US equity futures are on the rise, with investors eagerly awaiting Federal Reserve Chair Jerome Powell's speech at the New York Times DealBook Summit. Dow Jones futures are up 0.4%, S&P 500 futures have gained 0.3%, and Nasdaq futures have climbed 0.6%. Powell's remarks could offer clues about future interest rate decisions.

The ADP Employment Report showed an increase of 146,000 private payrolls in November, falling short of the expected 166,000 and down from October's 233,000. Meanwhile, the Institute for Supply Management's Services Index is projected to dip slightly to 55.5 from 56.0.

Today's economic calendar also includes the weekly mortgage applications report and the Federal Reserve's Beige Book, which provides a snapshot of economic conditions across the 12 regional Fed branches. St. Louis Fed President Alberto Musalem is also set to speak.

Geopolitics is stealing the spotlight today. South Korean President Yoon Suk Yeol stirred controversy by declaring martial law over a supposed North Korean threat, only to backtrack under political pressure. This turmoil has rattled Asian markets, with Seoul's index down 1.5%, though Japan's market remains relatively stable.

France is also in crisis mode, with the Barnier government expected to collapse. This political upheaval is likely to impact French equities and widen the borrowing cost gap with Germany. The spread between the German Bund and French OAT could exceed 95 basis points, up from 50 basis points before the French National Assembly's dissolution in June. Despite differing opinions on the fallout, many financial experts agree that France's market will lag due to increased risk premiums. The rest of Europe may fare better, but not without some bruises.

Meanwhile, US markets are enjoying a bullish streak, buoyed by the Republicans' recent electoral success. The S&P 500 has hit a new record, marking gains in 10 of the last 11 sessions. Today's news include the death of UnitedHealth Group's UnitedHealthcare Chief Executive Brian Thompson, who was shot and killed Wednesday morning in Midtown, PIX11 News reported.

In China, the central bank set a surprisingly high daily reference rate for the yuan, attempting to counteract the currency's recent slump. However, the Caixin services PMI showed a slowdown, disappointing economists who had hoped for growth.

In the Asia Pacific region, Japan ended the day up 0.1%, while China remained flat in Hong Kong and dipped slightly in Shanghai. South Korea trimmed its losses to 1.5%, with calls for the President's impeachment. India and Taiwan saw gains, while Australia fell 0.4% due to struggles in its financial and real estate sectors. Europe is looking optimistic, with the Stoxx Europe 600 up 0.5%.

Today’s economic highlights:

The second reading of the November services PMIs in the major economies will be ginned up throughout the day. We also have the US ADP employment indicator and the ISM services index. The Full calendar is here.

  • Dollar: EUR 0.9541 GBP 0.7894
  • Ounce of gold: USD 2649
  • Brent crude: USD 73.96
  • 10-year US bond: 4.28
  • Bitcoin: USD 95,700

In corporate news:

  • General Motors announced over $5 billion in charges due to the depreciation of investments in Chinese joint ventures and restructuring efforts.
  • Okta's shares surged 14% following an upward revision of its annual profit and revenue forecasts.
  • Pure Storage's stock soared after exceeding third-quarter expectations and raising its annual revenue outlook.
  • Marvell Technology and Salesforce both experienced increase in their stock prices after surpassing third-quarter forecasts and revising their revenue projections upwards.
  • Amazon has launched a suite of AI foundation models called Amazon Nova to enhance text, image, and video processing, while expanding its AI capabilities through partnerships and new features in Amazon Web Services, amidst facing a lawsuit by the DC Attorney General for alleged delivery exclusions.
  • Salesforce's fiscal third-quarter results exceeded expectations with increased revenue and EPS, driven by strong sales in subscription, support, and AI tools, leading to an upward revision of their full-year revenue and EPS forecasts.
  • BlackRock is acquiring private credit firm HPS Investment Partners for $12 billion in an all-stock deal, amidst a backdrop of declining financial sector stocks and pressure on US energy regulators to clarify large fund firms' corporate ownership roles, while also anticipating AI to boost US stocks by 2025 despite concerns over US debt.
  • Microsoft is embroiled in a UK lawsuit over alleged overcharging for cloud services amid broader tech sector movements, including a surge in AI-driven stock values and organizational shifts in AI companies, while maintaining its quarterly dividend and implementing Windows 11 on ATMs.
  • UnitedHealth Group projects its 2025 revenue to be between $450 billion and $455 billion and adjusted net earnings per share between $29.50 and $30, slightly above consensus, despite anticipating higher medical costs and amidst the unexpected death of CEO Brian Thompson, who was shot and killed in New York City.
  • Intel's CEO Pat Gelsinger has retired with no clear successor, though the company is considering Marvell Technology CEO Matt Murphy for the role, amidst escalating US-China trade tensions affecting the chip industry and fluctuating stock performances, including a decline in midday trading but a rise in tech stocks by late afternoon.
  • Foot Locker reported lower-than-expected Q3 earnings and revenue, leading to a downward revision of its 2024 EPS outlook and an 18% drop in stock price, despite plans to expand Nike-backed basketball sections in 100 stores by 2026.
  • General Motors anticipates over $5 billion in impairment charges and writedowns from its China operations and joint venture with SAIC Motor, alongside reporting equity losses and selling a stake in the Ultium Cells plant, amidst expanding their EV charging network with EVgo.
  • Campbell's Co. reported a decrease in adjusted EPS and a miss in Q1 revenue estimates, while naming insider Mick Beekhuizen as CEO and reaffirming its FY 2025 growth guidance.

Analyst recommendations:

  • First Citizens Bancshares, Inc.: Keefe Bruyette & Woods downgrades to market perform from outperform with a price target raised from USD 2100 to USD 2500.
  • M&T Bank Corporation: JP Morgan upgrades to neutral from overweight with a price target raised from USD 215 to USD 223.50.
  • Marvell Technology Group Ltd: CTBC Securities Investment Service Co LTD upgrades to buy from add with a price target raised from USD 85 to USD 120.
  • Merck & Co., Inc.: HSBC upgrades to buy from hold with a target price of USD 130.
  • Pinnacle Financial Partners, Inc.: Keefe Bruyette & Woods downgrades to market perform from outperform with a price target raised from USD 115 to USD 135.
  • Pinnacle West Capital Corporation: KeyBanc Capital Markets upgrades to overweight from sector weight with a target price of USD 101.
  • Pure Storage, Inc.: Piper Sandler & Co upgrades to overweight from neutral with a price target raised from USD 56 to USD 76.
  • Salesforce.com, Inc.: Fubon Securities upgrades to buy from neutral with a price target raised from USD 292 to USD 415.
  • Trimble, Inc.: JP Morgan upgrades to overweight from neutral with a target price raised from USD 74 to USD 92.
  • Aflac Incorporated: Raymond James maintains its outperform rating and raises the target price from USD 94 to USD 115.
  • Alexandria Real Estate Equities, Inc.: BTIG maintains its buy recommendation and reduces the target price from USD 186 to USD 144.
  • Arista Networks, Inc.: Morgan Stanley maintains its overweight rating and reduces the target price from USD 410 to USD 102.50.
  • Block, Inc.: Deutsche Bank maintains its buy recommendation and raises the target price from USD 98 to USD 125.
  • Core & Main, Inc.: Truist Securities maintains its hold recommendation with a price target raised from 38 to USD 56.
  • Dutch Bros Inc.: TD Cowen maintains its buy recommendation and raises the target price from USD 53 to USD 65.
  • East West Bancorp, Inc.: Keefe Bruyette & Woods maintains its outperform rating and raises the target price from USD 96 to USD 128.
  • First Horizon Corporation: Keefe Bruyette & Woods maintains its market perform recommendation with a price target raised from 19 to USD 23.
  • Godaddy Inc.: JP Morgan maintains its overweight recommendation and raises the target price from USD 175 to USD 224.
  • Lyft, Inc.: Loop Capital Markets maintains its buy recommendation and raises the target price from 16 to USD 23.
  • Mongodb, Inc.: Baird maintains its outperform rating and raises the target price from USD 305 to USD 380.
  • Nvidia Corporation: Daiwa Securities maintains its outperform recommendation and raises the target price from USD 125 to USD 160.
  • United Airlines Holdings, Inc.: HSBC maintains its buy recommendation with a price target raised from 89 to USD 116.
  • Walgreens Boots Alliance, Inc.: RBC Capital maintains its sector perform recommendation and reduces the target price from 13 to USD 9.
  • Webster Financial Corporation: Keefe Bruyette & Woods maintains its outperform rating and raises the target price from USD 62 to USD 76.
  • Bunzl Plc: HSBC downgrades to hold from buy with a price target raised from GBP 34.60 to GBP 36.25.
  • Coca-Cola Hellenic: BNP Paribas Exane upgrades to outperform from neutral with a price target raised from GBX 2800 to GBX 3400.
  • Rio Tinto Plc: AlphaValue/Baader Europe upgrades to add from buy with a price target reduced from GBP 63.83 to GBP 63.05.
  • Spirax Group Plc: Barclays upgrades to overweight from equalweight with a price target raised from GBP 77.50 to GBP 83.50.
  • St. James's Place Plc: HSBC downgrades to reduce from hold with a target price raised from 7.85 to GBP 7.90.
  • Victrex Plc: Jefferies upgrades to buy from hold with a target price raised from GBX 1100 to GBX 1140.