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Briefing.com Summary:
*MongoDB is flying after its latest earnings report.
*Buy-the-dip action has been aided by some recovery action in Bitcoin.
*Costco has sued the Trump administration, with an aim of getting a full refund of tariffs it has already paid.
December is typically a good month for the stock market, but this December got off to a shaky start yesterday with losses for the major indices. Yes, there was buy-the-dip action intraday, but that bid fell away, and the indices finished a lot closer to their lows for the session than their highs.
There is an effort afoot to get things turned around and back on track. The S&P 500 futures are up 22 points and are trading 0.4% above fair value, the Nasdaq 100 futures are up 116 points and are trading 0.5% above fair value, and the Dow Jones Industrial Average futures are up 141 points and are trading 0.4% above fair value.
It isn't much, but a bounce in Bitcoin (+2.0%), some gains in the mega-cap space, and a 23% gain in database software company MongoDB (MDB) after its earnings report have precipitated the renewed buying interest.
The stock market, however, appears to be keeping a leery eye on the Treasury market, where there isn't much buy-the-dip interest after yesterday's selling. The 10-yr note yield, which jumped eight basis points yesterday to 4.10%, is up one basis point today to 4.11%.
The specter of Japanese buyers backing off purchases, with yields at home moving higher, inflation worries, and the possibility of tariffs needing to be refunded to businesses in the event of an adverse Supreme Court ruling on the president's tariff authority have conspired to keep a lid on things for the time being.
Costco (COST), in fact, has sued the Trump administration, seeking a full refund of the tariffs it has already paid as it aims to get ahead of a SCOTUS ruling that might not come in time to satisfy a December 15 liquidation date. The company's request to extend that date was denied by the U.S. Customs and Border Protection.
Other corporate headlines of note include reporting that Netflix (NFLX) and Paramount (PSKY) have made cash bids ("mostly cash" from Netflix) to acquire Warner Bros. Discovery (WBD), Signet Jewelers (SIG) topping Q3 earnings expectations, a Wall Street Journal report that Walt Disney (DIS) will likely pick its next CEO from within the company, and Marvell Technology (MRVL) taking an interest in acquiring Celestial AI for more than $5 billion, according to The Information.
In brief, there isn't a lot of corporate news moving the market needle this morning, and there won't be any economic data today in that regard either.
The early buying interest reflects more of the back-and-forth action of a market playing the seasonality game while remaining cognizant of stretched valuations and concentration risk.
