Stock Market Update

The S&P 500 futures are up seven points and are trading 0.1% above fair value, the Nasdaq 100 futures are up five points and are trading fractionally above fair value, and the Dow Jones Industrial Average futures are up 80 points and are trading 0.2% above fair value.

Contracts linked to the S&P 500, Nasdaq 100, and Dow industrials are higher. Market participants are still riding high after the election, but expectations for some consolidation have kept buying efforts in check.

Treasury yields are little changed this morning. The 10-yr yield is unchanged from yesterday's settlement at 4.45% and the 2-yr yield is unchanged at 4.28%.

Market participants receive another read on inflation in the form of the October Producer Price Index at 8:30 ET. Weekly jobless claims are also released at 8:30 ET.

In corporate news:

• Walt Disney (DIS 109.96, +7.26, +7.0%): beats by $0.03, reports revs in-line; guides FY25 EPS above consensus; provides outlooks for FY26 and FY27; posts prepared remarks from CEO Robert Iger and CFO Hugh Johnston on the Investor Relations page of its website; & Reliance announce completion of transaction to form joint venture to bring together the most iconic and engaging entertainment brands in India
• Cisco (CSCO 57.26, -1.92, -3.2%): beats by $0.04, reports revs in-line; guides Q2 EPS above consensus, revs in-line; guides FY25 EPS above consensus, revs in-line; broad-based acceleration in product orders reflecting normalizing demand
• Visa (V 309.70, +0.22, +0.1%): discloses that the European Commission announced its intention to conduct another impact assessment of the IFR, which could result in even lower caps on interchange rates and the expansion of regulation to other types of products, services and fees
• JD.com (JD 35.39, -0.30, -0.8%): eats by RMB1.11, reports revs in-line
• Advance Auto (AAP 38.80, -2.14, -5.2%): reports Q3 (Sep) results, misses on revs; Completes Comprehensive Review of Operational Productivity
• Tapestry (TPR 54.50, +3.24, +6.2%): Capri Holdings (CPRI) announces termination of merger with TPR; TPR reaffirms FY25 guidance and approved an additional $2 billion share repurchase program
• General Mills (GIS 65.40, +0.17, +0.3%): has entered into a definitive agreement to acquire Whitebridge Pet Brands’ North American premium Cat feeding and Pet treating business from NXMH in a transaction valued at $1.45 bln

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note, reflecting concerns about the expected tough stance on trade from the incoming Trump administration. Japan's Nikkei: -0.6%, Hong Kong's Hang Seng: -2.0%, China's Shanghai Composite: -1.7%, India's Sensex: -0.1%, South Korea's Kospi: +0.1%, Australia's ASX All Ordinaries: +0.3%.
  • In economic data:
    • India's October WPI Inflation 2.36% yr/yr (expected 2.20%; last 1.84%). October trade deficit $27.1 bln (last deficit of $20.8 bln)
    • South Korea's September M2 Money Supply 5.6% yr/yr (last 5.3%)
    • Australia's October Employment Change 15,900 (expected 25,200; last 61,300) and full employment change 9,700 (last 48,800). October Unemployment Rate 4.1%, as expected (last 4.1%) and Participation Rate 67.1% (expected 67.2%; last 67.2%). November MI Inflation Expectations 3.8% (last 4.0%)
    • New Zealand's October FPI -0.9% m/m (last 0.5%)
  • In news:
    • China is reportedly preparing strong countermeasures for a potential trade war with the U.S.
    • China's rumored tax cuts for homebuyers were officially announced today and will become effective at the start of December.
    • Japan is planning an extraordinary Diet session for the end of November to pass a budget.
    • Australia's employment growth slowed in October, but so did inflation expectations for November.
• Major European indices trade on a higher note. STOXX Europe 600: +0.8%, Germany's DAX: +1.4%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +1.1%, Italy's FTSE MIB: +1.1%, Spain's IBEX 35: +0.6%.
  • In economic data:
    • Eurozone's flash Q3 GDP 0.4% qtr/qtr, as expected (last 0.4%); 0.9% yr/yr, as expected (last 0.9%). Q3 Employment Change 0.2% qtr/qtr, as expected (last 0.2%); 1.0% yr/yr (last 0.8%). September Industrial Production -2.0% m/m (expected -1.3%; last 1.5%); -2.8% yr/yr (expected -2.0%; last -0.1%)
    • Spain's October CPI 0.6% m/m, as expected (last -0.6%); 1.8% yr/yr, as expected (last 1.5%). October Core CPI 2.5% yr/yr (expected 2.5%; last 2.4%)
  • In news:
    • Luxury goods maker Burberry received a positive response to its quarterly results and strategic changes.
    • Siemens reported good results for Q3 and issued guidance for FY25.
    • British Chancellor Reeves is expected to announce pension reform plans tonight.
    • French prosecutors are setting their sights on Marine Le Pen over alleged embezzlement and misappropriation of EU funds.