5 Key Things to Watch Before the Stock Market Opens Today
As markets prepare for a shortened trading week due to the Thanksgiving holiday, investors are focusing on key economic data and corporate developments. Here's what you need to know:
1. PCE Inflation Data Expected to Show Price Pressures
The Personal Consumption Expenditures (PCE) inflation report for October, set to be released at 10 a.m. ET, is expected to reveal increasing price pressures.
* Headline Inflation: Economists project annual inflation will rise to 2.3%, up from 2.1% in September, based on surveys by Dow Jones Newswires and The Wall Street Journal.
* Core Inflation: Excluding volatile food and energy prices, core inflation is forecast to rise to 2.8% year-over-year, compared to 2.7% in September.
If these forecasts are accurate, inflation would remain above the Federal Reserve's 2% target, potentially complicating plans for gradual interest rate reductions. Investors will closely monitor the data for insights into the Fed’s next moves.
2. U.S. Stock Futures Steady Ahead of Holiday Break
Futures tied to major U.S. stock indices are largely unchanged this morning as markets await economic updates and prepare for Thursday’s Thanksgiving closure.
* Dow Jones Industrial Average Futures: Flat after hitting a record high in the previous session.
* S&P 500 Futures: Slightly lower after posting a new record close on Tuesday.
* Nasdaq Futures: Also trading marginally lower.
Key reports to watch today include revised third-quarter GDP, pending home sales, and business inventories. Meanwhile, Bitcoin (BTCUSD) has climbed 1%, trading above $93,000, while gold and crude oil futures are ticking higher.
3. Dell Stock Drops After Revenue Miss
Shares of Dell Technologies (NYSE: DELL) are down over 11% in premarket trading after the company reported quarterly revenue that fell short of analyst expectations.
* Revenue: $24.4 billion, up 10% year-over-year but below the consensus estimate of $24.65 billion.
* Net Income: $1.13 billion, or $1.58 per share, exceeding analyst forecasts.
While revenue from servers and networking surged 58% to $7.36 billion, driven by strong demand for AI servers, the revenue miss overshadowed the company’s growth story, pressuring its stock.
4. CrowdStrike Shares Decline Following Unexpected Loss
CrowdStrike Holdings (NASDAQ: CRWD) shares are down 3.5% in premarket trading after the cybersecurity firm reported a surprising loss for its third quarter due to increased costs.
* Q3 Results: A net loss of $16.8 million (7 cents per share) compared to a profit of $26.7 million (11 cents per share) in the same period last year.
* Revenue: $1.01 billion, up 29% year-over-year, surpassing expectations.
The company continues to face challenges stemming from the fallout of a July software update issue affecting Microsoft (MSFT) Windows systems globally, which disrupted several businesses and caused significant costs.
5. HP Stock Sinks After Disappointing Earnings Forecast
HP Inc. (NYSE: HPQ) shares have fallen nearly 9% in premarket trading after the company issued weaker-than-expected earnings guidance for the current quarter.
* Current-Quarter EPS Forecast: 57 to 63 cents, below the analyst consensus of 72 cents.
* Q4 Results: Revenue rose 1.7% year-over-year to $14.1 billion, exceeding estimates. Net income came in at $900 million (93 cents per share), down slightly from $1 billion (97 cents per share) a year ago.
Despite higher-than-expected revenue, the cautious guidance has raised concerns about weaker demand in the PC and printing segments going forward.
As markets prepare for a shortened trading week due to the Thanksgiving holiday, investors are focusing on key economic data and corporate developments. Here's what you need to know:
1. PCE Inflation Data Expected to Show Price Pressures
The Personal Consumption Expenditures (PCE) inflation report for October, set to be released at 10 a.m. ET, is expected to reveal increasing price pressures.
* Headline Inflation: Economists project annual inflation will rise to 2.3%, up from 2.1% in September, based on surveys by Dow Jones Newswires and The Wall Street Journal.
* Core Inflation: Excluding volatile food and energy prices, core inflation is forecast to rise to 2.8% year-over-year, compared to 2.7% in September.
If these forecasts are accurate, inflation would remain above the Federal Reserve's 2% target, potentially complicating plans for gradual interest rate reductions. Investors will closely monitor the data for insights into the Fed’s next moves.
2. U.S. Stock Futures Steady Ahead of Holiday Break
Futures tied to major U.S. stock indices are largely unchanged this morning as markets await economic updates and prepare for Thursday’s Thanksgiving closure.
* Dow Jones Industrial Average Futures: Flat after hitting a record high in the previous session.
* S&P 500 Futures: Slightly lower after posting a new record close on Tuesday.
* Nasdaq Futures: Also trading marginally lower.
Key reports to watch today include revised third-quarter GDP, pending home sales, and business inventories. Meanwhile, Bitcoin (BTCUSD) has climbed 1%, trading above $93,000, while gold and crude oil futures are ticking higher.
3. Dell Stock Drops After Revenue Miss
Shares of Dell Technologies (NYSE: DELL) are down over 11% in premarket trading after the company reported quarterly revenue that fell short of analyst expectations.
* Revenue: $24.4 billion, up 10% year-over-year but below the consensus estimate of $24.65 billion.
* Net Income: $1.13 billion, or $1.58 per share, exceeding analyst forecasts.
While revenue from servers and networking surged 58% to $7.36 billion, driven by strong demand for AI servers, the revenue miss overshadowed the company’s growth story, pressuring its stock.
4. CrowdStrike Shares Decline Following Unexpected Loss
CrowdStrike Holdings (NASDAQ: CRWD) shares are down 3.5% in premarket trading after the cybersecurity firm reported a surprising loss for its third quarter due to increased costs.
* Q3 Results: A net loss of $16.8 million (7 cents per share) compared to a profit of $26.7 million (11 cents per share) in the same period last year.
* Revenue: $1.01 billion, up 29% year-over-year, surpassing expectations.
The company continues to face challenges stemming from the fallout of a July software update issue affecting Microsoft (MSFT) Windows systems globally, which disrupted several businesses and caused significant costs.
5. HP Stock Sinks After Disappointing Earnings Forecast
HP Inc. (NYSE: HPQ) shares have fallen nearly 9% in premarket trading after the company issued weaker-than-expected earnings guidance for the current quarter.
* Current-Quarter EPS Forecast: 57 to 63 cents, below the analyst consensus of 72 cents.
* Q4 Results: Revenue rose 1.7% year-over-year to $14.1 billion, exceeding estimates. Net income came in at $900 million (93 cents per share), down slightly from $1 billion (97 cents per share) a year ago.
Despite higher-than-expected revenue, the cautious guidance has raised concerns about weaker demand in the PC and printing segments going forward.