Stock Market Update

The S&P 500 futures are down two points and are trading 0.1% below fair value, the Nasdaq 100 futures are down 35 points and are trading 0.2% below fair value, and the Dow Jones Industrial Average futures are up 25 points and are trading 0.1% above fair value.

Early trading has contracts tied to the S&P 500 and Nasdaq 100 slightly lower and Dow futures are higher. NVIDIA (NVDA) and Sherwin-Williams (SHW) will replace Intel (INTC) and Dow Inc. (DOW) in the Dow Jones Industrial Average today. 

Treasury yields are slightly lower. The 10-yr yield is down four basis points to 4.30% and the 2-yr yield is down three basis points to 4.19%.

Today's US economic data is limited to the preliminary November University of Michigan Consumer Sentiment survey at 10:00 ET.

In other news, China will spend $1.4 trillion over the next five years to support local government debt, but the announcement did not feature any support for consumption, which the market was hoping for.

In corporate news:

• Arista Networks (ANET 409.99, -21.03, -4.9%): beats by $0.32, beats on revs; guides Q4 revs above consensus
• Airbnb (ABNB 137.02, -10.35, -7.0%): misses by $0.01, reports revs in-line; guides Q4 revs in-line
• Pinterest (PINS 29.73, -4.20, -12.4%): beats by $0.06, reports revs in-line; guides Q4 revs in-line
• DraftKings (DKNG 37.12, -1.86, -4.8%): misses by $0.19, misses on revs; lowers FY24 revs below consensus; guides FY25 revs in-line
• Rivian Automotive (RIVN 10..03, -0.02, -0.2%): misses by $0.12, misses on revs
• Fortinet (FTNT 64.7, +9.20, +16.6%): beats by $0.11, beats on revs; guides Q4 EPS above consensus, revs in-line
• Expedia Group (EXPE 177.50, +3.37, +1.9%): beats by $0.08, misses on revs; Also announces that CFO Julie Whalen will step down from her role upon appointment of her successor; Guides for Q4 Gross Bookings of 6-8%, which is better than company's prior expectations

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a mostly lower note. Japan's Nikkei: +0.3% (+3.8% for the week), Hong Kong's Hang Seng: -1.1% (+1.1% for the week), China's Shanghai Composite: -0.5% (+4.6% for the week), India's Sensex: -0.1% (-0.3% for the week), South Korea's Kospi: -0.1% (+0.7% for the week), Australia's ASX All Ordinaries: +0.8% (+2.1% for the week).
  • In economic data:
    • Japan's September Household Spending -1.3% m/m (expected -0.7%; last 2.0%); -1.1% yr/yr (expected -1.8%; last -1.9%). September Leading Index 109.4 (expected 108.9; last 106.9) and Coincident Indicator 1.7% m/m (last -3.2%)
  • In news:
    • Economic data during the Asian session was limited to a worse-than-expected September Household Spending report from Japan (-1.3%; expected -0.7%) and an above-consensus Leading Index report for September (109.4; expected 108.9), but the weekend will bring the release of China's CPI and PPI for October.
    • The leader of Japan's DPP is refusing to vote on a budget due to flagging support for the ruling coalition ahead of Monday's vote on Prime Minister Ishiba's future.
    • China will spend $1.4 trln over the next five years to support local government debt.
    • China's President Xi will visit Peru and Brazil later this month.
• Major European indices are on track for a mostly lower finish to the week. STOXX Europe 600: -0.5% (-0.7% week-to-date), Germany's DAX: -0.7% (-0.1% week-to-date), U.K.'s FTSE 100: -0.8% (-1.2% week-to-date), France's CAC 40: -0.7% (-0.5% week-to-date), Italy's FTSE MIB: -0.5% (-2.5% week-to-date), Spain's IBEX 35: +0.1% (-2.2% week-to-date).
  • In economic data:
    • France's September trade deficit EUR8.3 bln (expected deficit of EUR7.0 bln; last deficit of EUR7.7 bln) and September Current Account deficit EUR2.1 bln (last deficit of EUR1.2 bln)
    • Italy's September Industrial Production -0.4% m/m, as expected (last 0.0%); -4.0% yr/yr (last -3.2%). September Retail Sales 1.2% m/m (expected 0.2%; last -0.3%); 0.7% yr/yr (last 0.9%)
    • Swiss Q4 SECO Consumer Climate -27 (expected -33; last -19)
  • In news:
    • German Chancellor Scholz is reportedly being pressured to hold a confidence vote in the coming days rather than waiting until January.
    • Spanish drugmaker Grifols is looking to simplify its equity structure in hopes of attracting takeover interest.
    • Luxury goods maker LVMH is under pressure after China's stimulus announcement did not include any plans for boosting consumption.