Stock Market Update

Equity futures point to a mostly higher opening this morning after the major averages notched solid gains yesterday, with the S&P 500 snapping a four-day streak of lower finishes and reclaiming its 50-day moving average. 

Tech and mega-cap names led the advance after a strong earnings report from Micron (MU 252.20, +3.65, +1.5%), while the broader market benefitted from a cooler-than-expected November CPI report. 

The major averages hold week-to-date losses of 0.8% to 1.0% heading into today's session. 

Tech names look poised to expand upon yesterday's momentum, with Oracle (ORCL 187.50, +7.47, +4.2%) an early standout after TikTok signed a deal to sell its U.S. unit to a consortium of U.S. companies including Oracle. 

On the policy front, Fed Governor Waller had a "strong interview" with President Trump for Fed Chair, BlackRock's Rick Rieder is scheduled to be interviewed during the final week of 2025, and Michelle Bowman is no longer under consideration, according to CNBC. 

The market will not receive the November Personal Income and Spending report, leaving today's data releases limited to November Existing Home Sales  (Briefing.com consensus: 4.1 mln)  and the final reading of the December University of Michigan Consumer Sentiment Index (Briefing.com consensus: 53.3) at 10:00 a.m.

In corporate news:

• Nike (NKE 58.35, -7.28, -11.1%) beat EPS expectations by $0.16 and beat on revenues but trades sharply lower after revenues slumped 16% in China, with expectations for a similar decline next quarter. 
• The U.S. is reviewing sales of advanced Nvidia (NVDA 175.67, +1.53, +0.9%) artificial intelligence chips to China, according to Reuters. 
• Oracle (ORCL 187.50, +7.47, +4.2%) and OpenAI had a request approved by Michigan regulators to power a Michigan data center, according to Bloomberg.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a higher note. Japan's Nikkei: +1.0%, Hong Kong's Hang Seng: +0.8%, China's Shanghai Composite: +0.4%, India's Sensex: +0.5%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: +0.5%.

In news:

• The Bank of Japan raised its policy rate by 25 basis points to a 30-year high of 0.75%, as expected. The rate hike vote was unanimous.
• New Zealand saw a big improvement in business confidence for December while its trade deficit shrunk significantly.
• Fitch affirmed New Zealand's AA+ rating, observing that gradual recovery has hampered fiscal consolidation.
• Chinese press speculated that the People's Bank of China is preparing to lower its reserve requirement ratio in January.

In economic data:

• China's November FDI -7.5% YTD (last -10.3%)
• Japan's November National CPI 0.4% m/m (last 0.4%); 2.9% yr/yr (last 3.0%). National Core CPI 3.0% yr/yr, as expected (last 3.0%)
• South Korea's November PPI 0.3% m/m (last 0.2%); 1.9% yr/yr (last 1.5%)
• Australia's November Private Sector Credit 0.6% m/m, as expected (last 0.7%) and Housing Credit 0.6% m/m (last 0.6%). November Commodity Prices -3.8% yr/yr (last -1.7%)
• New Zealand's November trade deficit NZD163 mln (expected deficit of NZD1.175 bln; last deficit of NZD1.598 bln). November Credit Card Spending 4.7% yr/yr (last 1.6%). December ANZ Business Confidence 73.6 (last 67.1)

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

In news:

• Today's economic data batch included some soft spots like weak November Retail Sales in the U.K. (-0.1%; expected 0.3%) and weak January Consumer Climate in Germany (-26.9; expected -23.0).
• The EU agreed to provide an EUR90 bln loan to Ukraine but could not agree on spending frozen Russian assets.
• European Central Bank officials appear comfortable with the current level of rates while Goldman Sachs expects the Bank of England to cut its bank rate three times in 2026.

In economic data:

• Eurozone's October Current Account surplus EUR25.7 bln (expected surplus of EUR16.0 bln; last surplus of EUR23.1 bln)
• Germany's November PPI 0.0% m/m (expected 0.1%; last 0.1%); -2.3% yr/yr (expected -2.2%; last -1.8%). January GfK Consumer Climate -26.9 (expected -23.0; last -23.4)
• U.K.'s November Retail Sales -0.1% m/m (expected 0.3%; last -0.9%); 0.6% yr/yr (expected 1.6%; last 0.6%). November Core Retail Sales -0.2% m/m (expected 0.2%; last -0.8%); 1.2% yr/yr (expected 1.6%; last 1.6%). November Public Sector Net Borrowing -GBP11.65 bln (expected -GBP10.20 bln; last -GBP21.19 bln). December CBI Distributive Trades Survey -44 (expected -29; last -32)
• France's November PPI 1.1% m/m (last 0.0%); -3.3% yr/yr (last -0.8%)
• Italy's December Business Confidence 88.4 (expected 89.3; last 89.5) and Consumer Confidence 96.6 (expected 96.0; last 95.0). October Industrial Sales -0.5% m/m (last 1.9%); 1.7% yr/yr (last 3.4%)