Stock Market Update

The S&P 500 futures are down ten points and are trading 0.2% below fair value, the Nasdaq 100 futures are down 55 points and are trading 0.3% below fair value, and the Dow Jones Industrial Average futures are down 80 points and are trading 0.2% below fair value.

Equity futures are lower after some consolidation activity on Tuesday. Pre-open declines in some mega cap names have contributed to the early downside bias.

The MBA Mortgage Applications Index was up 0.5% with refinance applications falling 2% and purchase applications rising 2%. Market participants will be focused on the October Consumer Price Index at 8:30 ET. The Treasury market's reaction and potential implications for the Fed's rate cut path may influence equities. 

Treasury yields are little changed from yesterday in front of the CPI report. The 10-yr yield is down one basis point to 4.42% and the 2-yr yield is up one basis point to 4.35%. 

In corporate news:

• Spotify (SPOT 453.28, +33.89, +8.1%): misses by €0.24, reports revs in-line, exceeds MAU guidance; guides Q4 revs below consensus, expects 665 mln MAUs
• Rivian Automotive (RIVN 11.45, +0.87, +8.2%): and Volkswagen Group (VWAGY) enter into an agreement to launch their Joint Venture with a total deal size of up to $5.8 billion, which is expected to start on November 13
• Spirit Airlines (SAVE 0.98, -2.27, -70.5%): files Form 12b-25; unable to file 10-Q; provides operating metrics update
• CAVA Group (CAVA 168.65, +23.62, +16.3%): beats by $0.04, beats on revs; comps +18.1%
• Apple (AAPL 223.42, -0.81, -0.4%): nearing launch of wall-mounted displays for home control and video calls, according to Bloomberg
• Amazon (AMZN 209.16, +0.25, +0.1%): aiming to close Freevee, according to Bloomberg
• Tesla (TSLA 333.95, +5.45, +1.7%): aiming to recall 2400 CyberTrucks, according to Reuters 

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Japan's Nikkei: -1.7%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: +0.5%, India's Sensex: -1.3%, South Korea's Kospi: -2.6%, Australia's ASX All Ordinaries: -0.8%.
  • In economic data:
    • Japan's October PPI 0.2% m/m (expected 0.0%; last 0.3%); 3.4% yr/yr (expected 2.9%; last 3.1%)
    • South Korea's October Import Price Index -2.5% yr/yr (last -3.7%) and Export Price Index 2.0% yr/yr (last 1.0%). October Unemployment Rate 2.7% (last 2.5%)
    • Australia's Q3 Wage Price Index 0.8% qtr/qtr (expected 0.9%; last 0.8%); 3.5% yr/yr (expected 3.6%; last 4.1%)
    • New Zealand's September Visitor Arrivals 1.1% m/m (last -2.1%)
  • In news:
    • Japan's PPI increased at its fastest yr/yr pace (3.4%) since mid-2023 in October, reflecting the impact on wage hikes.
    • China Securities Times reported that the details of the tax cut on home purchases will be released by the end of the year.
    • China will extend the Spring Festival and May Day holidays by one day apiece.
• Major European indices trade near their flat lines. STOXX Europe 600: -0.4%, Germany's DAX: -0.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.1%.
  • In economic data:
    • France's Q3 Unemployment Rate 7.4%, as expected (last 7.3%)
  • In news:
    • France's unemployment increased to 7.4% in Q3, and Bank of France Governor Villeroy de Galhau expects the rate to continue growing to 8.0% before returning to 7.0%.
    • The French parliament rejected the budget bill for 2025, sending it back to the Senate for revisions.
    • Siemens Energy is having a strong showing after beating Q4 expectations and raising its targets.
    • European Central Bank policymaker Nagel expressed concern that new tariffs from the Trump administration could reduce Germany's GDP by a full percentage point.