Stock Market Update

The S&P 500 futures are up five points and are trading 0.1% above fair value, the Nasdaq 100 futures are up 44 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are down 54 points and are trading 0.1% below fair value.

There's a mixed disposition in early trading following disappointing earnings results and guidance from Oracle (ORCL). Contracts linked to the S&P 500 and Nasdaq 100 and slightly higher while futures tied to the Dow industrials are slightly lower. 

The mixed action reflects some hesitation in front of the November Consumer Price Index on Wednesday, the November Producer Price Index on Thursday, and the ECB policy meeting on Thursday.

Today's economic calendar features the NFIB Small Business Optimism survey, which jumped to 101.7 in November from 93.7 in October. The revised Q3 Productivity and Unit Labor Costs will be released at 8:30 ET. 

In corporate news:

• Oracle (ORCL 179.61, -10.84, -5.7%): misses by $0.01, reports revs in-line; guides FebQ EPS and revs below consensus, FX having an impact
• Eli Lilly (LLY 810.92, +7.34, +0.9%): approves $15 bln for repurchases and increases dividend
• C3.ai (AI 39.45, -2.29, -5.5%): beats by $0.10, beats on revs; guides Q3 revs in-line; guides FY25 revs in-line
• AutoZone (AZO 3303.00, -21.01, -0.6%): misses by $1.04, reports revs in-line, same store sales of +1.8% in constant currency
• Alaska Air (ALK 60.00, +5.84, +10.8%): lays out three-year strategic plan at Investor Day; sees FY25 EPS above expectations
• Toll Brothers (TOL 151.29, -5.18, -3.3%): beats by $0.29, beats on revs, Delivered homes up 25%; Guides for Q1 Deliveries of 1,900-2,100 units
• MongoDB (MDB 322.35, -27.81, -7.9%): beats by $0.48, beats on revs; guides Q4 EPS above consensus, revs above consensus

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +0.6%, Hong Kong's Hang Seng: -0.5%, China's Shanghai Composite: +0.6%, India's Sensex: UNCH, South Korea's Kospi: +2.4%, Australia's ASX All Ordinaries: -0.4%.
  • In economic data:
    • China's November trade surplus $97.44 bln (expected surplus of $94.00 bln; last surplus of $95.27 bln). November Imports -3.9% yr/yr (expected 0.3%; last -2.3%) and Exports 6.7% yr/yr (expected 8.5%; last 12.7%)
    • Japan's November Machine Tool Orders 3.0% yr/yr (last 9.3%)
    • Australia's November NAB Business Survey 2 (last 7) and Business Confidence -3 (last 5)
  • In news:
    • China reported a larger-than-expected trade surplus for November as imports decreased by the largest amount in over a year while export growth undershot estimates.
    • China's Premier Li said that more unilateral policies for opening up the economy will be introduced.
    • China will hold its Central Economic Work Conference tomorrow and Thursday.
    • The Reserve Bank of Australia left its cash rate at 4.35%, as expected, while India appointed Sanjay Malhotra as the new governor of the Reserve Bank of India.
• Major European indices trade on a mostly lower note. STOXX Europe 600: -0.1%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.5%, France's CAC 40: -0.5%, Italy's FTSE MIB: UNCH, Spain's IBEX 35: UNCH.
  • In economic data:
    • Germany's November CPI -0.2% m/m, as expected (last 0.4%); 2.2% yr/yr, as expected (last 2.0%)
    • Italy's October Industrial Production 0.0% m/m (expected -0.1%; last -0.3%); -3.6% yr/yr (last -3.9%)
  • In news:
    • Overall trading activity has been subdued amid a light slate of data and anticipation of tomorrow's release of the CPI report in the U.S.
    • France's Socialist party is calling for an appointment of a left wing prime minister, threatening to abandon discussions if the demand is not granted.
    • British Chancellor Reeves is calling on government departments to reduce their budgets by 5%.