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Five things you need to know before the market opens on Friday November 25:
1. — Stock Futures Edge Higher, Dollar Extends Retreat
US equity futures edged higher on Friday, as the dollar extended its retreat in foreign exchange markets heading into the shortened holiday session amid bets on smaller near-term rate hikes from the Federal Reserve.
Minutes from the Fed’s early November policy meeting, released late Wednesday showed a clear bias for smaller increases in the Fed Funds rate going forward as officials look to both monitor their impact on the wider economy and avoid dislocation in financial markets.
The tone of the minutes, along with data suggesting inflation in the world’s largest economy is likely to rise, cut bets on a 75 basis point rate hike next month in Washington to less than 25%, while bringing the US dollar index in three months. as low as 105.878 in overnight trading.
Benchmark Treasury bond yields also retreated, with the 2-year note yield falling to 4.469% and 10-year notes trading as low as 3.65% in the overnight session.
China’s Covid crisis has kept a lid on sentiment, however, with daily infections rising to more than 31,000 yesterday, the highest since April 13, triggering new lockdown orders in major cities across the country.
Crude oil prices jumped higher in overnight trade, but were still on pace for their fourth weekly decline, after the collapse of an EU plan to cap the price of crude exports by Russia between $65 and $70 per barrel.
WTI futures for January delivery rose $1.43 to $79.51 a barrel while Brent contracts for the same month added $1.18 to $86.52 a barrel.
Going into the start of the trading day on Wall Street, which ends at 1:00 pm Eastern time, futures contracts tied to the S&P 500 were priced for a 4-point opening bell gain while those linked to the Dow Jones Industrial Average indicates a 50 point bump. The tech-heavy Nasdaq is expected to open little changed from Wednesday’s close.
2. — Apple Slips Amid Reports of More iPhone Factory Disruptions In China
Apple AAPL shares fell in pre-market trading following a report suggesting delays at its main iPhone facility in China could cut November supplies by up to 30%
Reuters reported on Friday that officials at the Foxconn factory in Zhengzhou, which has been hit by both tough Covid restrictions and a series of employee protests over pay and working conditions, are unlikely to get the iPhone factory back on track. at full capacity until at least. next month, with November output falling by ‘at least’ 30% as a result.
Earlier this month, Apple warned that Covid restrictions at its 200,000-person plant would cut shipments of its higher-end iPhones heading into the holiday season in most of its global markets.
Apple shares were marked 0.5% lower in pre-market trading to indicate an opening bell price of $150.35 apiece.
3. — Activision Drops Concerns Over FTC Challenge over Microsoft Deal
Activision Blizzard (ATVI) – Get a Free Report Shares fell in pre-market trading amid reports that the video game maker has proposed a $69 billion takeover by Microsoft (MSFT) – Get a Free Report will be challenged by antitrust authorities in the US and Europe.
Politico reported on Wednesday that the US Federal Trade Commission is preparing to file an antitrust suit to block the merger, which was announced earlier this year, a move that would follow the European Union’s decision to open a full investigation into the deal. on November 8.
Officials are concerned that the merger will limit customer choice, and thus raise prices, if Microsoft limits the release of new games, such as the popular Call of Duty franchise, exclusively to Its XBox gaming platform.
Activision shares were marked 3.12% lower in pre-market trading to indicate an opening bell price of $74.20 each.
4. — Ford Edge Down After Recall of 634,000 SUVs
Ford Motor (F) – Get a Free Report Shares fell slightly in pre-market trading after the carmaker announced plans to recall more than 630,000 vehicles due to fire risks linked to possible damaged fuel injectors.
Ford said the recall will cover certain Bronco Sport and Escape SUVs produced between 2020 and 2023, and includes 520,000 US-made vehicles as well as 114,000 sold in foreign markets.
Late last month, Ford trimmed full-year profit guidance and booked a $2.7 billion charge related to the collapse of its self-driving business.
The moves clouded a solid third-quarter earnings update, which saw Ford post an adjusted bottom line of 30 cents per share on revenues of $39.4 billion. Ford now sees full-year revenue of about $11.5 billion, down from an earlier estimate of between $11.5 billion and $12.5 billion.
Ford shares were marked 0.1% lower in pre-market trading to indicate an opening bell price of $14.02 apiece.
Thanksgiving shopping is expected to draw nearly 170 million customers over four days, the National Retail Federation estimates, as shoppers look for bargains they largely passed up during the early retail push last month.
Major retailers like Target (TGT) – Get a Free ReportWalmart (WMT) – Get a Free Report and Amazon (AMZN) – Get a Free Report launched sales in early October in an effort to attract buyers and move billions in inventory left over from the summer slump. However, with shoppers looking to spend less throughout the holiday season, experts predict a rush to stores of about 166.3 million people, an 8 million increase on at least the year, between Thanksgiving Thursday and Cyber Monday.
“While there is much speculation about the impact of inflation on consumer behavior, our data tells us that this Thanksgiving holiday weekend will see steady store traffic with record numbers of shoppers taking advantage of value pricing,” said National Retail Federation president Matthew Shay, . “We are optimistic that retail sales will remain strong in the coming weeks, and that retailers are ready to meet consumers however they want to shop for great products at prices they want to pay.”
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