S&P futures off 0.1% Monday morning following a strong November rally, with the S&P 500 up 5.5% for its best month of 2024. Asian markets mostly higher, led by China on better PMI data, while Europe is mixed with France lagging. Treasuries weaker after last week’s rally. Dollar up 0.5%, gold down 0.9%, Bitcoin futures off 2.7%, and WTI crude up 1%.
Limited directional catalysts as markets digest higher yields and dollar strength. Headlines include Trump’s 100% tariff threat on BRIC nations if they abandon the dollar, productive talks with Canadian PM Trudeau, and geopolitical risks from France and Ukraine. Firmer China manufacturing PMIs and mixed Black Friday retail trends also in focus.
Economic Calendar Highlights:
- Today: ISM Manufacturing (Nov, est. 47.6), Construction Spending (Oct).
- Later this Week: JOLTS (Tues), ADP payrolls, ISM Services (Wed), Beige Book (Wed), Nonfarm Payrolls, Michigan Sentiment (Fri).
Corporate Updates:
- Retail: Mastercard SpendingPulse reports Black Friday sales up 3.4% y/y (online +14.6%, in-store +0.7%).
- M&A: GEHC to acquire Nihon Medi-Physics stake; BLK reportedly nearing $12B deal for HPS.
- Other: GOOGL facing regulatory pressures; OpenAI exploring advertising; STLA down on CEO resignation.
U.S. equities closed higher in a quiet Friday session, with the Dow up 0.42%, S&P 500 gaining 0.56%, Nasdaq rising 0.83%, and Russell 2000 adding 0.35%. The S&P 500 marked a fresh all-time closing high and its best monthly performance in the past year. Outperformers included autos, semis, media, aerospace & defense, managed care, credit cards, and multis, while laggards were regional banks, pharma/biotech, off-price and apparel retailers, cosmetics, and refiners.
Treasuries were firmer across the curve, the Dollar index fell 0.1% (yen notably strengthened amid firmer BoJ hike expectations), gold rose 0.7%, Bitcoin futures gained 0.8%, and WTI crude dipped 0.2%.
The session reflected a continuation of broader bullish trends, supported by easing tariff concerns following productive talks between Trump and Mexico’s President Sheinbaum. Positive economic surprise momentum and expectations for a December rate cut remain key narratives. Black Friday shopping trends also garnered attention, with Adobe Analytics reporting an 8.8% y/y increase in Thanksgiving Day sales. Overseas, Eurozone CPI reaccelerated as expected, and Tokyo CPI exceeded forecasts, bolstering the yen. China warned of retaliation should the U.S. announce new export restrictions, though these may be less severe than anticipated.
Company News by GICS Sector
Consumer Discretionary
- Hasbro (HAS-US): Gained 2.0% after Elon Musk posted “How much is Hasbro?” on X, sparking speculative interest in the company.
- Advance Auto Parts (AAP-US): Fell 7.0% after Moody’s downgraded its debt, citing high lease-adjusted leverage, weak interest coverage, and near-term negative free cash flow.
Health Care
- Applied Therapeutics (APLT-US): Plunged 76.3% after the FDA issued a complete response letter for its Govorestat application in galactosemia, citing deficiencies. The company plans to meet with the FDA to discuss resubmission, though sentiment was high ahead of the decision.
Eco Data Releases | Monday December 1st, 2024
S&P 500 Constituent Earnings Announcements | Monday December 1st, 2024
No S&P 500 Constituents Report Today
Data sourced from FactSet Research Systems Inc.
