Market Update
The S&P 500 Index saw a slight increase of 0.38% today, while the Dow Jones Industrial Average dipped by 0.22%. Conversely, the Nasdaq 100 Index experienced a gain of 0.74%. Futures for the S&P 500 and Nasdaq also rose, with the December E-mini S&P futures up 0.39% and the December E-mini Nasdaq futures increasing by 0.70%.
In a notable turn, U.S. stock indexes are mostly higher today, making a recovery from earlier steep losses this week. NVIDIA shares climbed more than 2% ahead of their earnings announcement later today. Investors are keenly observing Nvidia’s earnings as a gauge for the ongoing high valuations and capital investments in artificial intelligence within tech stocks.
Alphabet’s impressive performance led the charge among major tech stocks, soaring over 5% after Google unveiled a new version of its AI model, Gemini. Executives praised it as a significant advancement in reasoning and coding abilities. Additionally, chip manufacturers are contributing to the overall market uplift.
However, the drop in WTI crude oil prices—down by over 2%—is creating some headwinds for energy producers, which is limiting broader market gains. Similarly, Boeing’s 3% decline impacted the Dow Jones Industrial Average negatively.
In housing news, U.S. mortgage applications fell by 5.2% for the week ending November 14, with the purchase mortgage sub-index down 2.3% and refinancing down 7.3%. The average rate for a 30-year fixed mortgage rose slightly to 6.37%, up from 6.34% the previous week.
On the trade front, the U.S. trade deficit narrowed to $59.6 billion in August, down from $78.2 billion in July, which was better than the expected $60.4 billion.
This week’s economic calendar is quite packed, featuring several delayed reports. Later today, the minutes from the FOMC meeting on October 28-29 will be released. Tomorrow, we’ll see weekly unemployment claims, the Philadelphia Fed report, and home sale data, among other indicators. By Friday, reports on real earnings and consumer confidence are anticipated. Other economic reports are expected soon but have yet to be scheduled.
The market is currently evaluating a 47% likelihood of a 25 basis point rate cut at the next FOMC meeting set for December 9-10.
As the third-quarter earnings season wraps up, around 460 S&P 500 companies have reported their earnings. Impressively, 82% of those surpassed expectations, marking what could be a strong quarter since 2021. Third-quarter profits soared by 14.6%, a significant leap from last year’s estimate of 7.2%.
International stock markets presented a mixed picture today. The Euro Stoxx 50 bounced back from a monthly low, rising by 0.78%. Meanwhile, China’s Shanghai Composite gained 0.18%, but Japan’s Nikkei Index fell 0.34%, hitting a one-month low.
In the bond markets, the December 10-year T-note dropped by two ticks. The yield on these notes increased by 1.2 basis points, reaching 4.125%. Demand for T-notes has softened as rising stock prices compete with them as safe assets. Compounding this, the Treasury will auction $16 billion in 20-year T-notes later today, adding to downward pressure. However, a notable decline in oil prices is tempering losses, lowering inflation expectations.
European bond yields today varied; the German 10-year bund dropped slightly, while UK yields rose to a five-week high. The UK’s October CPI slowed down to 3.6% year-over-year from 3.8% in September.
In the semiconductors sector, stocks like Broadcom and Lam Research rose over 4%, supporting the market. Other semiconductor leaders, including NVIDIA and Intel, similarly enjoyed gains, reflecting strong performance across the industry.
On the downside, energy producers struggled with WTI crude prices down by more than 2%. Companies like Valero Energy and Marathon Petroleum reported declines exceeding 3%. Boeing’s stock also fell by more than 3% after flydubai announced a significant order from Airbus, marking a shift away from Boeing.
Among notable gainers, Constellation Energy surged over 5% after plans to restart the Three Mile Island plant received significant government backing. La-Z-Boy saw a 19% jump after reporting favorable quarterly results, while Dycom Industries climbed over 11% following an acquisition announcement.
Notably, Lowe’s has increased its total sales forecast for 2026, raising it to $86 billion, a positive update that surpassed market expectations. Some companies, however, faced hurdles; Insulet Corp rose slightly after an upgrade, while Agios Pharmaceuticals faced a dramatic drop of over 48% post-trial news.
On the earnings horizon, next week will see reports from Lowe’s, NVIDIA, and others, indicating continued activity in the markets.
