December S&P 500 E-Mini futures (ESZ24) are down -0.14%, and December Nasdaq 100 E-Mini futures (NQZ24) are up +0.12% this morning as market participants looked ahead to an earnings report from semiconductor stalwart Nvidia, a new batch of U.S. economic data, and comments from Federal Reserve officials.
In Friday’s trading session, Wall Street’s major averages closed sharply lower, with the benchmark S&P 500 and tech-heavy Nasdaq 100 falling to 1-1/2 week lows and the blue-chip Dow dropping to a 1-week low. Applied Materials (AMAT) slumped over -9% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the largest U.S. maker of chip-manufacturing equipment provided a disappointing FQ1 revenue forecast. Also, AST SpaceMobile (ASTS) slid more than -9% after reporting a wider-than-expected Q3 loss. In addition, Pfizer (PFE) fell over -4% after Wolfe Research initiated coverage of the stock with an Underperform rating and a $25 price target. On the bullish side, Palantir Technologies (PLTR) surged more than +11% and was the top percentage gainer on the S&P 500 after announcing that it will transfer its stock exchange listing from the New York Stock Exchange to the Nasdaq.
Economic data released on Friday showed that U.S. retail sales grew +0.4% m/m in October, beating the +0.3% m/m consensus, while core retail sales, which exclude motor vehicles and parts, edged up +0.1% m/m, weaker than expectations of +0.3% m/m. Also, the November Empire State Manufacturing index unexpectedly rose to a 2-3/4 year high of 31.20, stronger than expectations of -0.30. In addition, U.S. industrial production fell -0.3% m/m in October, in line with expectations, while manufacturing production fell -0.5% m/m, in line with expectations. Finally, the U.S. October import price index unexpectedly rose +0.3% m/m, stronger than expectations of -0.1% m/m.
Boston Fed President Susan Collins stated on Friday that a December interest rate cut remains on the table, highlighting that the Fed’s decision will depend on incoming data. “I do see the policy stance as being in a restrictive place, and over time normalizing that, I think, is going to be important,” Collins said. Also, Chicago Fed President Austan Goolsbee said that if inflation continues to move toward the central bank’s 2% target, interest rates will be “a lot” lower over the next 12-18 months. However, he agreed with Fed Chair Jerome Powell, noting that policymakers are not rushing to reduce borrowing costs.
Meanwhile, U.S. rate futures have priced in a 61.6% chance of a 25 basis point rate cut and a 38.4% chance of no rate change at the conclusion of the Fed’s December meeting.
Market participants will focus on earnings reports from several prominent companies this week, with semiconductor giant Nvidia’s (NVDA) report on Wednesday drawing the most attention. Retailers such as Walmart (WMT), Target (TGT), Lowe’s (LOW), TJX Companies (TJX), and Ross Stores (ROST), along with notable companies like Palo Alto Networks (PANW), Snowflake (SNOW), Intuit (INTU), Deere (DE), and Medtronic (MDT), are also scheduled to release their quarterly results this week.
Investors will also be monitoring a spate of economic data releases this week, including the U.S. S&P Global Composite PMI (preliminary), the S&P Global Manufacturing PMI (preliminary), the S&P Global Services PMI (preliminary), the Philadelphia Fed Manufacturing Index, Building Permits (preliminary), Housing Starts, Crude Oil Inventories, Initial Jobless Claims, Existing Home Sales, the Leading Index, and the University of Michigan’s Consumer Sentiment Index.
In addition, Chicago Fed President Austan Goolsbee, Kansas City Fed President Jeffrey Schmid, Fed Governor Lisa Cook, Cleveland Fed President Beth Hammack, Fed Governor Michelle Bowman, and Fed Vice Chair for Supervision Michael Barr will be making appearances this week.
The U.S. economic data slate is mainly empty on Monday.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.456%, up +0.61%.
The Euro Stoxx 50 futures are down -0.29% this morning, with investors cautiously awaiting key Eurozone inflation data, remarks from European Central Bank policymakers, and Nvidia’s earnings report later this week. Technology and energy stocks led the declines on Monday, while food and beverage stocks outperformed. Eurostat data released on Monday showed that the Eurozone’s trade surplus surged in September on year, with exports to the U.S. rising amid the looming threat of tariffs proposed by U.S. President-elect Donald Trump. Meanwhile, market participants are awaiting the Eurozone inflation reading scheduled for Tuesday, which will help gauge the outlook for European Central Bank policy. Investors will also pay attention to speeches from ECB policymakers this week, including Chief Christine Lagarde later today, along with the November flash PMI data from across Europe, due on Friday. In corporate news, Melrose Industries Plc (MRO.LN) climbed over +8% after reporting a 7% increase in revenue for the four months ended October 31st.
Eurozone’s Trade Balance data was released today.
Eurozone September Trade Balance was at 12.5B euros, stronger than expectations of 7.9B euros.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.21% and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.09%.
China’s Shanghai Composite Index closed lower today, giving up earlier gains despite fresh policy support from Chinese authorities. Losses in software and consumer service stocks led the overall market lower on Monday. The China Securities Regulatory Commission issued guidelines on Friday, urging listed companies to improve shareholder returns through actions such as mergers and acquisitions, employee stock incentive programs, cash dividends, and share buybacks. RBC BlueBay Asset Management’s portfolio manager Siguo Chen stated that the document represents a continuation of Beijing’s effort to stabilize the market in the short term and, over the medium term, to close loopholes and improve market efficiency. Meanwhile, Morgan Stanley downgraded Chinese equities to a slight Underweight from Equal Weight, citing earnings, foreign exchange, geopolitical risks, and domestic policy as factors likely to exert pressure into 2025. In other news, the Chinese Finance Ministry will lower export tax rebates on refined oil, solar power, batteries, and non-metallic mineral products from 13% to 9%, effective December 1st. In corporate news, Lingyi iTech Guangdong slumped over -8% after the magnetic material components maker announced plans to issue approximately 2.14 billion yuan in convertible bonds. Investors are now looking forward to China’s Loan Prime Rate decision later this week.
Japan’s Nikkei 225 Stock Index closed lower today, tracking Friday’s losses on Wall Street amid growing uncertainty about the pace of U.S. monetary policy easing. Japanese stocks also came under pressure from a sharp yen rebound on Friday. Pharmaceutical and defense stocks led the declines on Monday. The Cabinet Office reported on Monday that Japan’s core machinery orders, which exclude those for ships and electric power companies, fell for the third consecutive month in September. Meanwhile, the yen weakened after Bank of Japan Governor Kazuo Ueda stated that the timing of the central bank’s next policy adjustment would hinge on the economy and prices. “There are countless uncertain and changing factors, including the U.S. economy. Rather than waiting for clarity on all of them, we will make appropriate policy decisions, looking at data and other information available by each policy meeting,” Ueda said. Investors are now focusing on Japanese trade data, set for release on Wednesday, and inflation data, due on Friday, which are anticipated to offer additional insight into the outlook for the economy and monetary policy. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +12.49% to 26.12.
The Japanese September Core Machinery Orders came in at -0.7% m/m and -4.8% y/y, weaker than expectations of +1.4% m/m and +2.2% y/y.
Pre-Market U.S. Stock Movers
Nvidia (NVDA) fell over -2% in pre-market trading after The Information reported that the company’s new Blackwell AI chips were experiencing overheating issues when connected to server racks designed to hold up to 72 chips.
Tesla (TSLA) surged more than +8% in pre-market trading after Bloomberg reported that President-elect Donald Trump’s transition team will make a federal framework for self-driving cars one of the Transportation Department’s priorities.
Super Micro Computer (SMCI) gained over +12% in pre-market trading following reports that the company intends to submit a compliance plan to Nasdaq today to prevent delisting.
Robinhood (HOOD) rose more than +2% in pre-market trading after Needham upgraded the stock to Buy from Hold with a $40 price target.
CareMax (CMAX) plummeted about -28% in pre-market trading after the medical services company filed for Chapter 11 bankruptcy protection in Texas on Sunday.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - November 18th
Aecom Technology (ACM), Bellring (BRBR), Brady (BRC), Symbotic (SYM), PACS (PACS), Twist Bioscience (TWST), FinVolution Group (FINV), Ehang (EH), Tuya (TUYA), Bit Digital (BTBT), i3 Verticals (IIIV).
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.
