Market Overview

The S&P 500 and Nasdaq Composite struggled to maintain last week's momentum, opening lower and failing to enter positive territory. Investor caution prevailed ahead of Oracle's (ORCL) earnings report, upcoming inflation data, and the European Central Bank's policy meeting.

Market Movers

• NVIDIA (NVDA): The stock declined by 2.6% following reports of a Chinese antimonopoly investigation.
• Interpublic Group (IPG): Shares rose 3.6% on news of a stock-swap acquisition by Omnicom (OMC).
• Hershey (HSY): The stock surged 10.9% amid takeover interest from Mondelez Intl. (MDLZ).
• Omnicom (OMC): Experienced a 10.3% drop, making it the worst performer in the S&P 500.
• Comcast (CMCSA, Financial): Fell 9.5% due to expected subscriber losses from hurricane impacts.
• Meta Platforms (META): Declined 1.6%, contributing to weakness in the communication services sector.

Sector Performance

The communication services, financial, and utilities sectors were the weakest, each declining more than 1%. In contrast, the health care and real estate sectors managed to post slight gains.

Bond Market and Economic Data

The Treasury market saw yields rise, with the 2-year note yield increasing to 4.13% and the 10-year note yield climbing to 4.20%. These movements followed President-elect Trump's interview on "Meet the Press," where he reiterated his policy goals.The New York Fed's November Survey of Consumer Expectations indicated a slight increase in inflation expectations across various time frames. October Wholesale Inventories rose by 0.2%, aligning with consensus forecasts.

Global Markets and Commodities

• Europe: DAX -0.2%, FTSE +0.5%, CAC +0.7%
• Asia: Nikkei +0.2%, Hang Seng +2.8%, Shanghai -0.1%
• Commodities: Crude Oil +1.29 @ 68.46, Nat Gas +0.10 @ 3.18, Gold +26.60 @ 2685.40, Silver +1.05 @ 32.60, Copper +0.07 @ 4.27

Upcoming Economic Events

• 06:00 ET: November NFIB Small Business Optimism Index
• 08:30 ET: Revised Q3 Productivity and Unit Labor Costs

ORCL,NVDA,IPG,OMC,HSY,MDLZ,CMCSA,META

Today's News

Oracle (ORCL) shares dropped 8.5% following fiscal Q2 results that fell slightly short of expectations. Despite earning an adjusted $1.47 per share, the revenue of $14.1 billion missed estimates by $20 million. Cloud revenue did not meet the $6 billion forecast, coming in at $5.9 billion. Oracle's infrastructure revenue surged 52% year-over-year, while application revenue increased by 10%. The company's total remaining performance obligations grew significantly to $97 billion, driven by record AI demand.

AMD (AMD, Financial) shares fell 5% after a report suggested Amazon Web Services (AMZN, Financial) had not seen significant demand for its AI accelerators. AMD refuted these claims, stating their active engagement with AWS on AI opportunities. The comments from AWS's Gadi Hutt raised investor concerns, despite AMD's assurances of a strong relationship with AWS.

Google (GOOGL, Financial) shares rose as the company introduced its new quantum computing chip, Willow. Capable of performing complex calculations in mere minutes, the chip significantly outpaces current supercomputers. Google CEO Sundar Pichai highlighted Willow's potential to revolutionize industries like drug discovery and energy. The announcement had mixed effects on quantum computing stocks, with Rigetti Computing (RGTI, Financial) seeing a slight rise.

Kimberly-Clark (KMB, Financial) announced it would stop producing diapers for Costco (COST, Financial), shifting focus from low-margin private labels to premium products. Costco will now sell diapers from First Quality under its Kirkland Signature brand. This strategic change is expected to reduce Kimberly-Clark's private label mix significantly in the coming year.

Intuit (INTU, Financial) and Amazon (AMZN, Financial) have formed a strategic partnership to support Amazon sellers with financial management solutions. Intuit's AI-driven platform will offer insights into profitability and cash flow, with QuickBooks becoming the preferred partner integrated into Amazon Seller Central. The rollout will begin in mid-2025, initially focusing on U.S. sellers.

Warner Bros. Discovery (WBD, Financial) has secured a multi-year content deal with Comcast (CMCSA, Financial), ensuring its content remains available to Xfinity and Sky UK subscribers. The agreement includes continued carriage of HBO and the integration of ad-supported versions of Max and Discovery+ into Comcast's streaming bundles.

Shares of T-Mobile (TMUS, Financial) turned defensive after CEO Michael Sievert cautioned investors about potential risks in the latter half of the quarter. Despite a strong start, Sievert warned of a back-end loaded quarter and low device upgrade rates, maintaining guidance for postpaid net customer additions and adjusted EBITDA.

MongoDB (MDB, Financial) saw a 10% rise in post-market trading after reporting Q3 results that exceeded expectations. The company posted adjusted earnings per share of $1.16, significantly above consensus estimates, with revenue increasing by 22% year-over-year to $529.4 million. MongoDB's Atlas service showed strong growth, contributing to the positive results.

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