Stock Market Update

The S&P 500 futures are down five points and are trading 0.1% below fair value, the Nasdaq 100 futures are down five points and are trading 0.1% below fair value, and the Dow Jones Industrial Average futures are down 130 points and are trading 0.4% below fair value.

Contracts linked to the S&P 500, Nasdaq 100, and Dow industrials are lower as investors digest a heavy slate of earnings. Ford Motor (F) and McDonald's (MCD) garnered negative responses to their quarterly results, contributing to the early bias.

Pre-open losses in the mega cap space have also contributed to the early downside bias. Rising market rates are another factor. The 10-yr yield is up two basis points to 4.30% and the 2-yr yield is up one basis point to 4.15%.

Today's economic lineup features:

• 9:00 ET: August FHFA Housing Price Index (prior 0.1%) and August S&P Case-Shiller Home Price Index (Briefing.com consensus 5.1%; prior 5.9%)
• 10:00 ET: October Consumer Confidence (Briefing.com consensus 99.0; prior 98.7) and September job openings (prior 8.040 mln)

In corporate news:

• Ford Motor (F 10.74, -0.63, -5.5%): beats by $0.03, beats on revs; projects FY24 adjusted EBIT of about $10 bln; China and its exports are now contributing over $600 million to EBIT this year
• McDonald's (MCD 287.35, -9.44, -3.2%): beats by $0.02, reports revs in-line
• Pfizer (PFE 29.30, +0.44, +1.5%): beats by $0.45, beats on revs; raises FY24 EPS and revenue guidance
• Cadence Design (CDNS 266.00, +13.23, +5.2%): beats by $0.20, beats on revs; guides FY24 EPS in-line, revs in-line
• Boeing (BA 148.32, -2.37, -1.6%): prices upsized offerings of common stock and depositary shares
• V.F. Corp (VFC 20.27, +3.24, +19.0%): beats by $0.22, beats on revs; guides Q3 revs below consensus

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +0.8%, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: -1.1%, India's Sensex: +0.5%, South Korea's Kospi: +0.2%, Australia's ASX All Ordinaries: +0.3%.
  • In economic data:
    • Japan's September jobs/applications ratio 1.24 (expected 1.23; last 1.23) and September Unemployment Rate 2.4% (expected 2.5%; last 2.5%)
    • Singapore's Q3 Unemployment Rate 1.8% (last 2.0%)
  • In news:
    • Japan's Prime Minister Ishiba is attempting to form a new ruling coalition, but is facing resistance from the leader of DPP, which is the party Mr. Ishiba is seeking an alliance with.
    • The Chinese government will purchase more electric vehicles to support the industry.
    • China State Council announced that more support will be provided for families with multiple children.
• Major European indices trade on a mostly higher note. STOXX Europe 600: +0.1%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: -0.2%.
  • In economic data:
    • Germany's November GfK Consumer Climate -18.3 (expected -20.4; last -21.0)
    • U.K.'s September BoE Consumer Credit GBP1.213 bln (expected GBP1.40 bln; last GBP1.352 bln). September net lending to individuals GBP3.80 bln (expected GBP4.10 bln; last GBP4.156 bln) and Mortgage Approvals 65,650 (expected 65,000; last 64,960)
  • In news:
    • The German Chamber of Commerce and Industry lowered its domestic growth forecast for 2024 to -0.2% from 0.0%.
    • BP and Lufthansa reported a decrease in their respective profits for Q3.
    • European Central Bank policymaker De Guindos acknowledged that inflation is headed in the right direction while growth is not.