Futures Rise, USMCA Passed, Data Stable

The U.S. Market Is Indicated Higher In Early Trading

The U.S. market is indicated higher in early trading following the passage of the USMCA. The USMCA is the renegotiated NAFTA and now goes to the Senate for a vote. The Senate is expected to pass the USMCA with ease so it looks certain to become law in the U.S. Today’s gains cap the fourth week of stock market rally. The NASDAQ Composite is in the lead with a gain of 0.16% while the Dow and S&P are both up about 0.10%.

In stock news, Boeing is in the spotlight but not because of the 737-Max crisis. The company launched its Starliner this morning and the cutting-edge spacecraft failed a key test. The Starliner was not able to achieve the desired orbit although it did reach space safely. On the trade front, stocks were buoyed on Thursday following comments from Steve Mnuchin. The Treasury Secretary says he is confident the Phase One deal will be signed in January.

On the economic front, the 3rd Quarter GDP estimate was left unchanged. This is the second and final revision so the 2.1% posted in the 3rd quarter will stick. Within the data there were some changes that offset each other, one of note was an increase in Personal Consumption.

European Markets Move Higher On Trade Optimism

The European markets are largely higher on Friday as trade optimism lifts sentiment. The DAX and CAC are both up about 0.60% at midday while the FTSE is trailing at 0.20%. In the UK, FCA Chief Andrew Bailey is expected to be named as the new head of the BOE. In other news, UK GDP came in as expected at 0.4% and 1.1% YOY.

Moving on to stock news, chemical stocks are in the lead with a gain of 1.3%. All sectors are in the green except for energy. In individual stock news, shares of Mapfre are up 2.7% and UK insurer Beazley is up 2.5%. At the other end of the spectrum, NMC Health is down for the fourth day following the revelation a major short-seller had take a position. NMC stock is down more than -50% in that time as investors give their money away.

Asian Markets Are Mixed, USMCA No Good For Japan’s Autos

The Asian markets ended the Friday session mixed. The USMCA is good news for global trade but does little to help automakers in Japan or China. The Shanghai Composite is the biggest loser on Friday, down -0.40%, while the ASX and Nikkei follow close behind. The Hang Seng and Korean Kospi both posted gains in the range of 0.30%. Casino stocks were the worst hit. Chinese President Xi Jinping urged Macao to diversify during a speech, a message that gaming isn’t as well-loved by China’s leadership as it could be.