December S&P 500 results (ESZ23) trending down -0.07% this morning as investors anticipated the release of the Federal Reserve’s November policy meeting minutes while also awaiting quarterly results from chip designer Nvidia.
In Monday’s trading session, the benchmark S&P 500 posted a 3-1/2-month high, the blue-chip Dow rose to a 3-month high, and the tech Nasdaq 100 hit a 1-3/4-year high. Palo Alto Networks Inc (PANW) climbed more than +5% after the company said in a filing Friday that its board approved the buyback of up to an additional $316.7 million of its shares, representing an increase to the existing buyback plan of $3.3 billion. Also, Boeing Co (B.A) soared over +4% after Deutsche Bank upgraded the stock to Buy from Hold with a price target of $270. In addition, Microsoft Corporation (MSFT) gained more than +2% after appointing OpenAI co-founders Sam Altman and Greg Brockman to lead a new advanced artificial intelligence team. On the bearish side, Chegg Inc (CHGG) plunged more than -6% after Morgan Stanley downgraded the stock to Underweight from Equal Weight with a price target of $9.
Richmond Fed President Thomas Barkin said Monday that US economic data points to an expanding economy with slow price growth, but the progress is not enough for the Federal Reserve to declare victory on inflation. “The economy is still growing – unemployment is still 3.9%, and as you pointed out a little while ago, inflation does seem to be settling in. So that’s all good. But the job isn’t done, and so you have to keep going until you get the job done , and we’ll see where we land,” Barkin said.
Meanwhile, US rates futures prices have a 99.8% chance of no hike at the December meeting and a 97.8% chance of no hike at the January FOMC meeting. Also, US rates were priced in a 28.0% probability of a 25 basis point rate hike at the conclusion of the Fed’s March meeting.
In the revenue, famous companies like NVIDIA (NVDA), Lowe’s (LOW), Medtronic (MDT), Analog devices (ADI), Autodesk (ADSK), HP Inc (HPQ), Best Buy (BBY), and Dick’s Sporting Goods (DKS) are set to report their quarterly figures today.
Today, market participants will be closely monitoring the release of the Federal Reserve’s minutes from the November meeting for any new insights into the future trajectory of interest rates.
“We don’t expect big new information, but the minutes could be less favorable than the current market price. The minutes probably indicate that the door is still open for another hike and emphasize that rates should be kept longer,” said Mohit Kumar , managing director at Jefferies International.
Also, investors will likely focus on US Existing Home Sales data. Economists, on average, forecast October Existing Home Sales to stand at 3.90M, compared to the previous reading of 3.96M.
In the bond markets, US 10-year yields are at 4.412%, down -0.27%.
Euro Stoxx 50 futures are down -0.14% this morning as investors awaited more comments from ECB policymakers as well as the release of the Federal Reserve’s policy minutes. Banking and energy stocks underperformed on Tuesday while materials stocks gained ground. Meanwhile, the European Association of Automobile Manufacturers reported on Tuesday a 14.6% year-on-year increase in new car sales in the European Union for October, partly due to a significant increase in sales of fully electric cars. In corporate news, Swiss hearing aid maker Sonova Holding Ag (SOON.Z.IX) climbed over +6% after a smaller than feared annual core profit warning. Also, Rheinmetall Ag (RHM.D.DX) rose more than +4% after the German defense contractor released its 2026 strategy.
The European economic data is mostly empty on Tuesday.
Asian stock markets closed in the red today. China’s Shanghai Composite Index (SHCOMP) closed down -0.01%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.10%.
China’s Shanghai Composite closed just below the flat line today, giving up earlier gains as investor optimism faded on expectations that there will be no strong stimulus early next year. Chinese bank shares fell after a report that the People’s Bank of China was considering more measures to support credit, prompting lenders to limit the amount of new loans they issue in early 2024 and shift some into the current year as authorities try to smooth the credit cycle . At the same time, Chinese properties rose on Tuesday after a Bloomberg report indicated that regulators are drafting a list of 50 developers eligible for various financing options. The list, which consists of private and state real estate agents, will serve as guidance for financial institutions in providing support for the sector through bank loans, debt, and equity financing. China Vanke, Seazen Group and Longfor Group are among the companies included in the draft list, according to the Bloomberg report. Meanwhile, Sunac China Holdings Ltd climbed more than +12% after the troubled property developer announced that all of its restructuring conditions had been met, and its debt restructuring plan is now underway. In other corporate news, Kweichow Moutai Co., Ltd. rose more than +1% following the beverage giant’s proposal for a special dividend payment totaling 24 billion yuan ($3.4 billion).
Japan’s Nikkei 225 Stock Index closed slightly lower today as the yen’s rebound against the dollar led to a sell-off in export-oriented stocks. Auto stocks retreated on Tuesday as the Japanese yen strengthened against the greenback, with Mazda Motor Corp down over -4%, Honda Motor Co Ltd down over -2%, and Toyota Motor Corp down over -1%. On the positive side, technology stocks outperformed, boosted by gains on Wall Street. Meanwhile, Japanese government bond yields fell to multi-month lows on Tuesday, weighed down by declines in US bonds and a smooth auction of 20-year bonds. In other corporate news, GS Yuasa Corp plunged more than -10% after the battery maker announced a plan to raise as much as 47.2 billion yen ($315.47 million) through the sale of new shares and a third-party allotment to Honda Motor. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed -3.82% to 17.87.
Premarket US stock transferors
Symbotic Inc (SYM) surged about +22% in premarket trading after the company posted upbeat Q4 results and provided above-consensus Q1 earnings guidance.
Agilent Technologies Inc (A) climbed over +6% in premarket trading after the company reported better-than-expected Q4 results.
Avita Medical Ltd (RCEL) plunged more than -10% in premarket trading after the skin restoration-focused pharmaceutical company lowered its annual trading revenue guidance.
Keysight Technologies Inc (Keys) rose more than +1% in premarket trading after the company reported stronger-than-expected Q4 results.
Xylem Inc (XYL) gained about +1% in premarket trading after Deutsche Bank upgraded the stock to Buy from Hold.
Gen Digital Inc (GEN) climbed more than +3% in premarket trading after Morgan Stanley upgraded the stock to Overweight Equal Weight.
You can see more premarket shares here
Today’s US Earnings Spotlight: Tuesday – November 21st
NVIDIA (NVDA), Lowe’s (ALBA), Medtronic (MDT), Analog Devices (ADI), Autodesk (ADSK), Baidu (BIDU), HP Inc (HPQ), Jacobs Engineering (J), Best Buy (BBY), Dick’s Sporting Goods (DKS), Burlington Stores (BURL), Miniso (MNSO), Dlocal (DLO), iQIYI (IQ), NewJersey Resources (NJR), Abercrombie&Fitch (ANF), Urban Outfitters (URBN), Kohl’s Corp (KSS), Nordstrom (JWN), Golar (GLNG), GDS Holdings (GDS), Golden Ocean (GOGL), Jack In The Box (JACK), Kingsoft Cloud (KC), Guess (GES), Caleres (CAL), Embecta (EMBC), Hibbett Sports (HIBB), Tsakos Energy (TNP), Yatsen (YSG), GreenTree Hospitality (GHG), Agoro (API).
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As of 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 for informational purposes only. For more information, please see Barchart’s Disclosure Policy here.
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