Stock Market Update

Equity futures point to a higher open after the major averages finished mixed yesterday as semiconductors and other AI-related names weighed against solid gains in the broader market.

Several of yesterday's laggards are moving higher in the premarket amid a handful of positive headlines. NVIDIA (NVDA 195.91, +2.60, +1.4%) is among that group, trending higher after Foxconn, a key supplier, reported a 17% year-over-year increase in earnings and expects strong AI demand into 2026, according to CNBC. 

Advanced Micro Devices (AMD 250.86, +13.34, +5.6%) is also on the move after finishing lower yesterday despite making strong claims about future revenues and the total addressable data center market at the company's financial analyst day yesterday. 

Headlines are relatively quiet on the macro front as investors await an end to the government shutdown and the slate of economic data that will follow. 

The MBA Mortgage Applications Index for the week ended November 8 expanded by 0.6%, from a prior decrease of 1.9%.

In corporate news:

• President Trump will have dinner with JPMorgan (JPM 316.23, +0.61, +0.2%) CEO Jamie Dimon and other financial executives tonight, according to Bloomberg. 
• Airlines are on track for the fewest cancellations since the FAA ordered reductions due to the shutdown, according to Bloomberg.
• AT&T (T 25.35, +0.17, +0.6%) was upgraded to Overweight from Sector Weight at KeyBanc, with a target of $30.
• Circle Internet Group (CRCL 94.38, -3.92, -4.0%) beat EPS expectations by $0.42 and beat revenue expectations. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Wednesday on a mostly higher note. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: +0.9%, China's Shanghai Composite: -0.1%, India's Sensex: +0.7%, South Korea's Kospi: +1.1%, Australia's ASX All Ordinaries: -0.2%.

In news:

• Reserve Bank of Australia Deputy Governor Hauser said that policy remains restrictive, but policymakers are on a lookout for changes in the environment.
• Meanwhile, the People's Bank of China said in its Q3 monetary policy report that an appropriately loose stance will be maintained.
• Taiwan and Vietnam are reportedly closing in on final trade deals with the U.S.

In economic data:

• Japan's November Reuters Tankan Index 17 (last 8). October M2 Money Stock 1.6% yr/yr (expected 1.8%; last 1.5%). October Machine Tool Orders 16.8% yr/yr (expected 9.9%; last 8.1%)
• South Korea's October Unemployment Rate 2.6% (last 2.5%). September M2 Money Supply 7.2% yr/yr (last 6.8%)
• India's October CPI 0.25% yr/yr (expected 0.48%; last 1.44%)
• Australia's O3 Invest Housing Finance 17.6% qtr/qtr (expected 4.0%; last 2.6%) and Q3 Home Loans 4.7% qtr/qtr (expected 2.5%; last 2.2%)

Major European indices trade in the green while the U.K.'s FTSE (-0.1%) lags. STOXX Europe 600: +0.7%, Germany's DAX: +1.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +1.2%, Italy's FTSE MIB: +1.3%, Spain's IBEX 35: +1.2%.

In news:

• Homebuilders have contributed to the weakness in the U.K. after Taylor Wimpey said that the pace of sales slowed in the second half of the year.
• Elsewhere, the Bank of France expects only domestic growth in Q4 after a 0.5% increase in Q3.
• European Central Bank policymaker Kocher said that the next move on rates could be in any direction and that he would not be surprised if there is no rate hike next year.

In economic data:

• Germany's October CPI 0.3% m/m, as expected (last 0.2%); 2.3% yr/yr, as expected (last 2.4%). October WPI 0.3% m/m (expected 0.1%; last 0.2%); 1.1% yr/yr (last 1.2%)
• Italy's September Industrial Production 2.8% m/m (expected 1.5%; last -2.7%); 1.5% yr/yr (expected -0.5%; last -3.0%)