Opening Comment — Wednesday, December 03, 2025
DJIA: 47,474.46, up 185.13
S&P 500: 6,829.37, up 16.74
NASDAQ: 23,413.67, up 137.75
Stocks higher ahead of PMI data
Stock futures are higher Wednesday morning ahead of today’s economic releases, including November’s ADP employment change report and the Institute for Supply Management’s (ISM’s) November services purchasing managers’ index (PMI). September’s import price and industrial production data, both delayed by the government shutdown, are also set for release. As of 7:18 AM ET, the Dow and the S&P 500 Index are both rising 0.2%. The Nasdaq 100 is also increasing 0.2% relative to fair value on the GLOBEX.
U.S. equities were higher on Tuesday as Federal Reserve Vice Chair for Supervision Michelle Bowman testified before the House Financial Services Committee. She emphasized that U.S. banks remain stable and resilient, backed by strong capital ratios and ample liquidity, and later noted this positions them to effectively support sustained economic growth. The Dow was up 0.4%, while the tech-heavy Nasdaq Composite rose 0.6%. The S&P 500 increased 0.3% with three of 11 sectors finishing in positive territory. The Industrials sector was the top performer, rising 0.9%, while the Energy sector was the bottom performer, falling 1.3%.
On the data front, the Mortgage Bankers Association’s gauge of mortgage applications decreased by 1.4% for the week ending November 28, versus the prior week’s increase of 0.2%. The ADP employment change report for November is expected to show private nonfarm job gains of 10,000, versus the prior month’s 42,000. The September Import Price Index is projected to have increased 0.1% month-over-month (MOM) and 0.4% year-over-year (YOY), versus the prior month’s increase of 0.3% and little change, respectively. The Export Price Index is forecasted to have decreased by 0.1% MOM, versus the prior month’s increase of 0.3%. Industrial production is forecasted to have increased 0.1% MOM in September, versus the prior month’s revised decreased of 0.1%, while capacity utilization is projected to have fallen to 77.2% from the prior month’s revised 75.8%. S&P Global’s finalized services PMI for November is expected to come in at 55.0, unchanged from the initial reading. The ISM’s November services PMI and the prices paid component are expected to register 52.0 and 68.0, respectively, versus the prior month’s 52.4 and 70.0, respectively. The Department of Energy’s measure of crude oil inventories is expected to have decreased by 2.0 million barrels for the week ending November 28, versus the prior week’s increase of 2.8 million barrels.
Across the pond, European stocks are mostly higher in mid-day trading as the finalized November services PMIs showed slight upward revisions for France, Germany, the U.K., and the eurozone, with all rising further into expansionary territory. The eurozone’s Producer Price Index (PPI) showed a 0.1% MOM increase and deflation of 0.5% YOY.
Overnight in Asia, stocks were mixed as South Korea’s preliminary reading of third-quarter gross domestic product (GDP) showed stronger-than-expected growth of 1.3% quarter-over-quarter (QOQ) and 1.8% YOY. Australia’s third-quarter GDP showed the economy growing 0.4% QOQ and 2.1% YOY, coming in below expectations. The finalized November services PMIs from S&P Global for Australia and Japan were revised slightly higher, further into expansionary territory. Meanwhile, China’s private November services and composite PMIs declined from the prior month but stayed within expansionary territory.
In FOREX trading, the U.S. dollar is lower ahead of today’s release of U.S. ISM services PMI data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.3% higher at $59.42/barrel following an expected decline in U.S. crude oil inventories.
In the metals complex, gold is little changed at $4,206.39/ounce.