Stock Market Update

The S&P 500 futures are up 7 points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 11 points and are trading 0.1% above fair value. The Dow Jones Industrial Average futures are up 81 points and are trading 0.3% above fair value.

Stock futures indicate a modestly higher open. 

Treasury yields are moving lower after a big jump yesterday in response to the 30-yr bond auction and Fed Chair Powell's remarks. The 10-yr note yield is down five basis points to 4.58% and the 2-yr note yield is down one basis point to 5.00%.

Oil prices continue to rebound after steep losses recently. WTI crude oil futures are up 1.1% to $76.56/bbl.

Today's economic calendar features the preliminary November University of Michigan Consumer Sentiment survey at 10:00 a.m. ET.

In corporate news:

• The Trade Desk (TTD 58.70, -18.11, -23.6%): beats by $0.04, beats on revs; guides Q4 revs below consensus; Begin seeing impact of 2023 AI investments in 2024
• Illumina (ILMN 94.87, -12.11, -11.3%): beats by $0.20, misses on revs; lowers FY23 guidance
• Unity Software (U 21.60, -3.64, -14.4%): misses by $0.49, misses on revs; files for $1.0 bln 2.0% Convertible Senior Notes due 2027
• Wynn Resorts (WYNN 85.98, -4.67, -5.2%): beats by $0.25, beats on revs; Culinary Union reaches tentative agreement for a new 5 year contract with WYNN
• Doximity (DOCS 24.07, +3.57, +17.4%): beats by $0.05, beats on revs; guides Q3 revs above consensus; guides FY24 revs above consensus; Board authorized another share repurchase program up to $70 mln
• Plug Power (PLUG 3.89, -2.04, -34.4%): misses by $0.16, misses on revs
• Alarm.com (ALRM 55.15, +3.68, +7.2%): beats by $0.16, reports revs in-line; raises FY23 EPS outlook, narrows revs
• Savers Value Village (SVV 13.50, -0.29, -2.1%): misses by $0.03, reports revs in-line; guides FY23 revs below consensus
• Groupon (GRPN 8.93, -4.61, -34.1%): reports Q3 (Sep) results, misses on revs; Co-Founder Eric Lefkofsky to resign; to raise approximately $100 million to strengthen liquidity
• TKO Group Holdings (TKO 79.10, -5.80, -6.8%): The Co. announces that one of its stockholders, Mr. Vincent K. McMahon, intends to offer for sale in an underwritten secondary offering 8,400,000 shares of the Company's Class A common stock; prices secondary offering of 8.4 mln shares of common stock at $79.80 per share

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a mostly lower note. Japan's Nikkei: -0.2% (+1.9% for the week), Hong Kong's Hang Seng: -1.8% (-2.6% for the week), China's Shanghai Composite: -0.5% (+0.3% for the week), India's Sensex: +0.1% (+0.8% for the week), South Korea's Kospi: -0.7% (+1.7% for the week), Australia's ASX All Ordinaries: -0.5% (UNCH for the week).
  • In economic data:
    • Japan's M2 Money Stock 2.4% yr/yr, as expected (last 2.4%)
    • Hong Kong's Q3 GDP 0.1% qtr/qtr, as expected (last -1.3%); 4.1% yr/yr, as expected (last 1.5%)
    • New Zealand's October Business PMI 42.5 (last 45.3)
  • In news:
    • China's Industrial and Commercial Bank was hit by a ransomware attack, disrupting trades in the Treasury market on Thursday.
    • A People's Bank of China adviser said that the Chinese economy could expand 5.0% in 2023 and that the fiscal deficit ratio can be raised in 2024.
    • Japan is planning an extra budget of JPY886 bln.
    • The Reserve Bank of Australia's Statement on Monetary Policy noted that the cash rate is expected to peak at 4.50%, followed by a decline to 3.50% by the end of 2025.
    • Fitch affirmed Australia's AAA rating with a Stable outlook.
• Major European indices are on track for a lower finish to the week. STOXX Europe 600: -1.1% (-0.3% week-to-date), Germany's DAX: -0.7% (+0.4% week-to-date), U.K.'s FTSE 100: -1.3% (-0.8% week-to-date), France's CAC 40: -1.0% (-0.1% week-to-date), Italy's FTSE MIB: -0.6% (-0.7% week-to-date), Spain's IBEX 35: -0.3% (+0.9% week-to-date).
  • In economic data:
    • U.K.'s September GDP 0.2% m/m (expected 0.0%; last 0.1%); 1.3% yr/yr (expected 1.0%; last 0.5%). Q3 GDP 0.0% qtr/qtr (expected -0.1%; last 0.2%); 0.6% yr/yr (expected 0.5%; last 0.6%). Q3 Business Investment -4.2% qtr/qtr (expected -3.5%; last 4.1%); 2.8% yr/yr (last 9.2%). September Industrial Production 0.0% m/m (expected 0.1%; last -0.5%); 1.5% yr/yr (expected 1.1%; last 1.5%). September Manufacturing Production 0.1% m/m (expected 0.3%; last -0.7%); 3.0% yr/yr (expected 3.1%; last 3.0%). September trade deficit GBP14.29 bln (expected deficit of GBP15.30 bln; last deficit of GBP15.52 bln)
    • Italy's September Industrial Production 0.0% m/m (expected -0.2%; last 0.3%); -2.0% yr/yr (last -4.2%)
  • In news:
    • The British economy narrowly avoided a contraction in Q3.
    • Diageo issued cautious guidance due to weak sales in Latin America while Allianz reaffirmed its outlook for the year despite a drop in Q3 profit.
    • Fitch is scheduled to release its latest review of Italy's sovereign rating later today.
    • The co-founder of Spain's right wing Vox party was shot in the face in Madrid.
    • Portugal is headed for a snap election on March 10 after the country's Prime Minister Costa resigned amid a corruption investigation.