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Stock futures are little changed as traders await key inflation report: Live updates

An Hour Ago

A muted open in Europe

European markets were mixed on Tuesday, with investors looking ahead to preliminary third quarter gross domestic product data from the euro zone, along with October’s U.S. inflation print.

The pan-European Stoxx 600 index was roughly flat in early trade. Basic resources added 0.9% while financial services stocks dropped 0.5%.

10 Hours Ago

CNBC Pro: Morgan Stanley picks global ‘alpha’ opportunities for November — and gives one about 60% upside

Asian markets have had a tumultuous year.

The MSCI Asia ex Japan Index plunged from its January high, losing around 12% since then.

Chinese stocks are especially volatile. Hong Kong’s Hang Seng index is down around 12% in the year to date, while the Shenzhen Component has fallen over 9%.

Those keen on investing in Asia in the face of such uncertainty can consider Morgan Stanley’s selection of Asian stocks it calls “alpha” opportunities for November.

CNBC Pro subscribers can read more here.

— Weizhen Tan

10 Hours Ago

CNBC Pro: Goldman Sachs: These ‘conviction list’ global stocks will benefit from a circular economy boom

Rising commodity prices, increased regulation and a growing recognition of sustainability benefits are set to be “key catalysts” of the circular economy, Goldman Sachs said, naming its “conviction list” stocks to play the theme.

Quoting estimates from McKinsey, Accenture and the United Nations Environment Program, the bank said that the economic benefits of the circular economy range from $2.9 trillion to $4.5 trillion by 2030.

“While regulators, corporates, and investors have placed much emphasis on achieving Net Zero emissions and Biodiversity goals, we believe the critical role a Circular Economy will play in solving for both has been overlooked, particularly as a lack of available resources threatens the speed, scale, and affordability of a clean energy transition,” Goldman’s analysts wrote in a Nov. 2 note.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

9 Hours Ago

Australia November consumer confidence slides after rate hike

Australia’s consumer confidence slid in November, according to a Westpac-Melbourne Institute survey.

The Westpac-Melbourne Institute index of consumer sentiment fell to 79.9 in November, down from 82 in October. The current reading reflects deeply pessimistic levels, according to the survey.

It notes that the Reserve Bank of Australia’s decision to raise interest rates by 25 basis points to 4.35% last week, knocked about 6 points off confidence during the survey week.

“The RBA’s November rate hike has put renewed pressure on family finances and reignited concerns about both the rising cost of living and the prospect of further rate rises to come,” said Matthew Hassan, senior economist of Westpac Group.

“Responses over the survey week show sentiment was heading for a slight gain prior to the RBA move, responses amongst those surveyed before the decision consistent with an index read of just over 83.”

The RBA had held interest rates steady four straight months until its meeting in November.

— Shreyashi Sanyal

10 Hours Ago

Moody’s cuts outlook on banking subsidiaries of JPMorgan, Wells Fargo and more

Moody’s Investors Service lowered its outlook late Monday to negative from stable on a slate of banking subsidiaries, including those of JPMorgan and Wells Fargo.

The move comes after the ratings agency cut its outlook on the U.S. government Friday.

In particular, the ratings agency affirmed the Aa1 long-term deposit ratings for certain bank subsidiaries and branches of Bank of America, JPMorgan Chase & Co. and Wells Fargo. However, Moody’s updated its outlook on these ratings to negative from stable.

The ratings agency pointed to “the potentially weaker capacity of the Government of the United States of America (Aaa negative) to support the US’s systemically important banks, as reflected in the recent change in the outlook on the Government of the United States of America to negative from stable.”

Darla Mercado

10 Hours Ago

Look for a ‘strong’ consumer price index report in October, says Vanguard’s Andrew Patterson

Tuesday’s consumer inflation report will likely show some “strong to quite strong” data for October, according to Andrew Patterson, senior economist at Vanguard.

“Near-term risks are skewed to the upside for this month and could come from goods inflation deflating at a slower than expected pace as the fall in used car prices stalls, and from healthcare insurance and [owners’ equivalent rent] coming in higher than expected,” he said.

Looking at the components of core inflation, Patterson sees shelter inflation slowing below 0.4% month over month for October, but there is an elevated risk of a higher-than-expected print on owners’ equivalent rent.

He noted that supply pressures have normalized to pre-pandemic levels, which means there’s limited downside to prices on goods. “In our view, slowing consumer demand will be crucial for future deceleration in the component,” Patterson said.

The CPI report is due at 8:30 a.m. on Tuesday.

Darla Mercado

10 Hours Ago

No let up in chocolate prices as price of cocoa hits an all-time high

Don’t expect any let up in the price of chocolate at the holidays after the price of December cocoa bean contracts climbed to a record $4,073 per metric tonne (2,205 pounds) on Monday.

As recently as June, cocoa contracts were trading for less than $3,200 per metric tonne.

Cocoa is more than 56% higher in 2023, but that’s not necessarily good news for the companies who use it as a raw ingredient in their products. Hershey is lower by 16% in 2023, Nestle‘s sponsored ADRs are off 5% while Mondelez is higher by just 4%.

See Chart…

March cocoa contract in past six months.

— Scott Schnipper, Gina Francolla

10 Hours Ago

Science stocks rise in extended trading

A handful of science-oriented stocks made notable moves in extended trading.

Azenta climbed more than 4% after delivering a strong financial report for the fiscal fourth quarter. The life science stock beat the consensus forecasts of analysts polled by FactSet and offered guidance for the full year that was in line with expectations.

Viking Therapeutics also added more than 4%. Viking shared new data from the second phase of a trial for patients with patients with non-alcoholic steatohepatitis, known in short as NASH.

— Alex Harring

10 Hours Ago

CPI inflation gauge to get market’s attention Tuesday morning

Markets will be watching Tuesday for the first of two key inflation reports that the Labor Department will release this week.

The consumer price index for October is expected to show that prices increased just 0.1% for the month, after rising 0.4% in September, according to a Dow Jones consensus estimate. On a year-over-year basis, the CPI is expected to increase 3.3%, after being up 3.7% the previous month.

Excluding food and energy, core CPI is projected to rise 0.3% and 4.1% respectively, after showing the same levels in September.

The release, due at 8:30 a.m. ET, precedes Wednesday’s producer price index, which reflects prices at the wholesale level.

—Jeff Cox

11 Hours Ago

Stock futures are flat

Stock futures were little changed shortly after 6 p.m. ET Monday.

Futures tied to the Dow, S&P 500 and Nasdaq 100 all sat near flat. It followed a relatively muted trading day on Monday as investors readied for the inflation report coming Tuesday.

— Alex Harring

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