US EQUITY OPEN: Stocks open higher after Thanksgiving Day, Tech rebounds

OPEN: US indices open in the green (SPX +0.4%, NDX +0.6%, DJIA +0.3%, RUT +0.3%) after taking a break on Thanksgiving Day. As such, the US newsflow has been light. The sector breakdown sees Industrials, Tech, and Energy outperforming, while Communications lags, with the latter, weighed on by Alphabet's (GOOG) underperformance, following the Competition Bureau suing Google for alleged anti-competitive practices in online advertising, via Reuters. Stock highlights include the FTC launching a detailed antitrust investigation into Microsoft (MSFT), focusing on its cloud computing, software licensing, cybersecurity, and AI businesses, via Bloomberg; Applied Therapeutics (APLT) tanks on the US FDA declining to approve its drug to treat galactosemia.

Price action is mixed for the Dollar, most notably losses seen against the JPY after Tokyo inflation metrics were hotter than expected overnight, allowing USD/JPY to momentarily fall below 150. Elsewhere, NZD strength persists, helped by remarks overnight from RBNZ's Hawkesby, "the Bank did not consider cutting the official cash rate by 75bps at its policy meeting this week". Separately, EUR/USD is unchanged after EZ inflation metrics were in line. With no tier 1 releases in the last day, drivers for USTs have been sparse. Regardless, the recent trend of upside continues with the curve spreads mainly flattening.

In Crude, prices are firmer, with WTI outperforming (by USD 0.40/bbl), up USD 0.90/bbl, as geopolitical tensions ramp up in Syria with Russian and Syrian warplanes launching airstrikes against the position of armed rebels, via Iran International. Outside of geopolitics, markets continue to await updates on the Lebanon ceasefire and OPEC+ after reports indicate they are considering delaying an output hike until Q1 2025

Looking ahead, the session is set to be a quiet one, given the early close of markets at 13:00 EST/18:00 GMT. Late in the evening, CRA updates are due from S&P's on France (currently AA-) amid its recent budget woes; Moody’s on Hungary (Ba1); DBRS on Germany (AAA) and Spain (A).

STOCK SPECIFICS

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  Semiconductor names, (SMH): US plans to tighten restrictions on semiconductor and AI memory chip sales to China, Bloomberg reports. Measures are said to be less severe than earlier proposals.


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  Microsoft (MSFT): FTC has launched a detailed antitrust investigation into Microsoft, focusing on its cloud computing, software licensing, cybersecurity, and AI businesses, Bloomberg reports.


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  MicroStrategy (MSTR): Unverified reports suggest that MicroStrategy could be included in the Nasdaq 100 (NDX).


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  TSMC (TSM): TSMC plans to start manufacturing its 2nm process in the US around 2028, following mass production in Taiwan starting in 2025, via Taiwanese press.


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  Applied Therapeutics (APLT): US FDA declined to approve its drug to treat galactosemia.


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  Robinhood (HOOD): SEC approved a startup stock exchange. 24X National Exchange, to offer 23/5 stock trading, opening the doors for round-the-clock trading


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  Zeta Global Holdings (ZETA): The CEO said the recent CulperResearch short-seller report was "erroneous".

29 Nov 2024 - 15:11- EquitiesResearch Sheet- Source: Newsquawk