S&P futures are down 0.3% Friday morning after U.S. equities rose on Thursday, with the S&P marking its fourth straight session of gains. Trump themes, cyclicals, and most-shorted names outperformed, while big tech lagged amid regulatory concerns. Stocks are on track for weekly gains following last week’s pullback. Asian markets were mixed, with sharp losses in Greater China, while European markets turned weaker. Treasuries are firmer, the Dollar index rose 0.6% (euro and sterling lagged), gold is up 1%, Bitcoin futures gained 0.4%, and WTI crude is down 0.5%.
A defensive tone persists, driven by weaker flash PMI data from the Eurozone and UK, which underscores U.S. outperformance. Earnings continue to highlight consumer resilience and AI-driven growth. Speculation about Treasury Secretary candidates continues, with Trump reportedly considering Kevin Warsh for Treasury, possibly transitioning to Fed leadership later.
Key data today includes flash PMIs and University of Michigan consumer sentiment. Next week’s holiday-shortened calendar is light, but key December macro catalysts include ISMs (2-Dec and 4-Dec), NFP (6-Dec), CPI (11-Dec), retail sales (16-Dec), and the FOMC meeting (18-Dec).
Key Corporate Highlights
- Ross Stores (ROST-US): Rose on a margin-driven earnings beat and FY guidance raise; comps and revenue were soft but met low expectations.
- Gap (GPS-US): Jumped on an earnings beat, FY guidance raise, Gap brand momentum, and a strong start to the holiday season.
- Intuit (INTU-US): Fiscal Q1 beat expectations, but Q2 guidance was soft due to higher marketing spend for its Consumer Tax business.
- NetApp (NTAP-US): Beat earnings, raised guidance, and highlighted market share gains.
- Elastic (ESTC-US): Surged on an outsized earnings beat and guidance raise, with strong GenAI adoption momentum.
- SL Green Realty (SLG-US): Announced a $400M secondary offering.
- Reddit (RDDT-US): Fell after Thursday’s rally, as reports indicated Advance Magazine Publishers may establish a credit facility using its equity stake in the company.
U.S. equities traded higher Thursday afternoon following a mixed session on Wednesday. Equal-weighted S&P outperformed the cap-weighted index as big tech, including Alphabet (GOOGL-US), weighed on performance amid antitrust updates. Outperforming sectors included machinery, energy, banks, P&C insurance, credit cards, tech hardware, software, trucking, homebuilders, and discount retail. Lagging sectors included China tech, hospitals, large-cap pharma, MedTech, beauty, casinos, and entertainment.
Treasuries were narrowly mixed, the Dollar index rose 0.3%, with yen strength highlighted after comments from the BoJ suggested a December rate hike remains a possibility. Gold climbed 0.7%, Bitcoin futures gained 2.1%, and WTI crude increased 1.8%.
NVIDIA (NVDA-US) continued to dominate headlines. While Q3 results were strong, Jan Q guidance met but did not exceed expectations, leading to some stock weakness. Trump trade sectors (small caps, cyclicals, financials, and crypto) outperformed following concerns that momentum had stalled. Economic data showed initial jobless claims fell to the lowest level since April, while existing home sales posted their fastest pace since July. Manufacturing remains a laggard, with the Philly Fed index contracting in November. Friday’s macro focus will be on flash PMIs and University of Michigan consumer sentiment.
Company News by GICS Sector
Information Technology
- NVIDIA (NVDA-US): Post-earnings laggard as Jan Q guidance met but did not exceed expectations, despite upbeat commentary on the Blackwell ramp and AI demand.
- Kyndryl Holdings (KD-US): Gained 13.9% after authorizing a $300M share repurchase program.
- Snowflake (SNOW-US): Surged 32.7% on Q3 revenue and operating income beats, alongside increased FY25 guidance and the acquisition of enterprise AI company Datavolo.
- MAXIMUS (MMS-US): Dropped 6.9% after light Q4 earnings; flagged ex-U.S. weakness and less rebid activity than anticipated, with FY25 guidance below consensus.
Consumer Discretionary
- BJ’s Wholesale Club (BJ-US): Gained 8.3% after beating on Q3 comps, sales, and EPS; announced a membership fee hike and a $1B buyback authorization.
- Jack In The Box (JACK-US): Rose 4.8% despite a Q4 revenue and comps miss; FY25 guidance was below consensus, but analysts noted valuation attractiveness.
- PDD Holdings (PDD-US): Fell 10.6% after missing on Q3 sales and EPS; highlighted heightened competition and external challenges.
Health Care
- Jazz Pharmaceuticals (JAZZ-US): Increased 4.9% following FDA approval of Ziihera for HER2+ BTC treatment.
- Kura Oncology (KURA-US): Dropped 36.8% after announcing a global license agreement with Kyowa Kirin; analysts viewed the deal terms positively but noted disappointment around reduced M&A optionality.
Communication Services
- Alphabet (GOOGL-US): Declined 4.7% after the DOJ proposed requiring the company to sell its Chrome browser and imposed restrictions on AI practices.
- Warner Music Group (WMG-US): Fell 7.4% despite beating Q4 estimates, as revenue across segments was mixed and net income declined 69% year-over-year.
- Baidu (BIDU-US): Fell 5.9% after Q3 EPADS missed expectations; analysts cited weakness in online marketing revenue despite strong AI Cloud results.
Industrials
- Deere & Co. (DE-US): Gained 8.1% after FQ4 earnings and net equipment sales beat expectations; FY25 guidance came in light but was viewed positively given the challenging agricultural environment.
Financials
- Vestis (VSTS-US): Rose 17.4% despite light earnings and revenue; analysts highlighted solid new customer growth and strong free cash flow.
Eco Data Releases | Friday November 22nd, 2024
S&P 500 Constituent Earnings Announcements | Friday November 22nd, 2024
No Constituents Rep0rting Today
Data sourced from FactSet Research Systems Inc.
