U.S. stock futures saw a slight increase as investors aimed to regain momentum that had previously driven major averages to record highs. Market participants are currently debating whether this upward trend has further potential. Key economic indicators are on the horizon, with the October producer price index set for release on Thursday and the retail sales report due on Friday. Additionally, Fed Chair Jerome Powell is scheduled to speak in Dallas, Texas, which could provide further insights into the economic outlook.

European stocks traded higher as investors assessed the latest U.S. inflation data. Despite the overall positive movement, most sectors experienced a pullback, with tech stocks falling by 1.2%. In contrast, oil and gas stocks saw a gain of 1.3%. The markets are currently focused on reversing recent declines, with significant attention on upcoming data releases and corporate earnings reports.

Asia-Pacific markets experienced a general downturn, with Hong Kong’s Hang Seng index leading the losses, dropping by over 2% by the final hour of trading. This decline extended a multi-day losing streak, resulting in a 4% loss for the week as of Wednesday’s close. Mainland China’s CSI 300 also saw a significant drop of 1.73%, while Japan’s Nikkei 225 fell by 0.48%. In contrast, Australia’s S&P/ASX 200 emerged as a rare bright spot, gaining 0.37%. South Korea’s Kospi ended nearly flat with a marginal gain, whereas the Kosdaq Index declined by 1.17%.

Economic Calendar

Earnings Calendar

Notable reports for Thursday before the bell include AAP, BILI, DIS, JD, NTES, NICE, NOMD, SBH, TLN, & ZK.

After the bell reports include AMAT, ESE, GLOB, MITK, & POST.

News & Technicals’

Disney reported its fiscal fourth-quarter earnings on Thursday, narrowly surpassing analyst estimates, driven by growth in its streaming services which bolstered the entertainment segment. The company reported adjusted earnings per share of $1.14, slightly above the expected $1.10. Revenue also exceeded expectations, coming in at $22.57 billion compared to the anticipated $22.45 billion. Net income rose to $460 million, or 25 cents per share, up from $264 million, or 14 cents per share, in the same quarter last year. However, revenue for Disney’s sports segment, primarily ESPN, remained flat, with ESPN’s profit declining by 6%.

Cisco’s latest quarterly results exceeded expectations, leading the company to raise its full-year revenue target. Despite this positive development, revenue for the quarter ended October 26 dropped by 6% to $14.7 billion compared to the previous year. Net income also declined, falling to $2.71 billion, or 68 cents per share, from $3.64 billion, or 89 cents per share, in the same quarter last year. Additionally, networking revenue saw a significant decrease of 23%, reaching $6.75 billion, which was slightly below the $6.8 billion consensus estimate by analysts surveyed by StreetAccount.

On Thursday, Treasury yields remained relatively stable as investors kept a close watch on new economic data and a series of speeches from Federal Reserve policymakers. The 10-year Treasury yield edged slightly lower to 4.449%, while the 2-year Treasury yield also dipped to 4.282%. Federal Reserve Chair Jerome Powell is set to discuss the U.S. economic outlook in Dallas, Texas, later in the day. Additionally, remarks from Fed Governor Adriana Kugler, Richmond Fed President Tom Barkin, and New York Fed President John Williams are anticipated, which could provide further insights into the economic landscape.

The bulls still want to celebrate the election working to regain momentum this morning.  However, we still have a pending PPI report with a consensus estimate that suggests higher producer costs.  Should the number come in hot, expect the bond yields and the dollar continue to gain strength.  In that event watch for the possibility of a whipsaw.  On the other hand if the number weakens expect the bullish celebration to continue with more record highs into the end of the week.

Trade Wisely,

Doug