Stock Market Update

Equity futures point to a higher open after yesterday's action saw the major averages close lower due to a sharp intraday reversal from early gains. 

NVIDIA (NVDA 178.76, -1.88, -1.0%) posted a blowout earnings report that sent stocks higher, but the stock and the broader market were unable to sustain the advance. 

NVIDIA remains under pressure, though mega-cap tech as a whole is mixed in the pre-market. 

Stocks face additional headwinds from dwindling expectations for another rate cut from the Fed this year. New York Fed President John Williams (voting FOMC member) broke with the recent trend of hawkish commentary this morning, saying, "I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral."

The comments have stocks at their best pre-market levels this morning as the market tries to stabilize from yesterday's disappointing session. 

In corporate news: 

• AMD (AMD 207.27, +1.25, +0.6%) CEO Lisa Su wants a large portion of the artificial intelligence business, according to The Wall Street Journal. 
• Intuit (INTU 655.55, +18.06, +2.8%) beat EPS expectations by $0.25, beat on revs, and guided JanQ EPS below consensus with revenues above consensus. The company reaffirmed its FY26 EPS guidance and revenue guidance.
• Paramount (PSKY), Netflix (NFLX), and Comcast (CMCSA) all submit bids for Warner Brothers (WBD), according to The Wall Street Journal. 
• T-Mobile US (TMUS 208.48, -2.03, -1.0%) was downgraded to Perform from Outperform at Oppenheimer. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a broadly lower note. Japan's Nikkei: -2.4%, Hong Kong's Hang Seng: -2.4%, China's Shanghai Composite: -2.5%, India's Sensex: -0.5%, South Korea's Kospi: -3.8%, Australia's ASX All Ordinaries: -1.7%.

In news:

• Japan's cabinet office approved an JPY21.3 trln stimulus package, which had been expected. This will be the largest stimulus since the pandemic and it is expected to boost economic growth by nearly 1.5% per year.
• However, JGB issuance in 2026 is expected to be down compared to 2025.
• South Korea's exports for the first 20 days of November were up 8.2% year-over-year with chip exports rising 26.5%.

In economic data:

• China's October FDI -10.3% YTD (last -10.4%)
• Japan's October National CPI 0.4% m/m (last 0.1%); 3.0% yr/yr (last 2.9%). October National Core CPI 3.0% yr/yr, as expected (last 2.9%). October trade balance JPY0 trln (expected deficit of JPY130 bln; last deficit of JPY300 bln). October Imports 0.7% yr/yr (expected -0.7%; last 3.0%) and Exports 3.6% yr/yr (expected 1.1%; last 4.2%). Flash November Manufacturing PMI 48.8, as expected (last 48.2) and flash Services PMI 53.1 (last 53.1)
• South Korea's October PPI 0.2% m/m (last 0.4%); 1.5% yr/yr (last 1.2%)
• Singapore's Q3 GDP 2.4% qtr/qtr (expected 1.3%; last 1.7%); 4.2% yr/yr (expected 2.9%; last 4.7%)
• India's November flash Manufacturing PMI 57.4 (expected 59.0; last 59.2) and flash Services PMI 59.5 (expected 59.7; last 58.9)
• Australia's flash November Manufacturing PMI 51.6 (last 49.7) and flash Services PMI 52.7 (last 52.5)
• New Zealand's October trade deficit NZD1.54 bln (expected deficit of NZD955 mln; last deficit of NZD1.384 bln). October Credit Card Spending 1.4

Major European indices are on track for a lower finish to the week. STOXX Europe 600: -0.8%, Germany's DAX: -1.0%, U.K.'s FTSE 100: -0.4%, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.9%, Spain's IBEX 35: -1.4%.

In news:

• Flash November PMI readings from the region's major economies were mostly disappointing with eurozone's Manufacturing PMI (49.7) dipping back into contraction while Services PMI (53.1) showed a slight uptick in the pace of growth.
• European leaders are discussing a new peace plan for Ukraine that was proposed by the Trump administration.

In economic data:

• Eurozone's flash November Manufacturing PMI 49.7 (expected 50.1; last 50.0) and flash Services PMI 53.1 (expected 52.8; last 53.0)
  Germany's flash November Manufacturing PMI 48.4 (expected 49.8; last 49.6) and flash Services PMI 52.7 (expected 54.0; last 54.6)
• U.K.'s October Retail Sales -1.1% m/m (expected -0.1%; last 0.7%); 0.2% yr/yr (expected 1.5%; last 1.0%). October Core Retail Sales -1.0% m/m (expected -0.2%; last 0.7%); 1.2% yr/yr (expected 2.5%; last 1.7%). October Public Sector Net Borrowing GBP17.43 bln (expected GBP15.20 bln; last GBP19.89 bln). Flash November Manufacturing PMI 50.2 (expected 49.3; last 49.7) and flash Services PMI 50.5 (expected 51.9; last 52.3)
• France's November Business Survey 98 (expected 100; last 101). Flash November Manufacturing PMI 47.8 (expected 49.0; last 48.8) and flash Services PMI 50.8 (expected 48.4; last 48.0)