Stock Market Update

The S&P 500 futures are down 21 points and are trading 0.3% below fair value, the Nasdaq 100 futures are down 82 points and are trading 0.3% below fair value, and the Dow Jones Industrial Average futures are down 135 points and are trading 0.3% below fair value.

Contracts linked to the S&P 500, Nasdaq 100, and Dow industrials are lower. Pre-open declines in mega ca stocks have contributed to the negative bias, along with a move higher in yields. The 10-yr yield is up two basis points to 4.60% and the 2-yr yield is unchanged at 4.33%.

Today's economic lineup features the advance reading of Wholesale Inventories and Retail Inventories in November at 8:30 ET.

In corporate news:

• Walt Disney (DIS 112.28, -0.27, -0.2%): NBA announces that "Christmas Day viewership increases 84% vs. last year, averaging 5.25 million viewers per game in the US"
• Netflix (NFLX 919.97, -4.17, -0.5%): delivers the two most streamed NFL games in US history with an average audience of over 24 mln viewers each, highlighted by Beyonce's epic halftime performance
• Estee Lauder (EL 74.64, -0.36, -0.5%): initiated with a Market Perform at CICC, tgt $82
• Tencent Music (TME 12.05, +0.13, +1.1%): upgraded to Buy from Hold at 86Research

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region were mostly higher Friday. Japan's Nikkei: +1.8% (+4.0% for the week), Hong Kong's Hang Seng: flat (+1.9% for the week), China's Shanghai Composite: +0.1% (+0.9% for the week), India's Sensex: +0.3% (+0.8% for the week), South Korea's Kospi: -1.0% (flat for the week), Australia's All Ordinaries: +0.6% (+2.5% for the week).
  • In economic data:
    • Japan's Tokyo CPI 3.0% yr/yr (last 2.6%) and Core CPI 2.4% yr/yr (expected 2.5%; last 2.2%); November Unemployment Rate 2.5% (expected 2.5%; last 2.5%); November Industrial Production -2.3% m/m (expected -3.4%; last 2.8%); November Retail Sales 2.8% yr/yr (expected 1.5%; last 1.3%); November Housing Starts -1.8% yr/yr (expected -0.1%; last -2.9%)
    • China's November Industrial Profit -7.3% yr/yr (last -10.0%) and -4.7% year-to-date (last -4.3%)
  • In news:
    • Japan's Nikkei (+1.8%) climbed back above 40,000 for the first time since October, energized by the BOJ's Summary of Opinions from its December meeting that conveyed a willingness to be patient before raising rates again. That patience could be tested, though, with a data dump Friday that featured an acceleration in Tokyo CPI and stronger-than-expected November retail sales.
    • Japan's Cabinet approved a record JPY115.5 trillion budget for FY25/26.
    • The lone release out of China showed the fourth straight decline in industrial profits, raising more questions about the effectiveness of China's stimulus efforts.
    • South Korea's Kospi (-1.0%) and currency continued to be rattled by political uncertainty with acting President Han Duck-Soo also getting impeached.
    • Finance Minister Choi to step in as acting president.
• Major European indices returned from the Christmas and Boxing Day breaks with a mostly positive disposition. STOXX Europe 600: +0.4% (+0.7% for the week), Germany's DAX: +0.5% (+0.3% for the week), U.K.'s FTSE 100: +0.1% (+0.8% for the week), France's CAC 40: +0.7% (+0.8% for the week), Italy's FTSE MIB: +1.0% (+0.9% for the week), Spain's IBEX 35: +0.2% (+0.3% for the week).
  • In economic data:
    • Spain's November Retail Sales 1.0% yr/yr (expected 2.8%; last 3.4%)
  • In news:
    • Participation still on the light side with key corporate and economic news lacking.
    • Spain's retail sales in November were weaker than expected.
    • Russian President Putin rejected calls for an immediate ceasefire in Ukraine War, but says he is ready for talks with President-elect Trump on a long-term peace agreement, according to Bloomberg.