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 up ten points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are down 20 points and are trading 0.1% below fair value.

Contracts linked to the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average are flattish. Market participants are lacking conviction after the S&P 500 and DJIA logged record highs last week.

The US Dollar Index is 0.5% higher at 106.26 after President-elect Trump said he would enact 100% tariffs on countries moving away from the dollar. 

The 10-yr Treasury note yield is two basis points higher at 4.20% and the 2-yr yield is up three basis points from Friday at 4.19%. 

Today's economic releases include the November ISM Manufacturing Index and the October Construction Spending report at 10:00 ET. 

In corporate news:

• Walt Disney (DIS 118.00, +0.53, +0.5%): earned $221 mln for ‘Moana 2’ this weekend, according to CNBC
• Unilever (UL 60.24, +0.40, +0.7%): mulling sale of food brands, according to Reuters
• Stellantis (STLA 12.02, -1.18. -8.9%): CEO resigns; reaffirms guidance
• Tesla (TSLA 351.25, +6.09, +1.8%): and BYD (BYDYY) increasing China incentives, according to Bloomberg 

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a mostly higher note. Japan's Nikkei: +0.8%, Hong Kong's Hang Seng: +0.7%, China's Shanghai Composite: +1.1%, India's Sensex: +0.6%, South Korea's Kospi: -0.1%, Australia's ASX All Ordinaries: +0.1%
  • In economic data:
    • China's November Manufacturing PMI 50.3 (expected 50.2; last 50.1) and Non-Manufacturing PMI 50.0 (expected 50.4; last 50.2). November Caixin Manufacturing PMI 51.5 (expected 50.6; last 50.3)
    • Japan's November Manufacturing PMI 49.0, as expected (last 49.2)
    • South Korea's November trade surplus $5.61 bln (last surplus of $3.15 bln). November Imports -2.4% yr/yr (last 1.7%) and Exports 1.4% yr/yr (last 4.6%). November Manufacturing PMI 50.6 (last 48.3)
    • India's November Manufacturing PMI 56.5 (expected 57.3; last 57.5)
    • Australia's November Manufacturing PMI 49.4 (last 49.4) and MI Inflation Gauge 0.2% m/m (last 0.3%). October Building Approvals 4.2% m/m (expected 1.2%; last 5.8%); 12.7% yr/yr (last 18.1%). October Retail Sales 0.6% m/m (expected 0.4%; last 0.1%). October Private House Approvals -5.2% m/m (last 2.2%). Q3 Business Inventories -0.9% qtr/qtr (expected -0.2%; last 0.5%)
    • New Zealand's October Building Consents -5.2% m/m (last 2.4%)
  • In news:
    • Continued demand for Chinese debt pressured China's 10-yr yield to a fresh record low of 1.975% before some backtracking to 2.000%.
    • China's Manufacturing PMI for November showed a slight acceleration in activity (to 50.3 from 50.1) while Non-Manufacturing PMI decelerated to a standstill at 50.0.
    • Meanwhile, Japan's Manufacturing PMI remained in contraction for the sixth consecutive month.
• Major European indices trade higher. STOXX Europe 600: +0.4%, Germany's DAX: +1.3%, U.K.'s FTSE 100: +0.4%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +1.1%.
  • In economic data:
    • Eurozone's November Manufacturing PMI 45.2, as expected (last 46.0). October Unemployment Rate 6.3%, as expected (last 6.3%)
    • Germany's November Manufacturing PMI 43.0 (expected 43.2; last 43.0)
    • U.K.'s November Nationwide HPI 1.2% m/m (expected 0.2%; last 0.1%); 3.7% yr/yr (expected 2.4%; last 2.4%). November Manufacturing PMI 48.0 (expected 48.6; last 49.9)
    • France's November Manufacturing PMI 43.1 (expected 43.2; last 44.5)
    • Italy's November Manufacturing PMI 44.5 (expected 46.1; last 46.9). October Unemployment Rate 5.8% (expected 6.1%; last 6.0%). Q3 GDP 0.0%, as expected (last 0.0%); 0.4% yr/yr, as expected (last 0.4%)
    • Spain's November Manufacturing PMI 53.1 (expected 53.9; last 54.5)
    • Swiss October Retail Sales 1.4% yr/yr (expected 2.6%; last 1.8%). November procure.ch PMI 48.5 (expected 49.6; last 49.9)
  • In news:
    • There is a growing likelihood that Marine Le Pen's National Rally will support a vote of no-confidence in Prime Minister Barnier if he continues refusing to negotiate the budget for 2025.
    • Final November Manufacturing PMI readings from the region were revised lower with eurozone's reading dropping to 45.2, just above this year's low of 45.0.
    • Standard & Poor's affirmed France's AA- rating with a Stable outlook.