S&P futures are up 0.2% in a quiet post-Thanksgiving session, with the NYSE set to close early at 1 PM ET. Major indices are on track for weekly gains, and the S&P is poised to mark its best month since November 2023. Treasuries are firmer, the Dollar index is flat with yen strength notable amid BoJ hike expectations, gold is up 0.7%, Bitcoin futures rose 0.5%, and WTI crude gained 0.8%.
Key Developments:
- Tariff concerns eased after productive talks between Trump and Mexico’s President Sheinbaum on cross-border flows.
- Market sentiment supported by positive seasonality, resilient consumer trends, and EPS growth tailwinds, though disinflation progress remains a concern.
- Israel-Hezbollah ceasefire holding steady.
Global News:
- Eurozone CPI reaccelerated as expected.
- Tokyo CPI came in hotter than anticipated, boosting yen strength.
- China warned of retaliation if the U.S. imposes new export restrictions, which may be less severe than previously feared.
No major economic data or Fedspeak is scheduled, and corporate news remains light with Black Friday shopping trends expected to dominate headlines
U.S. equities closed mostly lower on Wednesday, with the Dow down 0.31%, the S&P 500 off 0.38%, and the Nasdaq losing 0.60%, though the Russell 2000 posted a slight gain (+0.08%). Stocks ended off their worst levels as big tech and semiconductors, led by NVIDIA (NVDA-US), weighed on the market. Outperformers included REITs, small-caps, biotech, and managed care, while laggards spanned semis, software, regional banks, and cruise lines.
Treasuries were firmer, particularly in the belly of the curve, with the 7Y auction stopping through. The Dollar index fell 0.9%, driven by yen strength. Gold rose 0.7%, Bitcoin futures surged 6.3%, and WTI crude dipped 0.1% in choppy trading.
Markets reflected a cautious tone ahead of the U.S. Thanksgiving holiday and a shortened session on Friday. Tariff rhetoric from President-elect Trump continued to be a focus, with Mexico threatening retaliatory measures. Economic data showed October core PCE in line at +0.3% m/m, with personal income and spending above consensus. Durable goods orders rose 0.2%, slightly missing estimates, while core capital goods orders weakened. October pending home sales came in higher than expected. The second estimate of Q3 GDP held steady at a 2.8% SAAR.
Company News by GICS Sector
Information Technology
- Ambarella (AMBA-US): Gained 5.9% on strong Q3 results, including record AI revenue and higher ASPs; automotive wins and normalized inventories noted. Q4 revenue guidance came in ahead of Street expectations.
- Autodesk (ADSK-US): Fell 8.6% despite a Q3 EPS beat and in-line revenue. Q4 guidance was above consensus, but the company flagged long-term growth at the low end of its 10-15% target. A new CFO was announced.
- HP (HPQ-US): Dropped 11.4% as FQ4 revenue slightly beat expectations but margins fell short. Printing performed better, but Personal Systems faced softness; FY25 guidance was largely in line.
- CrowdStrike (CRWD-US): Declined 4.6% despite beating on Q3 EPS and revenue, raising full-year guidance. Concerns focused on net new ARR decline and continued discounting challenges.
Consumer Discretionary
- Urban Outfitters (URBN-US): Jumped 18.3% on a big Q3 beat, driven by Retail and Wholesale outperformance, as well as strong gross and operating margins. Management sounded positive about holiday sales.
- Nordstrom (JWN-US): Fell 8.1% after Q3 EPS and revenue beat, but management flagged softening October/November sales trends and issued a cautious Q4 outlook.
- Guess? (GES-US): Declined 5.4% on Q3 misses and lowered guidance, citing slow North American and Asian consumer traffic alongside headwinds from currency and freight costs.
Industrials
- Vishay Intertechnology (VSH-US): Rose 4.2% after an analyst highlighted its role in NVIDIA’s AI server and RTX 50 supply chain, noting strong orders for key components.
- SolarEdge Technologies (SEDG-US): Gained 8.6% after announcing it will shut down its Energy Storage division to focus on its core solar activities.
Financials
- Symbotic (SYM-US): Plunged 35.9% after delaying its 10-K filing due to revenue recognition issues and material weaknesses in internal controls.
Consumer Staples
- Smucker’s (SJM-US): Continued gains on portfolio restructuring and strategic moves, with positive investor sentiment.
Eco Data Releases | Friday November 29th, 2024
No Releases Today
S&P 500 Constituent Earnings Announcements | Friday November 29th, 2024
No Constituents Reporting Today
Data sourced from FactSet Research Systems Inc.
