S&P 500 futures declined by 5 points, Nasdaq 100 futures dropped by 50 points, while Dow Jones Industrial Average futures rose by 15 points. Trading is mixed following record highs for the S&P 500 and Dow Jones Industrial Average. Trading activity is low before Thanksgiving, with markets closed tomorrow and an early close on Friday.
A series of important economic reports are set for release today, including the Personal Income and Spending report for October, which includes the Fed's preferred inflation measure (PCE Price Index and core-PCE Price Index), weekly jobless claims, October Durable Goods Orders, and the second estimate of Q3 GDP, all at 8:30 ET.
The MBA Mortgage Applications Index jumped 6.3%, with purchase applications up 12% and refinance applications down 3%.
In stock news:
Today's News
Despite Dell Technologies (DELL, Financial) reporting mixed third-quarter results, Wall Street maintains confidence in the company's AI-driven growth strategy. Although shares fell 12% in premarket trading, Dell's AI pipeline remains robust with a significant increase in its order backlog and pipeline. Meanwhile, competitors like HP (HPQ, Financial) and HP Enterprise (HPE, Financial) also experienced losses, whereas Super Micro Computer (SMCI, Financial) saw a 2.5% rise. Citi analyst Asiya Merchant reiterated a Buy rating for Dell, citing recovery in the mainstream server market and momentum in the storage and PC markets.
The U.S. GDP growth for Q3 2024 remained steady at 2.8%, according to the Commerce Department's second estimate. This figure reflects a slowdown from the previous quarter's 3.0% growth, with a noticeable deceleration in consumer spending and private inventory investment. However, there were upward revisions in nonresidential fixed investment and state and local government spending, while imports and exports also showed changes.
President-elect Donald Trump has announced plans to impose tariffs on imports from Mexico, Canada, and China, sparking concerns about a prolonged trade war and inflationary pressures. These tariffs are expected to strengthen the U.S. dollar and boost domestic production. While over 60% of respondents in a recent survey believe consumers will bear the brunt of these tariffs, around 40% anticipate a resurgence in U.S. manufacturing.
Urban Outfitters (URBN, Financial) reported record net income and sales for the third quarter, leading to a surge in its stock price. The company received an upgrade from Citigroup and several price target hikes, thanks to a promising outlook for its Anthropologie and Free People brands. Citigroup's Paul Lejuez highlighted a brand recovery and expects continued margin improvements into FY25.
Apple (AAPL, Financial) faced challenges in China as foreign-branded smartphone sales fell sharply in October. The decline of 44.25% year-over-year underscores the competitive landscape Apple faces in one of its most crucial markets. The company is reportedly exploring AI partnerships with local firms like Baidu (BIDU, Financial) to navigate regulatory hurdles and market dynamics.
The Financial Stability Board has reclassified Bank of America (BAC, Financial) to a lower category on its "too big to fail" list, while France's Crédit Agricole (OTCPK:CRARF) moved to a higher category. These changes reflect shifts in the banks' underlying activities and complexity, impacting their capital buffer requirements.
Initial jobless claims in the U.S. decreased slightly, with the latest figures showing a drop to 213K. This decline signals a modest improvement in the labor market, though the insured unemployment rate remained unchanged at 1.3%.
Gran Tierra Energy (GTE, Financial) announced a successful oil discovery in Ecuador, marking its seventh find in the Arawana/Zabaleta field area. This discovery strengthens the company's understanding of the field and supports its development growth plans in South America. Additionally, Gran Tierra has entered a joint venture with Logan Energy to develop its Simonette Montney assets in Alberta.
GuruFocus Stock Analysis
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