Today’s big picture
Asia-Pacific stock markets ended the day mixed. India’s SENSEX fell 0.50% led by technology stocks after gaining in special trading on Diwali Sunday. Australia’s ASX All Ordinaries fell 0.44%, South Korea’s KOSPI fell 0.24% and Japan’s Nikkei Stock Average ended the day flat, up 0.05% as it encountered technical resistance at the 33,000 level. . Among broad gains led by electronic technology stocks, China’s Shanghai Composite rose 0.25%, Taiwan’s Taipei rose 0.94% and Hong Kong’s Hang Seng closed 1.30% higher. European markets, with the exception of Italy, were ahead in midday trading, suggesting that U.S. stock futures will open lower despite some pre-market trading. Boeing (BA) (More on that later) We are trying to push Dow futures towards even.
A confluence of events could make for a busy week that could have a big impact on the stock market, especially after the strong performance so far this month. October’s inflation data will be a significant signal on the direction of US monetary policy, while October’s retail sales and retailer profits will set the tone for the early part of the holiday season. Given these economic data, investors will be watching to see whether the next wave of Fed officials adopt a more dovish tone, signaling that the Fed is done raising rates.
On Friday, just ahead of the Nov. 17 federal funding deadline, Moody’s downgraded the U.S. outlook to negative, citing budget deficits and political polarization. The House is scheduled to vote on the government funding proposal on Tuesday, but the lack of meaningful progress and the risk of a government shutdown are issues that Fed officials said this week could disrupt the economy. I would mention it. President Biden will meet with Chinese leader Xi Jinping in midweek, but few expect a dramatic improvement in relations between the two countries.
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international economy
Japan’s producer prices rose 0.8% year-on-year in October, slowing from the upwardly revised 2.2% rise in September and slightly below market expectations of 0.9%. This was the lowest producer inflation since deflation in February 2021 and the 10th consecutive month of slowdown.
domestic economy
At noon Eastern time, consumer inflation expectations for the coming year will be released in October, with market expectations expected to drop one notch to 3.6% from 3.7% in September.
Moody’s on Friday downgraded the outlook for the U.S. credit rating from “stable” to “negative,” citing the country’s large budget deficit and declining debt-bearing capacity. The rating agency shared that “continued political polarization” in Congress increases the risk that lawmakers will be unable to reach agreement on a fiscal plan to slow the decline in debt-bearing capacity. Despite the downgraded outlook, Moody’s maintained the long-term issuer rating and senior unsecured rating at ‘Aaa’, citing the US’s creditworthiness and economic strength.
House Republicans are moving forward with a two-phase plan to fund the government. The first bill extends funding through Jan. 19 and includes funding for military construction, the Department of Veterans Affairs, and the departments of Transportation, Housing, and Energy. The second part of the bill extends funding through Feb. 2 and includes funding for the rest of the government. The package does not include the deep spending cuts pushed by his right wing, but instead includes expanded funding at current levels. The House is scheduled to vote on the plan on Tuesday, but the White House says it will only lead to future shutdowns.
market
On Friday, after lagging for much of the week, all major indexes erased their problems, including the Russell 2000 index, which rose 1.07%, and stocks rose heading into the weekend. The Dow rose 1.15%, the S&P 500 rose 1.56% and the Nasdaq Composite closed 2.05% higher. Somewhat surprisingly, the market rallied despite Moody’s negative outlook on the U.S. rating. Moody’s is the second of three major rating agencies to take this step, after Fitch Ratings made changes in August, and S&P Global Ratings said there were no concerns about U.S. credit quality. He became the last holdout.
Key sectors include Technology (2.61%); Microsoft (MSFT) and Apple (AAPL) Together they contributed just under 45% of the sector’s movement, followed by consumer freedoms, which rose 1.66%. Amazon (AMZN) and Tesla (TSLA) Their combined contribution to Friday’s result is 55%.If you are unsure Metaplatform (META) and Alphabet (GOOG, GOOGL) This pushed the third place telecommunications services sector to a result of 1.59%. Nvidia (NVDA) was the only company in the Magnificent Seven not in the top two slots for its sector, and was the fourth largest contributor to technology performance.
Despite Friday’s euphoria, stock fundamentals still mattered. Illumina (ILMN) Shares sold 8.05% after the company withdrew its forward guidance during Thursday’s post-market earnings conference. Year-to-date trends in major market indicators are as follows.
- Dow Jones Industrial Average: 3.43%
- S&P500: 15.00%
- Nasdaq Composite: 31.83%
- Russell 2000: -3.18%
- Bitcoin (BTC-USD): 125.24%
- Ether (ETH-USD): 73.61%
Up-and-coming stocks
Before today’s U.S. stock market trading begins, Genius Sports (GENI), Henry Schein (HSIC), Monday.com (MNDY), The Beauty Health Company (SKIN), Tower Semi (TSEM), and Tyson Foods (TSN) We will report the latest quarterly financial results.
The pre-market range has widened since Friday, with 226 companies in the S&P 500 index trading with 133 declining and 93 rising so far this morning. Companies that are booming this morning include: boeing (Details below) and PDD Holding (PDD) meanwhile Walgreens Boots Alliance (WBA) and Autodesk (ADSK) I’m under some pressure.
boeing Emirates Airlines announced that the world’s largest 777 operator has ordered 90 777X aircraft, including 55 777-9 jets and 35 777-8 jets. The new order increases Emirates’ backlog for the 777X family to 205 aircraft and was announced during the Dubai Air Show. In a sign of recent thaw in relations, the Chinese government is reportedly considering unveiling promises regarding Boeing’s 737 jet during the APEC summit in San Francisco.
India is considering requests from: tesla This is to lower tariffs on imported electric vehicles as the company is considering establishing a factory in the country.
ExxonMobil (XOM) is set to unveil its long-awaited lithium strategy today, announcing that it aims to begin producing electric vehicle (EV) battery metal in Arkansas by 2026.
United Auto Workers (UAW) production workers Ford (F) The Louisville Legislature and Kentucky truck factory voted against the proposed 4 1/2-year contract, but skilled trades workers voted in favor of the contract.
IPO
Readers interested in learning more about the upcoming IPO calendar can visit Nasdaq’s Latest and Upcoming IPOs page.
After today’s market close
Akontech (ACM), Fisker (FSR), Hello (HROW), and Sunlife (SLF) The company plans to report quarterly financial results after stock trading is suspended. For more information on upcoming quarterly earnings reports, visit Nasdaq’s earnings calendar.
on the horizon
Tuesday, November 14th
- UK: Employment changes, unemployment rate – September
- Eurozone: GDP, employment changes – Q3 2023
- Eurozone: ZEW Business Confidence Index – November
- US: NFIB Small Business Optimism Index – October
- United States: Consumer Price Index – October
Wednesday, November 15th
- Japan: GDP – Q3 2023
- China: Industrial production, retail sales, unemployment rate – October
- UK: Inflation rate, producer price index – October
- Eurozone: Industrial Production – September
- US: Weekly MBA Home Loan Application
- US: Retail Sales – October
- United States: Producer Price Index – October
- United States: Empire Manufacturing Index – November
- US: Corporate Inventory – September
- USA: Weekly EIA Crude Inventories
Thursday, November 16th
- Japan: Machinery orders – September
- Japan: Export – October
- China: House Price Index – October
- United States: Weekly initial and continuing unemployment claims
- US: Philadelphia Fed Index – November
- Us; Import/Export Prices – October
- United States: Industrial production and capacity utilization
- US: NAHB Housing Market Index – November
- USA: Weekly EIA Natural Gas Inventories
Friday, November 17th
- UK: Retail Sales – October
- Eurozone: Inflation rate, consumer price index – October
- United States: Housing Starts and Building Permits – October
Thoughts from that day
“Never interfere when your enemy is making a mistake.” ~Napoleon Bonaparte