Stock Index Futures Steady With Focus on U.S. JOLTs Report and Fed Speak

March S&P 500 E-Mini futures (ESH25) are up +0.09%, and March Nasdaq 100 E-Mini futures (NQH25) are up +0.08% this morning as investors geared up for the latest reading on U.S. job openings while also awaiting remarks from a Federal Reserve official.

In yesterday’s trading session, Wall Street’s major indexes ended mixed, with the benchmark S&P 500 and tech-heavy Nasdaq 100 notching 1-week highs. Chip stocks rallied after Nvidia’s assembly partner Foxconn reported record quarterly revenue driven by strong demand for AI infrastructure, with Micron Technology (MU) surging over +10% to lead gainers in the S&P 500 and Nvidia (NVDA) rising more than +3% to lead gainers in the Dow. Also, MicroStrategy (MSTR) climbed over +11% and was the top percentage gainer on the Nasdaq 100 after the price of Bitcoin hit a two-week high, and the company said it had bought 1,070 Bitcoin last Monday and Tuesday. In addition, Paycor HCM (PYCR) soared more than +23% after Bloomberg reported that Paychex is in advanced talks to acquire the company. On the bearish side, Palantir Technologies (PLTR) slumped nearly -5% after Morgan Stanley assumed coverage of the stock with an Underweight rating and a price target of $60.

Economic data released on Monday showed that the U.S. December S&P Global services PMI was revised downward to 56.8 from the preliminary reading of 58.5. Also, U.S. factory orders fell -0.4% m/m in November, weaker than expectations of -0.3% m/m.

Fed Governor Lisa Cook stated on Monday that policymakers can proceed more cautiously with further interest rate cuts, citing a robust labor market and lingering inflation pressures. “Over time, I still think it will likely be appropriate to move the policy rate toward a more neutral stance,” Cook said.

U.S. rate futures have priced in a 90.9% probability of no rate change and a 9.1% chance of a 25 basis point rate cut at the Fed’s monetary policy committee meeting later this month.

Meanwhile, investors are still dealing with the possibility of escalating trade tensions after Donald Trump denied a report suggesting he might ease plans for comprehensive tariffs upon his return to the White House.

Today, all eyes are on the U.S. JOLTs Job Openings data, which is set to be released in a couple of hours. Economists, on average, forecast that the November JOLTs Job Openings will arrive at 7.730M, compared to the October figure of 7.744M.

Investors will also focus on the U.S. ISM Services PMI, which stood at 52.1 in November. Economists expect the December figure to be 53.5.

U.S. Trade Balance data will be released today as well. Economists foresee this figure to stand at -$78.30B in November, compared to the previous value of -$73.80B.  

In addition, market participants will be anticipating a speech from Richmond Fed President Thomas Barkin. 

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.628%, up +0.26%.

The Euro Stoxx 50 futures are up +0.14% this morning, erasing earlier losses as investors digested key inflation data from the region as well as corporate updates. Financial services and retail stocks led the gains on Tuesday, while insurance and bank stocks underperformed. Preliminary data released by Eurostat on Tuesday showed that the annual inflation rate in the Eurozone rose further above the European Central Bank’s target in December, though this is unlikely to deter policymakers from reducing borrowing costs again this month to bolster a weakening economy. Separately, data showed that the seasonally adjusted unemployment rate in the Euro Area remained unchanged at a record low in November. In corporate news, Volvo Ab (VOLVB.S.DX) climbed over +4% after the Swedish carmaker reported a new global sales record for 2024. Also, Next Plc (NXT.LN) rose more than +3% after the British clothing retailer boosted its full-year profit guidance for the fourth time in six months. At the same time, Sodexo (SW.FP) slumped over -8% after the French food caterer reported weaker-than-expected Q1 organic revenue growth.

France’s CPI (preliminary), Italy’s CPI (preliminary), Eurozone’s CPI (preliminary), Eurozone’s Core CPI (preliminary), and Eurozone’s Unemployment Rate were released today.

The French December CPI arrived at +0.2% m/m and +1.3% y/y, better than expectations of +0.3% m/m and +1.5% y/y.

The Italian December CPI came in at +0.1% m/m and +1.3% y/y, better than expectations of +0.3% m/m and +1.5% y/y.

Eurozone December CPI has been reported at +2.4% y/y, in line with expectations.

Eurozone December Core CPI stood at +2.7% y/y, in line with expectations.

Eurozone November Unemployment Rate was 6.3%, in line with expectations.

Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.71%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.97%.

China’s Shanghai Composite Index closed higher today, breaking a four-day losing streak amid improved market sentiment. Semiconductor and technology stocks led the gains on Tuesday. At the same time, pharmaceutical stocks underperformed. Sentiment was buoyed after mainland media Yicai reported on Monday that the People’s Bank of China plans to issue its largest-ever offshore yuan bills in Hong Kong this month in an effort to stabilize the currency. Over the weekend, China’s central bank announced plans to ramp up financial support for technological innovation and consumption while introducing new tools to inject liquidity into the stock market. The Shanghai and Shenzhen exchanges have also recently convened meetings with foreign institutions to strengthen investor confidence. Meanwhile, market participants are looking forward to further details on the country’s trade-in subsidies program expected Wednesday, as part of the government’s efforts to stimulate consumption. In corporate news, Tencent slid over -7% in Hong Kong and CATL fell more than -2% after the U.S. blacklisted both companies for alleged links to the Chinese military. The move serves as another indication of escalating tensions that may further cloud the outlook for the world’s second-largest economy.

Japan’s Nikkei 225 Stock Index closed sharply higher today, snapping a two-session losing streak. Semiconductor and other electronics stocks rallied on Tuesday following Nvidia chief Jensen Huang’s unveiling of new products that reignited optimism about AI demand. Bank stocks also advanced as Japanese government bond yields marched higher. Meanwhile, the yen reversed early losses after Japanese Finance Minister Katsunobu Kato stated that he would take appropriate measures against what he views as one-sided, abrupt foreign exchange movements. In corporate news, Nippon Steel dropped more than -1% after the steelmaker’s chief executive stated on Tuesday that the firm would never concede its expansion efforts in the United States. Investors are now awaiting Japan’s wage data due later this week, which will offer additional insights into the monetary policy outlook. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -4.35% to 21.79.

Pre-Market U.S. Stock Movers

Tesla (TSLA) fell over -1% in pre-market trading after BofA downgraded the stock to Neutral from Buy.

Nvidia (NVDA) rose more than +1% in pre-market trading after unveiling a flurry of new AI products at a major annual tech conference in Las Vegas yesterday evening.

Inari Medical (NARI) soared about +21% in pre-market trading after Stryker confirmed an agreement to acquire the company for about $4.9 billion.

Enovix (ENVX) climbed over +7% in pre-market trading after announcing the successful completion of Site Acceptance Testing for its High Volume Manufacturing line at Fab2 in Malaysia.

Snowflake (SNOW) gained more than +2% in pre-market trading after Wells Fargo upgraded the stock to Overweight from Equal Weight with a price target of $200.

Carvana (CVNA) advanced over +4% in pre-market trading after RBC Capital upgraded the stock to Outperform from Sector Perform with a price target of $280.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Tuesday - January 7th

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