Stock Market Update

The S&P 500 futures are up nine points and are trading 0.1% above fair value, the Nasdaq 100 futures are up 19 points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are up three points and are trading 0.1% above fair value.

Early trading has a mostly positive vibe. Contracts linked to the Nasdaq 100 are 0.1% higher and S&P 500 futures are up 0.1% also. Dropping Treasury yields are supporting the upside bias. The 10-yr yield is down seven basis points to 4.29% and the 2-yr yield is down four basis points to 4.16%. 

Today's data is limited to the September Factory Orders at 10:00 ET.

In corporate news:

• NVIDIA (NVDA 137.80, +2.40, +1.8%): replacing Intel (INTC) in the Dow Jones Industrial Average, effective prior to the open of trading on Friday, November 8; NVDA in discussions to invest in xAI, according to NY Post
• Sherwin-Williams (SHW 377.80, +19.83, +5.5%): replacing Dow Inc (DOW) in the Dow Jones Industrial Average, effective prior to the open of trading on Friday, November 8
• Comcast (CMCSA 43.79, +0.23, +0.5%): working with Morgan Stanley (MS) to consider options for cable networks business, according to Bloomberg
• Roblox (RBLX 53.08, +1.64, +3.2%): upgraded to Overweight from Equal Weight at Morgan Stanley
• Peloton (PTON 7.67, +0.42, +5.8%): upgraded to Buy from Underperform at BofA Securities

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a mostly higher note while Japan's Nikkei was closed for a holiday. Japan's Nikkei: HOLIDAY, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: +1.2%, India's Sensex: -1.2%, South Korea's Kospi: +1.8%, Australia's ASX All Ordinaries: +0.5%.
  • In economic data:
    • Australia's October MI Inflation Gauge 0.3% (last 0.1%) and October ANZ Job Advertisements 0.3% m/m (last 2.3%)
    • India's October Manufacturing PMI 57.5 (expected 57.4; last 56.5)
  • In news:
    • China is taking steps toward implementing tariffs on some food and alcohol products from the EU in response to the imposition of new duties on electric vehicle imports from China. China will also subsidize domestic electric vehicle purchases through the end of the year.
    • The leader of Japan's opposition party called on the Bank of Japan to refrain from raising rates for at least six months.
    • South Korea's government appears to be on track to agree to remove the financial investment income tax.
• Major European indices are starting the week on a higher note while regional sovereign debt is little changed. STOXX Europe 600: +0.3%, Germany's DAX: UNCH, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.4%.
  • In economic data:
    • Eurozone's October Manufacturing PMI 46.0 (expected 45.9; last 45.0) and November Sentix Investor Confidence -12.8 (expected -12.7; last -13.8)
    • Germany's October Manufacturing PMI 43.0 (expected 42.6; last 40.6)
    • France's October Manufacturing PMI 44.5, as expected (last 44.6)
    • Italy's October Manufacturing PMI 46.9 (expected 48.8; last 48.3)
    • Spain's October Manufacturing PMI 54.5 (expected 53.1; last 53.0)
  • In news:
    • The final reading of the October Manufacturing PMI for the eurozone showed a contraction at a slightly slower pace than what was seen in the flash reading.
    • Discount air carrier Ryanair lowered its passenger traffic guidance for FY26, but also noted that the decline in pricing is moderating.
    • The Bank of England is expected to announce a 25-bps rate cut on Thursday.