Stock Market Update

The S&P 500 futures are up two points and are trading fractionally above fair value, the Nasdaq 100 futures are down ten points and are trading 0.1% below fair value, and the Dow Jones Industrial Average futures are down 20 points and are trading 0.1% below fair value.

Equity futures are flattish, indicating a mixed start to the session for the major indices. Mega cap names trade in mixed fashion ahead of the open and there's some hesitation in play after the S&P 500 and Nasdaq Composite started the new month at record highs. 

Treasuries are mixed. The 2-yr yield is down two basis points to 4.18% and the 10-yr yield is up one basis point to 4.21%. 

Today's calendar includes the October JOLTS - Job Openings report at 10:00 ET. 

In corporate news:

• Honeywell (HON 227.25, -2.70, -1.2%): signs deal with Bombardier, also lowers Q4 guidance
• Microchip (MCHP 69.50, -0.81, -1.2%): expects Q3 (Dec) revs closer to lower end of previous guidance; announces manufacturing restructuring plans
• U.S. Steel (X 37.85, -3.10, -7.6%): President-elect Trump repeats that he will seek to block Nippon Steel's bid for US Steel
• Tesla (TSLA 354.35, -2.74, -0.8%): CEO Elon Musk's pay package was again rejected by a Delaware judge, according to Bloomberg; China produced electric vehicle sales fall 4.3% in November, according to Reuters
• Zscaler (ZS 194.29, -14.22, -6.8%): beats by $0.14, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY25 EPS above consensus, revs above consensus
• Applied Materials (AMAT 184.35, +1.09, +0.6%): reaffirms guidance for 1Q25 and provides statement regarding updated export regulations for semiconductor technology

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a higher note. Japan's Nikkei: +1.9%, Hong Kong's Hang Seng: +1.0%, China's Shanghai Composite: +0.4%, India's Sensex: +0.7%, South Korea's Kospi: +1.9%, Australia's ASX All Ordinaries: +0.6%.
  • In economic data:
    • Japan's November Monetary Base -0.3% yr/yr (expected 0.2%; last -0.3%)
    • South Korea's November CPI -0.3% m/m (expected -0.1%; last 0.0%); 1.5% yr/yr (expected 1.7%; last 1.3%)
    • Australia's Q3 Current Account deficit AUD14.1 bln (expected deficit of AUD10.3 bln; last deficit of AUD16.4 bln)
    • New Zealand's Q3 Terms of Trade Index 2.4% qtr/qtr (expected 1.2%; last 2.1%)
  • In news:
    • China Securities Times called for additional measures to support the economy in 2025.
    • China's Ministry of Commerce banned exports of germanium, gallium, antimony, and other materials to the U.S.
    • South Korea CPI deflated in November, but the yr/yr rate increased to 1.5% from 1.3% and the Bank of Korea expects the rate to approach 2.0% due to base effects.
    • Australia reported a much larger than expected Current Account deficit for Q3 due to weak prices of iron ore and coal exports.
    • The Chinese yuan reached a 13-month low against the dollar.
• Major European indices trade in the green. STOXX Europe 600: +0.4%, Germany's DAX: +0.4%, U.K.'s FTSE 100: +0.8%, France's CAC 40: +0.3%, Italy's FTSE MIB: +1.1%, Spain's IBEX 35: +0.8%.
  • In economic data:
    • Swiss November CPI -0.1% m/m, as expected (last -0.1%); 0.7% yr/yr (expected 0.8%; last 0.6%)
    • Spain's November Unemployment Change -16,000 (expected 29,300; last 26,800)
  • In news:
    • France's Prime Minister Barnier will face a confidence vote tomorrow that will likely force President Macron to appoint another caretaker prime minister.
    • European Central Bank policymaker Cipollone said that higher tariffs on exports to the U.S. would reduce growth and inflation in the eurozone.