The S&P 500 Index ($SPX) (SPY) today rose +0.38%, the Dow Jones Industrials Index ($DOWI) (DIA) fell -0.22% and the Nasdaq 100 Index ($IUXX) (QQQ) rose +0.74%. December E-mini S&P Futures (ESZ25) rose +0.39% and December E-mini Nasdaq Futures (NQZ25) rose +0.70%.
US stock indices are mostly higher today as they recoup some of this week’s heavy losses. Nvidia is up over +2% ahead of its earnings results after the close today. Nvidia’s earnings are seen as an indicator of whether lofty tech stock valuations and huge capital spending on artificial intelligence remain justified.
Alphabet is up more than +5% to lead mega-cap tech stocks after Google unveiled an updated version of its Gemini artificial intelligence model, which executives say represents a “massive leap” in reasoning and coding ability. Additionally, the strength of chipmakers is supporting gains in the broader market.
Limiting gains in the broader market is weakness in energy producers, as WTI crude oil prices are down more than 2%. Additionally, a 3% drop in Boeing today is weighing on the Dow Jones Industrial Average.
US MBA mortgage applications fell -5.2% in the week ending November 14, with the mortgage purchase subindex down -2.3% and the refinance subindex down -7.3%. The average 30-year fixed-rate mortgage increased +3 bps to 6.37% from 6.34% the previous week.
The US trade deficit in August narrowed to -$59.6 billion from -$78.2 billion in July, below expectations of -$60.4 billion.
This week’s U.S. economic agenda is busy with a deluge of delayed economic reports coming out. Minutes from the October 28-29 FOMC meeting will be released later today. Thursday sees weekly jobless claims, the September unemployment report, the Philadelphia Fed report, October existing home sales and the Kansas City Fed manufacturing survey. Friday sees actual earnings, S&P US Manufacturing and Services PMI reports, the University of Michigan US Consumer Confidence Index and the Kansas City Federal Reserve Services Activity report. Other delayed U.S. economic reports are also expected to be released in the coming days, but are not yet scheduled.
Markets are pricing in a 47% chance of another -25bp rate cut at the next FOMC meeting on December 9-10.
The third-quarter corporate earnings season is coming to a close, as 460 of the S&P 500 companies have released their results. According to Bloomberg Intelligence, 82% of reporting S&P 500 companies beat estimates, on track for the best quarter since 2021. Third-quarter earnings rose +14.6%, more than double expectations of +7.2% year-over-year.
Foreign stock markets today are mixed. The Euro Stoxx 50 recovered from a one-month low and rose +0.78%. China’s Shanghai Composite closed up +0.18%. Japan’s Nikkei Stock 225 fell to a one-month low and closed down -0.34%.
Interest rates
December 10-year Treasury bonds (ZNZ5) are down -2 ticks today. The 10-year Treasury yield has risen +1.2 bps to 4.125%. Treasury bond prices are slightly lower today as strength in stocks has curbed some demand for safe-haven government debt. Additionally, supply pressures are negative for Treasuries as the Treasury will auction $16 billion in 20-year Treasuries later today. Losses in Treasuries are limited as a -2% drop in WTI crude oil prices has reduced inflation expectations, a supportive factor for Treasuries.
European government bond yields are mixed today. The 10-year German bond yield is down -0.1bp to 2.705%. The 10-year UK bond yield rose to a five-week high of 4.519% and is up +6.2 bps to 4.616%.
UK October CPI decreased to +3.6% yoy from +3.8% yoy in September. October core CPI decreased to +3.4% yoy from +3.5% yoy in September.
The swaps price in a 4% chance that the ECB will cut rates by -25 bps at its next policy meeting on December 18.
US Stock Engines
The current strength of semiconductor stocks is a supportive factor for the broader market. Broadcom (AVGO) and Lam Research (LRCX) rose more than +4%. Additionally, ON Semiconductor (ON), Intel (INTC), Applied Materials (AMAT), and KLA Corp (KLAC) rose more than +3%. Additionally, Nvidia (NVDA), ASML Holding NV (ASML), and Marvell Technology (MRVL) are up more than +2%, and Advanced Micro Devices (AMD), Micron Technology (MU), and Analog Devices (ADI) are up more than +1%.
Energy producers and energy service providers are falling today, with WTI crude oil falling more than -2%. APA Corp (APA), Valero Energy (VLO) and Marathon Petroleum (MPC) are down more than -3%. Additionally, Phillips 66 (PSX), Occidental Petroleum (OXY), and ConocoPhillips (COP) are down more than -2%. Additionally, Halliburton (HAL), Devon Energy (DVN), Diamondback Energy (FANG), ExxonMobil (XOM), and Chevron (CVX) are all down more than -1%.
Constellation Energy (CEG) has risen more than +5% to lead gains in the S&P 500 and Nasdaq 100 as it plans to restart its Three Mile Island nuclear plant and is receiving $1 billion in support from the US government as the Trump administration pushes to add more atomic power to the power grid.
Alphabet (GOOGL) is up more than +5% after Google unveiled an updated version of its Gemini artificial intelligence model, which executives say represents a “massive leap” in reasoning and coding ability.
La-Z-Boy Inc (LZB) is up over +19% after announcing Q2 sales of $522.5 million, higher than the consensus of $517.7 million.
Dycom Industries (DY) is up more than +11% after signing an agreement to acquire Power Solutions LLC, one of the largest electrical contractors in the Mid-Atlantic serving data centers, for $1.95 billion.
MP Materials (MP) is up over +9% after Goldman Sachs initiated coverage on the stock with a buy rating and a $77 price target.
Lowe’s (LOW) is up more than +5% after raising its 2026 total sales forecast to $86 billion from a previous forecast of $84.5-85.5 billion, above the consensus of $85.36 billion.
Unity Software (U) is up over +5% after announcing that it is working with Epic Games to bring Unity games to Fortnite.
Insulet Corp (PODD) is up more than +2% after UBS upgraded the stock to buy from hold with a $400 price target.
Agios Pharmaceuticals (AGIO) is down more than -48% after a Phase 3 trial of mitapivat in patients 16 years and older with sickle cell anemia met one primary endpoint but did not meet another.
Eversource Energy (ES) has lost more than -9% and is leading the losers in the S&P 500 after Connecticut regulators rejected its request to sell its subsidiary, Aquarion Water Company.
Iron Mountain (IRM) is down more than 5% after Gotham City Research said it has a short position in the stock and that the company is not worth more than $22 to $40 per share.
QuantumScape Corp (QS) is down more than -3% after HSBC downgraded the stock from hold with a $10.50 price target.
Boeing (BA) is down more than -3% and leads the losers in the Dow Jones Industrial Average after Flydubai announced a bid to buy 250 aircraft from Airbus SE, its first order from the company and a blow to Boeing, which had been the airline’s sole aircraft supplier.
Gitlab Inc (GTLB) is down more than -2% after Truist Securities downgraded the stock to hold from buy.
Earnings Reports (11/19/2025)
Lowe’s Cos Inc (LOW), NVIDIA Corp (NVDA), Palo Alto Networks Inc (PANW), Target Corp (TGT), TJX Cos Inc/The (TJX), Valvoline Inc (VVV), Viking Holdings Ltd (VIK), Williams-Sonoma Inc (WSM).
On the date of publication, Rich Asplund had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
