December S&P 500 E-Mini futures (ESZ25) are trending up +0.27% this morning as investors continue to digest the latest U.S. jobs data, while also awaiting remarks from Federal Reserve officials and an earnings report from semiconductor giant Micron.

Oil prices climbed more than +2% after President Trump ordered a full blockade of all sanctioned tankers entering and leaving Venezuela. “Venezuela is completely surrounded by the largest Armada ever assembled in the History of South America,” Trump posted on Truth Social. The move marks a significant escalation and comes after U.S. forces seized an oil tanker off the country’s coast last week, heightening concerns over prolonged supply disruptions in the region.

In yesterday’s trading session, Wall Street’s major indexes closed mixed. Energy stocks slumped as the price of WTI crude dropped over -3%, with Phillips 66 (PSX) sliding over -6% to lead losers in the S&P 500 and Baker Hughes (BKR) falling about -4% to lead losers in the Nasdaq 100. Also, Humana (HUM) slipped over -6% after the managed-care company reaffirmed its full-year adjusted EPS guidance that fell short of expectations. In addition, Pfizer (PFE) fell more than -3% after the drugmaker issued below-consensus FY26 adjusted EPS guidance. On the bullish side, Comcast (CMCSA) climbed over +5% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after CNBC cited swaps-market trading activity that may suggest involvement by activist investors.

The U.S. Labor Department’s report on Tuesday showed that nonfarm payrolls rose by +64K in November after declining by -105K in October. At the same time, the U.S. unemployment rate rose to a 4-year high of 4.6% in November, weaker than expectations of 4.5%. Also, U.S. November average hourly earnings rose +0.1% m/m and +3.5% y/y, weaker than expectations of +0.3% m/m and +3.6% y/y. In addition, U.S. retail sales were unchanged m/m in October, weaker than expectations of +0.1% m/m, while core retail sales, which exclude motor vehicles and parts, grew +0.4% m/m, stronger than expectations of +0.2% m/m.

“[Tuesday’s] data paints a picture of an economy catching its breath,” said Gina Bolvin, president of Bolvin Wealth Management Group. “Job growth is holding on, but cracks are forming. Consumers are still standing, but not sprinting.”

Meanwhile, a key focus for investors is now the U.S. consumer inflation report for November due on Thursday. Notably, the report will have no monthly changes for most price categories, including the headline and core CPI. That’s because the Bureau of Labor Statistics said it was unable to retroactively obtain much of the October price data that were not collected during the government shutdown. Economists expect core and headline inflation to be +3.0% y/y and +3.1% y/y, respectively. “Although this is well above the Fed’s target rate, at this level it would suggest that inflation remains stable, and it would also add to the view that tariffs have not caused a spike in inflation, yet,” according to Kathleen Brooks, research director at XTB. 

Atlanta Fed President Raphael Bostic wrote in an essay published Tuesday that policymakers should stay focused on addressing inflation, with elevated price pressures likely to persist through most of next year. “After wrestling with all the considerations, today I continue to view price stability as the clearer and more pressing risk despite shifts in the labor market,” Bostic said.

U.S. rate futures have priced in an 80.1% probability of no rate change and a 19.9% chance of a 25 basis point rate cut at the January FOMC meeting.

Today, investors will hear perspectives from Fed Governor Christopher Waller, New York Fed President John Williams, and Atlanta Fed President Raphael Bostic.

Market participants will also monitor earnings reports from several notable companies, with chipmaker Micron Technology (MU), cereal maker General Mills (GIS), and electronics manufacturing services provider Jabil Circuit (JBL) slated to release their quarterly results today.

On the economic data front, investors will focus on the EIA’s weekly crude oil inventories report, which is set to be released in a couple of hours. Economists expect this figure to be -2.4 million barrels, compared to last week’s value of -1.8 million barrels.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.170%, up +0.51%.

The Euro Stoxx 50 Index is up +0.20% this morning, with gains in mining and energy stocks helping drive a partial rebound from losses in the prior session. Mining stocks led the gains on Wednesday after silver prices hit a record high and gold prices also climbed. Energy stocks also advanced, tracking a rise in oil prices after the U.S. ordered a blockade of sanctioned oil tankers entering and leaving Venezuela. Data from the Office for National Statistics released on Wednesday showed that the U.K. annual inflation rate eased much more than expected in November, keeping the Bank of England on track for a fourth rate cut of the year this week. Separately, final data from Eurostat showed that the Eurozone’s November annual inflation rate was revised lower to 2.1% from a preliminary estimate of 2.2%, in line with the October reading. In addition, a survey showed that German business morale unexpectedly worsened in December amid rising pessimism about the outlook for the early months of next year. “The year is ending without any sense of optimism,” according to Ifo President Clemens Fuest. Meanwhile, investors are bracing for a series of monetary policy decisions from central banks across the region on Thursday, including those from the European Central Bank and the Bank of England. In other news, the Trump administration warned of retaliatory measures against the European Union over efforts to tax U.S. technology companies. In corporate news, Serco Group Plc (SRP.LN) climbed over +5% after the outsourcing firm projected profit for this year and next that exceeded expectations.

U.K. CPI, U.K. Core CPI, Germany’s Ifo Business Climate Index, Eurozone’s CPI, and Eurozone’s Core CPI data were released today.

U.K. November CPI rose +3.2% y/y, weaker than expectations of +3.5% y/y.

U.K. November Core CPI rose +3.2% y/y, weaker than expectations of +3.4% y/y.

The German December Ifo Business Climate Index came in at 87.6, weaker than expectations of 88.2.

Eurozone’s November CPI fell -0.3% m/m and rose +2.1% y/y, compared to expectations of -0.3% m/m and +2.2% y/y.

Eurozone’s November Core CPI fell -0.5% m/m and rose +2.4% y/y, in line with expectations.

Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +1.19%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.26%.

China’s Shanghai Composite Index closed sharply higher today as enthusiasm for the country’s technology stocks returned. AI-related stocks led the gains on Wednesday. Sentiment improved after MetaX Integrated Circuits shares jumped almost 700% in their market debut, as investors looked to capitalize on a government push to reduce reliance on AI chips from U.S. firms. Similar to Moore Threads, which made a splash with its debut earlier this month, MetaX develops graphics processing units for AI applications. Shen Meng, director at investment bank Chanson & Co., said, “Chinese investors gained confidence with the help of technology IPOs at year-end, which made it easier for funds to drive the stock index higher.” Meanwhile, turnover in eight exchange-traded funds widely used by the so-called national team of state-linked investors climbed to 19.2 billion yuan on Wednesday, versus an average of 14.4 billion yuan over the past two months. There was some speculation that the national team was buying those ETFs, which also supported sentiment. On the trade front, U.S. Treasury Secretary Scott Bessent told Fox Business Network that China has honored every aspect of trade negotiations so far, adding that the Trump administration would like to see China rebalance its trade.

Japan’s Nikkei 225 Stock Index closed higher today, snapping a two-session losing streak. Gains in technology and financial stocks led the overall market higher on Wednesday. Government data released on Wednesday showed that Japan’s exports rose for the third consecutive month in November. Notably, Japan’s shipments to the U.S. rose for the first time in eight months in November, highlighting resilience in the country’s manufacturing sector. Separate data showing an unexpected surge in core machinery orders, a key leading indicator of capital spending over the next six to nine months, in October also sent a positive signal, suggesting firms are stepping up investment despite the drag from higher U.S. tariffs. The latest data indicate that the economy is rebounding from the contraction in the previous quarter. Signs of economic strength will support the case for the Bank of Japan to resume monetary tightening this week as it closely monitors indicators to assess the impact of tariffs on the nation's industries. The BOJ is widely expected to raise its benchmark rate by a quarter point to 0.75% when its two-day policy meeting ends on Friday, marking the first hike since January. Market participants will closely watch Governor Kazuo Ueda’s post-meeting press conference for clues on how many additional rate hikes may be ahead. In other news, Japanese Prime Minister Sanae Takaichi said on Wednesday that the country must pursue proactive spending, rather than overly strict fiscal tightening, to boost growth and tax revenues. The remarks came as the benchmark 10-year Japanese government bond yield climbed to an 18-year high on Wednesday, amid concerns that the Takaichi administration’s large spending plans could further strain Japan’s already dire finances. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -5.06% to 28.34.

The Japanese November Trade Balance stood at 322.2 billion yen, stronger than expectations of 71.2 billion yen.

The Japanese November Exports rose +6.1% y/y, stronger than expectations of +4.8% y/y.

The Japanese November Imports rose +1.3% y/y, weaker than expectations of +2.5% y/y.

The Japanese October Core Machinery Orders jumped +7.0% m/m and +12.5% y/y, stronger than expectations of -1.8% m/m and +3.6% y/y.

Pre-Market U.S. Stock Movers

Energy stocks and energy service providers are moving higher in pre-market trading, with the price of WTI crude up more than +2%. APA Corp. (APA), Occidental Petroleum (OXY), and Diamondback Energy (FANG) are up over +1%.

Amazon.com (AMZN) rose over +1% in pre-market trading after Bloomberg reported that OpenAI was in early talks to raise at least $10 billion from the company and use its chips.

Netflix (NFLX) advanced over +1% in pre-market trading after the Warner Bros. Discovery board urged shareholders to reject a takeover bid from Paramount Skydance and instead support an existing deal with Netflix.

Airbnb (ABNB) gained more than +1% in pre-market trading after RBC Capital upgraded the stock to Outperform from Sector Perform with a price target of $170.

Lennar (LEN) slid over -3% in pre-market trading after the homebuilder posted weaker-than-expected FQ4 adjusted EPS and issued soft FQ1 new orders guidance.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Wednesday - December 17th

Micron (MU), General Mills (GIS), Jabil Circuit (JBL), Toro (TTC), ABM Industries (ABM), Enerpac Tool Group (EPAC), MillerKnoll (MLKN), GEE Group (JOB).

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