Stock Market Update

The S&P 500 futures are up 15 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 70 points and are trading 0.4% above fair value, and the Dow Jones Industrial Average futures are up 70 points and are trading 0.2% above fair value.

The stock market is poised to extend yesterday's election-induced rally. Some names that reported earnings since yesterday's close have garnered positive responses, contributing to the early bias, along with pre-open gains in mega caps. Qualcomm (QCOM) and Lyft (LYFT) are among the headliners from the earnings calendar.

Treasury yields are slightly lower ahead of the open and will remain in focus today after the FOMC policy decision at 2:00 ET followed by Fed Chair Powell's press conference at 2:30 ET. The committee is expected to cut the target range for the fed funds rate by 25 basis points to 4.50-4.75%.

In other central bank news, the Bank of England voted 8-1 to lower its bank rate by 25 bps to 4.75%, which was expected.

In corporate news:

• Qualcomm (QCOM 183.47, +10.48, +6.1%): beats by $0.13, beats on revs; guides Q1 EPS above consensus, revs in-line; files mixed shelf securities offering; authorizes a new $15.0 bln stock repurchase plan
• Lyft (LYFT 17.78, +3.38, +23.5%): beats by $0.10, beats on revs, Gross Bookings up 16% yr/yr, guides for Q4 Gross Bookings growth of 15-17%
• AppLovin (APP 224.48, +55.93, +33.5%): beats by $0.37, beats on revs; guides Q4 revs above consensus
• Zillow (ZG 63.76, +7.68, +13.7%): beats by $0.07, beats on revs; guides Q4 revs in-line; Believe Zillow Rentals is on way toward billion dollar plus revenue opportunity
• McKesson (MCK 586.50, +37.19, +6.8%): beats by $0.19, beats on revs; guides FY25 EPS above consensus
• Arm Holdings plc (ARM 135.79, -8.89, -6.1%): beats by $0.04, beats on revs; guides Q3 EPS in-line, revs in-line; reaffirms FY25 EPS guidance, revs guidance

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Japan's Nikkei: -0.3%, Hong Kong's Hang Seng: +2.0%, China's Shanghai Composite: +2.6%, India's Sensex: -1.0%, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: +0.3%.
  • In economic data:
    • China's October trade surplus $95.72 bln (expected surplus of $73.50 bln; last surplus of $81.71 bln). October Imports -2.3% yr/yr (expected -1.5%; last 0.3%) and Exports 12.7% yr/yr (expected 5.0%; last 2.4%). October FX Reserves $3.261 trln (expected $3.290 trln; last $3.316 trln)
    • Japan's September Overall Wage Income 2.8% (expected 3.0%; last 2.8%)
    • South Korea's September Current Account surplus $11.12 bln (last surplus of $6.60 bln) o Australia's September Building Approvals 4.4% m/m, as expected (last -3.9%). September trade surplus AUD4.61 bln (expected surplus of AUD5.24 bln; last surplus of AUD5.28 bln). September Imports -3.1% m/m (last -0.2%) and Exports -4.3% m/m (last -0.6%)
  • In news:
    • China Airlines is reportedly leaning toward splitting its order for 20 jets between Boeing and Airbus as a gesture of goodwill after Donald Trump's election.
    • South Korean shipbuilders had a strong showing after President-elect Trump told South Korea's President Yoon that the American shipbuilding industry could use help from South Korean counterparts.
• Major European indices trade on a mostly higher note while the U.K.'s FTSE (-0.1%) lags after the Bank of England voted 8-1 to lower its bank rate by 25 bps to 4.75%, which was expected. STOXX Europe 600: +0.7%, Germany's DAX: +1.5%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.7%, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: +0.8%.
  • In economic data:
    • Eurozone's October Construction PMI 43.0 (last 42.1). September Retail Sales 0.5% m/m (expected 0.4%; last 1.1%); 2.9% yr/yr (expected 1.3%; last 2.4%)
    • Germany's September trade surplus EUR17.0 bln (expected surplus of EUR20.8 bln; last surplus of EUR21.4 bln). September Imports 2.1% m/m (expected 0.5%; last -2.6%) and Exports -1.7% m/m (expected -1.4%; last 1.2%). September Industrial Production -2.5% m/m (expected -1.1%; last 2.6%); -4.6% yr/yr (last -2.8%). October Construction PMI 40.2 (last 41.7)
    • U.K.'s October Halifax House Price Index 0.2% m/m, as expected (last 0.3%); 3.9% yr/yr (expected 4.2%; last 4.6%)
    • France's Q3 nonfarm payrolls -0.1% qtr/qtr (expected 0.0%; last 0.0%)
    • Italy's October Construction PMI 48.2 (last 47.8)
    • Spain's September Industrial Production 0.6% yr/yr (expected 0.2%; last -0.1%)
  • In news:
    • British Chancellor Reeves said that she will not request additional tax increases before the end of current parliament.
    • Germany's Chancellor Scholz dismissed Finance Minister Lindner and called for a confidence vote on January 15 that will likely lead to a snap election in March.
    • Sweden's Riksbank lowered its policy rate by 25 bps to 2.75% while Norway's Norges Bank kept its rate at 4.50%.