U.S. index futures show remarkable stability in Monday’s pre-market trading, anticipating a shortened week due to the Thanksgiving holiday. This scenario comes after a three-week recovery streak. Investors are closely watching the nuances of the American interest rate curve, eagerly awaiting tomorrow’s release of the minutes from the last Federal Open Market Committee (FOMC) meeting.
As of 05:50 AM, the Dow Jones futures (DOWI:DJI) rose 7 points, or 0.02%. The S&P 500 futures rose 0.02% and the Nasdaq-100 futures rose 0.09%. The yield on 10-year Treasury notes was at 4.465%.
In the commodities market, West Texas Intermediate crude oil for December rose 0.87%, to $76.55 per barrel. Brent crude oil for January rose 0.88% near $81.32 per barrel. Iron ore with a concentration of 62%, traded on the Dalian exchange, rose 1.98%, to $131.05 per ton.
On the economic agenda this Monday, the only highlight is a government auction with a 20-year maturity. Investors are also considering the possibility of speeches by Federal Reserve members throughout the day.
The European financial markets are showing mixed behavior, reflecting investors’ uncertainty about potential interest rate cuts. Recent data indicate a significant drop in inflation, where in the UK, the inflation rate decreased to 4.6% in October, compared to 6.7% in September. In the eurozone, the confirmed inflation was 2.9%, a reduction from the previous month’s 4.3%.
Asian markets closed higher after previous losses, reacting to the maintenance of China’s interest rates. The People’s Bank of China set its one-year lending rate at 3.45% and the five-year rate at 4.2%. The indices varied, while the Shanghai SE rose 0.46%, the Nikkei fell 0.59%. Japan’s Nikkei 225 briefly surpassed its June intraday peak to reach the highest level since 1990, extending its gains this year to about 28%.
At Friday’s close, U.S. stocks remained steady, with the Dow Jones ending with a weekly gain of 1.9%. Nasdaq reached its best closing level in three months, while S&P 500 achieved its best in two months. Optimism regarding interest rates and inflation data contributed to the rise. Some economists suggested that the Fed will maintain a hawkish tone. Residential construction surprised with an increase in October, with energy and airline sectors standing out.
For Monday’s corporate earnings front, investors will be watching reports from Niu (NASDAQ:NIU), Legend Biotech (NASDAQ:LEGN), BiolineRX (NASDAQ:BLRX), ReNew Power (NASDAQ:RNW), before market open. After the close, reports from Zoom Video Communications (NASDAQ:ZM), Agilent Technologies (NYSE:A), Symbotic (NASDAQ:SYM), Trip.com (NASDAQ:TCOM), Fidelis (NYSE:FIHL), Enanta Pharmaceuticals (NASDAQ:ENTA), among others, will be observed.
Wall Street Corporate Highlights for Today
Microsoft (NASDAQ:MSFT) – Microsoft Corp. appointed Sam Altman, former co-founder of OpenAI, to lead its new internal artificial intelligence team, following his departure from the startup. Greg Brockman, also former OpenAI, joins Altman at Microsoft. CEO Satya Nadella announced the change as part of efforts to strengthen Microsoft’s AI plans and reassure investors. Altman’s appointment comes after Nadella’s failed attempts to restore him and Brockman at OpenAI, which now has Emmett Shear as CEO. Nadella reaffirms Microsoft’s commitment to OpenAI and ongoing innovation in AI.
Meta Platforms (NASDAQ:META) – Meta Platforms is redistributing its Responsible AI team across different areas of the company, maintaining focus on AI harm prevention. The change aims to more closely integrate the team with product development and core technologies. Additionally, Don Box, head of Meta’s augmented reality software, is leaving the company, raising questions about the progress of the operating system for the planned AR glasses. His departure, for personal reasons, may impact the project, scheduled for release in 2027.
IBM (NYSE:IBM) – IBM is changing its retirement plan, replacing 401(k) matching with pension credits, saving half a billion dollars annually. This reduces the maximum contribution by employees and deprives them of investing in the stock market, benefiting the company’s cash flow.
SoFi Technologies (NASDAQ:SOFI) – SoFi Technologies released a quarterly report reigniting discussions about the valuation of its loans. Known for its digital financial services, the company is cutting costs by replacing 401(k) contributions with non-monetary credits in a pension plan, impacting employees. This change raises questions about SoFi’s growth sustainability and accounting practices, affecting both revenue and book value, and may not reflect the final value obtained from loans. SoFi’s approach benefits its cash flow and the company’s stock.
Zoom Video Communications (NASDAQ:ZM) – Analysts expect Zoom to announce earnings of $1.08 per share and revenue of $1.12 billion for the third quarter. Although the company has sought to expand beyond its web meetings, it likely faces its sixth consecutive quarter of single-digit revenue growth.
Amazon.com (NASDAQ:AMZN) – Amazon announced staff reductions in its Alexa unit, focusing more on generative artificial intelligence. The layoffs, affecting hundreds of employees, reflect a strategic realignment to align with business priorities and maximize resources in generative AI. Additionally, Amazon plans to export Indian goods worth $20 billion by 2025, expanding its e-commerce platform with thousands of small sellers. According to Bhupen Wakankar, director of global trade at the company, growth is driven by strong demand for “Made in India” products.
Alibaba (NYSE:BABA) – The cancellation of the spin-off of Alibaba’s cloud division and concerns over U.S. chip restrictions rattled investors, leading to drops in Chinese tech stocks. Slow economic recovery, internal growth limits, and persisting uncertainties, despite seemingly cheap stock prices.
Adidas (TG:ADS), Walmart (NYSE:WMT) – Waste from brands like Adidas and Walmart is being burned in brick factories in Cambodia, causing health issues among workers, reveals a report by LICADHO. Some brands are investigating, while others claim to follow waste management norms.
Lions Gate (NYSE:LGF.A), Disney (NYSE:DIS) – Lions Gate Entertainment and Disney are the latest companies to suspend advertisements on Elon Musk’s X.
General Motors (NYSE:GM) – Kyle Vogt, CEO of General Motors’ robotaxi unit, Cruise, resigned a day after apologizing to employees during a safety review of the fleet. Vogt’s departure comes after weeks of turmoil at Cruise, including the withdrawal of vehicles for safety review following an accident in October. GM has increased scrutiny over Cruise’s leadership, with changes on the board and new leadership appointments.
Nikola (NASDAQ:NKLA) – Nikola, an electric truck manufacturer, announced the departure of CFO Anastasiya Pasterick, less than a year after taking the position. The company, which named its fourth CEO in four years, faces financial and operational challenges, including truck recalls for safety issues.
Embraer (NYSE:ERJ) – Embraer CEO Francisco Gomes Neto forecasts about a 20% increase in the company’s revenue in 2024. He stated that official projections will be released next year, expecting deliveries of approximately 80 commercial jets and 140 executive jets. Embraer focuses on increasing revenues and consolidating orders following the launch of new models since 2017.
BP (NYSE:BP) – BP is seeking partnerships for offshore wind projects in Japan and considering investing in hydrogen technology. Despite challenges like inflation and equipment bottlenecks, the company plans to expand into renewable and low-carbon energies to adapt to the global energy transition.
BHP Group (NYSE:BHP) – About 400 iron ore train drivers of BHP in Western Australia will start industrial action this week, rejecting a company offer that did not meet work schedule expectations. The train drivers will no longer use a BHP app for shift changes, demanding individual contact for schedule changes. The action is a moderate response that avoids complete stoppages but may present logistical challenges for BHP.
ArcelorMittal (NYSE:MT) – ArcelorMittal temporarily suspended operations at its steel plant in Bosnia and supplier mines due to decreased demand in the European steel market. The company, which produces 700,000 tons of liquid steel annually and employs about 2,200 workers, cited the war in Ukraine, high energy and production costs, and inflation as reasons for the drop in demand.
Northrop Grumman (NYSE:NOC) – Northrop Grumman, a U.S. defense company, withdrew from the competition to provide narrowband military satellite communications for the British armed forces, as reported by the Financial Times. The company had formed a partnership with Airbus (USOTC:EADSY) to compete for Britain’s SKYNET program.
AstraZeneca (NASDAQ:AZN) – AstraZeneca created the Evinova unit to integrate health technology, including AI, into clinical trials, aiming to cut costs and time. The partnership with Parexel and Fortrea seeks to streamline lengthy clinical trials, as the digital health market grows rapidly.
Eli Lilly (NYSE:LLY) – Eli Lilly extended the deadline for Point Biopharma shareholders to sell their shares until December 1st, due to low initial uptake. In October, Lilly agreed to buy Point for $1.4 billion, targeting experimental cancer therapies. The offered price per share remains $12.50, although Point’s shares closed at $13.33. So far, only 26.45% of the shares have been agreed for sale.
Citigroup (NYSE:C) – Citigroup expects to announce layoffs and changes in senior management today, Monday, as part of its largest restructuring in decades. Thousands of jobs may be affected, with management changes to be communicated by email. The overhaul includes reducing management layers from 13 to eight, particularly affecting areas like compliance, risk management, and technology.
Barclays (NYSE:BCS) – Barclays is evaluating the acquisition of Tesco Bank (LSE:TSCO), with Tesco asking for non-binding offers by the end of the week as part of its downsizing of financial services. Barclays showed particular interest in Tesco Bank’s credit card and savings products. Other bidders are expected, but there is no certainty about the deal’s completion.
Blackstone (NYSE:BX) – Blackstone is close to acquiring a $17 billion portfolio of commercial real estate loans from Signature Bank, sold by the U.S. FDIC, according to Bloomberg. Other firms, including Starwood Capital Group and Brookfield (NYSE:BAM), also participated in the bid.
Moody’s (NYSE:MCO) – Moody’s has maintained Italy’s sovereign debt rating at Baa3, one level above “junk,” but upgraded the outlook from negative to stable, positively surprising Prime Minister Giorgia Meloni’s government. This change reflects a stabilization in economic prospects and the health of the Italian banking sector. This decision contrasts with the expectations of most analysts and follows unchanged assessments by other agencies. Furthermore, Moody’s has also changed the outlook of SoftBank Group Corp. (TG:SFT) from negative to stable due to the listing of Arm Holdings Plc (NASDAQ:ARM), which has brought greater transparency to the technology portfolio.