Stock Market Update

The S&P 500 futures are up 10 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 20 points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are up 140 points and are trading 0.3% above fair value.

There's a positive bias in early trading. Investors are reacting to NVIDIA's (NVDA) earnings report, which garnered a negative response after failing to live up to some ultra high expectations.

Treasury yields are slightly lower, supporting upside moves in equities. The 10-yr yield is down two basis points to 4.39% and the 2-yr yield is unchanged from yesterday at 4.31%.

Today's calendar features:

• Weekly Initial Claims at 8:30 ET (Briefing.com consensus 221K; Prior 217K)
• Weekly Continuing Claims at 8:30 ET (Prior 1873K)
• November Philadelphia Fed Index at 8:30 ET (Briefing.com consensus 7.0; Prior 10.3)
• October Existing Home Sales at 10:00 ET (Briefing.com consensus 3.90 mln; Prior 3.84 mln)
• October Leading Home Sales at 10:00 ET (Briefing.com consensus -0.3%; Prior -0.5%)

In corporate news:

• NVIDIA (NVDA 144.37, -1.52, -1.0%): beats by $0.06, beats on revs; guides Q4 revs in-line; demand for Blackwell expected to exceed supply for several quarters in FY26; Blackwell demand is staggering; Hopper demand is exceptional
• Snowflake (SNOW 157.55, +28.43, +22.0%): beats by $0.05, beats on revs, product revenue up 29% yr/yr; Issues Q4 product revenue guidance of $906-$911 mln and also agrees to acquire Datavolo; announces multi-year partnership with Anthropic
• Palo Alto Networks (PANW 383.49, -9.40, -2.4%): beats by $0.08, reports revs in-line; guides Q2 EPS in-line, revs in-line; guides FY25 EPS in-line, revs in-line
• Deere (DE 413.00, +8.04, +2.0%): beats by $0.68, reports revs in-line
• Alphabet (GOOG 176.29, -1.04, -0.6%): says DOJ "filed a staggering proposal that seeks dramatic changes to Google services"

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: -0.5%, China's Shanghai Composite: +0.1%, India's Sensex: -0.5%, South Korea's Kospi: -0.1%, Australia's ASX All Ordinaries: -0.1%.
  • In economic data:
    • Hong Kong's October CPI 0.2% m/m (last 0.1%); 1.4% yr/yr (last 2.2%)
    • New Zealand's October Credit Card Spending 0.3% yr/yr (last -3.1%)
  • In news:
    • The Chinese government may set its GDP target for 2025 around 5.0%, though some advisers have advocated for a target as low as 4.0%.
    • China Securities Journal expects domestic banks to start cutting lending rates next year.
    • Japan is on track to approve an extra budget by the end of the year.
    • The founder of India's Adani Enterprises was hit with bribery charges from the U.S. Department of Justice, leading to a 22.6% dive in the India-listed stock. The company cancelled a planned sale of dollar-denominated bonds and the news also weighed on Australian investment manager GQG Partners.
• Major European indices trade on a mostly higher note. STOXX Europe 600: +0.1%, Germany's DAX: +0.5%, U.K.'s FTSE 100: +0.5%, France's CAC 40: -0.1%, Italy's FTSE MIB: UNCH, Spain's IBEX 35: +0.2%.
  • In economic data:
    • U.K.'s October Public Sector Net Borrowing GBP17.35 bln (expected GBP14.10 bln; last GBP16.14 bln). November CBI Industrial Trends Orders -19 (expected -25; last -27)
    • France's November Business Survey 97 (expected 95; last 93)
  • In news:
    • Ukraine said that it was hit by a Russian ICBM after the recent use of U.S. and British missiles against Russia, though subsequent reports disputed the type of missile used by Russia.
    • European Central Bank policymaker Villeroy de Galhau said that inflation could make a sustainable return to the 2.0% target early next year and that restrictive policy should be eased more. Meanwhile, policymaker Stournaras said that a 25-basis point cut should be made in December.
    • Germany's Bundesbank released its latest financial stability report, warning of a significant number of corporate bankruptcies expected next year.