Stock Market Update

The S&P 500 futures are down 30 points and are trading 0.4% below fair value, the Nasdaq 100 futures are down 150 points and are trading 0.7% below fair value, and the Dow Jones Industrial Average futures are down 129 points and are trading 0.2% below fair value.

Stock futures are lower, pressured by pre-open losses in some mega cap names and rising market rates. The 10-yr yield is up two basis points to 4.44% and the 2-yr yield is up two basis points to 4.31%.

The vibe may shift following some influential economic data this morning. The October Retail Sales report is released at 8:30 ET and October Industrial Production and Capacity Utilization is released at 9:15 ET.

In corporate news:

• Applied Materials (AMAT 171.73, -14.27, -7.7%): beats by $0.13, beats on revs; guides Q1 EPS in-line, revs in-line
• Domino's Pizza (DPZ 461.99, +26.02, +6.0%): Berkshire Hathaway takes new position
• Pool (POOL 378.40, +20.91, +5.9%): Berkshire Hathaway takes new position
• Palantir Technologies (PLTR 60.63, +1.45, +2.5%): to move to Nasdaq from NYSE
• Ulta (ULTA 364.44, -18.33, -4.8%): Berkshire Hathaway decreased position 

Reviewing overnight developments: 

• Equity indices in the Asia-Pacific region ended the week on a mostly lower note. Japan's Nikkei: +0.3% (-2.2% for the week), Hong Kong's Hang Seng: -0.1% (-6.3% for the week), China's Shanghai Composite: -1.5% (-3.5% for the week), India's Sensex: -0.1% (-2.4% for the week), South Korea's Kospi: -0.1% (-5.6% for the week), Australia's ASX All Ordinaries: +0.7% (-0.2% for the week).
  • In economic data:
    • China's October Industrial Production 5.3% yr/yr (expected 5.5%; last 5.4%), Retail Sales 4.8% yr/yr (expected 3.8%; last 3.2%), Fixed Asset Investment 3.4% yr/yr (expected 3.5%; last 3.4%), and Unemployment Rate 5.0% (expected 5.1%; last 5.1%). October FDI -29.8% YTD (last -30.4%)
    • Japan's flash Q3 GDP 0.2%, as expected (last 0.5%); 0.9% yr/yr (expected 0.7%; last 2.2%). Q3 GDP Price Index 2.5% yr/yr (expected 2.8%; last 3.1%), Q3 GDP Private Consumption 0.9% qtr/qtr (expected 0.2%; last 0.7%), Q3 GDP External Demand -0.4% qtr/qtr (expected 0.1%; last -0.1%), and Q3 GDP Capital Expenditure -0.2% qtr/qtr, as expected (last 0.9%). September Industrial Production 1.6% m/m (expected 1.4%; last 1.4%). September Tertiary Industry Activity Index 1.9 (expected 0.2; last -2.9)
    • South Korea's October trade surplus $3.15 bln (last surplus of $3.17 bln). October Imports 1.7% yr/yr (last 1.7%) and Exports 4.6% yr/yr (last 4.6%)
    • Hong Kong's Q3 GDP -1.1% qtr/qtr, as expected (last 0.4%); 1.8% yr/yr, as expected (last 3.3%)
    • New Zealand's October Business PMI 45.8 (last 46.9)
  • In news:
    • The People's Bank of China injected nearly CNY1 trln of liquidity through open market operations to offset maturing medium term lending facility loans and tax payments.
    • Japan's Finance Minister Kato said that one-sided sharp moves are being seen in the foreign exchange market and they are being watched with a high sense of urgency.
    • Samsung agreed to a 5.1% pay increase with its labor union in South Korea.
• Major European indices trade near their flat lines while Spain's IBEX (+1.0%) outperforms with banks leading the way. STOXX Europe 600: -0.4% (-0.3% week-to-date), Germany's DAX: UNCH (+0.1% week-to-date), U.K.'s FTSE 100: UNCH (UNCH week-to-date), France's CAC 40: -0.1% (-0.5% week-to-date), Italy's FTSE MIB: -0.2% (+1.4% week-to-date), Spain's IBEX 35: +1.0% (+0.8% week-to-date).
  • In economic data:
    • Germany's October WPI 0.4% m/m (expected 0.1%; last -0.3%); -0.8% yr/yr (last -1.6%)
    • U.K.'s Q3 GDP 0.1% qtr/qtr (expected 0.2%; last 0.5%); 1.0% yr/yr (expected 0.1%; last 0.7%). Q3 Business Investment 1.2% qtr/qtr (expected 0.6%; last 1.4%); 4.5% yr/yr (last 0.2%). September Construction Output 0.1% m/m (expected 0.3%; last 0.6%); -0.4% yr/yr (expected -0.5%; last 0.5%). September Industrial Production -0.5% m/m (expected 0.1%; last 0.5%); -1.8% yr/yr (expected -1.2%; last -1.7%). September Manufacturing Production -1.0% m/m (expected 0.0%; last 1.3%); -0.7% yr/yr (expected -1.2%; last -1.7%). September trade deficit GBP16.3 bln (expected GBP15.7 bln; last GBP15.2 bln)
    • France's October CPI 0.3% m/m (expected 0.2%; last -1.3%); 1.2% yr/yr, as expected (last 1.1%)
    • Italy's October CPI 0.0% m/m, as expected (last -0.2%); 0.9% yr/yr, as expected (last 0.7%). September trade surplus EUR2.58 bln (expected EUR2.55 bln; last EUR1.34 bln)
    • Swiss October PPI -0.3% m/m (expected 0.1%; last -0.1%); -1.8% yr/yr (last -1.3%)
  • In news:
    • The EU Commission maintained its 2024 growth forecast for the eurozone at 0.8% while growth in 2025 is expected to reach 1.3%.
    • Germany's Chancellor Scholz is scheduled to meet with China's President Xi on Tuesday.