Opening Comment — Friday, November 22, 2024
DJIA: 43,870.35, up 461.88
S&P 500: 5,948.71, up 31.60
NASDAQ: 18,972.42, up 6.28
Stocks mostly lower ahead of PMI data
Stock futures are mostly lower Friday morning ahead of November’s preliminary purchasing managers’ indexes (PMIs) and finalized University of Michigan consumer sentiment data. As of 7:18 AM ET, the Dow is little changed, while the S&P 500 is down 0.1%. The Nasdaq 100 is falling 0.2% relative to fair value on the GLOBEX.
U.S. equities were mostly higher on Thursday as the latest unemployment claims data showed an unexpected decline in initial claims, but a greater-than-forecasted increase in continuing claims. The Dow was up 1.1%, while the tech-heavy Nasdaq Composite was little changed. The S&P 500 increased 0.5% with nine of 11 sectors finishing in positive territory. The Utilities sector was the top performer, rising 1.8%, while the Communication Services sector was the bottom performer, falling 1.7%.
On the data front, the preliminary reading of S&P Global’s November manufacturing and services PMIs are expected to come in at 48.9 and 55.0 respectively, up from the prior month’s 48.5 and little changed, respectively. Meanwhile, the composite PMI is expected to tick up to 54.3 for November from the prior month’s 54.1. The University of Michigan’s finalized reading of November consumer sentiment is expected to come in at 73.9 versus the prior reading of 73.0. Meanwhile, the University of Michigan’s finalized November readings for one-year and 5-10-year inflation expectations are forecasted to come in at 2.7% and 3.1%, respectively, up from the preliminary reading of 2.6% and little changed, respectively.
Across the pond, European stocks are mostly lower in mid-day trading as the eurozone’s preliminary November PMI data showed declines in both the manufacturing and service sectors, with both now in contractionary territory. The U.K.’s preliminary November PMIs also showed declines, with the manufacturing sector still in contractionary territory and the service sector now stagnating rather than expanding.
Overnight in Asia, stocks were mostly higher following Japan’s preliminary November manufacturing PMI ticking down further into contractionary territory, while the country’s services PMI rose into expansionary territory. Japan’s headline national Consumer Price Index cooled as expected in October.
In FOREX trading, the dollar is higher following international PMI data and ahead of the U.S.’s PMI data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.4% lower at $69.82/barrel, though still set for a weekly gain following recent development in the war between Russia and Ukraine.
In the metals complex, gold is 1.0% higher at $2700.50/ounce despite a strengthening dollar.