Stock Market Update

Equity futures point to a modestly lower opening after yesterday's rally, which saw mega-cap names surge higher against a backdrop of solid participation from the broader market. 

News of the Senate passing a procedural vote to fund the government and end the ongoing shutdown provided an early boost to sentiment, though the day was largely devoid of any directional catalysts. 

This morning is also quiet from a headline perspective, with several of the mega-cap names that drove yesterday's gains seeing some profit-taking in the premarket after a solid advance.

Yesterday's rally showed renewed confidence in the AI trade, with chipmakers among the top performers. Investors will look to Advanced Micro Devices' (AMD 243.00, -1.0%, -0.4%) financial analyst day event today, with Reuters reporting the company is expected to outline its chip business plan during the event. 

Elsewhere, earnings continue to slow down as November progresses, and data releases remain slim as the government is still shut down. 

The October NFIB Small Business Optimism Index registered at 98.2 (Briefing.com consensus 98.3) from a prior reading of 98.8. 

The Treasury market will be closed for the Veterans Day holiday. 

In corporate news:

• China plans to ease the flow of rare earths to the U.S. but will exclude companies with connections to the U.S. military, according to The Wall Street Journal. 
• CoreWeave (CRWV 95.21, -10.40, -9.9%) reported a loss of $0.22 per share, which may not be comparable to the FactSet Consensus of ($0.40). The company beat on revenues but guided FY25 revenues below consensus. 
• SoftBank sold all of its shares of NVIDIA (NVDA 195.11, -3.94, -2.0%) for $5.8 billion. 
• Sony Group (SONY 29.27, +1.30, +4.7%) beat revenue expectations and guided FY26 revenues in-line. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: -0.1%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: -0.4%, India's Sensex: +0.4%, South Korea's Kospi: +0.8%, Australia's ASX All Ordinaries: -0.1%.

In news:

• Japan's Prime Minister Takaichi is planning a multi-year budget commitment to increase investment.The prime minister wants to increase revenue without raising taxes.
• South Korea's exports through the first ten days of November were up 6.4% yr/yr with chip exports jumping 17.7%.
• Australia's consumer confidence reached a seven-year high in November while Business Confidence reached an 18-month high.

In economic data:

• Japan's October Bank Lending 4.1% yr/yr (expected 3.8%; last 3.8%) and October Economy Watchers Current Index 49.1 (expected 47.5; last 47.1). September Current Account surplus JPY4.48 trln (expected surplus of JP2.47 trln; last surplus of JPY3.70 trln)
• Australia's November Westpac Consumer Sentiment 12.8% (last -3.5%). October NAB Business Confidence 6 (last 7) and October NAB Business Survey 9 (last 8)
• New Zealand's Inflation Expectations 2.3% qtr/qtr (last 2.3%)

Major European indices trade in the green. STOXX Europe 600: +0.6%, Germany's DAX: +0.1% U.K.'s FTSE 100: +0.7%, France's CAC 40: +0.8%, Italy's FTSE MIB: +0.8%, Spain's IBEX 35: +0.6%.

In news: 

• The U.K.'s Unemployment rate for September reached its highest level since late 2020, boosting expectations for a December rate cut from the Bank of England.
• A handful of European Central Bank policymakers said that risks and inflation are currently balanced.
• The latest policy Minutes from Sweden's Riksbank showed confidence among policymakers that the current rate path is holding up well.

In economic data:

• Eurozone's November ZEW Economic Sentiment 25.0 (expected 23.5; last 22.7)
• Germany's November ZEW Economic Sentiment 38.5 (expected 41.0; last 39.3) and ZEW Current Conditions -78.7 (expected -77.5; last -80.0)
• U.K.'s September Average Earnings Index + Bonus 4.8%yr/yr (expected 5.0%; last 5.0%). October Claimant Count change 29,000 (expected 17,600; last 400) and September three-month employment change -22,000 (last 91,000). September Unemployment Rate 5.0% (expected 4.9%; last 4.8%)