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 35 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are up six points and are trading in-line with fair value.

Early trading has a mixed vibe in front of the November Consumer Price Index at 8:30 ET. Treasuries are mixed in front of the report, which is the last check on inflation ahead of the FOMC meeting next week. The 2-yr yield is unchanged at 4.17% and the 10-yr yield, which is most sensitive to changes in inflation, is up four basis points to 4.25%.

Other data today include the weekly MBA Mortgage Applications Index, which rose 5.4% following last week's 2.8% increase. The weekly EIA Crude Oil Inventories is released at 10:30 ET.

In corporate news:

• General Motors (GM 53.44, +0.70, +1.3%): to realign its autonomous driving strategy; GM will no longer fund Cruise's robotaxi development work; will raise its ownership in Cruise to more than 97% vs 90% now
• Macy's (M 15.27, -1.45, -8.7%): beats by $0.01, reports revs in-line; guides FY25 EPS below consensus, revs above consensus
• GameStop (GME 27.65, +0.72, +2.7%): reports Q3 (Oct) results, misses on revs (two ests);
• Dave and Buster's (PLAY 31.53, -5.27, -14.3%): misses on EPS, misses on revs, comps -7.7%; CEO Chris Morris resigns; Chairman Kevin Sheehan will also serve as interim CEO
• GE Vernova (GEV 319.99, -7.40, -2.3%): reaffirms FY24 revenue and free cash flow guidance, raises FY25 revenue guidance, but still below consensus, and raises 2028 outlook; Approves initial $6.0 bln share repurchase authorization

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Wednesday on a mixed note. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: -0.8%, China's Shanghai Composite: +0.3%, India's Sensex: UNCH, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: -0.5%.
  • In economic data:
    • Japan's November PPI 0.3% m/m (expected 0.2%; last 0.3%); 3.7% yr/yr (expected 3.4%; last 3.6%). Q4 BSI Large Manufacturing Conditions 6.3 (expected 1.8; last 4.5). December Reuters Tankan Index -1 (last 5). Q3 GDP External Demand -0.2% qtr/qtr (expected -0.4%; last -0.1%)
    • South Korea's November Unemployment Rate 2.7% (last 2.7%)
    • New Zealand's Q3 Manufacturing Sales Volume -1.2% qtr/qtr (last 0.6%)
  • In news:
    • Japan's Prime Minister Ishiba said that a decision on tax reforms should be reached around the middle of December.
    • China Securities Journal speculated that bigger cuts to interest rates, including the reserve requirement ratio, will be made next year.
    • China's Central Economic Work Conference began today and will continue through tomorrow.
    • South Korea's opposition party warned that it will keep calling for an impeachment of President Yoon every Saturday.
• Major European indices trade on a mostly higher note while Spain's IBEX (-1.2%) underperforms after apparel giant Inditex reported disappointing earnings results. STOXX Europe 600: UNCH, Germany's DAX: +0.1%, U.K.'s FTSE 100: +0.2%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: -1.2%.
  • No data today
  • In news:
    • German Chancellor Scholz formally requested a confidence vote, which could take place on Monday and is likely to lead to a snap election in February.
    • Travel company TUI Group beat earnings expectations, slightly reduced its outlook for winter bookings, and said that bookings for the upcoming summer are doing well.