Stock Market Update

Equity futures point to a flat opening this morning, which is unsurprising given the market will close early at 1:00 p.m. ET for Christmas Eve. 

Yesterday's action came on lower-than-average volume, though mega-cap tech names were among the outperformers, which helped push the S&P 500 to a record closing high (6,909.79). 

A surprise in the advance Q3 GDP reading (4.3%; Briefing.com consensus 3.0%) further dimmed the market's already low expectations of additional Fed easing in the near term, though the data painted a solid picture of economic growth, helping to lift AI and other growth stocks. 

Headlines are quiet this morning, though market participants will receive the weekly initial claims report at 8:30 a.m. ET (Briefing.com consensus 226k).

The MBA Mortgage Applications Index for the week ended December 13 decreased 5.0%, from a prior decrease of 3.8%.

In corporate news:

• A federal judge sided with the Trump administration over H1B Visa $100,000 fee, according to Politico. 
• BP (BP 34.46, -0.12, -0.4%) is nearing an agreement to sell a majority controlling interest in Castrol to the investment firm Stonepeak. 
• Snowflake (SNOW 224.80, -0.30, -0.1%) is in discussions to acquire Observe, according to The Information. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly lower showing on Wednesday, but overall movement was limited. Japan's Nikkei: -0.1%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: +0.5%, India's Sensex: -0.1%, South Korea's Kospi: -0.2%, Australia's ASX All Ordinaries: -0.3%.

In news:

• BlackRock may abandon the Panama ports deal due to China's demand for a majority stake for its main shipping company.
• Japan's 30-yr yield briefly hit a fresh high for the year at 3.40% after it was confirmed that debt issuance in fiscal 2026 will reach a record of JPY29.6 trln.
• Rate hike expectations for the Bank of Japan have receded with the likelihood of a hike by June sitting around 57%.

In economic data:

• Japan's November Corporate Services Price Index 2.7% yr/yr, as expected (last 2.7%). November Leading Index 109.8 (expected 11.0; last 108.6)
• South Korea's December Consumer Confidence 109.9 (last 112.4)

Equity markets in Germany, Italy, and Switzerland are closed for Christmas Eve while the U.K.'s FTSE just closed early. Markets in Spain and France will also close in about 90 minutes, making for a quiet session overall. STOXX Europe 600: +0.4%, Germany's DAX: CLOSED, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.1%, Italy's FTSE MIB: CLOSED, Spain's IBEX 35: +0.1%.

In news:

• The French parliament passed a bill to keep the government running until an agreement is made on a budget for 2026 with the original deadline just a week away.

There is no economic data of note today.