Stock Market Update

Equity futures point to a modestly higher open after yesterday's session marked the consecutive winning session for the S&P 500. 

The major averages reclaimed their 50-day moving averages as stocks mounted a broad advance, though a flat finish by the top-weighted information technology sector limited gains at the index level. 

Stocks continue to benefit from the recent surge in expectations for a December rate cut following dovish commentary from Fed officials. 

The market received a sizable batch of economic data yesterday, most of which was relatively in line with expectations. Weekly jobless claims data, durable orders for September, and the Fed's Beige Book are on the docket today.

The MBA Mortgage Applications Index for the week ended November 22 increased 0.2%, from a prior decrease of 5.2%. 

In corporate news:

• The Thanksgiving travel period will be the busiest in 15 years, according to CNN.
• President Trump says some type of Affordable Care Act subsidy extension could be required to reach a deal on healthcare, according to The Hill.
• Deere (DE 471.32, -26.81, -5.4%) beat EPS expectations by $0.08 and beat revenue expectations. 
• Dell (DELL 132.26, +6.34, +5.0%) beat EPS expectations by $0.12, reported revenues in-line, and guided Q4 EPS and revenues above consensus. 
• Tesla (TSLA 425.18, +5.78, +1.4%) car sales continue to struggle, according to Reuters

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +1.9%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: -0.2%, India's Sensex: +1.2%, South Korea's Kospi: +2.7%, Australia's ASX All Ordinaries: +0.9%.

In news:

• Press reports from Japan suggested that the Bank of Japan could announce its next rate hike at the December meeting with the market growing more confident that the hike will be announced before the end of January.
• A large Japanese seafood company announced price hikes on its frozen products.
• The Reserve Bank of New Zealand lowered its cash rate by 25 basis points to 2.25%, as expected. The central bank noted that it sees risks as balanced at this time, leaving the option of another rate cut on the table for 2026.
• The Bank of Korea will release its latest statement overnight, but the policy rate is expected to remain at 2.50%.

In economic data:

• Japan's October Corporate Services Price Index 2.7% yr/yr, as expected (last 3.1%) and September BoJ Core CPI 2.2% yr/yr, as expected (last 2.1%). September Leading Index 108.6 (expected 108.0; last 107.0)
• South Korea's November Business Confidence 70 (last 68)
• Singapore's October Industrial Production 11.5% m/m (expected -3.5%; last 26.4%); 29.1% yr/yr (expected 9.5%; last 16.2%)
• Australia's Q3 Construction Work Done -0.7% qtr/qtr (expected 0.2%; last 2.9%). October CPI 0.0% m/m (last 0.5%); 3.8% yr/yr (last 3.6%)

Major European indices trade modestly higher. STOXX Europe 600: +0.5% Germany's DAX: +0.4% U.K.'s FTSE 100: +0.1% France's CAC 40: +0.5% Italy's FTSE MIB: +0.5% Spain's IBEX 35: +0.4%.

In news:

• British Chancellor Reeves is expected to call for GBP30 bln in new revenue during her Autumn budget statement that is scheduled to begin at 7:30 ET.
• European Central Bank policymaker Vujcic said that risks to growth and inflation are balanced at this time while policymaker De Guindos said that trade uncertainty has receded.
• The International Monetary Fund voiced concern that the German economy is at risk of undershooting growth expectations without reforms.

In economic data:

• Swiss November ZEW Expectations 12.2 (last -7.7)