• S&P 500 down 3 points, 0.11%, to 3,132.52
• DJIA down 27 points, 0.10%, to 27,881.72
• NASDAQ down 5 points, 0.07%, to 8,616.18
• Russell 2000 up 2 points, 0.13%, to 1,631.71
• U.S. 10-yr up 1 bp to 1.84%
• WTI Oil up 0.49% to $59.31
Stocked edged lower to end the day, as the Dec 15 deadline to impose a new round of tariffs on $165 billion worth of Chinese goods approached. A report from The Wall Street Journal this morning stated that U.S. and Chinese trade officials are laying the groundwork for a delay of the trade deadline, as both sides continue to negotiate over how to get China to commit to massive purchases of U.S. farm products. White House economic adviser Larry Kudlow added that the Dec 15 tariffs “are still on the table” if President Trump isn’t happy with the outcome of trade negotiations. Elsewhere, the U.S.-Mexico-Canada Agreement received support from House Democrats, which will replace Nafta when ratified. Meanwhile, investors will look to the Federal Reserve at the conclusion of their monetary policy meeting tomorrow afternoon, where they are expected to hold interest rates steady.
Productivity and Costs
Nonfarm productivity decreased 20bps, slightly below the consensus of -0.1%. Manufacturing productivity improved 10bps, driven by strength in durable goods. Nondurables were uncharacteristically weak, suffering a 80bp decline in productivity as output failed to keep up with rising hours. Unit labor costs in the increased 2.5 percent in the third quarter, reflecting a 2.3-percent increase in compensation per hour and a 0.2-percent decline in productivity.
Boeing — The aircraft maker said it booked orders for 30 new 737 MAX jets in November, with Turkey’s Sun Express purchasing 10, while another unidentified customer agreed to buy 20. However, shares closed out the day nearly 1% lower.
Netflix — Shares fell 3% after analysts at Needham & Company downgraded their rating on the streaming-media giant from “hold” to “underperform” with a price target of $260. The analysts warned that increased competition in the streaming space could result in Netflix losing as many as 4 million of its 60.6 million U.S. subscribers in 2020.
• Crude Inventories
• Fed Announcement
All estimates come from Econoday’s survey of economists/analysts. Earnings per share estimates are from Factset, are set against year ago results, and represent adjusted earnings.