Stock Market Update

Equity futures point to a higher opening this morning as the major averages look to rebound from two consecutive retreating sessions. Despite relatively strong breadth figures yesterday, the major averages finished lower as mega-cap tech names significantly weighed on the market. 

Tech names look to stir the bounce off of yesterday's lows, with chipmakers advancing in the premarket after Taiwan Semiconductor Manufacturing (TSM 347.51, +20.40, +6.2%) posted a strong earnings report that included upside guidance for Q1 and a capital budget between $52 billion and $56 billion amid strong AI-driven demand. 

In other earnings news, the market is currently receiving another batch of earnings reports from major investment banking names this morning. Banking stocks weighed on the market after yesterday's batch of earnings reports, though the financials sector finished just modestly lower for the day. Notably, credit card names had a better session after several days of retreat that followed President Trump's call for a one-year 10% interest rate cap on credit cards. 

Elsewhere, a backdrop of geopolitical developments contributes a smattering of market-moving headlines. Oil prices are moving sharply lower after Reuters reports that President Trump said he has received assurances that Iran has stopped killing protestors. The threat of U.S. intervention saw oil prices steadily rise throughout the week. 

In corporate news:

• BlackRock (BLK 1,112.00, +20.15, +1.9%) beat EPS expectations by $0.92, beat revenue expectations, and raised its dividend. 
• Chevron (CVX 165.75, -1.49, -0.9%) is expected to receive an expanded Venezuelan production license this week, according to Reuters.
• Goldman Sachs (GS 935.00, +2.33, +0.3%) beat EPS expectations by $2.31, missed revenue expectations, and increased its dividend to $4.50 per share from $4.00 per share. 
• Morgan Stanley (MS 184.30, +3.52, +2.0%) beat EPS expectations by $0.25 and reported revenues in-line. 
• Taiwan Semiconductor Manufacturing (TSM 347.51, +20.40, +6.2%) reported Q4 earnings of $3.14 per share, with revenues rising 25.5% to $33.73 billion. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Thursday while markets in India were closed for Election Day. Japan's Nikkei: -0.4%, Hong Kong's Hang Seng: -0.3%, China's Shanghai Composite: -0.3%, India's Sensex: CLOSED, South Korea's Kospi: +1.6%, Australia's ASX All Ordinaries: +0.4%.

In news: 

• U.S. Treasury Secretary Bessent said that recent weakness in the Japanese yen and the Korean won do not match the fundamental standing of the two economies.
• There was some speculation that South Korea may not be able to reach its annual $20 bln investment target in the U.S.
• Shipper Matson said that cargo flow from China saw higher than expected rates and volume.
• The Bank of Korea left its policy rate at 2.50%, as expected.

In economic data:

• China's December New Loans CNY910.0 bln (expected CNY820.0 bln; last CNY390.0 bln). December Outstanding Loan Growth 6.4% yr/yr (expected 6.3%; last 6.4%) and total social financing CNY2.21 trln (expected CNY2.00 trln; last CNY2.49 trln)
• Japan's December PPI 0.1% m/m, as expected (last 0.3%); 2.4% yr/yr, as expected (last 2.7%)
• South Korea's December trade surplus $12.17 bln (expected surplus of $12.18 bln; last surplus of $9.74 bln). December Imports 4.6% yr/yr, as expected (last 1.1%) and Exports 13.3% yr/yr (expected 13.4%; last 8.4%)
• India's December trade deficit $25.04 bln (last deficit of $24.53 bln)
• Australia's MI Inflation Expectations 4.6% (last 4.7%)

Major European indices are mixed. STOXX Europe 600: +0.5%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +0.5%, France's CAC 40: -0.2%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: -0.3%. 

In news:

• The U.K. reported strong growth for November with some analysts speculating that the modest momentum could have carried into the start of this year.
• Shipper Maersk said that it will resume transits through the Trans-Suez route during the last week of January, marking a normalization of global shipping routes.
• The French government survived two votes of confidence over a trade deal between EU and South America.

In economic data:

• Eurozone's November trade surplus EUR9.9 bln (expected surplus of EUR14.8 bln; last surplus of EUR17.9 bln). November Industrial Production 0.7% m/m (expected 0.5%; last 0.7%); 2.5% yr/yr (expected 2.0%; last 1.7%)
• Germany's December WPI -0.2% m/m (expected 0.2%; last 0.3%); 1.2% yr/yr (last 1.5%). 2025 GDP 0.2% (last 0.2%).
• U.K.'s November GDP 0.3% m/m (expected 0.1%; last -0.1%); 1.4% yr/yr (expected 1.1%; last 1.1%). November Manufacturing Production 2.1% m/m (expected 0.4%; last 0.4%); +2.1% yr/yr (expected -0.3%; last -0.2%), November Industrial Production 1.1% m/m (expected 0.2%; last 1.3%); 2.3% yr/yr (expected -0.4%; last 0.4%), November Construction Output -1.3% m/m (expected -0.3%; last -1.2%); -1.1% yr/yr (expected 0.1%; last 0.9%)
• France's December CPI 0.1% m/m, as expected (last 0.1%); 0.8% yr/yr, as expected (last 0.9%)
• Italy's November Industrial Production 1.5% m/m (expected 0.6%; last -1.0%); 1.4% yr/yr (expected -0.6%; last -0.2%). November trade surplus EUR5.078 bln (expected surplus of EUR5.220 bln; last surplus of EUR4.183 bln)
• Spain's December CPI 0.3% m/m, as expected (last 0.0%); 2.9% yr/yr, as expected (last 3.0%)