December S&P 500 futures (ESZ22) are trending up +0.05% this morning after three major US benchmark indices finished the regular session lower as investors look ahead to the Federal Reserve’s interest rate decision following the conclusion of its two-day meeting. Three major U.S. stock indexes were weighted down primarily by losses in the Technology, Consumer Services, and Industrials sectors.
A survey showed that the U.S. labor market remained strong as U.S. job openings surprisingly rose in September, dimming hopes the Federal Reserve might begin decelerating interest rate hikes in December.
“Today's data suggest that hopes for a Fed pivot may have been premature,” Jefferies said in a note.
At the same time, U.S. manufacturing activity advanced at its slowest pace in nearly 2-1/2 years in October as higher rates reduced demand for goods and pricing pressures on manufacturers lessened.
"That is the concern for the market is we know the Fed wants to slow down the labor market, they want to slow down hiring so demand drops in the economy, which will help inflation," said Anthony Saglimbene, a chief market strategist at Ameriprise Financial in Troy, Michigan.
Today, all eyes are focused on the U.S. Federal Reserve interest rate decision. The central bank is widely expected to deliver another 75 basis point rate hike later in the session. In addition, market participants will be closely eyeing Powell’s statement, which may signal a less aggressive interest rates policy from December.
Also, investors are likely to focus on the ADP Nonfarm Employment Change data, which was at 208K in September. Economists forecast the new number to be 195K.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to come in at +0.367M, compared to the last week's number of +2.588M.
In the bond markets, United States 10-Year rates are at 4.040%, down -0.29%.
The Euro Stoxx 50 futures are up +0.14% this morning as investors hunkered down ahead of the conclusion of the key Federal Reserve policy-setting meeting. An additional supportive factor for European equities is the more than +4% jump in Novo Nordisk (NOVOB.C.DX) after the company raised its full-year earnings outlook on strong sales of diabetes treatment Ozempic and reported a better-than-expected profit.
Spain's Manufacturing PMI, Italy's Manufacturing PMI, France's Manufacturing PMI, Germany's Manufacturing, Germany's Unemployment Change, and Eurozone Manufacturing PMI data were released today.
The Spanish October Manufacturing PMI has been reported at 44.7, weaker than expectations of 47.5.
The Italian Manufacturing PMI stood at 46.5 in October, weaker than expectations of 46.9.
The French October Manufacturing PMI came in at 47.2, weaker than expectations of 47.4.
The German October Manufacturing PMI was at 45.1, weaker than expectations of 45.7.
The German October Unemployment Change has been reported at 8K, stronger than expectations of 15K, while the unemployment rate remained unchanged at 5.5%.
Eurozone Manufacturing PMI stood at 46.4 in October, weaker than expectations of 46.6.
Asian stock markets today settled mixed ahead of a Federal Reserve interest rate decision. China’s Shanghai Composite Index (SHCOMP) closed up +1.15%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.06%.
China’s Shanghai Composite today closed higher, recovering from a 31-month low on growing speculation that the country will scale back its strict zero-COVID policy. In addition, rumors circulated that China is considering a full reopening by March 2023. However, government officials denied any plans to scale back the zero-COVID policy, with President Xi Jinping recently reiterating the country’s commitment to maintaining the policy.
At the same time, Japan’s Nikkei Stock Index closed slightly lower today, weighed down by losses in the Gas & Water, Non-Metal Minerals, and Power sectors. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down 3.97% and hit a new 1-month low of 22.04.
Pre-Market U.S. Stock Movers
ZoomInfo Technologies Inc (ZI) tumbled over -20% in pre-market trading after the company reported upbeat Q3 earnings results but provided a weak Q4 and FY22 outlook.
Match Group Inc (MTCH) jumped about +16% in pre-market trading after the company reported better-than-expected Q3 results and provided a favorable 2023 outlook.
Airbnb Inc (ABNB) plunged more than -6% in pre-market trading after the company delivered upbeat Q3 results but issued soft Q4 guidance.
Advanced Micro Devices Inc (AMD) rose about +4% in pre-market trading despite reporting mixed Q3 results and cutting the FY22 revenue outlook.
Cleveland-Cliffs Inc (CLF) dropped about -2% in pre-market trading after Wolfe Research downgraded the stock to underperform from peer perform.
Universal Logistics Holdings Inc (ULH) slid about -2% in pre-market trading after Stifel downgraded the stock to hold from buy.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - November 2nd
Novo Nordisk ADR (NVO), Qualcomm (QCOM), CVS Health Corp (CVS), Booking (BKNG), Estee Lauder (EL), Humana (HUM), GlaxoSmithKline ADR (GSK), KDDI Corp PK (KDDIY), MetLife (MET), Axa ADR (AXAHY), Enterprise Products Partners LP (EPD), Equinix (EQIX), Suncor Energy (SU), Nutrien (NTR), Fortinet (FTNT), Williams (WMB), Cenovus Energy Inc (CVE), Honda Motor ADR (HMC), TE Connectivity (TEL), Realty Income (O), AP Moeller-Maersk AS (AMKBY), Trane Technologies (TT), Ferrari NV (RACE), Allstate (ALL), Waste Connections (WCN), Norilskiy Nikel ADR (NILSY), Yum! Brands (YUM), Apollo Global Management A (APO), Albemarle (ALB), Welltower (WELL), Chunghwa Telecom (CHT), ON Semiconductor (ON), Continental Resources (CLR), Sun Life Financial (SLF), Wolters Kluwer NV (WTKWY), Sampo OYJ (SAXPY), Zimmer Biomet (ZBH), CDW Corp (CDW), Entergy (ETR), Vulcan Materials (VMC), Coca-Cola European (CCEP), CF Industries (CF), Marathon Oil (MRO), Ingersoll Rand (IR), Vestas Wind (VWSYF), Vestas Wind Systems AS (VWDRY), Broadridge (BR), STERIS (STE), PerkinElmer (PKI), Brookfield Infrastructure Partners (BIP), Fox Corp A (FOXA), Fox Corp B (FOX), ICON PLC (ICLR), Trip.com ADR (TCOM), Straumann ADR (SAUHY), APA Corp (APA), Trimble (TRMB), Horizon Pharma (HZNP), Paramount Global A (PARAA), MGM (MGM), Evergy (EVRG), FleetCor (FLT), PTC (PTC), Brookfield Renewable (BEP), Host Hotels Resorts (HST), AerCap Holdings NV (AER), Paramount Global B (PARA), SolarEdge Technologies Inc (SEDG), CH Robinson (CHRW), Axa Equitable (EQH), Etsy Inc (ETSY), Amerco (UHAL), Charles River Laboratories (CRL), Robinhood Markets (HOOD), United Therapeutics (UTHR), Qiagen (QGEN), Ceridian HCM (CDAY), Sarepta (SRPT), Nomura ADR (NMR), Black Knight (BKI), Life Storage (LSI), Lincoln National (LNC), Gfl Environmental (GFL), Qorvo Inc (QRVO), Plains All American Pipeline (PAA), Roku (ROKU), Jones Lang LaSalle (JLL), Healthcare RT (HR), Lumen Technologies (LUMN), Southwestern Energy (SWN), Zillow Group Inc (ZG), Zillow C (Z), Adaro Energy ADR (ADOOY), Confluent (CFLT), Aisin Seiki Co (ASEKY), Chemed (CHE), Norwegian Cruise Line (NCLH), AGC ADR (ASGLY), PDC Energy (PDCE), Clearway Energy C (CWEN), Clearway Energy A (CWENa), Clean Harbors (CLH), Yamaha DRC (YAMCY), Curtiss-Wright (CW), Ionis Pharma (IONS), Minebea Mitsumi ADR (MNBEY), MDU Resources (MDU), II-VI (IIVI), Selective (SIGI), Frontier Communications Parent (FYBR), MKS Instruments (MKSI), National Storage Affiliates Trust (NSA), Exelixis (EXEL), Qualys (QLYS), Siteone Landscape Supply (SITE), Ormat (ORA), Kinetik Holdings (KNTK), Bausch + Lomb (BLCO), Rayonier (RYN), Lancaster Colony (LANC), Watts Water Technologies (WTS), NewYork Times (NYT), Parsons (PSN), Sunrun Inc (RUN), Coherent (COHR), Owl Rock Capital (ORCC), Insperity (NSP), Grupo Simec ADR (SIM), Kite Realty (KRG), Terreno (TRNO), Knowbe4 (KNBE), Black Hills (BKH), Maravai Lifesciences (MRVI), MGIC Investment (MTG), Crispr Therapeutics (CRSP), Inari Med (NARI), Workiva Inc (WK), Cactus (WHD) , Ziff Davis (ZD), Tandem Diabetes Care (TNDM), Radian (RDN), Luminar Tech (LAZR), Park Hotels & Resorts (PK), EPR Properties (EPR), Scotts Miracle-Gro (SMG), Werner (WERN), Rapid7 Inc (RPD), Cedar Fair LP (FUN), Kennedy-Wilson (KW), Tanger Factory Outlet Centers (SKT), Fisker (FSR), Sage Therapeutic (SAGE), Xenia Hotels & Resorts Inc (XHR), eXp World (EXPI), RLJ Lodging (RLJ), Nu Skin (NUS), CSG Systems (CSGS), Sitime Corp (SITM), BGC Partners (BGCP), Energy Recovery (ERII), Cross Country (CCRN), Now Inc (DNOW), Nevro Corp (NVRO), Mativ Holdings (MATV), Sinclair (SBGI), Summit Hotel Properties (INN), Fastly (FSLY), Radware (RDWR).
More Stock Market News from Barchart
- Stocks Fade Ahead of Wednesday’s Expected 75 bp Fed Rate Hike
- Brunswick Strikes Gold Down in Florida
- Meta Platforms (META) Bulls Attract the Spotlight of Unusual Options Activity
- Chevron's Massive Free Cash Flow Powers the Stock Higher
/Microsoft%20Corporation%20logo%20on%20sign-by%20Jean-Luc%20Ichard%20via%20iStock.jpg)
/ServiceNow%20Inc%20logo%20on%20phone-by%20rafapress%20via%20Shutterstock.jpg)