Overnight Markets And News
Dec E-mini S&Ps (ESZ18 -0.67%) this morning are down -0.55% and European stocks are down -0.15% on weakness in technology stocks led by an 18% plunge in Nvidia in pre-market trading after it reported weaker-than-expected Q3 revenue. Stock indexes are also lower after U.S. Commerce Secretary Ross dampened optimism of an imminent trade deal with China. Ross said the U.S. still plans to raise tariffs on Chinese imports in January and that President Trump and Chinese President Xi Jinping are likely at best to agree to a “framework” for further talks to resolve trade tensions in upcoming meetings when they meet later his month in Buenos Aires. Asian stocks settled mixed : Japan -0.57%, Hong Kong +0.31%, China +0.41%, Taiwan -0.30%, Australia -0.10%, Singapore +0.95%, South Korea +0.04%, India +0.56%. China’s Shanghai Composite climbed to a 5-week high on speculation the government will implement policies to spur economic growth, while Japanese stocks moved lower as technology stocks sold-off on weak forecasts from Nvidia and Applied Materials.
The dollar index (DXY00 +0.04%) is up +0.07%. EUR/USD (^EURUSD +0.09%) is up +0.05%. USD/JPY (^USDJPY-0.33%)is down -0.29%.
Dec 10-year T-note prices (ZNZ18 +0-015) are little changed, up +0.5 of a tick.
The German Oct wholesale price index rose +0.3% m/m and +4.0% y/y with the +4.0% y/y gain the largest year-on-year increase in 1-1/2 years.
The Eurozone Oct CPI was left unrevised at +2.2% y/y and the Oct core CPI was also unrevised at +1.1% y/y.
U.S. Stock Preview
Key U.S. news today includes: (1) Oct industrial production (expected +0.2%, Sep +0.3%), (2) Nov Kansas City Fed manufacturing activity (expected +3 to 11, Oct -5 to 8), (3) Chicago Fed President Charles Evans (non-voter) speaks at a Fixed Income Forum roundtable at an event in Chicago.
Notable Russell 1000 earnings reports today include: Viacom (consensus $0.96), Helmerich & Payne (0.18).
