S&P 500 Futures Climb Amid Strong Housing, Sticky Inflation Jitters
US stock futures are pointing higher this morning, with key S&P 500 contracts up about 0.3 percent as investors juggle stronger housing data and stubborn inflation expectations. Existing home sales rose 0.5 percent in November to a nine month high of 4.13 million annualised, a sign that higher borrowing costs are not fully choking off demand. At the same time, the 10 year Treasury yield has climbed to roughly 4.17 percent, and the Michigan survey shows households now expect 4.2 percent inflation over the next year. This raises the question of whether rate sensitive sectors like banks and real estate can rally if borrowing stays expensive for longer.
With rates staying high and inflation sticky, now is the moment to uncover undervalued stocks based on cash flows before Wall Street does.
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CoreWeave (CRWV) jumped 22.64 percent after joining the Department of Energy’s high profile Genesis Mission.
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Rocket Lab (RKLB) surged 17.69 percent following a successful launch and bullish analyst and media commentary.
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AST SpaceMobile (ASTS) climbed 15.03 percent as investors cheered progress toward its next direct to cell satellite launch.
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NIKE (NKE) slid 10.54 percent after earnings showed weaker profit and cautious guidance despite stable sales.
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Carvana (CVNA) dipped 3.33 percent as index reshuffling and recent rallies sparked profit taking.
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Lowe’s Companies (LOW) fell 2.93 percent amid concerns about slowing big ticket home improvement demand.
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With earnings quiet, bond market moves and fresh reads on inflation expectations will steer US trading sentiment.
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US Treasuries: The 10 year yield near 4.17 percent on Monday will shape risk appetite across growth and rate sensitive stocks.
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US Inflation Expectations: The Michigan survey’s 4.2 percent one year outlook on Monday reinforces the higher for longer policy narrative.
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US Housing Pulse: November’s 0.5 percent rise in existing home sales on Monday tests resilience of housing and homebuilder shares.
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Global Central Banks: BoJ and RBA updates through Wednesday may extend global yield pressures that spill back into US rates.
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