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postUS stock futures mostly rose on Monday, heading into the shortened Thanksgiving trading week buoyed by hopes for an interest-rate cut and eyeing a further rebound from a pullback that has cooled this year’s AI-driven market rally.
S&P 500 futures (ES=F) advanced 0.2%, while Dow Jones Industrial Average futures (YM=F) hovered below the flatline. Contracts on the tech-heavy Nasdaq 100 (NQ=F) climbed 0.5% as Wall Street stocks geared up for a bid to extend Friday’s bounce.
Spirits are cautiously upbeat after Federal Reserve Bank of New York president John Williams suggested that a December rate cut remains a possibility. Even so, major indexes have suffered notable losses in November as investors reassess lofty valuations across AI-aligned stocks.
The S&P 500 dropped 2% last week, widening its month-to-date decline to about 3.5%. The Nasdaq Composite slid 2.7% and is now down over 6% in November. The Dow fell almost 2% over the week and is off nearly 3% for the month.
While still working through the impact of the longest government shutdown in US history, data releases are beginning to trickle back into circulation, though a return to the full economic calendar is still a ways off.
This week, traders are eyeing data on producer prices from the Bureau of Labor Statistics and the Census Bureau’s retail sales data, both from September. Both reports are due out Tuesday.
Earnings season is winding down with a week of relatively muted releases. Alibaba Holdings (BABA), Dell Technologies (DELL), and a smattering of retailers, including Kohl’s (KSS) and Best Buy (BBY) are the highlights of the holiday-shortened week. US markets will be closed Thursday for the Thanksgiving holiday and will shut early at 1 p.m. ET on Friday.
President Trump’s tariffs also remain in the back of mind, with the Supreme Court set to issue a ruling on whether the bulk of them were imposed legally. The Commerce Department and the Office of the US Trade Representative are reportedly preparing a roadmap if the ruling goes against the administration.
LIVE 7 updates
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Novo Nordisk says Alzheimer’s drug trial fails, hammering shares
Novo Nordisk (NVO) stock fell 10% before the bell on Monday after the pharmaceutical company said its Alzheimer’s drug failed to meet its goal in late-stage trials.
Reuters reports:
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Good morning. Here’s what’s happening today.
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Defense stocks in Europe drop to a near 2-month low
Bloomberg reports:
A key driver of this year’s gains in European stocks is falling back fast.
Rheinmetall AG (RHM.DE, RNMBF) and other defense names resumed recent declines on Monday amid signs of progress in talks to secure Ukraine’s support for a US-backed peace plan ahead of Thursday’s deadline. A Goldman Sachs Group Inc. basket of the stocks is now down about 24% from its early October peak.
According to Graeme Bencke, a fund manager at Amati Global Investors Ltd., there’s been a change in market sentiment toward the Russian conflict in Ukraine.
“Some investors increasingly believe the conflict will be resolved in the coming months after actions taken by the Trump administration to appease Russia,” he wrote in emailed comments. Still, “the conflict, and the US attitude change towards NATO, has led to a permanent shift in Europe’s approach to defense spending which will not reverse even if the conflict ends,” he said.
The recent declines have taken the froth off a huge rally in European defense stocks that began around the time Russia invaded Ukraine in February 2022. The gains extended this year as European governments have rushed to boost military spending.
Read more here.
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Premarket trending tickers: Tesla, Eli Lilly and WeRide
Tesla (TSLA) stock rose 1.8% before the bell on Monday after CEO Elon Musk said on X that the electric-vehicle maker already had designed AI chips for its cars and data centers.
Eli Lilly (LLY) stock fell 2% in premarket trading on Monday. The healthcare company saw its maret capitalization top $1 trillion for the first time ever last week.
WeRide (WRD) stock jumped 7% before the bell on Monday after reporting a rise in its revenue within its latest earnings report. The revenue rise was mainly due to its global fleet expansion.
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Economic data returns, retail earnings feature in holiday-shortened week: What to watch this week
Yahoo Finance’s Jake Conley takes a look at the week ahead.
Jake writes:
As November wraps up, a holiday-shortened week of trading — courtesy of Thanksgiving Day and Black Friday — will greet investors who continue to wrestle with the fallout from Nvidia’s (NVDA) blockbuster earnings report alongside flagging confidence in the overall AI-driven market. …
A strong September jobs report, strong earnings from Nvidia, and a positive third quarter report from Walmart were all greeted on Thursday by one of the market’s biggest intraday reversals of the last decade, with the S&P 500 (^GSPC) flipping from a gain above 1.5% at the opening bell to a loss of more than 1.5% by market close. The swing in the Nasdaq was even greater.
In the week ahead, the economic calendar will continue to pick up steam as the government works through a data backlog following the resolution of the shutdown earlier this month.
Data on producer prices in September from the Bureau of Labor Statistics and the Census Bureau’s retail sales data for the same month will be highlights, with both reports due out Tuesday amid a rush of data ahead of the Thanksgiving weekend. Investors will also keep a close eye on The Conference Board’s consumer confidence reading for November, due out Tuesday.
In the corporate world, a relatively quiet week of earnings awaits investors. Alibaba Holdings (BABA), Dell Technologies (DELL), and a smattering of retailers including Kohl’s (KSS) and Best Buy (BBY) will headline the calendar for the week.
Read more here.
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Alibaba’s main AI app debuts strongly in effort to rival ChatGPT
Shares of Alibaba (BABA) rose in premarket trading, echoing gains for the Hong Kong-listed stock (9988.HK), as investors cheered upbeat figures for its Qwen AI app.
Bloomberg reports:
Read more here.
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Gold slides as potential rate-cut lowers haven demand
Gold (GC=F) prices slipped as demand for the precious metal lowered with investors looking toward a potential rate-cut from the Federal Reserve in December.
Bloomberg reports:
Read more here.
