deal, including a $120 billion nuclear build-out of eight reactors, a $50 billion Alaska LNG project and a Texas gas plant, with Brookfield Asset Management confirming its role alongside Cameco in financing the reactor program. Separately, Trump renewed his call for Fed Chair Powell to resign over cost overruns on the central bank's headquarters renovation. In Europe, Italy's bond risk premium topped 100 basis points and France's hit 120 basis points for the first time since 2012, after ECB President Lagarde called France's debt load "serious" with no clear path lower.
Technology leads sector gainers, up 0.9%, with chip and equipment names including Synopsys, Lam Research, KLA and Applied Materials all up more than 2% alongside a sharp pop in Accenture. Materials lags, down 0.8%, dragged entirely by Corteva's collapse, while Energy is off 0.3% even as Brent futures push higher, following a diesel futures surge and a build in Cushing crude stocks. Growth factors continue to outperform value, with the S&P 500 Growth ETF up 0.9% against 0.6% for value.
Company News
- Corteva shares are plunging roughly 80% after its Vylor subsidiary completed the court-cleared separation of the seed business, distributing Vylor shares to Corteva holders as a stock dividend ahead of the 9:30 a.m. deadline.
- Accenture reports fiscal Q4 EPS of $3.29, ahead of estimates, on revenue of $18.68 billion, guides fiscal 2027 revenue growth of 3% to 6%, raises its dividend 5%, and authorizes an additional $6.0 billion in buybacks.
- McCormick posts Q3 EPS of $0.86, beating expectations, and reaffirms its fiscal 2026 outlook for 13% to 17% sales growth.
- Micron reported fiscal Q4 EPS well above expectations on revenue of $54.23 billion and guided first-quarter fiscal 2027 revenue to about $61.5 billion.
- CenterPoint Energy completed the $2.62 billion sale of its Ohio gas distribution business to National Fuel Gas, which says the deal doubles its utility rate base.
- Lyft settled misclassification claims with California for $272.5 million, payable over four years, without affecting third-quarter guidance.
- Kimberly-Clark's President and COO Russell Torres is departing to become CEO of Keurig Dr Pepper's coffee unit ahead of KDP's planned 2027 separation.
- Cardinal Health extended its pharmaceutical distribution agreement with CVS Health through 2032 and reaffirmed fiscal 2027 EPS guidance.