The S&P 500 futures are up 24 points and are trading 0.5% above fair value, the Nasdaq 100 futures are up 115 points and are trading 0.7% above fair value, and the Dow Jones Industrial Average futures are up 144 points and are trading 0.4% above fair value.
The stock market is poised for a higher open after yesterday's late-afternoon selloff.
The 2-yr note yield is up one basis point from yesterday at 4.36% and the 10-yr note yield is down two basis points to 3.86%.
WTI crude oil futures are down 1.1% to $73.42/bbl.
Today's economic calendar features:
08:30 ET: Weekly Initial Jobless Claims (Briefing.com consensus 218K; Prior 220K) and Continuing Jobless Claims (Prior 1876K)
08:30 ET: Q3 GDP - Third Estimate (Briefing.com consensus 5.2%; Prior 5.2%) and Q3 GDP Deflator - Third Estimate (Briefing.com consensus 3.6%; Prior 3.6%)
08:30 ET: December Philadelphia Fed Index (Briefing.com consensus -3.0; Prior -5.9)
10:00 ET: November Leading Indicators (Briefing.com consensus -0.4%; Prior -0.8%)
10:30 ET: EIA Natural Gas Inventories (Prior -55 bcf)
In corporate news:
Micron (MU 83.45, +4.81, +6.1%): beats by $0.06, beats on revs; guides Q2 EPS above consensus, revs above consensus
CarMax (KMX 80.00, +5.32, +7.1%): beats by $0.10, misses on revs
Apogee Enterprises (APOG 52.82, +1.03, +2.0%): beats by $0.13, misses on revs; guides FY24 EPS above consensus, revs below consensus
MillerKnoll (MLKN 30.98, +1.98, +6.8%): beats by $0.05, misses on revs; guides FebQ EPS above consensus, revs below consensus; guides FY24 EPS above consensus
Calliditas Therapeutics (CALT 25.42, +3.32, +15.0%): announces full FDA approval of TARPEYO, the only FDA-approved treatment for IgA nephropathy to significantly reduce the loss of kidney function
BlackBerry (BB 3.93, -0.17, -4.2%): beats by $0.05, beats on revs; guides Q4 revs below consensus
Salesforce (CRM 265.20, +4.95, +1.9%): upgraded to Overweight from Equal-Weight at Morgan Stanley
Boeing (BA 265.00, +4.75, +1.8%): secured CAAC clearance for 737 Max deliveries in China, according to Air Current
Reviewing overnight developments:
Equity indices in the Asia-Pacific region were mixed on Thursday, although Japan's Nikkei (-1.6%) was a notable underperformer. Japan's Nikkei: -1.6%, Hong Kong's Hang Seng: flat, China's Shanghai Composite: +0.6%, India's Sensex: +0.5%, South Korea's Kospi: -0.6%, Australia's All Ordinaries: -0.5%.
In economic data:
China's November Foreign Direct Investment -10.0% (last -9.4%)
South Korea's November PPI -0.4% m/m (last -0.1%) and 0.6% yr/yr (last 0.8%)
Hong Kong's November CPI 0.0% m/m (last 1.0%) and 2.6% yr/yr (expected 2.7%; last 2.7%)
New Zealand's November Credit Card Spending 3.3% yr/yr (last -2.8%)
In news:
Shares of heavyweight component Toyota Motor fell sharply on news the auto maker recalled nearly 1 million Toyota and Lexus vehicle in the U.S. for a safety issue.
A stronger yen and some general profit-taking activity contributed to the Nikkei's weakness.
Japan's Cabinet Office updated its FY24 GDP growth forecast to 1.3% (vs 1.2% prior); overall inflation in next fiscal year expected to be 2.5%.
Press reports suggest sales of Japanese government bonds could be down ~11% yr/yr in FY24/25.
Elsewhere, The Wall Street Journal reports the Biden Administration is looking at possibly raising tariffs on some Chinese goods, including EVs and solar products made in China.
In a key corporate development, Air Current reports that Boeing (BA) secured CAAC clearance for 737 Max deliveries in China.
Major European indices are trading lower in today's session without a specific news catalyst to account for the weakness other than yesterday's news that the U.S. market suffered an abrupt selloff in afternoon trading. STOXX Europe 600: -0.5%, Germany's DAX: -0.6%, UK's FTSE 100: -0.5%, France's CAC 40: -0.5%, Italy's FTSE MIB: -0.7%, Spain's IBEX 35: -0.3%.
In economic data:
France's December Business Survey 100 (expected 98; last 99)
Italy's November PPI -0.9% m/m (last 1.5%) and -12.6% yr/yr (last -9.5%)
In news:
The precipitant for that selloff was unclear, although there was some chatter that trading activity in zero-day options hastened the retreat.
The U.S. market, though, was ripe for a profit-taking pullback given its huge run since late October, so there was likely a general move to take some money off the table that also played a part in the hasty retreat.
In any case, the profit-taking activity looks to have spilled over to European bourses.
That hasn't deterred the euro, however. It has caught a bid (vis a vis the dollar), helped in part by ECB member de Guindos toeing the party line and saying that it is still premature to be talking rate cuts. EUR/USD +0.4% to 1.0983.
U.S. equity futures:
S&P 500 Futures +26 @ 4,776
DJIA Futures: +154 @ 37,599
Nasdaq 100 Futures: +122 @ 16,888
Overseas:
Europe: DAX -0.6%, FTSE -0.5%, CAC -0.5%
Asia: Nikkei -1.6%, Hang Seng Flat, Shanghai Composite +0.6%
Commodities:
Crude Oil -0.91 @ 73.31
Nat Gas +0.031 @ 2.478
Gold +2.25 @ 2049.95
Silver -0.086 @ 24.545
Copper -0.0112 @ 3.8948
Earnings/Guidance:
Apogee Enterprises (
BlackBerry (
CarMax (
Micron (
MillerKnoll (
Park Hotels & Resorts (
News:
United Nations Security Council delays vote on a resolution calling for a halt in fighting between Israel and Gaza, according to the New York Times
President Biden is considering increasing tariffs on some Chinese goods, including EVs made in China, according to the Wall Street Journal
Angola to leave OPEC, according to Reuters
Argentina President Javier Milei plans to deregulate the economy, according to Financial Times
Holiday travel expected to be busier than last year, according to Reuters
10x Genomics (
ACCO Brands (
ADT (
Alamos (
Alcoa (
Alterity Therapeutics (
Annexon (
Apple (
Arrowhead Pharmaceuticals (
AutoZone (
Bausch Health (
BioMarin Pharmaceutical (
Boeing (
BrightSphere Investment Group (
Calliditas Therapeutics (
Calliditas Therapeutics (
ChipMOS (
Commerzbank AG (
CRH Plc. (
Dave & Buster's (
Emeren Group (
Energy Fuels (
Eni S.p.A. (
Exscientia plc (
FingerMotion (
Fluence (
General Mills (
Hammerhead Energy (
HOOKIPA Pharma (
HSBC (
HUTCHMED (
Immunovant (
Immutep (
Joby Aviation (
KKR (
Lemonade (
Liquidia Technologies (
Merck (
MeiraGTx (
Merck (
Middlefield Banc (
Morgan Stanley (
nCino (
Orthofix (
Pacira BioSciences (
QuidelOrtho (
Raymond James (
Regeneron Pharma (
ResMed (
Sanofi (
Shattuck Labs (
Sony (
Southwest Air (
Takeda Pharma (
Tesla (
TRI Pointe Homes (
Turkcell's (
Warner Bros. Discovery (
Wells Fargo (
M&A:
Forward Air (
GMS (
SomaLogic (
Timken (
Syndicate:
5E Advanced Materials (
Agnico-Eagle Mines (
American Assets Trust (
Annexon (
Innate Pharma (
Korro Bio (
Mondee Holdings (
Norfolk Southern (
TE Connectivity (
Whirlpool (
IPOs:
No IPOs expected to price.
Gapping Up/Down
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
Amgen (AMGN) upgraded to Buy from Neutral at Daiwa Securities; tgt raised to $320
Annexon (ANNX) upgraded to Buy from Neutral at BofA Securities; tgt raised to $6
Extra Space Storage (EXR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $150
Glaukos (GKOS) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $91
Insulet (PODD) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $238
JFrog (FROG) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $42
Merit Medical (MMSI) upgraded to Buy from Hold at Canaccord Genuity; tgt $100
Regency Centers (REG) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $75
Salesforce (CRM) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $350
Spotify (SPOT) upgraded to Buy from Hold at Pivotal Research Group; tgt raised to $265
Urban Edge Properties (UE) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $18
Downgrades:
Eli Lilly (LLY) downgraded to Outperform from Buy at Daiwa Securities; tgt lowered to $610
Highwoods Prop (HIW) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $18
Nevro (NVRO) downgraded to Hold from Buy at Canaccord Genuity; tgt $23
POINT Biopharma (PNT) downgraded to Hold from Buy at Brookline
Simon Properties (SPG) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $143
Others:
Catalyst Pharma (CPRX) initiated with an Outperform at Oppenheimer; tgt $30
Crinetics Pharmaceuticals (CRNX) initiated with a Hold at Jefferies; tgt $35
J. Jill (JILL) initiated with an Outperform at William Blair
Myriad Genetics (MYGN) resumed with a Neutral at Piper Sandler; tgt $23
Ovid Therapeutics (OVID) initiated with a Buy at BTIG Research; tgt $11
Rollins (ROL) initiated with an Equal-Weight at Morgan Stanley; tgt $42
Econ Data:
08:30 ET: Initial Claims for Dec 16 (Briefing.com Consensus 218K; Prior 202K)
08:30 ET: Continuing Claims for Dec 9 (Briefing.com Consensus NA; Prior 1876K)
08:30 ET: GDP - Third Estimate for Q3 (Briefing.com Consensus 5.2%; Prior 5.2%)
08:30 ET: GDP Deflator - Third Estimate for Q3 (Briefing.com Consensus 3.6%; Prior 3.6%)
08:30 ET: Philadelphia Fed Index for Dec (Briefing.com Consensus -3.0; Prior -5.9)
10:00 ET: Leading Indicators for Nov (Briefing.com Consensus -0.4%; Prior -0.8%)
10:30 ET: EIA Natural Gas Inventories for Dec 16 (Briefing.com Consensus NA; Prior -55 bcf)
Earnings:
Monday (Dec 18)
Afternoon: HEI
Tuesday (Dec 19)
Morning: ACN FDS FCEL
Afternoon: FDX SCS WOR
Wednesday (Dec 20)
Morning: GIS TTC WGO
Afternoon: BB MLKN MU
Thursday (Dec 21)
Morning: APOG CCL KMX CTAS PAYX
Afternoon: AIR AVO NKE
Asia & Europe detail:
Asia: Nikkei -1.6%, Hang Seng Flat, Shanghai Composite +0.6%
Equity indices in the Asia-Pacific region were mixed on Thursday, although Japan's Nikkei (-1.6%) was a notable underperformer. Shares of heavyweight component Toyota Motor fell sharply on news the auto maker recalled nearly 1 million Toyota and Lexus vehicle in the U.S. for a safety issue. A stronger yen and some general profit-taking activity contributed to the Nikkei's weakness. Japan's Cabinet Office updated its FY24 GDP growth forecast to 1.3% (vs 1.2% prior); overall inflation in next fiscal year expected to be 2.5%. Press reports suggest sales of Japanese government bonds could be down ~11% yr/yr in FY24/25. Elsewhere, The Wall Street Journal reports the Biden Administration is looking at possibly raising tariffs on some Chinese goods, including EVs and solar products made in China. In a key corporate development, Air Current reports that Boeing (BA) secured CAAC clearance for 737 Max deliveries in China.
In economic data:
China's November Foreign Direct Investment -10.0% (last -9.4%)
South Korea's November PPI -0.4% m/m (last -0.1%) and 0.6% yr/yr (last 0.8%)
Hong Kong's November CPI 0.0% m/m (last 1.0%) and 2.6% yr/yr (expected 2.7%; last 2.7%)
New Zealand's November Credit Card Spending 3.3% yr/yr (last -2.8%)
---Equity Markets---
Japan's Nikkei: -1.6%
Hong Kong's Hang Seng: flat
China's Shanghai Composite: +0.6%
India's Sensex: +0.5%
South Korea's Kospi: -0.6%
Australia's All Ordinaries: -0.5%
---FX---
USD/JPY: -0.4% to 142.98
USD/CNH: +0.1% to 7.1549
USD/INR: flat at 83.253
Europe: DAX -0.6%, FTSE -0.5%, CAC -0.5%
Major European indices are trading lower in today's session without a specific news catalyst to account for the weakness other than yesterday's news that the U.S. market suffered an abrupt selloff in afternoon trading. The precipitant for that selloff was unclear, although there was some chatter that trading activity in zero-day options hastened the retreat. The U.S. market, though, was ripe for a profit-taking pullback given its huge run since late October, so there was likely a general move to take some money off the table that also played a part in the hasty retreat. In any case, the profit-taking activity looks to have spilled over to European bourses. That hasn't deterred the euro, however. It has caught a bid (vis a vis the dollar), helped in part by ECB member de Guindos toeing the party line and saying that it is still premature to be talking rate cuts. EUR/USD +0.4% to 1.0983.
In economic data:
France's December Business Survey 100 (expected 98; last 99)
Italy's November PPI -0.9% m/m (last 1.5%) and -12.6% yr/yr (last -9.5%)
---Equity Markets---
STOXX Europe 600: -0.5%
Germany's DAX: -0.6%
UK's FTSE 100: -0.5%
France's CAC 40: -0.5%
Italy's FTSE MIB: -0.7%
Spain's IBEX 35: -0.3%
---FX---
EUR/USD: +0.4% to 1.0983
GBP/USD: +0.2% to 1.2657
USD/CHF: -0.4% to 0.8587
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