The muted trading won't last when the Fed's preferred inflation gauge comes out
Wall Street is mirroring yesterday's muted price action, with futures on all three major benchmarks inching lower ahead of the open. However, the rest of the day should be far from quiet; investors are eagerly awaiting the previously delayed personal consumption expenditures (PCE) price index, due out at 10 a.m. ET, especially as it relates to next week's interest rate decision. The University of Michigan's consumer sentiment survey and the Commerce Department's data on consumer spending will also move markets, which at this point are headed for a positive, albeit restrained week.
5 Things You Need to Know Today
- The Cboe Options Exchange saw over 2.5 million call contracts and more than 1.2 million put contracts exchanged on Thursday. The single-session equity put/call ratio fell to 0.50, while the 21-day moving average remained at 0.58.
- Streaming giant Netflix Inc (NASDAQ:NFLX) is down 4.2% in electronic trading, after announcing the purchase of Warner Bros Discovery (WBD) for $72 billion in a cash and stock deal. Should these losses hold, the shares will hit their lowest levels since April, cutting into their 15.8% year-to-date lead.
- Rubrik Inc (NYSE:RBRK) is up 18.2% premarket, after the cloud data management company posted better-than-expected third-quarter earnings and revenue and trimmed its full-year loss forecast. No fewer than four analysts lifted their price targets after the event. Heading into today, the equity is up 7.7% year to date.
- Victoria's Secret & Co (NYSE:VSCO) is surging before the bell, up 14.3% at last glance, after the company's narrower-than-anticipated third-quarter losses per share and revenue beat. The lingerie staple also lifted its full-year outlook amid strong holiday expectations. Hanging around breakeven for 2025, today's pop will push VSCO further into the black.
- See what's coming up next week aside from rate-cut buzz.
Bond Yields Surge in Japan
Stocks in Asia finished mostly higher, with the except of Japan’s Nikkei, which backpedaled 1.1% as the country’s 10-year Treasury yields climbed to just under 2%, their highest mark in almost two decades. Eyes were on Moore Threads, also known as “China’s Nvidia,” as it made its public trading debut. For the session, Hong Kong’s Hang Seng added 0.6%, China’s Shanghai Composite rose 0.7%, and South Korea’s Kospi led the gainers with an 1.8% pop.
European markets are moving higher. Investors are digesting euro zone GDP data, which showed 0.3% growth for Q3, higher than the anticipated 0.2% rise. Russia-Ukraine peace talks and anticipation surrounding next week’s Federal Reserve meeting in the U.S. are also influencing sentiment. At last glance, London’s FTSE 100 is up 0.05%, France’s CAC 40 is 0.3% higher, and Germany’s DAX sports a 0.7% gain.