Stock Market Update

Equity futures point to another lower open as tech names continue to slide in the premarket following yesterday's broad-based retreat. 

Stocks came under pressure yesterday as hawkish Fed commentary has diminished the probability of a December rate cut from the FOMC to a coin toss, after being a near certainty just a month ago. 

Minneapolis Fed President Kashkari (voting FOMC member) said in an interview that he did not support the October rate reduction and is undecided on December, according to Bloomberg. 

The S&P 500 (+0.1% WTD) and DJIA (+1.0% WTD) enter today's session looking to defend what is left of their week-to-date gains, while yesterday's retreat sent the Nasdaq Composite (-0.6% WTD) into negative territory. 

Mega-cap tech is decidedly lower in the pre-market, which will likely put pressure on the major averages from the open. 

On the trade front, the U.S. has struck framework trade deals with South Korea, Argentina, Ecuador, Guatemala, and El Salvador. 

In corporate news:

• Airlines are starting to get back on track following the government shutdown, according to Bloomberg. 
• Amazon (AMZN 233.43, -4.15, -1.8%) and Microsoft (MSFT 499.58, -3.71, -0.7%) will support limits on NVIDIA (NVDA 180.74, -6.12, -3.3%) to China, according to The Wall Street Journal.
• Apple's (AAPL 271.21, -1.53, -0.6%) iPhone sales increased 22% in China after the release of the iPhone 17, according to Reuters. 
• Eli Lilly (LLY 1,010.98, -11.89, -1.2%) could be a candidate for a stock split, according to Barron's. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mostly lower note. Japan's Nikkei: -1.8%, Hong Kong's Hang Seng: -1.9%, China's Shanghai Composite: -1.0%, India's Sensex: +0.1%, South Korea's Kospi: -3.8%, Australia's ASX All Ordinaries: -1.4%.

In news:

• China reported its growth figures for October, revealing some softness in fixed asset investment and industrial production.
• There was speculation about South Korea taking steps to stabilize the won as continued weakness in the currency has it trading near its lowest level against the dollar since 2009.
• Officials from South Korea and the U.S. officially signed the trade and investment deal.

In economic data:

• China's October Fixed Asset Investment -1.7% yr/yr (expected -0.9%; last -0.5%), October Industrial Production 4.9% yr/yr (expected 5.5%; last 6.5%), October Retail Sales 2.9% yr/yr (expected 2.7%; last 3.0%); 3.3% yr/yr (last 3.5%). October Unemployment Rate 5.1% (expected 5.2%; last 5.2%). October House Prices -2.2% yr/yr (last -2.2%)
• South Korea's October Import Price Index 0.5% yr/yr (last 0.6%) and Export Price Index 4.8% yr/yr (last 2.2%)
• India's October WPI Inflation -1.21% yr/yr (expected -0.60%; last 0.13%)
• Hong Kong's Q3 GDP 0.7% qtr/qtr, as expected (last 0.7%); 3.8% yr/yr, as expected (last 3.8%)
• New Zealand's October Business PMI 51.4 (last 50.1)

Major European indices trade in the red. STOXX Europe 600: -1.8%, Germany's DAX: -1.6%, U.K.'s FTSE 100: -1.9%, France's CAC 40: -1.7%, Italy's FTSE MIB: -2.2%, Spain's IBEX 35: -2.2%.

In news:

• The British pound and gilts have faced some pressure amid press reports suggest that Chancellor Reeves will not seek higher income taxes in the Autumn budget statement thanks to improved economic projections from the Office of Budget Responsibility. However, other taxes are still expected to increase.
• Germany's budget committee approved 2026 spending of EUR524.5 bln and nearly EUR100 bln in borrowing.

In economic data:

• Eurozone's Q3 GDP 0.2% qtr/qtr, as expected (last 0.1%); 1.4% yr/yr (expected 1.3%; last 1.5%). Q3 Employment Change 0.1% qtr/qtr, as expected (last 0.1%); 0.5% yr/yr (last 0.6%). September trade surplus EUR19.4 bln (last surplus of EUR1.9 bln)
• France's October CPI 0.1% m/m, as expected (last -1.0%); 0.9% yr/yr (expected 1.0%; last 1.2%)
• Italy's September trade surplus EUR2.852 bln (expected surplus of EUR3.180 bln; last surplus of EUR1.875 bln)
• Spain's October CPI 0.7% m/m, as expected (last -0.3%); 3.1% yr/yr, as expected (last 3.0%). October Core CPI 2.5% yr/yr, as expected (last 2.4%)