Stock Market Update

The S&P 500 futures are up 15 points and are trading 0.3% above fair value, the Nasdaq 100 futures are up 60 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are down 38 points and are trading 0.1% below fair value.

There's a mixed disposition in early trading. Pre-open gains in the mega cap space have bolstered contracts linked to the S&P 500 and Nasdaq 100 while futures tied to the Dow industrials are lower. 

Market participants are digesting news that President-elect Trump said he will impose large tariffs on imports from Canada and Mexico, and increase tariffs on China imports. 

Buying interest in the 10-yr Treasury note, which is most sensitive to changes in inflation, dissipated following the tariff news. The 10-yr yield is up one basis point to 4.28% while the 2-yr yield is down three basis points to 4.24%.

Retailers that reported earnings since yesterday's close have garnered mixed responses. Kohl's (KSS) is down more than 16% ahead of the open and Dick's Sporting Goods (DKS) sports a nearly 7% gain in front of the open.

In corporate news:

• Kohl's (KSS 15.28, -3.06, -16.7%): misses by $0.08, beats on revs; guides FY25 EPS below consensus, revs below consensus
• Best Buy (BBY 86.25, -6.78, -7.3%): misses by $0.04, misses on revs; guides FY25 EPS below consensus, revs below consensus
• Dick's Sporting Goods (DKS 229.44, +14.21, +6.6%): beats by $0.07, reports revs in-line; guides FY25 EPS in-line, revs above consensus
• Analog Devices (ADI 235.01, +11.43, +5.1%): beats by $0.03, beats on revs; guides Q1 EPS in-line, revs in-line
• Burlington Stores (BURL 288.34, -3.32, -1.1%): reports EPS in-line, revs in-line; guides Q4 EPS below consensus, revs above consensus
• Agilent (A 132.80, -1.69, -1.3%): beats by $0.05, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs in-line
• Rivian Automotive (RIVN 12.37, +0.77, +6.7%): receives conditional commitment for up to $6.6 billion loan from the DOE's ATVM program

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: -0.1%, India's Sensex: -0.1%, South Korea's Kospi: -0.6%, Australia's ASX All Ordinaries: -0.6%.
  • In economic data:
    • Japan's November Corporate Services Price Index 2.9% yr/yr (expected 2.5%; last 2.8%)
    • South Korea's November Consumer Confidence 100.7 (last 101.7)
    • Hong Kong's October trade deficit $31.0 bln (last deficit of $53.2 bln). October Imports 4.5% m/m (last 1.4%) and Exports 3.5% m/m (last 4.7%)
    • Singapore's October Industrial Production 0.1% m/m (expected -0.8%; last -1.5%); 1.2% yr/yr (expected 1.5%; last 9.0%)
  • In news:
    • President-elect Trump threatened to impose large tariffs on imports from countries including China on day one of his presidency.
    • The Reserve Bank of Australia expects weaker domestic growth and lower interest rates under the incoming Trump administration in the U.S. China's Commerce Ministry pledged to strengthen communication and expand cooperation with the U.S.
• Major European indices trade in the red. STOXX Europe 600: -0.4%, Germany's DAX: -0.3%, U.K.'s FTSE 100: -0.3%, France's CAC 40: -0.2%, Italy's FTSE MIB: -0.5%, Spain's IBEX 35: -1.0%.
  • In economic data:
    • U.K.'s November CBI Distributive Trades Survey -18 (expected -14; last -6)
  • In news:
    • European Central Bank policymaker Makhlouf said that he is open minded regarding the pace of rate cuts while policymaker Nagel cautioned against cutting too quickly.
    • The European Commission is expected to approve France's plan for spending and reforms, but there is still a likelihood of a snap election being forced next year.