Stock Market Update

The stock market is on track for a flattish open after yesterday's action saw the major averages notch record intraday closing highs before finishing mixed for the day. 

NVIDIA (NVDA 207.02, -0.02, -0.0%) provided the early spark, extending its record-setting push. Stocks barely moved after the FOMC announced its decision to cut the federal funds rate by 25 basis points, though Fed Chair Powell's commentary around further easing threw some cold water on an additional rate cut in December, causing a sharp slide. 

The market received another batch of earnings reports after the close, with mixed price action for the three "magnificent seven" names that reported. 

Additionally, CNBC reports that President Trump and Chinese President Xi's meeting resulted in a trade agreement that will delay Chinese rare earth export controls by one year, a cut in fentanyl-linked tariffs on China by 10%, and the resumption of Chinese purchases of American soybeans. 

Notably, NVIDIA's Blackwell chips were not discussed as part of the agreement. 

In corporate news:

• Alphabet (GOOG 298.66, +23.49, +8.5%) beat EPS by $0.61, beat revenue expectations, and raised its 2025 capex guidance to $91-$93 billion. The company saw its Google Cloud revenue grow 34% year-over-year.
• Eli Lilly (LLY 845.69, +32.16, +4.0%) beat EPS expectations by $1.33, beat revenue expectations, and raised its FY25 EPS and revenue guidance. The company saw worldwide Mounjaro revenue up 109% and U.S. Zepbound revenue up 184%
• Meta Platforms (META 684.84, -66.83, -8.9%) beat EPS expectations by $0.53, beat revenue expectations, and guided Q4 revenue expectations in-line.
• Microsoft (MSFT 531.41, -9.14, -1.7%) beat EPS expectations by $0.46 and beat revenue expectations. The company saw its Azure and other cloud services revenues grow 39% year-over-year.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: -0.7%, India's Sensex: -0.7%, South Korea's Kospi: +0.1%, Australia's ASX All Ordinaries: -0.4%.

In news:

• President Trump met with China's President Xi and agreed to reduce the fentanyl-related tariff to 10%. He said that there is no roadblock when it comes to rare earths and said that he will visit China in April.
• Japan's Prime Minister Takaichi will meet with China's President Xi tomorrow.
• The Hong Kong Monetary Authority followed the Fed's rate cut with a 25-basis point reduction of its own, lowering its policy rate to 4.25%.
• Meanwhile, the Bank of Japan left its rate at 0.50%, which was also expected.

In economic data:

• Singapore's Q3 Unemployment Rate 2.0% (last 2.0%)
• Australia's Q3 Import Price Index -0.4% qtr/qtr (expected -0.3%; last -0.8%); -0.9% qtr/qtr (last -4.5%)
• New Zealand's October ANZ Business Confidence 58.1 (last 49.6)

Major European indices trade in the red ahead of the European Central Bank's latest policy statement at 9:15 ET, which is not expected to call for a rate cut. STOXX Europe 600: -0.5%, Germany's DAX: -0.2%, U.K.'s FTSE 100: -0.7%, France's CAC 40: -0.9%, Italy's FTSE MIB: -0.8%, Spain's IBEX 35: -1.3%.

In news:

• Economic data released today showed a slight GDP beat for the eurozone thanks to above-consensus growth in France.
• In earnings, Shell beat quarterly profit expectations and announced a buyback while Volkswagen reported a loss for the quarter.

In economic data:

• Eurozone's Q3 GDP 0.2% qtr/qtr (expected 0.1%; last 0.1%); 1.3% yr/yr (expected 1.2%; last 1.5%). October Business and Consumer Survey 96.8 (expected 95.7; last 95.6)
• Germany's Q3 GDP 0.0% qtr/qtr, as expected (last -0.3%); 0.3% yr/yr, as expected (last 0.2%). September Unemployment Change -1,000 (expected 8,000; last 13,000)
• France's Q3 GDP 0.5% qtr/qtr (expected 0.2%; last 0.3%); 0.9% yr/yr (expected 0.6%; last 0.7%). September Consumer Spending 0.3% m/m (expected 0.0%; last 0.2%). October Unemployment Rate 6.3%, as expected (last 6.3%)
• Italy's Q3 GDP 0.0% qtr/qtr (expected 0.1%; last -0.1%); 0.4% yr/yr (expected 0.6%; last 0.4%). September Unemployment Rate 6.1% (expected 6.0%; last 6.0%). August Industrial Sales -0.7% m/m (last 0.4%); -0.1% yr/yr (last 1.2%)
• Spain's October CPI 0.7% m/m (last -0.3%); 3.1% yr/yr (expected 2.9%; last 3.0%). October Core CPI 2.5% yr/yr (last 2.4%)
• Swiss October KOF Leading Indicators 101.3 (expected 98.4; last 98.0)