December S&P 500 E-Mini futures (ESZ25) are trending up +0.16% this morning as traders bet that a new round of U.S. economic data will reinforce expectations for a Federal Reserve rate cut next week.
In yesterday’s trading session, Wall Street’s major indexes closed higher, with the S&P 500 and Nasdaq 100 notching 2-1/2-week highs. Chip stocks advanced, with Intel (INTC) climbing over +8% to lead gainers in the Nasdaq 100 and NXP Semiconductors N.V. (NXPI) rising more than +7%. Also, Boeing (BA) surged more than +10% and was the top percentage gainer on the S&P 500 and Dow after Chief Financial Officer Jay Malave said he expects the company to generate low-single-digit positive free cash flow next year. In addition, MongoDB (MDB) jumped over +22% after the database software company posted upbeat Q3 results and raised its full-year guidance. On the bearish side, Symbotic (SYM) tumbled more than -21% after Goldman Sachs downgraded the stock to Sell from Neutral with a price target of $47.
“Although our breadth and trend indicators showed some improvement last week, more time and technical evidence are needed for a ‘buy’ signal to occur” in the stock market, according to Craig Johnson at Piper Sandler.
U.S. President Donald Trump said on Tuesday he plans to announce his choice to lead the Federal Reserve in early 2026. “We’ll be announcing somebody, probably early next year, for the new chairman of the Fed,” Trump said during a Cabinet meeting at the White House. Bloomberg News reported last week that White House National Economic Council Director Kevin Hassett is viewed as the leading candidate to succeed Powell, a pick investors see as aligned with President Trump’s push for lower rates.
Meanwhile, U.S. rate futures have priced in an 87.0% chance of a 25 basis point rate cut and a 13.0% chance of no rate change at the December FOMC meeting.
Today, all eyes are on the U.S. ADP private payrolls report, which is set to be released in a couple of hours. Economists, on average, forecast that the November ADP Nonfarm Employment Change will stand at 5K, compared to the October figure of 42K.
The U.S. ISM Non-Manufacturing PMI and S&P Global Services PMI will also be closely monitored today. Economists expect the November ISM services index to be 52.0 and the S&P Global services PMI to be 55.0, compared to the previous values of 52.4 and 54.8, respectively.
U.S. Industrial Production and Manufacturing Production data for September will be released today. The reports were originally scheduled for release on October 17th, but were delayed due to the government shutdown. Economists expect Industrial Production to rise +0.1% m/m and Manufacturing Production to rise +0.1% m/m in September, compared to the August figures of +0.1% m/m and +0.2% m/m, respectively.
U.S. Export and Import Price Indexes for September will come in today. The figures were originally scheduled for release on October 17th, but were delayed due to the shutdown. Economists anticipate the export price index to rise +0.1% m/m and the import price index to rise +0.1% m/m in September, compared to the previous figures of +0.3% m/m and +0.3% m/m, respectively.
The EIA’s weekly crude oil inventories report will be released today as well. Economists expect this figure to be -1.9 million barrels, compared to last week’s value of 2.8 million barrels.
On the earnings front, notable companies like Salesforce (CRM), Snowflake (SNOW), and Dollar Tree (DLTR) are set to report their quarterly figures today.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.083%, down -0.12%.
The Euro Stoxx 50 Index is up +0.42% this morning, extending gains from the previous session as risk appetite improves. Retail stocks led the gains on Wednesday, with Inditex (0QWI.LN) climbing over +8% after the Zara owner posted a 10.6% year-over-year increase in currency-adjusted sales between November 1st and December 1st. Semiconductor stocks also advanced after U.S. peer Marvell Technology projected stronger-than-expected growth in its data-center segment next year. At the same time, financial stocks lost ground. A survey released on Wednesday showed that Eurozone business activity grew at its quickest pace in 2-1/2-years in November, as strength in the services sector more than offset weakness in manufacturing. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said, “The service sector in the euro zone is showing clear signs of recovery.” Investors now await a speech from European Central Bank President Christine Lagarde and a slew of U.S. economic data due later in the day. On the geopolitical front, Russia and the U.S. failed to reach a compromise on a potential peace agreement to end the war in Ukraine following a five-hour Kremlin meeting on Tuesday between President Vladimir Putin and President Donald Trump’s top envoys. In other corporate news, Hugo Boss (BOSS.D.DX) sank more than -11% after the fashion company said it expects sales to drop next year as it works to realign its brands in pursuit of stronger long-term profitability.
Eurozone’s Composite PMI, Eurozone’s Services PMI, and Eurozone’s PPI data were released today.
Eurozone’s November Composite PMI came in at 52.8, stronger than expectations of 52.4.
Eurozone’s November Services PMI stood at 53.6, stronger than expectations of 53.1.
Eurozone’s October PPI rose +0.1% m/m and fell -0.5% y/y, compared to expectations of +0.1% m/m and -0.4% y/y.
Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.51%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.14%.
China’s Shanghai Composite Index closed lower today as weakening momentum in the country’s services sector added to concerns about an economy grappling with a prolonged property downturn. Real estate stocks slumped on Wednesday after Fitch Ratings placed China Vanke, which is seeking to delay payment on an onshore bond due this month, on “Rating Watch Negative” and cut the ratings on its subsidiary’s notes. Also weighing on sentiment on Wednesday was a private survey showing that China’s services activity grew at its slowest rate in five months in November, as new order growth weakened despite a boost from foreign demand. Capital Economics’ Zichun Huang said that the decline in the November services PMI reinforces signs that the economy kept losing steam last month, adding that China’s economic growth will likely remain subdued in 2026. Meanwhile, shares of metal producers and materials manufacturers advanced after local media reported that several major suppliers to lithium battery makers had increased prices amid surging demand for energy storage and China’s crackdown on excessive competition and price wars. In other news, several major Chinese commercial banks have withdrawn high-yield, five-year large certificates of deposit from their offerings in an effort to reduce costs and ease margin pressure. Investors are awaiting the Politburo meeting and the Central Economic Work Conference later this month. China’s leadership is expected to outline key policy priorities for the world’s second-largest economy in 2026 and may signal whether additional stimulus is on the horizon.
The Chinese November RatingDog Services PMI came in at 52.1, in line with expectations.
Japan’s Nikkei 225 Stock Index closed higher today, led by gains in the tech sector. Chip-related stocks outperformed on Wednesday, tracking overnight gains in their U.S. peers. At the same time, bank stocks retreated as investors decided to take profits after a recent rally fueled by expectations of a near-term rate hike by the Bank of Japan. Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory, said, “Investors bought stocks that became cheap and sold those which had risen.” A private-sector survey released on Wednesday showed that Japan’s services sector activity maintained its steady growth in November, supported by a quicker rise in new orders and improved business confidence. S&P Global Market Intelligence’s Annabel Fiddes said that Japan’s PMI data points to a continued modest expansion in private-sector output, once again led by services activity. Meanwhile, Japanese government bonds fell further on Wednesday, sending yields to multi-year highs, as expectations of BOJ tightening and large government spending plans dampened sentiment. Market participants widely expect that the BOJ will raise its rate by a quarter percentage point to 0.75% this month, and they are now shifting their attention to the rate path that follows, according to Naoya Hasegawa, chief bond strategist at Okasan Securities. Super-long-dated bonds remain under pressure from Prime Minister Sanae Takaichi’s large spending plan that will be funded through new debt issuance, with caution persisting ahead of Thursday’s 30-year bond auction. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -3.18% to 27.70.
The Japanese November au Jibun Bank Services PMI was revised higher to 53.2 from the preliminary reading of 53.1.
Pre-Market U.S. Stock Movers
Marvell Technology (MRVL) jumped over +10% in pre-market trading after the custom semiconductor firm projected stronger-than-expected growth in its data-center segment next year.
American Eagle Outfitters (AEO) surged more than +13% in pre-market trading after the clothing retailer posted upbeat Q3 results and raised its Q4 operating income guidance.
Uber Technologies (UBER) rose over +1% in pre-market trading after Arete upgraded the stock to Buy from Neutral with a $125 price target.
Pure Storage (PSTG) slumped more than -14% in pre-market trading after the data storage company reported weaker-than-expected Q3 GAAP EPS.
CrowdStrike Holdings (CRWD) fell over -2% in pre-market trading as the cybersecurity company’s Q3 results and Q4 guidance failed to impress investors.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - December 3rd
Salesforce Inc (CRM), Royal Bank of Canada (RY), Snowflake (SNOW), Dollar Tree (DLTR), Dollar Tree (DLTR), Five Below (FIVE), Healthequity Inc (HQY), UiPath (PATH), Descartes Systems (DSGX), PVH (PVH), Ncino (NCNO), C3.ai (AI), Sprinklr (CXM), Yuanbao (YB), Methode Electronics (MEI), Torrid Holdings (CURV), Tillys (TLYS).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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