December Nasdaq 100 E-Mini futures (NQZ24) are trending up +0.65% this morning as positive earnings from chipmaker Broadcom boosted sentiment, with investors looking ahead to next week’s Federal Reserve meeting.

Broadcom (AVGO) surged over +14% in pre-market trading after the semiconductor firm reported a 220% increase in AI revenue for the year and issued above-consensus FQ1 revenue guidance.

In yesterday’s trading session, Wall Street’s three main equity benchmarks closed lower. Adobe (ADBE) plunged over -13% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the Photoshop maker provided a disappointing 2025 revenue forecast. Also, chip stocks lost ground after the benchmark 10-year Treasury yield rose to a 2-1/2 week high, with Micron Technology (MU) and Lam Research (LRCX) sliding more than -3%. In addition, Nordson (NDSN) slumped over -8% after the dispensing equipment maker issued soft full-year guidance. On the bullish side, Warner Bros Discovery (WBD) surged more than +15% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the media giant announced it would split into two operating divisions.

Economic data released on Thursday showed that the U.S. producer price index for final demand came in at +0.4% m/m and +3.0% y/y in November, stronger than expectations of +0.2% m/m and +2.6% y/y. Also, the core PPI, which excludes volatile food and energy costs, rose +0.2% m/m and +3.4% y/y in November, compared to expectations of +0.2% m/m and +3.2% y/y. In addition, the number of Americans filing for initial jobless claims in the past week unexpectedly jumped by +17K to an 8-week high of 242K, compared with the 221K expected.

“With high egg prices appearing to play a key role in the hotter-than-expected headline PPI, traders may be focusing more on the jump in jobless claims. The Fed is primed to be sensitive to any signs of a softening jobs picture,” said Chris Larkin at E*Trade from Morgan Stanley.

Meanwhile, U.S. rate futures have priced in a 96.7% probability of a 25 basis point rate cut at the upcoming monetary policy meeting.

Today, investors will focus on U.S. Export and Import Price Indexes for November, set to be released in a couple of hours. Economists forecast the export price index to be -0.2% m/m and the import price index to be -0.2% m/m, compared to the previous figures of +0.8% m/m and +0.3% m/m, respectively.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.339%, up +0.30%.

The Euro Stoxx 50 futures are up +0.20% this morning as investors continued to evaluate Europe’s economic and monetary policy outlook. The Office for National Statistics reported Friday that Britain’s economy unexpectedly contracted for the second consecutive month in October. Separately, the Federal Statistical Office said that Germany’s exports fell more than expected in October. In addition, data from Eurostat showed that the Eurozone’s monthly industrial production stagnated in October. Meanwhile, the European Central Bank, as expected, cut the deposit facility rate by a quarter-point to 3.00% on Thursday and dropped previous wording that monetary policy will remain “sufficiently restrictive for as long as necessary.” Bloomberg reported on Thursday that ECB policymakers anticipate a further quarter-point interest rate cut in January and likely in March as inflation stabilizes at the 2% target and economic growth continues to be sluggish. ECB Governing Council member Francois Villeroy de Galhau stated on Friday that the central bank plans to reduce borrowing costs further in 2025, adding that investors’ expectations of more than 100 basis points of easing appear reasonable. Also, ECB policymaker Jose Luis Escriva said, “If things go well if we continue to converge to the 2% inflation target, it is logical that we will lower interest rates again at future meetings.” In corporate news, Muenchener Rueckversicherungs-Gesellschaft Ag IN (MUV2.D.DX) gained over +5% after setting a 6 billion euro net profit target for next year.

U.K.’s GDP, Germany’s Exports, Germany’s Imports, France’s CPI, Spain’s CPI, and Eurozone’s Industrial Production data were released today.

U.K. October GDP has been reported at -0.1% m/m and +1.3% y/y, weaker than expectations of +0.1% m/m and +1.6% y/y.

The German October Exports came in at -2.8% m/m, weaker than expectations of -2.0% m/m.

The German October Imports stood at -0.1% m/m, stronger than expectations of -0.6% m/m.

The French November CPI arrived at -0.1% m/m and +1.3% y/y, compared to expectations of +0.1% m/m and +1.3% y/y.

The Spanish November CPI stood at +0.2% m/m and +2.4% y/y, in line with expectations.

Eurozone October Industrial Production arrived at 0.0% m/m and -1.2% y/y, compared to expectations of 0.0% m/m and -1.9% y/y.

Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -2.01% and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.95%.

China’s Shanghai Composite Index closed sharply lower today as investors were disappointed by the lack of details from a Chinese economic conference. Property stocks were among the worst performers on Friday. The benchmark index wiped out all the earlier gains and notched a moderate weekly loss. A readout from the annual Central Economic Work Conference, published by the Xinhua News Agency, lacked policy details on fiscal stimulus. Top officials, led by President Xi Jinping, signaled increased public borrowing and spending in 2025, shifting the policy focus to consumption. However, few new policy efforts to stabilize the housing market were mentioned. Investors must now wait until the annual legislative sessions in March for further clarity. Meanwhile, Reuters reported on Thursday that a trade adviser to U.S. President-elect Donald Trump stated that the U.S. would look unfavorably on China’s efforts to weaken its renminbi currency to mitigate the impact of potential trade tariffs. In corporate news, Gotion fell over -2% after disclosing its investments in two 20-gigawatt-hour lithium battery production projects in Morocco and Slovakia.

Japan’s Nikkei 225 Stock Index closed lower today as overnight losses on Wall Street dampened sentiment, prompting investors to sell shares for profit-taking. Electronics and machinery stocks led the declines on Friday. Despite Friday’s drop, the benchmark index ended the week with gains. The Bank of Japan’s Tankan quarterly survey released on Friday showed a slight improvement in sentiment among large Japanese manufacturers in the final quarter of the year, aligning closely with the BOJ’s view ahead of a policy meeting next week. Separately, final data from the Ministry of Economy, Trade, and Industry showed that industrial production in Japan rose less than initially estimated in October. Meanwhile, Reuters reported on Friday that the BOJ is inclined to maintain interest rates steady next week as policymakers opt to further assess overseas risks and clues on next year’s wage outlook. In corporate news, Oji Holdings climbed over +11% after the packaging maker unveiled a significant share buyback program. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -1.55% to 21.63.

The Japanese Tankan Large Manufacturers Index has been reported at 14 in the fourth quarter, stronger than expectations of 13.

The Japanese Tankan Large Non-Manufacturers Index stood at 33 in the fourth quarter, in line with expectations.

The Japanese October Industrial Production arrived at +2.8% m/m, weaker than expectations of +3.0% m/m.

Pre-Market U.S. Stock Movers

Broadcom (AVGO) surged over +14% in pre-market trading after the semiconductor firm reported a 220% increase in AI revenue for the year and issued above-consensus FQ1 revenue guidance.

RH (RH) soared more than +17% in pre-market trading after raising its full-year revenue growth forecast.

Evgo (EVGO) climbed over +13% in pre-market trading after announcing the closing of a $1.25 billion loan facility from the U.S. Department of Energy.

Salesforce (CRM) rose more than +1% in pre-market trading after KeyBanc upgraded the stock to Overweight from Sector Weight.

PayPal Holdings (PYPL) advanced over +1% in pre-market trading after Wolfe Research upgraded the stock to Outperform from Peer Perform with a $107 price target.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Friday - December 13th

Anavex Life Sciences (AVXL), RCI Hospitality (RICK), Comtech (CMTL).