In the pre-market on Monday, U.S. index futures are showing a downward trend. Investors are currently assessing the impact of the recent change in the U.S. rating outlook. Additionally, there is growing anticipation for the inflation data, set to be announced tomorrow, which is influencing market decisions.

At 05:55 AM, Dow Jones futures (DOWI:DJI) fell 4 points, or 0.01%. S&P 500 futures fell 0.18% and Nasdaq-100 futures fell 0.23%. The yield on 10-year Treasury notes was at 4.63%.

In the commodities market, West Texas Intermediate crude oil for December rose 0.08%, to $77.23 per barrel. Brent oil for January rose 0.06% to around $81.48 per barrel. Iron ore with a 62% concentration, traded on the Dalian exchange, rose 1.68%, priced at $132.42 per ton.

On the economic agenda this Monday, investors await, at 08:50 AM, a speech by Fed Director Lisa Cook, while at 11:00 AM, the monthly inflation expectation for October will be released. Finally, last month’s budget balance will be announced at 14:00 PM, with the consensus predicting a deficit of $30 billion.

Asian markets recorded gains, influenced by Japan’s economy, especially after producer prices in October fell short of expectations.

Meanwhile, in Europe, stock markets are showing positive performance at the start of trading, reflecting recent statements by Luis de Guindos, Vice President of the European Central Bank (ECB). Guindos mentioned that despite inflation in the eurozone gaining temporary momentum in the coming months due to the calculation method used, economic growth in the region is expected to remain moderate in the short term.

Even with a reduction in Treasuries at the beginning of the week, U.S. markets may not benefit from it. This is due to Moody’s action, which on Friday changed the U.S. AAA rating outlook from stable to negative, citing concerns about the high fiscal deficit. Concurrently, U.S. inflation and the meeting scheduled between Joe Biden and Xi Jinping on Wednesday are also in investors’ focus. This meeting between the two largest global powers aims to address divergences, including their stances on wars and export control policies.

At the close on Friday, the S&P 500 rose above 4,400 points due to the performance of large technology companies. The Dow Jones advanced 391.16 points, or 1.15%. The S&P 500 rose 67.89 points, or 1.56%. The Nasdaq surged 276.66 points, or 2.05%. Future interest rates stabilized, with the yield on U.S. 10-year bonds below 4.7%. FOMC members adopted a more cautious tone on interest rate hikes. The U.S. consumer confidence index for November was below expectations (60.4 vs. 63.7). Inflation expectations increased (4.4% for next year, 3.2% for 5-10 years).

In Monday’s corporate earnings forefront, investors will be attentive to reports from (NASDAQ:MNDY), Tyson Foods (NYSE:TSN), Tower Semiconductor (NASDAQ:TSEM), Intuitive Machines (NASDAQ:LUNR) before the market opens. After the close, reports from Fisker (NYSE:FSR), Rumble (NASDAQ:RUM), Li-Cycle (NYSE:LICY), Terawulf Inc (NASDAQ:WULF), Sper Therapeutics (NASDAQ:SPRO), among others, are expected.

Wall Street Corporate Highlights for Today

Apple (NASDAQ:AAPL) – Chinese smartphone maker Xiaomi gained market value and success with its series 14, while Apple‘s sales fell in China. Xiaomi is exploring the electric vehicle sector and other business areas, with positive growth prospects.

Alphabet (NASDAQ:GOOGL) – Alphabet’s Google is in talks to invest hundreds of millions of dollars in Character.AI, a growing AI chatbot startup. The investment would deepen the existing partnership, and the company is also seeking venture capital funding, potentially valuing it at over $5 billion.

Meta Platforms (NASDAQ:META), Snap (NYSE:SNAP) – Meta Platforms, owner of Facebook, and Snap have been given until December 1st by the European Union to provide more information on how they protect children from illegal and harmful content, under threat of investigation and fines under new EU online content rules.

Nvidia (NASDAQ:NVDA) – U.S. restrictions on China have resulted in a “catch me if you can” game with Nvidia and other companies, accelerating Chinese innovation. The Global Times stated that this harms both countries and forces the search for solutions to comply with regulations, driving innovation in China.

Disney (NYSE:DIS) – The latest Marvel movie, “The Marvels,” had a disappointing opening weekend, earning just $47 million in the U.S., well below expectations. The actors’ strike and the evolution of public tastes were cited as possible reasons for the weak performance. Disney postponed other Marvel films and plans to cut production costs. (NASDAQ:BKNG) – agreed to pay about $100.25 million to settle a tax dispute in Italy, related to VAT evasion on holiday rentals from 2013 to 2019.

Airbnb (NASDAQ:ABNB) – This week, the European Union and the European Parliament are expected to agree on lenient rules for Airbnb. Some disagree with the Spanish proposal to allow cities to ban Airbnb in certain areas. Airbnb sees the EU rules as a milestone for short-term rental companies and wishes to collaborate with cities and governments to support sustainable tourism and protect housing. This contrasts with the EU’s strict approach towards Big Techs. Airbnb must provide data and face penalties for non-compliance.

Livent (NYSE:LTHM) – U.S. lithium company Livent will start meetings with Australian investors of Allkem before a vote to approve a $10.6 billion merger that would create the world’s third-largest producer.

Exxon Mobil (NYSE:XOM) – Exxon Mobil plans to start lithium production for electric vehicle batteries in Arkansas by 2026, partnering with Tetra Technologies, seeking to expand its presence in the EV sector. The company also controls areas for future lithium production in Arkansas.

BP (NYSE:BP), Shell (NYSE:SHEL), Edison (NYSE:ED) – BP, Edison, and Shell have asked the EU-U.S. to intervene in a dispute with Venture Global LNG due to non-compliance with gas supply contracts. The companies seek to pressure Venture Global LNG to honor the signed contracts.

DR Horton (NYSE:DHI) – Homebuilder DR Horton exceeded profit and revenue expectations, despite concerns in the real estate sector. Its shares have risen 37.6% this year. The lack of existing homes has boosted demand for new homes, especially among first-time buyers. Horton reduced mortgage rates and introduced lower-cost plans.

Moody’s (NYSE:MCO) – Moody’s downgraded the U.S. credit rating outlook to “negative” due to large fiscal deficits and declining debt affordability. This has drawn criticism from the Biden administration and pressured Congressional Republicans to move forward with funding legislation to avoid a partial government shutdown.

Mizuho Financial Group (NYSE:MFG) – Mizuho Financial Group raised its annual profit forecast following solid first-half results, driven by gains in investment banking and trading, as well as a cheaper yen. Mizuho now forecasts a net profit of $4.2 billion for the fiscal year, the highest in eight years. The CEO cited overseas business and the acquisition of Greenhill as profit drivers. On the other hand, a potential yen strengthening in the second half poses a downside risk.

Berkshire Hathaway (NYSE:BRK.A) – Billionaire investor Warren Buffett reportedly traded stocks in his personal account at the same time his company Berkshire Hathaway bought and sold the same stocks, according to a ProPublica report. Based on leaked IRS data, the report alleges that Buffett and Berkshire traded stocks, including Walmart (NYSE:WMT), Wells Fargo (NYSE:WFC), and Johnson & Johnson (NYSE:JNJ) in 2009 and 2012. Buffett denied any conflict of interest, stating he tries to avoid such situations. Representatives from Berkshire Hathaway did not immediately comment on the report.

BNY Mellon (NYSE:BK) – The Industrial and Commercial Bank of China’s access to a U.S. Treasury securities electronic settlement platform remains suspended following a ransomware attack. BNY Mellon, the settlement agent, disconnected the Chinese bank and awaits a third-party assessment for reconnection. The ICBC confirmed the attack and is investigating, while making progress in recovering its systems.

Citigroup (NYSE:C) – Citigroup resumed the sale process of Bank Handlowy’s retail business in Poland, said the CEO of Bank Handlowy, Elzbieta Czetwertynska, on Friday, adding that talks with interested investors may begin in the coming months.

Morgan Stanley (NYSE:MS) – Morgan Stanley predicts the S&P 500 (SPI:SP500) will end 2024 at 4,500 points, representing a 2% increase from current levels, with a recovery in profits and prospects for revenue growth and margins. They foresee short-term challenges followed by a solid recovery in 2025.

Goldman Sachs (NYSE:GS) – Investors are overly concerned with the weakened outlook for U.S. corporate earnings, which so far only follow a historical pattern, according to strategists at Goldman Sachs. Estimates for fourth-quarter earnings have fallen 4% since early October and are setting a low bar for S&P 500 companies. Expectations for 2024 are also following a typical pattern, falling only 0.4% excluding the health sector.

StoneCo (NASDAQ:STNE) – StoneCo‘s shares rose 6.9% in Monday’s pre-market due to growth in profits and revenues in the third quarter. The Brazilian financial services company reported a profit of R$ 411.3 million, up from R$ 197.1 million the previous year. Revenue increased 25%, reaching R$ 3.14 billion, driven by higher revenues from the financial services platform.

Southwest Airlines (NYSE:LUV), Boeing (NYSE:BA) – Southwest Airlines expects FAA certification of the Boeing 737 MAX 7 by April 2024, allowing flights in October or November. Southwest is the largest customer of this model. However, they converted some MAX 7 orders to the larger MAX 8 variant due to certification delays. Boeing expects MAX 7 certification by the end of this year.

Boeing (NYSE:BA) – Boeing is up on Monday due to reports that the freeze on sales in China may soon be lifted, with the Chinese government considering purchasing Boeing 737 jets during the meeting between Biden and Xi Jinping. Additionally, Germany’s SunExpress will buy up to 90 737 MAX jets, and Emirates will order 90 777X jets. Boeing’s shares rose 3.75% in pre-market, reaching $204.00. In other news, internal Boeing data were leaked online on Friday by the Lockbit cybercrime group. Boeing confirmed the incident and is investigating. Lockbit is known for ransomware attacks on various organizations in the U.S. and worldwide.

General Motors (NYSE:GM) – Members of the United Auto Workers (UAW) union at the GM plant in Flint, Michigan, voted against a proposed contract with the automaker, indicating that the approval of the deal, which would significantly increase GM’s costs, is not guaranteed. Other GM plants will vote on the agreement in the coming weeks. The UAW’s agreement with GM grants a 25% increase in base salary by April 2028 and will raise the maximum wage by 33%, reaching over $42 per hour.

Ford Motor (NYSE:F) – United Auto Workers (UAW) production workers at Ford plants in Louisville and Kentucky rejected a 4.5-year contract, while skilled workers supported it. UAW Local 862 did not disclose the overall percentage of votes in favor or the total number of votes.

Honda Motor (NYSE:HMC) – Honda announced an 11% wage increase for production workers at its U.S. facilities, following agreements between the UAW union and automakers. Honda will also reduce the time to reach the maximum wage, in line with concessions obtained by the UAW from other automakers.

Novo Nordisk (NYSE:NVO) – Novo Nordisk revealed that the cardiac benefits of its obesity treatment, Wegovy, are not limited to weight loss. The study suggests that other factors, such as control of inflammation and glucose, contribute to cardiovascular protection. The drug’s label may be updated to include these benefits.

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