Stock Market Update

The S&P 500 futures are up 30 points and are trading 0.5% above fair value, the Nasdaq 100 futures are up 116 points and are trading 0.5% above fair value, and the Dow Jones Industrial Average futures are up 295 points and are trading 0.7% above fair value.

There's a positive bias in early trading in front of a holiday-shortened week. Markets will be closed on Thursday for Thanksgiving and close early, at 1:00 p.m. ET for equities and 2:00 p.m. ET for bonds, on Friday. 

The upside skew is in response to a pullback in market rates. The 10-yr yield is down six basis points to 4.35% and the 2-yr yield is down three basis points to 4.34%. Buying interest in bonds follows news that President-elect Trump nominated Scott Bessent as Treasury Secretary. 

There's no US economic data on today's calendar. 

In corporate news:

• Comcast (CMCSA 43.68, +0.21, +0.5%): "Wicked" and "‘Gladiator II" dominate the box office, according to WSJ
• Macy's (M 15.80, -0.50, -3.1%): sees Q3 revs above consensus; to delay Q3 earnings release
• Lattice Semiconductor (LSCC 54.85, +0.64, +1.2%): considers making offer for Intel's (INTC) Altera unit, according to Bloomberg
• Bath & Body Works (BBWI 35.00, +4.29, +14.0%): beats by $0.02, beats on revs; guides Q4 EPS in-line, revs in-line
• ONEOK (OKE 117.20, +0.15, +0.1%): agrees to acquire remaining publicly held common units in EnLink Midstream (ENLC) in a tax-free transaction

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a mostly higher note. Japan's Nikkei: +1.3%, Hong Kong's Hang Seng: -0.4%, China's Shanghai Composite: -0.1%, India's Sensex: +1.3%, South Korea's Kospi: +1.3%, Australia's ASX All Ordinaries: +0.3%.
  • In economic data:
    • Japan's September Leading Index 109.1 (expected 109.4; last 106.9) and Coincident Indicator 1.3% m/m (last 1.7%)
    • Singapore's October CPI -0.3% m/m (last 0.3%); 1.4% yr/yr (expected 1.8%; last 2.0%). October Core CPI 2.1% yr/yr (expected 2.5%; last 2.8%)
    • New Zealand's Q3 Retail Sales -0.1% qtr/qtr (expected -0.5%; last -1.2%) and Core Retail Sales -0.8% qtr/qtr (expected -0.3%; last -1.0%). October trade deficit NZD1.54 bln (expected deficit of NZD1.76 bln; last deficit of NZD2.15 bln)
  • In news:
    • Japan's cabinet approved the extra stimulus of JPY39 trln.
    • The People's Bank of China refinanced loans through its medium-term lending facility rate but left the rate at 2.0%.
    • The Reserve Bank of New Zealand's shadow board is calling for a 50-basis point rate cut later this week.
• Major European indices trade mostly higher while Italy's MIB (-0.6%) underperforms amid weakness in bank stocks. STOXX Europe 600: UNCH, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.2%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.6%, Spain's IBEX 35: +0.6%.
  • In economic data:
    • Germany's November ifo Business Climate Index 85.7 (expected 86.1; last 86.5). November Business Expectations 87.2 (expected 87.0; last 87.3) and Current Assessment 84.3 (expected 85.4; last 85.7)
    • Spain's October PPI -3.9% yr/yr (last -5.2%)
    • Swiss Q3 Employment Level 5.528 mln (last 5.499 mln)
  • In news:
    • European officials have reportedly made some progress toward eliminating tariffs on imports of electric vehicles from China.
    • There is a growing concern that Marine Le Pen could force a no-confidence motion against the current French government, which is struggling to agree on a budget.
    • European Central Bank policymaker Kazaks spoke in favor of a December rate cut.