Morning in New York: focus on reports in the absence of macro drivers

Daily review and forecast of events on the U.S. stock market from Mikhail Denislamov, Deputy Director of Freedom Capital Markets Research.

Today, the US will release September data on new home starts (Housing Starts, consensus: 1.33 million), building permits (Building Permits, consensus: 1.35 million) and new home sales (New Home Sales, consensus: 716k). Due to the significant delay, the impact of these publications on market sentiment will be limited. No significant fresh macroeconomic statistics are scheduled for this Tuesday.

On the eve of the meeting on December 9-10, the Fed leadership is keeping "silence mode", so no new signals are expected from the speeches of Jerome Powell at the Hoover Institution and vice-chairman for supervision Michelle Bowman at the Committee on Financial Services of the House of Representatives, and they will not affect the dynamics of trading.

Marvell Technology (MRVL), GitLab (GTLB), CrowdStrike (CRWD), American Eagle Outfitters (AEO), Box (BOX), Okta (OKTA), and Asana (ASAN) will report after the main session.

Futures on US indices demonstrate about zero dynamics. We assess the balance of risks for the upcoming trades as neutral with moderate volatility. We focus on S&P 500 fluctuations in the range of 6770-6850 points (from -0.6% to +0.5% to the previous session's closing level).

- Strong quarterly results supported investor interest in MongoDB (MDB) shares, which surged more than 20% on the premarket. The company's revenue grew 19% YoY to $628 mln in the reporting period, with adjusted earnings reaching $1.32, while the consensus was for a loss of $0.8. Management raised its forecasts for the fourth quarter and 2026.

- Strong results for the second fiscal quarter drove Credo Technology (CRDO) up more than 19% before the start of main trading. The issuer's revenue increased 20% QoQ to a record $268 million, while non-GAAP margins rose to 67.7% thanks to robust demand from hyperscalers.

- Warner Bros Discovery (WBD) remains in focus following reports of a new, predominantly cash offer from Netflix (NFLX) in a second round of bidding for the studio. WBD securities are trending positive in the premarket on increased speculation surrounding the deal.

- According to media reports, Marvell Technology (MRVL) is moving to buy startup Celestial AI for more than $5 billion. Against this backdrop, MRVL shares are moderately positive on the premarket.

Trading on December 1 on the U.S. stock exchanges ended in the red zone. S&P 500 decreased by 0.53%, NASDAQ 100 corrected by 0.36%, Dow Jones lost 0.9%, Russell 2000 fell by 1.25%. The reasons for these dynamics were profit taking after the rally in late November, as well as a decline in interest in risky instruments, including crypto-assets and the most popular among retail investors shares. The energy sector (XLE: +0.96%) was the leader of growth on the back of higher oil prices. Outsiders were utility providers (XLU: -2.34%).

Multidirectional movements in the shares of the "Magnificent Seven" were caused by the reallocation of capital. NVIDIA (NVDA: +1.65%) rose due to the positive reaction to the expansion of its partnership with Synopsys (SNPS: +4.85%) in the field of AI solutions. Alphabet (GOOGL: -3.15%) came under the most pressure.

Purchases on American exchanges were restrained by the growth of yields of Japanese government bonds on the background of growing expectations of tightening the policy of the Bank of Japan. This caused a reassessment of some global rates and negatively affected the most sensitive market instruments.

The ISM Manufacturing Business Activity Index (PMI) for November fell to 48.2 points with the consensus suggesting an increase from October's 48.7 to 49, signaling a continued downturn. The new orders and employment components deteriorated from the previous month, while the price index rose. Participants in the survey, which underpins the calculation of the index, continue to point to the negative impact of import tariffs and trade-related uncertainty. At the same time, the final estimate of the manufacturing PMI from S&P Global for November recorded an increase to 52.2 from the preliminary reading of 51.9 points. This somewhat mitigated the negativity, signaling a more stable situation in the private sector.

- NVIDIA (NVDA) will invest $2 billion ($414.79 per share) in Synopsys Engineering Solutions (SNPS: +4.85).

- Accenture (ACN: +3%) announced a partnership with OpenAI to provide tens of thousands of advisors with access to the ChatGPT Enterprise platform.

- Newell Brands (NWL: +4.4%) unveiled a global productivity improvement program with a reduction of about 900 employees and expected pre-tax savings of $110-130 million.

- Moderna (MRNA: -7%) quotes were pressured by a New York Times report about an internal memo from the CBER director to the FDA about a possible link between the deaths of 10 children and COVID-19 vaccines.

- Coupang (CPNG: -5.4%) admitted to leaking the personal data of 33.7 million accounts without compromising payment information or logins.

This article was AI-translated and verified by a human editor