Early Look

Friday, November 29, 2024

U.S. futures are looking higher after investors return from the Thanksgiving Day holiday. Major averages finished mostly lower on Wednesday as the S&P, Dow and Nasdaq all snapped their respective winning streaks of at least 4 up days in a row, though the Russell 2000 managed to eke out a small win. Nothing major on the calendar today with no earnings or economic data which was all crammed in on Wednesday showing slowing GDP, slightly accelerating PCE inflation data, weaker durable goods, and falling jobless claims. As expected on this abbreviated trading day (US equity markets close at 1:00 and bond markets 2:00) stock market news flow is slow with people set to hit the pavement for Black Friday deals. The trade group National Retail Federation said it expects roughly 85.6 million shoppers to visit stores this year, up from 76 million on Black Friday in 2023 as top retailers will be in focus (WMT, TGT, NKE, M, KSS, ULTA, UA, etc.)

In Asian markets, The Nikkei Index dropped -141 points to 38,208, the Shanghai Index rose 30 points to 3,326, and the Hang Seng Index climbed 56 points to 19,423. The dollar fell about 1% vs. the Japanese yen to the 150 level, the lowest in about 6-weeks after Tokyo core consumer price index (CPI), which excludes food costs, rose 2.2% in November from a year earlier, exceeding a median market forecast for a 2.1% gain and accelerating from a 1.8% increase in October. The yen jumped after the data; on expectations the Bank of Japan (BOJ) would raise short-term interest rates from the current 0.25% at its next policy meeting in December. The Dollar Index (DXY) is headed to its first down week since September aided by the yen move. In Europe, the German DAX is up about 8 points to 19,433, while the FTSE 100 slipped -10 points to 8,270. Bitcoin prices +2% back above $97,000 while the ETFs from issuers including BlackRock Inc. (BLK) and Fidelity Investments have attracted $6.2 billion so far in November, data compiled by Bloomberg show. The previous peak of $6 billion was achieved in February.

• The Dow Jones Industrial Average fell -138.25 points, or 0.31%, to 44,722.06.
• The Nasdaq Composite dropped -115.10 points, or 0.60%, to 19,060.48.
• The Russell 2000 Index slipped -0.85 points, or 0.12% to 2,426.19

• Tokyo core consumer price index (CPI), which excludes food costs, rose 2.2% in November from a year earlier, exceeding a median market forecast for a 2.1% gain and accelerating from a 1.8% increase in October.
• India’s economy slowed much more than expected in July-September, expanding by only 5.4% year-on-year, while the growth in gross domestic product was lower than the 6.5% expansion projected, and the central bank’s estimate of 7%. It also eased from 6.7% seen in the previous quarter.

• Canada’s Competition Bureau is suing Alphabet’s (GOOGL) Google over alleged anti-competitive conduct in online advertising, the antitrust watchdog said on Thursday. The Competition Bureau said it had filed an application with the Competition Tribunal seeking an order that, among other things, requires Google to sell two of its ad tech tools. It is also seeking a penalty from Google to promote compliance with Canada’s competition laws.
• India has issued a notice to German automaker Volkswagen (VWAGY) for allegedly evading $1.4 billion in taxes by “willfully” paying lesser import tax on components for its Audi, VW and Skoda cars
• Chip-equipment-making stocks (AMAT, ASML, LRCX, KLAC) were rising Friday after a Bloomberg report said the Biden administration’s crackdown on semiconductor sales to China could be less severe than some had expected.
• Voyager Therapeutics (VYGR) assumed Outperform from Neutral at Wedbush.