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Easing into Christmas Eve ...

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LET'S TAKE A LOOK.


The S&P 500 futures trade seven points, or 0.2%, above fair value on this Christmas Eve session, which will end early at 1:00 p.m. ET. The benchmark index is down 0.5% for the week, versus a 1.9% gain in the Russell 2000.

Today also marks the start of a calendar effect in the market known as the Santa Claus rally in which stocks tend to rise from the last five trading days of December through the first two trading days of January. As the saying goes, though, past performance is not indicative of future results.

Trading volume could be lighter than usual with many market participants checked out for the holiday, and other markets closed entirely, which could lead to some noticeable intraday price action. With that said, intraday dips tend to be bought, as investors don't want to feel excluded from this raging bull market, especially at a seasonally bullish time of the year.

In other developments, the UK and EU are reportedly expected to confirm a Brexit deal today, while there is growing chatter that President Trump could threaten to let the stimulus and government funding bills sit on his desk for ten days while Congress is adjourned to prevent an override of his potential veto. Mr. Trump is reportedly undecided right now.

U.S. Treasuries have edged higher in their shortened trading session, which ends at 2:00 p.m. ET. The 2-yr yield is down one basis point to 0.12%, and the 10-yr yield is down two basis points to 0.94%. The U.S. Dollar Index is down 0.2% to 90.28. WTI crude futures are down 1.0%, or $0.46, to $47.66/bbl.

In U.S. Corporate news:

  • Fiserv (FISV 111.86, +1.22): +1.1% after the stock was initiated with a Buy rating at Tigress Financial.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: -0.6%, India's Sensex: +1.1%, South Korea's Kospi: +1.3%, Australia's ASX All Ordinaries: +0.4%.

    • In economic data:

      • Japan's November Corporate Services Price Index -0.6% yr/yr, as expected (last -0.5%)

      • Singapore's November Industrial Production 7.2% m/m (expected 5.0%; last -19.0%); 17.9% yr/yr (expected 15.4%; last -0.8%)

      • Bank of Japan Governor Kuroda said he expects a moderate improvement in Japan's economy and no return to deflation.

      • Chinese regulators opened an antitrust investigation against Alibaba.

      • Markets in Australia, Hong Kong, South Korea, and India will be closed tomorrow.

  • Equity markets in Germany and Italy are closed for Christmas while markets in France and the U.K. closed early. STOXX Europe 600: UNCH, Germany's DAX: CLOSED, U.K.'s FTSE 100: +0.1%, France's CAC 40: UNCH, Italy's FTSE MIB: CLOSED, Spain's IBEX 35: +0.2%.

    • Spain's IBEX will close shortly. All regional markets will be closed tomorrow.

    • Reports of an imminent Brexit deal have been supportive for general sentiment amid a dearth of other news.

U.S equity futures:

  • S&P 500 Futures +6 @ 3687

  • DJIA Futures +41 @ 30075

  • Nasdaq Futures +12 @ 12663

Overseas:

  • Europe: DAX closed, FTSE +0.1%, CAC unchanged

  • Asia: Nikkei +0.5%, Hang Seng +0.2%, Shanghai -0.6%

Commodities:

  • Crude Oil -0.41 @ 47.71

  • Nat Gas -0.047 @ 2.561

  • Gold +1.60 @ 1879.70

  • Silver -0.046 @ 25.875

  • Copper -0.0110 @ 3.5455



President Trump hasn't decided if he will sign or veto the $900 bln stimulus package. House Democrats will ask for unanimous consent today to pass $2000 direct payments, but Republicans are expected to block it CNBC reporting that President Trump could "pocket veto" the stimulus and government funding bills since the 116th Congress is ending; in this scenario Mr. Trump simply lets the bill sit on his desk for 10 days and Congress will not be able to override the veto

  • House will vote Monday to override President Trump's veto on the National Defense Authorization Act (which funds the Pentagon) while Senate will vote on Tuesday, according to Politico

  • UK and EU could announce Brexit trade deal today, according to FT

  • NBA postponed first game of season due to coronavirus cases

  • Alibaba (BABA): State Administration for Market Regulation of the People’s Republic of China announces anti monopoly investigation into BABA

  • Altimmune (ALT) announces that the FDA has issued a clinical hold on its IND application for AdCOVID

  • American Airlines (AAL) plans to bring back furloughed workers, according to Reuters

  • Anheuser-Busch InBev (BUD) agrees to issue a minority stake in its US-based metal container plants to Apollo-led Consortium (APO) while retaining operational control

  • Aurora Mobile (JG) partners with Taikang Life Insurance to strengthen smart insurance solutions with AI Technologies

  • IBM (IBM) and Airbnb (ABNB) announced that they have settled the patent lawsuit between the companies commenced earlier this year in Federal District Court in Delaware, and the case has been dismissed

  • MacQuarie Infrastructure (MIC) declares one-time dividend of $11 per share

  • Pfizer (PFE) awarded a $2.01 bln US Army contract for the production of vaccine BNT162b2 in support of the national emergency response to COVID-19

  • Sociedad Quimica y Minera (SQM) begins process to increase capital up to $11 bln

  • US says SolarWinds (SWI) hackers are "impacting" local governments, according to The Wall Street Journal

  • Truist (TFC) authorizes $2 bln stock repurchase plan following Fed stress test, will maintain dividend

  • Vale S.A. (VALE) commenced the gradual resumption of its operations, with the integrated restart of operations at the Germano, located in Mariana, Minas Gerais, and Ubu, located in Anchieta, Espírito Santo, Complexes

  • Vodafone (VOD): India challenges $2 bln Vodafone tax ruling, according to Reuters

M&A:

  • Alaska Comms (ALSK) announces receipt of superior proposal for nominal consideration of $3.40 per share, reflecting a transaction valued at approximately $332 million including net debt.

  • Apollo Global Mgmt (APO) to acquire 49.9% stake in Anheuser-Busch InBev's US-based metal container plants for approximately US$3.0 bln

  • Cloudera (CLDR) closes on $500 mln debt issuance and the repurchase of Intel's stake in the company for $314 mln

  • Constellation Brands (STZ) receives clearance from the FTC to close wine and spirits transaction with E. & J. Gallo

  • Franklin Street Properties (FSP) announces sale of its only property in Durham, NC for $89.7 mln, funds will be used to pay down debt

  • Square (SQ) had talks to acquire music streaming service Tidal (SPOT), according to Bloomberg

  • U.S. Steel (X) sells Keystone Industrial Port Complex for $160 mln

  • Voya Financial (VOYA) received all regulatory approvals needed to complete the sale of Voya’s Individual Life and non-retirement legacy annuities business to Resolution Life; transaction is expected to close on Jan. 4, 2021

  • XP (XP) announces the acquisition of Riza M&A; terms not disclosed

  • Affimed Therapeutics (AFMD) files for $225 mln mixed securities shelf offering.

  • BELLUS Health (BLU) files for $50 mln share common stock offering.

  • Biohaven Pharmaceutical (BHVN) files for $400 mln share common stock offering.

  • Desktop Metal (DM) files for 25,010,494 share common stock offering; also files for 3 mln share common stock offering by selling shareholders.

  • DIRTT Environmental (DRTT) files for $100 mln mixed securities shelf offering.

  • Drive Shack (DS) files for $500 mln mixed securities shelf offering

Asia & Europe detail:

Asia: Nikkei +0.5%, Hang Seng +0.2%, Shanghai -0.6%

Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Bank of Japan Governor Kuroda said he expects a moderate improvement in Japan's economy and no return to deflation. Chinese regulators opened an antitrust investigation against Alibaba. Markets in Australia, Hong Kong, South Korea, and India will be closed tomorrow.

  • In economic data:

    • Japan's November Corporate Services Price Index -0.6% yr/yr, as expected (last -0.5%)

    • Singapore's November Industrial Production 7.2% m/m (expected 5.0%; last -19.0%); 17.9% yr/yr (expected 15.4%; last -0.8%)

---Equity Markets---

  • Japan's Nikkei: +0.5% (-0.4% for the week)

  • Hong Kong's Hang Seng: +0.2% (-11.7% for the week)

  • China's Shanghai Composite: -0.6% (-0.9% for the week)

  • India's Sensex: +1.1% (+1.9% for the week)

  • South Korea's Kospi: +1.3% (+1.7% for the week)

  • Australia's ASX All Ordinaries: +0.4% (-0.1% for the week)

---FX---

  • USD/JPY: +0.1% to 103.64

  • USD/CNH: -0.2% to 6.5187

  • USD/INR: -0.3% to 73.55

Europe: DAX closed, FTSE +0.1%, CAC unch

Equity markets in Germany and Italy are closed for Christmas while markets in France and the U.K. closed early. Spain's IBEX will close shortly. All regional markets will be closed tomorrow. Reports of an imminent Brexit deal have been supportive for general sentiment amid a dearth of other news.

  • There was no economic data of note

---Equity Markets---

  • STOXX Europe 600: UNCH (-0.1% week-to-date)

  • Germany's DAX: CLOSED (-0.3% for the week)

  • U.K.'s FTSE 100: +0.1% (-0.4% for the week)

  • France's CAC 40: UNCH (UNCH for the week)

  • Italy's FTSE MIB: CLOSED (+0.7% for the week)

  • Spain's IBEX 35: +0.2% (+0.7% week-to-date)

---FX---

  • EUR/USD: +0.1% to 1.2191

  • GBP/USD: +0.7% to 1.3587

  • USD/CHF: +0.1% to 0.8890

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