Stock Market Update

Equity futures point to a slightly higher open this morning after yesterday's action saw mega-cap and tech names push the major averages to fresh record highs. 

Earnings reports have ramped up, with roughly one-third of all S&P 500 names set to report this week. Investors are currently receiving a hefty batch of reports this morning, though they will not see any mega-cap reports until tomorrow. 

Tomorrow also brings forth the October FOMC meeting, at which the market largely expects a 25-basis-point rate cut, which has served as an additional tailwind. 

Until then, investors had a wide swath of earnings to peruse, as well as the 10:00 ET release of the October Consumer Confidence Report (Briefing.com consensus: 94.2). 

On the trade front, President Trump has reiterated his belief that his Thursday meeting with Chinese President Xi will go well.

In corporate news:

• D.R. Horton (DHI 151.25, -7.61, -4.8%) missed EPS expectations by $0.23, beat revenue expectations, and guided FY26 revenue expectations in-line. 
• PayPal (PYPL 80.27, +10.02, +14.3%) beat EPS expectations by $0.14, beat revenue expectations, and guided Q4 EPS in-line. The company partnered with OpenAI to power instant checkout and agentic commerce in ChatGPT.
• UnitedHealth (UNH 378.80, +12.82, +3.5%) beat EPS expectations by $0.12, reported revenues in-line, and raised FY25 EPS above consensus.
• United Parcel Service (UPS 98.60, +9.38, +10.5%) beat EPS expectations by $0.44, beat revenue expectations, and guided Q4 revenues above expectations.

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region ended Tuesday on a lower note. Japan's Nikkei: -0.6%, Hong Kong's Hang Seng: -0.3%, China's Shanghai Composite: -0.2%, India's Sensex: -0.2%, South Korea's Kospi: -0.8%, Australia's ASX All Ordinaries: -0.6%.

In news:

• President Trump met with Japan's Emperor Naruhito and Prime Minister Takaichi. The two sides said that they are working toward a new golden age for the U.S.-Japan alliance.
• Press reports from Japan suggest that about ten companies have expressed interest in about $400 bln worth of investment projects in the U.S.
• Reserve Bank of Australia Governor Bullock said that current RBA policy remains a bit restrictive.

In economic data:

• Japan's September BoJ Core CPI 2.1% yr/yr, as expected (last 2.0%)
• South Korea's flash Q3 GDP 1.2% qtr/qtr (last 0.7%); 1.7% yr/yr (expected 0.9%; last 0.6%). October Consumer Confidence 109.8 (last 110.1)
• India's September Industrial Production 4.0% yr/yr (last 4.0%) and Manufacturing Output 4.8% m/m (last 3.8%)

Major European indices trade near their flat lines. STOXX Europe 600: -0.3%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: UNCH.

In news:

• Germany's consumer confidence weakened in November, reflecting continued sluggishness in the overall economy.
• The European Central Bank's Q3 lending survey showed slight tightening in overall credit standards.
• The French government paved the way for higher corporate taxes on large companies.
• BNP Paribas missed profit expectations for Q3.

In economic data:

• Germany's November GfK Consumer Climate -24.1 (expected -22.0; last -22.5)
• Italy's October Business Confidence 88.3 (expected 87.5; last 87.4) and Consumer Confidence 97.6 (last 96.8)