Stock Market Update

The S&P 500 futures are down one point and are trading fractionally below fair value, the Nasdaq 100 futures are down five points and are trading fractionally below fair value, and the Dow Jones Industrial Average futures are down eight points and are trading fractionally below fair value.

Contracts tied to the S&P 500, Nasdaq 100, and Dow industrials are flat after the three major indices recorded all-time highs yesterday. Earnings news since ysterday's close has garnered mixed responses, contributing to the lackluster action this morning.

PVH (PVH), Synopsys (SNPS), and SentinelOne (S) are lower ahead of the open in response to disappointing earnings or guidance while retailers Five Below (FIVE) and Dollar General (DG) sport pre-open gains after reporting quarterly results. 

The mixed disposition this morning also reflects some hesitation in front of Friday's Employment Situation report for November at 8:30 ET. Today's data include the weekly jobless claims report and October Trade Balance at 8:30 ET.

Treasury yields are higher in front of the data, keeping buying in check in equities. The 10-yr yield is up three basis points to 4.21% and the 2-yr yield is up three basis points to 4.15%.

Bitcoin moved above $100,000 (at $102,823 currently) after President-elect Trump elected Paul Atkins to run the Securities and Exchange Commission. Mr. Atkins is skeptical of the SEC's handling of cryptocurrency firms and is expected to take a more market-friendly approach, according to The Wall Street Journal. 

In corporate news:

• Costco (COST 992.86, +1.94, +0.2%): reports adjusted comps of +4.9% for November
• PVH (PVH 105.73, -7.13, -6.3%): beats by $0.44, beats on revs; guides Q4 EPS below consensus, revs below consensus
• Synopsys (SNPS 539.00, -49.00, -8.3%): beats by $0.10, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY25 EPS in-line, revs below consensus
• Five Below (FIVE 119.36, +14.39, +13.7%): beats by $0.25, beats on revs, comps +0.6%; guides Q4 EPS in-line, revs in-line; names Winnie Park as CEO
• American Eagle (AEO 17.81, -2.73, -13.3%): beats by $0.02, reports revs in-line; guides FY25 revs below consensus
• SentinelOne (S 24.33, -4.35, -15.2%): misses by $0.01, reports revs in-line; guides Q4 revs above consensus; guides FY25 revs above consensus
• Dollar General (DG 81.00, +1.50, +1.9%): misses by $0.05, reports revs in-line; lowers upper end of FY25 EPS guidance, narrows net sales and same-store sales guidance ranges

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: -0.9%, China's Shanghai Composite: +0.1%, India's Sensex: +1.0%, South Korea's Kospi: -0.9%, Australia's ASX All Ordinaries: +0.2%.
  • In economic data:
    • South Korea's Q3 GDP 0.1% qtr/qtr (expected 0.5%; last 0.1%); 1.5% yr/yr, as expected (last 1.5%)
    • Singapore's October Retail Sales 0.1% m/m (last 0.4%); 2.2% yr/yr (last 1.9%)
    • Australia's October trade surplus AUD5.95 bln (expected surplus of AUD4.53 bln; last surplus of AUD4.53 bln). October Imports 0.1% m/m (last -2.8%) and Exports 3.6% m/m (last -4.7%)
  • In news:
    • Expectations for a December rate hike from the Bank of Japan receded after BoJ policymaker Nakamura said that inflation could fall below the 2.0% target from fiscal 2025 and that he is skeptical about the sustainability of wage growth.
    • Ongoing demand for Chinese debt pressured China's 10-yr yield to a fresh record low of 1.941%.
    • South Korea's President Yoon is likely to face an impeachment vote this weekend.
    • Meanwhile, South Korea's metal workers union threatened to go on strike on Wednesday until President Yoon resigns from office.
• Major European indices trade on a mostly higher note while the U.K.'s FTSE (-0.1%) underperforms amid weakness in consumer and energy names. STOXX Europe 600: +0.3%, Germany's DAX: +0.6%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.9%, Spain's IBEX 35: +1.2%.
  • In economic data:
    • Eurozone's October Retail Sales -0.5% m/m (expected -0.4%; last 0.5%): 1.9% yr/yr (expected 1.7%; last 3.0%)
    • Germany's October Factory Orders -1.5% m/m (expected -2.0%; last 4.2%)
    • U.K.'s November Construction PMI 55.2 (expected 53.5; last 54.3)
    • France's October Industrial Production -0.1% m/m (expected 0.3%; last -0.8%)
    • Spain's October Industrial Production 1.9% yr/yr (expected 0.3%; last 1.1%)
    • Swiss November Unemployment Rate 2.6% (expected 2.7%; last 2.6%)
  • In news:
    • The Bank of England's Decision Maker Panel raised its year-ahead CPI forecast to 2.7% from 2.5% while the three-year outlook remained at 2.6%.
    • France's Prime Minister Barnier resigned today, but he is likely to remain interim prime minister until President Macron names a successor.
    • French banks are having a strong showing today on the expectation that tax hikes that were proposed in the budget will not be implemented.
    • European Central Bank policymaker Kazaks said that a rate cut should be made next week.
    • Italy's Stats Agency lowered its domestic growth forecast for 2024 to 0.5% from 1.0% while the outlook for 2025 was reduced to 0.8% from 1.1%.