Stock Market Update

Equity futures point to a higher open this morning after a somewhat tumultuous week characterized by weakness across the mega-caps, though some late-week resilience kept the S&P 500 from closing under its 50-day moving average (6,669.00).

Futures are boosted this morning by reports that the Senate has advanced a procedural measure by a vote of 60-40 to reopen and fund the government through January 30th. While Politico reports that the final passing of the bill will likely be delayed by several days, the market is enthused by a possible end to a shutdown that prevented the release of several key date reports and weighed on sentiment. 

Importantly, many of the mega-cap tech names that slipped last week are higher in the pre-market. 

Investors will not receive any economic data of note, though that is simply because there are no releases scheduled for today. 

Meanwhile, a moderate slate of companies reported earnings before the open, though reports will become increasingly slimmer through the week as Q3 earnings are now largely in the rearview. 

In corporate news:

• China ends the ban on gallium, germanium & antimony exports to the U.S., according to Reuters.
• NVIDIA (NVDA 194.07, +5.92, +3.2%) CEO Jensen Huang expects strong demand for Blackwell chips, according to Reuters. The company has also asked TSMC (TSM 293.10, +6.60, +2.3%) for additional wafers, according to Bloomberg. 
• Novo Nordisk (NVO 46.33, +0.65, +1.4%) is turning attention to other targets after losing a bidding war for Metsera (MTSR 70.35, -12.83, -15.4%), according to Bloomberg. 

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region began the week on a broadly higher note. Japan's Nikkei: +1.3%, Hong Kong's Hang Seng: +1.6%, China's Shanghai Composite: +0.5%, India's Sensex: +0.4%, South Korea's Kospi: +3.0%, Australia's ASX All Ordinaries: +0.9%.

In news:

• China's CPI was a bit hotter than expected in October, lifting the yr/yr rate out of deflation (to 0.2% from -0.3%), while PPI remained in deflation, falling 2.1% yr/yr.
• Separately, the Chinese government relaxed export restrictions on some rare earth metals.
• The Bank of Japan's latest Summary of Opinions showed that policymakers see the need for continued wage hikes from companies.

In economic data:

• China's October CPI 0.2% m/m (last 0.1%); 0.2% yr/yr (expected 0.0%; last -0.3%). October PPI -2.1% yr/yr (expected -2.3%; last -2.3%)
• Japan's September Leading Index 108.0 (expected 107.9; last 107.0) and Coincident Indicator 1.8% m/m (last -1.3%)
• Australia's September Building Approvals 12.0% m/m, as expected (last -3.6%) and Private House Approvals 4.0% m/m, as expected (last -1.0%)

Major European indices trade in the green with a sentiment boost from news that the U.S. government reached a deal to end the shutdown. STOXX Europe 600: +1.5%, Germany's DAX: +2.0%, U.K.'s FTSE 100: +1.0%, France's CAC 40: +1.5%, Italy's FTSE MIB: +2.2%, Spain's IBEX 35: +1.6%.

In news:

• The European Central Bank is starting to look for a replacement for Vice President de Guindos, whose term ends in May. Diageo named a new CEO.
• Chipmaker Nexperia has been cleared to resume civilian chip shipments by Chinese authorities.

In economic data:

• Eurozone's November Sentix Investor Confidence -7.4 (expected -3.9; last -5.4)