Stock Market Update

Equity futures point to a modestly higher opening this morning after yesterday's action saw the major averages finish higher amid strength in tech names. The Nasdaq Composite entered positive territory for the week, while Monday's weakness keeps the S&P 500 and DJIA seated with modest losses for the week. 

Stocks were subject to some intraday choppiness yesterday, and the action came on relatively low volume, suggesting a lack of conviction among investors. 

Investors received another round of earnings reports from tech companies after the close yesterday, most of which exceeded expectations. Marvell Technology (MRVL 101.87, +8.98, +9.7%) is an early standout in the premarket after an EPS beat and headlines that the company will acquire Celestial AI. 

The market will also receive a sizable batch of data this morning, including the November ADP Employment Change (Briefing.com consensus 20,000; prior 42,000) at 8:15 ET and November ISM Services (Briefing.com consensus 52.4%; prior 52.4%) at 10:00 ET.

The MBA Mortgage Applications Index for the week ended November contracted 1.4%, from a prior increase of 0.2%. 

On the policy front, the market's expectations for a December rate cut are holding steady at a probability just under 90%, according to the CME FedWatch tool. The Wall Street Journal reported that the Trump administration has canceled interviews for the role of Fed Chair because President Trump suggested Kevin Hassett will get the job.

In corporate news:

• Anthropic hired lawyers to work on an IPO, according to Financial Times. 
• CrowdStrike (CRWD 512.00, -4.55, -0.9%) beat EPS expectations by $0.02, beat revenue expectations, and guided Q4 EPS above consensus, with revenues in-line. 
• Macy's (M 21.20, -1.51, -6.7%) beat EPS expectations by $0.22, beat revenue expectations, and raised its FY26 EPS expectations to in-line, with revenues above consensus. 
• Marvell Technology (MRVL 101.87, +8.98, +9.7%) beat EPS expectations by $0.02, reported revenues in-line, and guided Q4 EPS and revenues in-line. The company is set to acquire Celestial AI.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan's Nikkei: +1.1%, Hong Kong's Hang Seng: -1.3%, China's Shanghai Composite: -0.5%, India's Sensex: UNCH, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: +0.2%.

In news:

• Australia reported below-consensus growth for Q3, but the country's debt still retreated after Reserve Bank of Australia Governor Bullock said that inflation has surprised to the upside and the economy could be running ahead of potential.
• The Chinese government is reportedly looking for ways to boost demand for tourism and aviation.

In economic data:

• China's November RatingDog Services PMI 52.1, as expected (last 52.6)
• Japan's November Services PMI 53.2 (expected 53.1; last 53.1)
• South Korea's Q3 GDP 1.3% qtr/qtr (expected 1.2%; last 0.7%); 1.8% yr/yr (expected 1.7%; last 0.6%)
• India's November Services PMI 59.8 (expected 59.5; last 58.9)
• Hong Kong's November Manufacturing PMI 52.9 (last 51.2) Australia's Q3 GDP 0.4% qtr/qtr (expected 0.7%; last 0.7%); 2.1% yr/yr (expected 2.2%; last 2.0%). November Services PMI 52.8 (expected 52.7; last 52.5)

Major European indices trade on a mostly higher note. STOXX Europe 600: +0.2%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.7%, Spain's IBEX 35: +1.7%.

In news:

• Final November Services PMI readings from the region were mostly better than expected with all major economies seeing an expansion of activity and Spain maintaining its lead.
• Airbus lowered its deliveries outlook for the year.
• Germany's Economy Minister said that economic growth in 2026 and 2027 is possible if investments are made in infrastructure.
• The EU Council has agreed on a plan to end imports of Russian gas by 2027.

In economic data:

• Eurozone's November Services PMI 53.6 (expected 53.1; last 53.0). October PPI 0.1% m/m, as expected (last -0.1%); -0.5% yr/yr (expected -0.4%; last -0.2%)
• Germany's November Services PMI 53.1 (expected 52.7; last 54.6)
• U.K.'s November Services PMI 51.3 (expected 50.5; last 52.3)
• France's November Services PMI 51.4 (expected 50.8; last 48.0)
• Italy's November Services PMI 55.0 (expected 53.9; last 54.0)
• Spain's November Services PMI 55.6 (expected 56.3; last 56.6)
• Swiss November CPI -0.2% m/m (expected -0.1%; last -0.3%)