Oil prices are also in recovery mode
Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) futures are all pointed lower, set to extend yesterday's steep losses. This comes despite several positive catalysts, including a boost in defense stocks, after President Donald Trump called on Truth Social for the U.S. military budget to increase to $1.5 trillion in 2027.
A Challenger, Gray & Christmas report showed layoffs hit a 17-month low in December, while nonfarm productivity posted a 4.9% rise between July and September, matching expectations. Weekly initial jobless claims, meanwhile, showed an 8,000 increase to 208,000, narrowly missing expectations of 210,000.
- Struggling blue-chip stock to put on your radar.
- Digging into Mobileye's $900 million startup acquisition.
- Plus, Costco's comparable sales jump; JEF brushes off revenue beat; and beverage giant pops after earnings.
5 Things You Need to Know Today
- The Cboe Options Exchange saw over 1.9 million call contracts and more than 1.2 million put contracts exchanged on Wednesday. The single-session equity put/call ratio rose to 0.63, while the 21-day moving average remained at 0.58.
- Costco Wholesale Corp (NASDAQ:COST) stock is up 1.5% premarket, after the retailer's net sales for the five weeks that ended on Jan. 4 came in at $29.86 billion, while comparable-store sales jumped 7%. Over the last six months, COST has shed more than 10%.
- Jefferies Financial Group Inc (NYSE:JEF) stock is down 2.9% before the bell, brushing off better-than-expected revenue for the fourth quarter after the company announced it took a $30 million hit from auto-parts supplier First Brands' collapse. The finance giant also reported a 7% decline in profits to $191 million. JEF now carries an 18.7% year-over-year deficit.
- The shares of Constellation Brands Inc (NYSE:STZ) is 1.8% higher in electronic trading, after the Corona and Modelo parent beat third-quarter earnings and net sales expectations. Over the last 12 months, the beverage stock has shed more than 35%.
- There remains plenty of economic data to close out the week.
Asian Markets Lower Amid Geopolitical Tensions
Asian markets ended mostly lower, as basic materials, defense, and tech stocks all pulled back following ongoing geopolitical tensions tied between the U.S. and Venezuela. Japan’s Nikkei fell 1.6%, with SoftBank a notable laggard, while Hong Kong’s Hang Seng slipped 1.2%. South Korea’s Kospi and China’s Shanghai Composite finished flat.
European trade is uneven, with London’s FTSE 100, France CAC, and German DAX all slipping 0.3%, as strength in defense shares offset broader caution tied to geopolitical developments.