Hotter-than-anticipated inflation data is casting a shadow over stock futures this morning. The producer price index (PPI) reading for November showed a 0.4% month-over-month increase in wholesale prices, double the analysts' expectations of a 0.2% rise. While markets still anticipate an interest rate cut next week, both the S&P 500 Index (SPX) and Dow Jones Industrial Average Futures (DJIA) are firmly in the red. The Nasdaq-100 Index (NDX) futures are experiencing a significant triple-digit loss as tech stocks face challenges following Adobe's (ADBE) underwhelming forecast.
Tech Stocks Struggle as Inflation Pressures Mount
5 Things You Need to Know Today
At the Cboe Options Exchange (CBOE), more than 2 million call contracts and 1 million put contracts were exchanged on Wednesday. The single-session equity put/call ratio rose to 0.53, while the 21-day moving average remained at 0.62.
Adobe Inc (NASDAQ:ADBE) stock is down 11.1% in premarket trading. Despite reporting a fiscal fourth-quarter earnings and revenue beat, the company issued a disappointing revenue forecast for 2025. ADBE is currently carrying a 7.7% deficit for the year.
Boeing Co (NYSE:BA)
Boeing stock is up 1.2% ahead of the open. The company is set to lay off almost 400 employees as it continues to cut costs. In 2024, BA has declined by 36.6%.
Charter Communications Inc (NASDAQ:CHTR)
Charter Communications Inc stock received an upgrade from Keybanc to “overweight” from “sector weight”. The analyst noted potential for a 30% upside. In the last nine months, CHTR has added more than 26% and is up 1.1% before the bell.
Retail sales data will precede the Federal Reserve's interest rate decision next week. This data is likely to have a significant impact on the market.
European Markets After ECB Rate Cut
Asian markets closed mostly higher today, taking cues from U.S. inflation data and job updates from Australia. South Korea remains focused on President Yoon Suk Yeol, who stated in a TV address that he has no plans to resign despite mounting pressure. In Thursday's session, Japan's Nikkei and Hong Kong's Hang Seng both climbed 1.2%, China's Shanghai Composite added 0.9%, and South Korea's Kospi surged 1.6%. Stocks in Europe are flat after the European Central Bank (ECB) slashed interest rates by a quarter point, in line with expectations for its fourth cut in 2024. Retail stocks are weighing on the region, while Germany's Ifo indicated that the economy could grow between 0.4% and 1.1% in 2025, citing major uncertainty. At the latest update, London's FTSE 100 is up 0.07%, France's CAC 40 is off 0.04%, and Germany's DAX is at 0.03%.
