Stock Market Update

Equity futures point to a slightly lower open this morning after the S&P 500 and DJIA both notched record highs in yesterday's action. The gains came on broad strength, with semiconductors, cyclical stocks, health care names, and small caps among the strongest performers. 

The energy sector gave back Monday's gains that followed the capture and ousting of Venezuelan President Nicolas Maduro by U.S. armed forces, though developments around the country are once again making headlines this morning. President Trump said via Truth Social, "Interim authorities in Venezuela will be turning over between 30 and 50 million barrels of high quality, sanctioned oil, to the United States of America. This oil will be sold at its market price."

Additionally, Politico reports that the president will meet with oil executives Friday to discuss a plan to enter Venezuela. 

Headlines are relatively quiet elsewhere, though corporate news items continue to trickle in at a higher pace than previous weeks as investors return from holiday. 

The market also has several data points to assess this morning, including the December ADP Employment Change Report at 8:15 a.m. ET (Briefing.com consensus 45k), the December ISM Non-Manufacturing Index at 10:00 a.m. ET (Briefing.com consensus 52.2%), and the November JOLTS job opening report at 10:00 a.m. ET. 

The MBA Mortgage Applications Index for the week ended January 3 decreased 10.0%, from a prior decrease of 5.0%.

In corporate news:

• Samsung (SSNLF) executives expect memory chip supply shortages to increase prices of electronics, according to Bloomberg. 
• Nvidia (NVDA 188.18, +0.94, +0.5%) might soon agree to an expanded partnership with Hyundai (HYMLF), according to Reuters.
• Warner Bros. Discovery (WBD 28.31, -0.16, -0.6%) Board of directors unanimously recommends shareholders reject amended Paramount's (PSKY 12.50, +0.01, +0.1%) tender offer

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Wednesday with Japan's Nikkei (-1.1%) dipping from record territory while South Korea's Kospi (+0.6%) reached a fresh record high ahead of tomorrow's release of preliminary quarterly results from Samsung Electronics. Japan's Nikkei: -1.1%, Hong Kong's Hang Seng: -0.9%, China's Shanghai Composite: +0.1%, India's Sensex: -0.1%, South Korea's Kospi: +0.6%, Australia's ASX All Ordinaries: +0.2%.

In news:

• Baidu's chip unit is looking to raise up to $2 bln through its IPO.
• Automakers in China are reportedly cutting prices.
• South Korea's President Lee cautioned against an unnecessary confrontation with China, adding that the restoration of trust is most important.
• He also said that South Korea's relations with Japan are as important as those with China.

In economic data:

• China's December FX Reserves $3.358 trln (last $3.346 trln)
• Japan's December Services PMI 51.6 (expected 52.5; last 53.2)
• Australia's November Building Approvals 15.2% m/m (expected 1.9%; last -6.1%); 20.2% yr/yr (last -1.1%). November Private House Approvals 1.3% m/m (last -1.3%). November CPI Indicator 3.4% (expected 3.6%; last 3.8%)
• India's 2025 GDP 7.4% (last 6.5%)

Major European indices trade on a mostly lower note while Germany's DAX (+0.6%) outperforms with industrials contributing to the show of relative strength. STOXX Europe 600: flat, Germany's DAX: +0.6%, U.K.'s FTSE 100: -0.7%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: -0.2%.

In news:

• Luxury names in France are pressured amid some concern about the recent trade tensions between China and Japan.
• Shipping giant Maersk said that intra-Asia freight volumes have increased while traffic at Europe's major ports has been hampered by severe winter weather.

In economic data:

• Eurozone's flash December CPI 0.2% m/m (last -0.3%); 2.0% yr/yr, as expected (last 2.1%). Flash December Core CPI 0.3% m/m (last -0.3%); 2.3% yr/yr (expected 2.4%; last 2.4%)
• Germany's November Retail Sales -0.6% m/m (expected 0.2%; last 0.3%); 1.1% yr/yr (last 2.1%). December Unemployment Change 3,000 (expected 5,000; last 1,000) and December Unemployment Rate 6.3%, as expected (last 6.3%)
• U.K.'s Q3 Housing Equity Withdrawal -GBP10.9 bln (expected -GBP8.7 bln; last -GBP17.9 bln)
• France's December Consumer Confidence 90, as expected (last 89)
• Italy's December CPI 0.2% m/m, as expected (last 0.2%); 1.2% yr/yr (expected 1.1%, last 1.1%)