December S&P 500 E-Mini futures (ESZ24) are up +0.33%, and December Nasdaq 100 E-Mini futures (NQZ24) are up +0.29% this morning as Donald Trump’s election victory continued to boost risk appetite, while investors looked ahead to U.S. inflation data, a fresh batch of corporate earnings reports, as well as remarks from Federal Reserve Chair Jerome Powell and other Fed officials.
In Friday’s trading session, Wall Street’s major averages ended in the green, with the benchmark S&P 500, the blue-chip Dow, and the tech-heavy Nasdaq 100 notching new all-time highs. Axon Enterprise (AXON) surged over +28% and was the top percentage gainer on the S&P 500 after the company posted upbeat Q3 results and raised its full-year revenue guidance. Also, Fortinet (FTNT) climbed about +10% and was the top percentage gainer on the Nasdaq 100 after reporting better-than-expected Q3 results and providing above-consensus annual adjusted EPS guidance. In addition, Upstart Holdings (UPST) jumped more than +46% after the company reported stronger-than-expected Q3 results and issued upbeat Q4 revenue guidance. On the bearish side, Akamai Technologies (AKAM) plunged over -14% and was the top percentage loser on the S&P 500 after the cybersecurity and cloud computing firm cut its full-year guidance. Also, Airbnb (ABNB) slid more than -8% and was the top percentage loser on the Nasdaq 100 after reporting weaker-than-expected Q3 EPS.
Economic data released on Friday showed that the University of Michigan’s U.S. consumer sentiment index rose to a 7-month high of 73.0 in November, stronger than expectations of 71.0. Also, the University of Michigan’s November year-ahead inflation expectations eased to a 3-3/4 year low of 2.6% from 2.7% in October, better than expectations of no change at 2.7%, while 5-year implied inflation expectations rose to 3.1% from 3.0% in October, stronger than expectations of no change at 3.0%.
Minneapolis Fed President Neel Kashkari stated Saturday that a strong economy and higher productivity growth might lead the U.S. central bank to cut interest rates less than anticipated. “I have been surprised at how resilient the economy has been,” Kashkari said in an interview on Fox News. “If that is sustained and we are in a structurally more productive economy going forward, that tells me we wouldn’t end up cutting as far.” He also indicated that it was premature to assess whether policies from the incoming Trump administration and the new Congress would fuel inflation.
U.S. rate futures have priced in a 68.5% chance of a 25 basis point rate cut and a 31.5% chance of no rate change at the conclusion of the Fed’s December meeting.
Third-quarter earnings season rolls on, and investors await fresh reports from prominent companies this week, including The Walt Disney Company (DIS), Home Depot (HD), Cisco (CSCO), Applied Materials (AMAT), Shopify (SHOP), and Spotify (SPOT). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +4.3% increase in quarterly earnings for Q3 compared to the previous year, down from +7.9% growth projected in mid-July.
On the economic data front, the U.S. consumer inflation report for October will be the main highlight in the coming week. Also, market participants will be keeping an eye on other economic data releases, including U.S. Retail Sales, Core Retail Sales, PPI, Core PPI, Initial Jobless Claims, Crude Oil Inventories, the NY Empire State Manufacturing Index, the Export Price Index, the Import Price Index, Industrial Production, Manufacturing Production, and Business Inventories.
Meanwhile, Fed Chair Jerome Powell is set to deliver a speech about the economy at an event hosted by the Dallas Regional Chamber on Thursday. A slew of other Fed officials will also be making appearances throughout the week, including Waller, Barkin, Kashkari, Harker, Williams, Logan, Schmid, and Kugler.
The U.S. economic data slate is empty on Monday.
U.S. bond markets are closed today in observance of the Veterans Day holiday.
The Euro Stoxx 50 futures are up +1.14% this morning, kicking off the new week on a positive note. Construction and materials stocks led the gains on Monday. Meanwhile, investors stay focused on the potential impact of Donald Trump’s policies on the European economy and the changing political landscape in Germany. Later this week, regional investors will turn their attention to inflation data from across Europe along with a preliminary reading of Eurozone third-quarter GDP. Minutes from the European Central Bank’s October policy meeting, set for release on Thursday, will also be on investors’ radar. In corporate news, Continental Ag (CON.D.DX) surged over +8% after the German automotive supplier reported stronger-than-expected Q3 core profit. Also, Heidelberg Materials (0MG2.LN) climbed more than +5% after JPMorgan and Citigroup raised their price targets on the stock.
European Central Bank policymaker Robert Holzmann stated in remarks published on Sunday that, as of now, there is no reason for the ECB to skip an interest rate cut in December, although the decision will depend on the data available at that time.
The European economic data slate is empty on Monday.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.51%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.08%.
China’s Shanghai Composite Index recouped earlier losses to close higher today. The benchmark index opened lower as some investors found the nation’s debt swap program insufficient and data indicated persistent deflationary pressures in the world’s second-largest economy. On Friday, Beijing announced a 10 trillion yuan ($1.4 trillion) program to mitigate local governments’ debt risk but refrained from introducing new fiscal stimulus. Also, data released over the weekend showed that China’s consumer inflation rose at its slowest rate in four months in October, while producer prices extended their decline for the 25th consecutive month. In addition, data showed that foreign companies withdrew more funds from China last quarter. However, gains in semiconductor stocks led the overall market higher on Monday as new U.S. chipmaking restrictions against China spurred patriotic bets on tech independence. The move followed a Reuters report stating that the U.S. had ordered chipmaking giant TSMC to halt shipments of some advanced chips to Chinese customers starting Monday. In other news, UBS reduced its 2025 growth forecast for China after Trump’s election, projecting an expansion of around 4% for the year. In corporate news, China Shipbuilding Industry Group Power surged +10% on plans to acquire a 16.5% stake in CSSC Diesel Engine through convertible bonds and cash.
The Chinese October CPI has been reported at +0.3% y/y, weaker than expectations of +0.4% y/y.
The Chinese October PPI came in at -2.9% y/y, weaker than expectations of -2.5% y/y.
Japan’s Nikkei 225 Stock Index closed slightly higher today. Technology and healthcare stocks led the gains on Monday, while automobile and manufacturing stocks slumped. Data from the Ministry of Finance showed Monday that Japan’s current account surplus shrank in September from a year earlier. Meanwhile, a summary of opinions from the Bank of Japan’s October meeting released on Monday showed that policymakers discussed the necessity for caution in hiking its benchmark rate, offering no definite signal of an adjustment next month. “As the bank has been expecting to raise the policy interest rate at a moderate pace, it has time to monitor the future course of the U.S. economy, including that after the presidential election,” one of the nine policy board members said at the meeting. In other news, Japan’s Prime Minister Shigeru Ishiba won the most support in Monday’s first round of voting to remain in the position despite a setback in the national election. In corporate news, Sony Group surged about +6% after the audio equipment and game maker reported stronger-than-expected Q2 operating profit. Also, Suzuki Motor gained more than +4% after boosting its full-year operating and net profit guidance. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -8.95% to 23.71.
The Japanese September Current Account n.s.a. stood at 1.717T yen, weaker than expectations of 3.263T yen.
The Japanese October Economy Watchers Current Index came in at 47.5, stronger than expectations of 47.2.
Pre-Market U.S. Stock Movers
Cryptocurrency-exposed stocks are moving higher in pre-market trading, with the price of Bitcoin breaking the $82,000 level for the first time. MARA Holdings (MARA) is up more than +16%. Also, Coinbase Global (COIN) is up over +15%, and Riot Platforms (RIOT) is up more than +11%.
Tesla (TSLA) climbed more than +6% in pre-market trading after closing on Friday with a market cap above $1 trillion for the first time since 2022.
Taiwan Semiconductor Manufacturing Co. (TSM) fell over -1% in pre-market trading after Reuters reported that the U.S. had ordered the chipmaking giant to halt shipments of some advanced chips to Chinese customers.
Cisco (CSCO) rose more than +1% in pre-market trading after JPMorgan upgraded the stock to Overweight from Neutral with a $66 price target.
Pinterest (PINS) gained over +2% in pre-market trading after Wedbush upgraded the stock to Outperform from Neutral with a price target of $38.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - November 11th
Monday.Com (MNDY), Aramark Holdings (ARMK), Zeta Global Holdings (ZETA), ICL Israel Chemicals (ICL), Assured Guaranty (AGO), IAC/InterActiveCorp (IAC), PACS (PACS), Talos Energy (TALO), NET Power (NPWR), ANGI Homeservices (ANGI), Global Ship Lease (GSL), Doubledown (DDI), Mineralys Therapeutics (MLYS), Yalla (YALA), Strawberry Fields Reit (STRW), Vaalco Energy (EGY), Lincoln Educational (LINC), Luminar Tech (LAZR).
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On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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