1. On Wednesday, November 12, U.S. stock futures for the three major indices all rose. As of writing, Dow futures were up 0.15%, S&P 500 futures gained 0.32%, and Nasdaq futures climbed 0.58%. 2. European markets showed mixed performance, with Germany's DAX up 1.08%, the UK's FTSE 100 down 0.11%, France's CAC 40 rising 1.03%, and the Euro Stoxx 50 advancing 1.06%. 3. Oil prices edged higher, with WTI crude up 0.62% to $60.66 per barrel and Brent crude rising 0.57% to $64.79 per barrel.
**Market Highlights:** Optimism is growing that the U.S. government shutdown may soon end. Deutsche Bank’s Jim Reid noted, "Today might finally bring clarity on the longest government shutdown in history. Assuming lawmakers return to Washington, the House is expected to vote on a bill funding most agencies until January 30 and others until September 30."
**Wall Street Engagement:** President Trump reportedly invited top financial leaders, including Nasdaq’s chief and JPMorgan’s CEO, to a private White House dinner. This signals efforts to strengthen ties with Wall Street amid initiatives to bolster U.S. capital markets and critical supply chains.
**Debt Warning:** Goldman Sachs CEO David Solomon issued a stark warning on soaring U.S. debt, cautioning that without economic expansion, the fiscal path could lead to a reckoning. He highlighted concerns over the accelerating debt growth since the financial crisis, now triple 2008 levels.
**Banking Sector Boost:** Regulators, including the Fed, agreed to ease capital requirements for large banks like JPMorgan (JPM.US), Bank of America (BAC.US), and Goldman Sachs (GS.US), potentially reducing their capital reserves relative to assets.
**Sector Spotlight:** Veteran commentator Jim Cramer suggested consumer staples like Procter & Gamble (PG.US) and Kimberly-Clark (KMB.US) may be undervalued, citing peaking inflation and antitrust leniency aiding mergers.
**Tech Valuation Debate:** Despite bubble concerns, strategist Charles Clough argued today’s tech giants, unlike the dot-com era, boast robust earnings and recession resilience, supported by ample liquidity.
**Corporate Updates:** - **AMD (AMD.US)**: Reiterated strong AI demand, targeting "hundreds of billions" in data center revenue by 2027, with shares up 5% premarket. - **Oklo (OKLO.US)**: Posted zero Q3 revenue but emphasized long-term nuclear energy prospects despite widened losses. - **Huya (HUYA.US)**: Q3 revenue hit a nine-quarter high, with gaming/ad services contributing 31.5% of total income. - **Tencent Music (TME.US)**: Net profit rose 36% YoY to RMB 2.15 billion ($302M), with cash reserves at RMB 36.08 billion ($5.07B).
**Green Energy Pact:** Google (GOOGL.US) partnered with TotalEnergies (TTE.US) for 15-year renewable energy supply to its Ohio AI data center, underscoring tech’s clean power demand.
**Pharma Shift:** Eli Lilly (LLY.US) switched employee benefits from CVS Health (CVS.US) after CVS dropped coverage of Lilly’s weight-loss drug in favor of Novo Nordisk’s (NVO.US).
**Economic Calendar:** Key events include U.S. consumer sentiment data, EIA oil price forecasts, Treasury auctions, and speeches by Fed officials Williams, Waller, and Collins.
**Earnings Watch:** Thursday premarket: Disney (DIS.US), JD.com (JD.US), Bilibili (BILI.US), and Canadian Solar (CSIQ.US).
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