The Money Edit

Opening bell

Opening bell

S&P futures 0.25%
Brent crude $95.19 0.6%
US 10 year 4.81%
Nikkei 225 2.9% to 64,326
ADP August payrolls 38,000 jobs

Oil and yields squeeze stocks before the open

Overnight

US stocks fell on Tuesday after renewed American strikes on Iranian targets near the Strait of Hormuz sent crude oil sharply higher, with the S&P 500 down 0.71% to 7,631, the Dow down 0.79% to 52,767 and the Nasdaq down 1.03% to 26,099. Asia took the worst of it overnight, as Japan's Nikkei 225 dropped 1,889 points, or 2.85%, to 64,326 while the 10 year Japanese government bond yield hit 3.01%, its highest since 1996, and Europe opened lower with Germany's DAX off 212 points to 25,757. This morning Brent crude is up 0.57% to $95.19 a barrel, the US 10 year Treasury yield sits at 4.814%, and US futures are modestly lower with the Nasdaq contract down 0.54%.

What to watch

The ADP private payrolls report, an early read on hiring compiled by a payroll processing company, landed before the open at 38,000 jobs added in August, below the 47,000 expected and the slowest since January. That soft number arrives while both oil prices and bond yields are climbing, which is an uncomfortable mix, because expensive energy pushes inflation up while weak hiring is the sort of thing that argues for the Federal Reserve to cut interest rates. The rest of the day brings durable goods and factory orders at 10:00am Eastern, weekly government oil inventory figures at 10:30am, and earnings after the close from Broadcom, Snowflake and Hewlett Packard Enterprise.

Sources