Stock Market Update

The S&P 500 futures are up three points and are trading 0.1% above fair value, the Nasdaq 100 futures are up 40 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are down 49 points and are trading 0.1% below fair value.

Equity futures are mixed after the major indices logged declines last week, reversing some post-election moves. Contracts linked to the Dow industrials are lower while S&P 500 and Nasdaq 100 futures are higher, helped by pre-open gains in some large-cap technology stocks. 

Rising market rates have been top of mind for market participants of late. The 10-yr yield is up five basis points from Friday's settlement at 4.48% and the 2-yr yield is up three basis points to 4.33%.

Today's economic lineup includes the November NAHB Housing Market Index at 10:00 ET and September Net Long-Term TIC Flows at 4:00 ET.

In corporate news:

• Tesla (TSLA 341.39, +20.70, +6.5%): President-elect Trump wants to ease regulations on self-driving cars
• Spirit Airlines (SAVE 1.12, +0.04, +3.7%): enters comprehensive agreement to deleverage balance sheet; receives backstopped commitments for $350 million equity investment and $300 million in debtor-in-possession financing
• Nvidia (NVDA 138.50, -3.48, -2.5%): customers worried about artificial intelligence chip overheating snag, according to Information 
• Super Micro Computer (SMCI 20.49, +1.91, +10.3%): might avoid delisting, according to Barron's 
• Warner Brothers Discovery (WBD 9.50, +0.28, +3.0%): settled breach of contract lawsuit against NBA, according to WSJ

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a mixed note. Japan's Nikkei: -1.1%, Hong Kong's Hang Seng: +0.8%, China's Shanghai Composite: -0.2%, India's Sensex: -0.3%, South Korea's Kospi: +2.2%, Australia's ASX All Ordinaries: +0.2%.
  • In economic data:
    • Japan's September Core Machinery Orders -0.7% m/m (expected 1.4%; last -1.9%); -4.8% yr/yr (expected 2.2%; last -3.4%)
    • 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%)
    • Singapore's October trade surplus SGD4.41 bln (last surplus of SGD5.21 bln). October non-oil exports -7.4% m/m (last -0.6%); -4.6% yr/yr (last 0.9%)
    • Hong Kong's October Unemployment Rate 3.1% (last 3.0%)
    • New Zealand's Q3 Input PPI 1.9% qtr/qtr (expected 1.0%; last 1.4%) and Output PPI 1.5% qtr/qtr (expected 0.9%; last 1.1%)
  • In news:
    • Bank of Japan Governor Ueda said that the timing of further rate adjustment will be dependent on economic activity, the evolution of prices, and future financial conditions.
    • China will cancel export tax refunds on copper and aluminum, starting December 1.
    • Samsung Electronics announced a $7.2 bln buyback.
• Major European indices trade near their flat lines while Italy's MIB (-1.3%) underperforms amid weakness in energy and industrial names. STOXX Europe 600: -0.3%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: -1.3%, Spain's IBEX 35: -0.1%.
  • In economic data:
    • Eurozone's September trade surplus EUR12.5 bln (expected surplus of EUR7.9 bln; last surplus of EUR4.1 bln)
    • U.K.'s November Rightmove House Price Index 1.2% yr/yr (last 1.0%)
    • Spain's September trade deficit EUR3.30 bln (last deficit of EUR4.80 bln)
    • Swiss Q3 Industrial Production 3.5% yr/yr (last 7.0%)
  • In news:
    • European Central Bank policymaker De Guindos said that the balance of risks has shifted from inflation to growth and trade uncertainty could grow more. Meanwhile, policymaker Nagel said that trade tensions could keep rates at a higher level.
    • S&P affirmed Ireland's AA rating with a Positive outlook while Fitch affirmed Ireland's AA rating with a Stable outlook.