S&P 500 futures are up nine points, Nasdaq 100 futures are up 35 points, and Dow Jones Industrial Average futures are up six points in early trading. Traders are anticipating the November Consumer Price Index report at 8:30 ET, which is the last inflation check before next week's FOMC meeting.
Treasury yields are mixed ahead of the report. The 2-year yield remains at 4.17%, while the 10-year yield, sensitive to inflation changes, has increased by four basis points to 4.25%.
Today's data includes the weekly MBA Mortgage Applications Index, which has risen by 5.4% following last week's 2.8% increase. The weekly EIA Crude Oil Inventories report will be released at 10:30 ET.
Today's News
The recent appointment of Andrew Ferguson to lead the U.S. Federal Trade Commission is seen as a boon for big tech firms. Companies like Microsoft (MSFT, Financial), Oracle (ORCL, Financial), Alphabet (GOOGL, Financial), Amazon (AMZN, Financial), and Tesla (TSLA, Financial) are expected to benefit from Ferguson's approach, which is anticipated to reverse much of the previous administration's aggressive tech regulation. This shift could catalyze mergers and acquisitions, particularly in the AI sector, as tech giants look to expand their influence.
Nvidia (NVDA, Financial), AMD (AMD, Financial), and Intel (INTC, Financial) have collectively invested in Ayar Labs, a semiconductor startup valued at $1 billion. Ayar Labs' innovative technology, which uses light for data transfer between processors, promises to enhance AI accelerators' efficiency. This investment reflects the ongoing trend of major semiconductor companies seeking to bolster their AI capabilities.
Mondelez (MDLZ, Financial) announced a $9 billion share repurchase plan, causing Hershey (HSY, Financial) shares to drop 5% amid speculation that Mondelez might not pursue an acquisition of the chocolate maker. Mondelez emphasized its focus on smaller, strategic acquisitions, aligning with its recent purchase history.
General Motors (GM, Financial) has decided to halt its Cruise robotaxi project, citing resource constraints and a competitive market. This move marks a significant pivot for GM, which has invested over $10 billion in Cruise since 2016. The decision also affects GM's partnership with Uber (UBER), as future collaboration on autonomous vehicles remains uncertain.
OPEC has reduced its oil demand growth forecast for the current and upcoming year, marking the fifth consecutive downgrade. The cartel's decision follows its members' agreement to extend production cuts, impacting global oil prices and reflecting a cautious outlook on future demand.
Microsoft (MSFT, Financial) shareholders rejected a proposal to diversify the company's balance sheet with Bitcoin, despite arguments that cryptocurrency could significantly boost stock value. The proposal, backed by MicroStrategy's (MSTR) Michael Saylor, was dismissed at Microsoft's annual shareholder meeting.
Monolithic Power Systems (MPWR) received a Buy rating from Citi, which sees the recent share sell-off as a buying opportunity. The company's strong growth prospects in the analog semiconductor market, despite potential share loss at Nvidia, underpin this positive outlook.
Airfares in the U.S. rose 4.7% in November, driven by strong travel demand during the holiday season. This increase is part of a broader trend of rising airfares, with American Airlines (AAL) and Southwest Airlines (LUV) providing optimistic guidance earlier in the month.
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