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U.S. stock futures are pointing lower as investors watch for a potential partial government shutdown; economists expect the Personal Consumption Expenditures (PCE) index to show inflation moved higher in November; Novo Nordisk (NVO) stock is plummeting in premarket trading after disappointing data for its obesity shot CagriSema; FedEx (FDX) stock is jumping as the shipper proposed splitting off its freight unit; and Nike (NKE) shares are falling after the sneaker giant warned current-quarter revenue could drop by more than 10%; Here's what investors need to know today.
1. US Stock Futures Lower as Potential Government Shutdown Looms
U.S. stock futures are lower as markets brace for a potential partial government shutdown amid negotiations on a spending package in Washington. Nasdaq and S&P 500 futures are down by 1.5% and 1.0%, respectively. After the Dow Jones Industrial Average broke a 10-day losing streak Thursday, futures are 0.6% lower. Investors are also eyeing key inflation data that is set for release this morning. Bitcoin (BTCUSD) is more than 5% lower at around $92,000 and crude oil futures are down about 1%. Gold futures are edging higher and yields on the 10-year Treasury note are edging lower, hovering above 4.5%.
2. Economists Expecting PCE Inflation Reading to Rise
Investors are watching for the 8:30 a.m. ET release of the Personal Consumption Expenditures (PCE) index, which is expected to show that inflation moved higher in November. Economists surveyed by The Wall Street Journal and Dow Jones Newswires expect the PCE to show that inflation rose 2.5% year-over-year in November, up from 2.3% in October. The trend would mirror a rise in price pressures recorded by other inflation measurements and comes as the Federal Reserve pulled back its interest-rate outlook on worries that inflation may be stickier than previously thought.
3. Novo Nordisk Stock Dives on Weak Obesity Shot Data
U.S.-listed shares of Novo Nordisk (NVO), maker of popular weight-loss drugs Ozempic and Wegovy, are plummeting 19% in premarket trading after tests showed its experimental obesity shot CagriSema was less effective than previously thought. Novo Nordisk said that the treatment produced a 22.7% weight loss in test patients after 68 weeks. That's less than the 25% weight loss that the Danish pharmaceutical company expected the drug to produce, Bloomberg reported. Shares of Eli Lilly (LLY), maker of rival drugs Zepbound and Mounjaro, are surging 5% in response.
4. FedEx Stock Jumps on Plans to Spin Off Freight Business
FedEx (FDX) stock is surging 8% in premarket trading after the shipping giant announced plans to spin off its Freight unit into a standalone company. FedEx said it would start the process immediately and it likely would take about 18 months. The company reported quarterly revenue of $21.97 billion, down from last year and below estimates. Profit fell to $741 million from $900 million, also missing analysts' projections.