Stock Market Update

Equity futures point to a mostly lower open this morning as a revenue miss from Oracle (ORCL 195.54, 27.52, -12.3%) puts pressure on other AI names this morning. 

The stock market is coming off its strongest session of the week, with the major averages posting broad-based gains after stocks rallied on the FOMC's 25-basis-point rate cut. Even more important to the advance, Fed Chair Jerome Powell's commentary during the press conference portion of the meeting struck a more dovish tone than what the market expected. 

The major averages now sit well within striking distance of their record high levels, though weakness in tech names this morning makes an opening push to these levels a much harder task than what it appeared yesterday afternoon. 

In Washington, NBC News reports that the Senate will vote on a Democratic plan to extend Affordable Care Act subsidies today, while Republicans will vote on another healthcare plan. Both bills are likely to fail, which means the subsidies will expire. 

Investors have a handful of earnings releases to evaluate alongside Oracle's, along with a couple of economic data releases to look forward to this morning. The market will receive initial jobless claims data and the trade balance for September at 8:30 a.m. ET. 

In corporate news: 

• Taiwan is investigating leaks of chip technology, according to Financial Times.
• Adobe (ADBE 341.43, -1.70, -0.5%) beat EPS expectations by $0.10, beat revenue expectations, guided Q1 EPS above consensus with revenues above consensus, and guided FY26 EPS in-line, with revenues above consensus.
• Eli Lilly (LLY 997.00, +3.36, +0.3%) announced positive topline results for the GLP-1 retatruide.
• Oracle (ORCL 195.54, 27.52, -12.3%) beat EPS expectations by $0.62 but missed revenue expectations. The company's remaining performance obligations (RPO) grew 15% sequentially to $523 billion. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: -0.7%, India's Sensex: +0.5%, South Korea's Kospi: -0.6%, Australia's ASX All Ordinaries: +0.1%.

In news:

• Australia's employment decreased unexpectedly in November, but the Unemployment Rate remained at 4.3% as the Participation rate fell to 66.7% from 66.9%.
• Japan sold 20-yr JGBs to solid demand.
• The Japanese government plans to offer corporate tax credits on some investments and lower the threshold for the income tax on the wealthiest individuals.
• South Korea's exports were up 17.3% yr/yr through the first ten days of December with chip shipments jumping 45.9%.
• The Hong Kong Monetary Authority followed yesterday's rate cut from the FOMC with its own 25-basis point reduction to 4.00%.

In economic data:

• Japan's Q4 BSI Large Manufacturing Conditions 4.7 (expected 4.1; last 3.8)
• Australia's November Employment Change -21,300 (expected 20,000; last 41,100) and full employment change -56,500 (last 55,300). November Unemployment Rate 4.3% (expected 4.4%; last 4.3%) and Participation Rate 66.7% (expected 67.0%; last 66.9%)
• New Zealand's Q3 Manufacturing Sales Volume 1.1% qtr/qtr (last -2.8%)
• Singapore's Q3 Unemployment Rate 2.0%, as expected (last 2.0%)

Major European indices trade in the green. STOXX Europe 600: +0.3% Germany's DAX: +0.3% U.K.'s FTSE 100: +0.1% France's CAC 40: +0.5% Italy's FTSE MIB: +0.4% Spain's IBEX 35: +0.7%.

In news:

• Volkswagen is expected to decide today how to spend its five-year EUR160 bln investment budget.
• German Chancellor Merz is reportedly trying to organize a meeting on Ukraine sometime next week.
• The Swiss National Bank left its policy rate at 0.00%, as expected. The central bank did not rule out cutting rates into negative territory if needed.

In economic data:

• Italy's Q3 Unemployment Rate 6.1% (expected 6.3%; last 6.3%)