Stock Market Update

Equity futures point to a flat opening this morning after the third consecutive winning session for the S&P 500 yesterday. 

The major averages advanced in broad fashion yesterday, each gaining around 0.5% amid a quiet, low-volume session to kick off the holiday week. The recent winning streak for stocks saw the S&P 500 close roughly 20 points below its all-time closing high from December 11 and just over 40 points below its all-time intraday high from October 29. 

Headlines are once again quiet this morning, which is unsurprising given the upcoming holiday schedule. The market will close at 1:00 p.m. ET Wednesday for Christmas Eve and will be closed all day Thursday for the Christmas holiday.

However, market participants will receive a full slate of economic data today, which includes the first estimate of Q3 GDP (Briefing.com consensus 3.0%) and October Durable Orders (Briefing.com consensus 0.3%) at 8:30 a.m. ET, followed by the November Industrial Production (Briefing.com consensus 0.1%) and Capacity Utilization (Briefing.com consensus) readings at 9:15 a.m. ET, and finally the December Consumer Confidence Index (Briefing.com consensus 89.0) at 10:00 a.m. ET.

In corporate news:

• President Trump is considering putting seized Venezuelan oil in the strategic petroleum reserve, according to CNBC.
• Johnson & Johnson (JNJ 205.19, -2.13, -1.0%) will appeal the $1.5 billion talc cancer payout that a jury ordered, according to Reuters.
• Novo Nordisk A/S (NVO 51.66, +3.56, +7.4%) shares are higher after the FDA approved a pill version of the company's GLP-1 weight loss drug Wegovy, making it the first oral GLP-1. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Tuesday. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: +0.1%, India's Sensex: -0.1%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: +1.1%.

In news:

• The Japanese yen extended yesterday's bounce off this year's low territory against the dollar after Finance Minister Katayama said that the Bank of Japan and the Ministry of Finance are ready and willing to intervene in the foreign exchange market.
• Japan will keep its general budget below JPY30 trln for fiscal 2026 and assume long-term rates of about 3.0%, representing a 20-year high.
• The Standing Committee of China's National People's Congress said it will support reasonable financing needs of developers and property firms.
• New Zealand reached a trade agreement with India.

In economic data:

• Japan's October BoJ Core CPI 2.2% yr/yr, as expected (last 2.2%)
• Singapore's November CPI 0.3% m/m (last 0.0%); 1.2% yr/yr (expected 1.3%; last 1.2%). November Core CPI 1.2% yr/yr, as expected (last 1.2%)

Major European indices trade on a mostly lower note amid reduced participation ahead of tomorrow's Christmas Eve closure in Germany, Switzerland, and Italy and early closes in the U.K., Spain, and France. STOXX Europe 600: +0.2%, Germany's DAX: +0.1%, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: -0.4%.

In news:

• European Central Bank policymaker Schnabel said that a rate hike should not be expected in the near future, echoing recent comments from other policymakers.
• A spokesperson from the Russian government said that the recent talks in Florida about ending the war in Ukraine should not be seen as a breakthrough.

In economic data:

• Germany's November Import Price Index 0.5% m/m (expected 0.2%; last 0.2%); -1.9% yr/yr (last -1.4%)
• Italy's November non-EU trade surplus EUR6.92 bln (last surplus of EUR5.32 bln)
• Spain's November PPI -2.5% yr/yr (last 0.8%). Q3 GDP 0.6% qtr/qtr, as expected (last 0.7%); 2.8% yr/yr, as expected (last 2.9%)
• Swiss December ZEW Expectations 6.2 (last 12.2)