Stock Market Update

The S&P 500 futures are down seven points and are trading 0.1% below fair value, the Nasdaq 100 futures are down 31 points and are trading 0.2% below fair value, and the Dow Jones Industrial Average futures are down  50 points and are trading 0.1% below fair value.

Stock futures are lower after another record finish for the major indices yesterday. Treasuries are falling under selling pressure, sending yields higher and keeping buying in check in equities. The 10-yr yield is up five basis points to 4.36% and the 2-yr yield is up six basis points to 4.31%.

Today's economic data was limited to the NFIB Small Business Optimism survey, which rose to 93.7 in October from 91.5 in September.

Bitcoin continues to benefit from post-election buying, reaching a high above $89,000 earlier. 

In corporate news:

• Home Depot (HD 414.75, +6.46, +1.6%): beats by $0.13, beats on revs; guides FY25 EPS above consensus, revs above consensus
• Live Nation (LYV 131.80, +8.00, +6.5%): beats by $0.05, misses on revs
• AstraZeneca (AZN 64.01, -0.78, -1.2%): beats by $0.04, beats on revs; raises guidance; Datopotamab Deruxtecan new BLA Submitted for Accelerated Approval in the U.S.; announces $3.5 bln of capital investment in the United States focused on expanding the Company’s research and manufacturing footprint by the end of 2026
• Spirit Airlines (SAVE 3.24, -0.15, -4.4%): plane was hit by gunfire while attempting to land in Haiti, according to WSJ
• Amazon (AMZN 207.03, +0.19, +0.1%): aiming to build AI chips to challenge Nvidia (NVDA), according to FT

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a lower note. Japan's Nikkei: -0.5%, Hong Kong's Hang Seng: -2.8%, China's Shanghai Composite: -1.4%, India's Sensex: -1.0%, South Korea's Kospi: -1.9%, Australia's ASX All Ordinaries: UNCH.
  • In economic data:
    • Japan's October M2 Money Stock 1.2% yr/yr (expected 1.5%; last 1.2%) and October Machine Tool Orders 9.3% yr/yr (last -6.5%)
    • India's October CPI 6.21% yr/yr (expected 5.81%; last 5.49%). September Industrial Production 3.1% yr/yr (expected 2.5%; last -0.1%). September Manufacturing Output 3.9% m/m (last 1.0%)
    • Australia's November Westpac Consumer Sentiment 5.3% (last 6.2%). October Business Survey 7 (last 7) and Business Confidence 5 (last -2)
    • New Zealand's October Electronic Card Retail Sales 0.6% m/m (last 0.1%); -1.1% yr/yr (last -5.6%)
  • In news:
    • Large online retailers in China reported increased user activity during Singles Day.
    • Chinese officials will reduce taxes on home purchases to support the property sector.
    • Japan's three largest banks are on track to reach record net income for the year.
    • Japan's Prime Minister Ishiba said that more than JPY10 trln will be spent to support chip and AI companies by fiscal 2030.
• Major European indices trade in negative territory. STOXX Europe 600: -1.1%, Germany's DAX: -0.9%, U.K.'s FTSE 100: -1.0%, France's CAC 40: -1.3%, Italy's FTSE MIB: -0.9%, Spain's IBEX 35: -0.8%.
  • In economic data:
    • Eurozone's November ZEW Economic Sentiment 12.5 (expected 13.2; last 20.1)
    • Germany's October CPI 0.4% m/m, as expected (last 0.0%); 2.0% yr/yr (expected 2.0%; last 1.6%). November ZEW Economic Sentiment 7.4 (expected 13.2; last 13.1) and ZEW Current Conditions -91.4 (expected -86.0; last -86.9)
    • U.K.'s September Average Earnings Index + Bonus 4.3% yr/yr (expected 3.9%; last 3.9%). October Claimant Count 26,700 (expected 30,500; last 10,100). September Unemployment Rate 4.3% (expected 4.1%; last 4.0%) 
  • In news:
    • Germany will hold a federal election on February 23.
    • Bayer reported weak results for Q3 and issued cautious guidance.
    • Chipmaker Infineon missed Q4 expectations and issued soft guidance for Q1 and FY25.
    • Germany's metal workers union agreed to a one-time bonus, a 2.0% pay increase in April 2025, followed by a 3.1% increase in 2026.
    • Germany's ZEW Economic Sentiment was impacted by the collapse of the ruling coalition and expectations for more tariffs from the Trump administration.