The major U.S. stock index futures indicate a largely steady opening on Friday, suggesting that stocks may lack clear direction after the previous day's gains.
Following a period of significant volatility, investors seem to be pausing, with the major indexes varying sharply in recent sessions. Despite this, they appear on track to close the week positively. The day ahead features minimal major U.S. economic reports, possibly leaving traders hesitant. However, attention is on the University of Michigan's forthcoming update on November's consumer sentiment.
The consumer sentiment index is anticipated to be revised upwards to 73.7 from an earlier estimate of 73.0, marking an improvement from 70.5 in October. Looking ahead, critical economic data releases next week will include consumer price inflation figures closely monitored by the Federal Reserve.
In stock-specific news, Gap Inc. shares are surging in pre-market trading after the apparel company reported third-quarter earnings that exceeded expectations and lifted its full-year outlook. Similarly, NetApp shares may experience early strength following fiscal second-quarter results that surpassed analyst forecasts. Conversely, Intuit shares could face downward pressure despite better-than-expected first-quarter earnings, due to less optimistic guidance for the current quarter.
Thursday's trading reflected considerable volatility initially, but stocks mostly advanced as the day progressed. The Dow notably outperformed, climbing 461.88 points, or 1.1%, to close at 43,870.35. Meanwhile, the S&P 500 rose 31.60 points, or 0.5%, to finish at 5,948.71, and the Nasdaq saw a modest increase, edging up 6.28 points, or less than 0.1%, to 18,972.42.
The Dow's significant rise was driven by robust performances from companies like IBM Corp., Sherwin-Williams, and Salesforce. The Nasdaq experienced fluctuating sentiment, particularly as traders followed Nvidia's activity. Nvidia shares ended 0.5% higher after reporting stronger-than-expected third-quarter earnings and revenue, although concerns about slowing revenue growth and a decline in gross margins persisted.
A substantial fall in Alphabet Inc. shares restricted Nasdaq's upward momentum amid news of the Justice Department's push for a divestment of Google's Chrome web browser.
In U.S. economic developments, the Labor Department reported an unexpected drop in initial jobless claims for the last week, reaching their lowest in over six months. Initial jobless claims fell to 213,000 for the week ending November 16, a decrease of 6,000 from the prior week's revised figure of 219,000, countering economists' predictions of an increase to 220,000.
Separately, the Conference Board disclosed a slightly larger-than-expected drop in leading U.S. economic indicators for October, with the index falling by 0.4% after a revised 0.3% dip in September. Economists had expected a 0.3% decline.
"The US LEI continues to suggest challenges to economic activity ahead, apart from possible temporary impacts of hurricanes," stated Justyna Zabinska-La Monica, Senior Manager at The Conference Board.
In sector performance, computer hardware stocks rebounded significantly, with the NYSE Arca Computer Hardware Index soaring 4.2% to its highest monthly close. Rising crude oil prices also buoyed oil service stocks, exemplified by the Philadelphia Oil Service Index's 2.5% jump. Networking stocks rallied, too, pushing the NYSE Arca Networking Index up 1.9%. Other sectors showing notable strength included utilities, banking, and natural gas, while airline stocks exhibited some weakness.
**Commodity and Currency Markets**Crude oil futures are experiencing a decline, dropping by $0.41 to settle at $69.69 per barrel. This follows a surge of $1.35, bringing the price to $70.10 per barrel on Thursday. Similarly, after a substantial increase of $23.20 in the previous session, gold futures are continuing their upward trajectory, advancing by $21.10 to reach $2,696 per ounce.
On the currency front, the U.S. dollar is currently exchanging at 154.21 yen, slightly down from 154.54 yen noted at the close of trading in New York on Thursday. When compared to the euro, the dollar's value stands at $1.0432, a decrease from yesterday's $1.0474.
**Asia**
Asian markets experienced a general rally, remaining resilient despite fluctuations in China's stock markets. Investor sentiment in Japan saw a significant boost following a decrease in headline inflation, which reached a nine-month low.
Conversely, in mainland China and Hong Kong, a sell-off was triggered by concerns over lackluster corporate earnings, economic growth uncertainties, and skepticism regarding the effectiveness of stimulus measures. In China, the Shanghai Composite Index plummeted over 3%, concluding the session at 3,267.19, with trading fluctuating between 3,372.00 and 3,267.19. The Shenzhen Component Index dropped 3.5% to close at 10,438.72.
In Hong Kong, the Hang Seng Index fell 1.9% from the previous close, ending the day at 19,229.97, after oscillating between a high of 19,711.40 and a low of 19,134.59.
Japan's Nikkei 225 Index rebounded by 0.7%, closing at 38,146.98. The trading range spanned from 38,420.63 to 38,085.13. Noteworthy performances include Credit Saison, which surged 6.2%, and Mitsui Chemicals, which rallied over 5%. Resonac Holdings Corp., Yokogawa Electric Corp., and Obayashi Corp. all achieved gains exceeding 4%.
Conversely, Taiyo Yuden, Suzuki Motor Corp., and IHI Corp. saw declines exceeding 2%, while Omron Corp. and Isetan Mitsukoshi Holdings both fell by over 1%.
In South Korea, the Kospi Index added 0.8%, closing at 2,501.24. Trading fluctuated between 2,492.21 and 2,511.23.
In Australia, the S&P/ASX200 Index saw gains of 0.9%, closing at 8,393.80, compared to the prior close of 8,323.00. The trading range was from 8,323.00 to 8,416.40. The A2 Milk Company, headquartered in New Zealand, surged 13% after announcing plans to pay dividends for the first time in its 20-year history. Deep Yellow rallied 6.3%, with Paladin Energy, Yancoal Australia, and Sigma Healthcare all gaining over 5%.
On the downside, Wisetech Global plunged 12.4% following its fiscal 2025 revenue guidance. Megaport experienced a loss of 9.5%, Pilbara Minerals fell 6.8%, Audinate Group slid 5.5%, and NextDC decreased 3.7%.
On the New Zealand Stock Exchange, the NZX 50 Index jumped 2.2%, ending at 13,041.90, up from the previous close of 12,765.24, with trading ranging between 12,765.24 and 13,054.69. A2 Milk spiked over 18% after upgrading its revenue outlook and announcing plans for dividend payments. EROAD rallied 6.7%, and Fisher & Paykel Healthcare gained 4.3%. Both Fletcher Building and Kiwi Property Group achieved gains exceeding 3%.
However, Oceania Healthcare tumbled 5%, followed by KMD Brands, which declined 4.7%. Vital Healthcare Property Trust and Tourism Holdings both decreased by more than 2%. ANZ Group Holdings also shed nearly 2% in trading.
**Europe**
European markets have mostly trended upwards, driven by investors' reactions to economic data and corporate news alongside geopolitical developments.
In the UK, a rise in consumer confidence is lifting market sentiment, with the FTSE 100 Index rising by 1.1%. The GfK Consumer Confidence Index in the UK increased by three points to -18 in November 2024, marking its first rise in three months.
Germany's DAX Index rose by 0.6%, while the French CAC 40 Index increased by 0.3%, and the pan-European Stoxx 600 Index saw an uptick of 0.9%.
In the UK market, B&M European Value Retail climbed over 4.5%. Stocks like Diploma, Barratt Redrow, Vistry Group, J Sainsbury, National Grid, Endeavour Mining, and Spirax-Sarco Engineering rose by 3 to 4%. Persimmon, United Utilities, Land Securities, British Land Company, BT, Croda International, Berkeley Group Holdings, Hikma, AstraZeneca, Marks & Spencer, Taylor Wimpey, Hiscox, Severn Trent, Mondi, Sage Group, Experian, and Reckitt Benckiser registered gains of 2 to 3%.
Games Workshop Group Plc shares soared by nearly 17% on the back of strong results, fueling hopes for its inclusion in the FTSE 100 index.
Conversely, Barclays, Standard Chartered, Natwest Group, and Lloyds Banking Group saw declines between 2 to 3.5%. HSBC Holdings also edged down nearly 1%.In the German market, notable gains were observed with Brenntag rising by 5 percent, Sartorius increasing by 4.1 percent, and Vonovia advancing by 3.7 percent. Other companies showing positive movement include Zalando, E.ON, Rheinmetall, Symrise, Qiagen, and Fresenius Medical Care, with increases ranging from 1.5 to 3.2 percent.
Conversely, Deutsche Bank and Commerzbank saw declines of 3.7 percent and 2.8 percent, respectively. Puma experienced a 3.3 percent decrease, and Daimler Truck Holding dropped by approximately 1.1 percent.
In the French market, companies such as Eurofins Scientific, Unibail Rodamco, Publicis Groupe, Teleperformance, Sanofi, and Orange recorded gains between 1 to 2 percent. STMicroElectronics surged following the announcement of a strategic partnership with the Chinese chip manufacturer Hua Hong.
Thales, however, faced a significant setback, falling more than 6.5 percent due to news of an investigation by the UK's Serious Fraud Office concerning allegations of bribery and corruption.
Turning to economic developments, the U.K. private sector's activity deteriorated in November for the first time in over a year as growth in new business slowed amidst weak business confidence, according to flash survey results released by S&P Global. The flash composite output index dipped to 49.9 in November from October’s 51.8.
U.K. retail sales decreased by 0.7 percent in October compared to the previous month, contrasting with a revised 0.1 percent increase in September, as reported by the Office for National Statistics. Analysts had anticipated a 0.3 percent decline.
Germany's economy saw a slight uptick in the third quarter, with GDP posting a modest sequential growth of 0.1 percent, based on revised data from Destatis, down from an earlier estimate of 0.2 percent on October 30.
The country's private sector continued to contract in November due to ongoing weaknesses in manufacturing output, coupled with the first decline in services activity in nine months, according to the flash Purchasing Managers' survey by S&P Global. The HCOB composite output index fell to 47.3 in November from 48.6 the previous month, indicating the fastest rate of decline since February.
The services sector slipped into contraction for the first time in nine months, with the services PMI marking 49.4, a decrease from 51.6 the prior month, defying expectations of 51.8. Meanwhile, the manufacturing PMI rose to a four-month high of 43.2 from 43.0, slightly surpassing the forecast of 43.1.
France witnessed its most significant private sector contraction since January, as continued weak demand influenced expectations, according to flash survey results from S&P Global. The flash HCOB composite output index fell sharply to 44.8 in November from 48.1 in October.
The services PMI dropped more than expected to 45.7 from the previous 49.2, against an anticipated 49.0. The manufacturing PMI recorded 43.2, down from 44.5 in October, contrary to expectations of an increase to 44.6.
**U.S. Economic News**
The University of Michigan is set to release its revised consumer sentiment index for November at 10 am ET. Expectations are for a slight upward revision to 73.7 from the preliminary figure of 73.0, which had already climbed from October’s 70.5.
Later, at 6:15 pm ET, Federal Reserve Board Governor Michelle Bowman is slated to address the issue of artificial intelligence at the 27th Annual Symposium on Building the Financial System of the 21st Century.
