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Small Caps Brush Off Sour Premarket Sentiment

Small-caps are bucking the sour sentiment, however

Deputy Editor
Dec 5, 2023 at 9:13 AM
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Wall Street's rally is still paused Tuesday, with stock futures lower following a losing session. While futures on the S&P 500 Index (SPX), Dow Jones Industrial Average (DJIA), and Nasdaq-100 Index (NDX) are all lower, the small-cap Russell 2000 (RUT) is kicking the sour broader-market sentiment.

Continue reading for more on today's market, including: 

  • How November's rally shifted Wall Street's sentiment.
  • AI company prepares for Q2 earnings report.
  • Plus, 2 earnings updates, and Take-Two's premature product reveal. 

Futures Chart December 52023

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw nearly 1.6 million call contracts and 850,506 put contracts traded Monday. The single-session equity put/call ratio rose to 0.53 and the 21-day moving average stayed at 0.69.
  2. Shares of software developer GitLab Inc (NASDAQ:GTLB) are 13.6% higher before the open, after the company posted better-than-expected fiscal first-quarter earnings and revenue figures. What's more, GitLab issued guidance that is higher than forecast. Year over year, GTLB is up 28.3%.
  3. CVS Health Corp (NYSE:CVS) is also higher premarket, after the pharmacy operator shares revenue guidance for 2024 that was higher than analysts anticipated. What's more, the company shared plans to hike its quarterly dividend. Last seen 1.1% higher in electronic trading, CVS is 26.5% lower in 2023.
  4. Video game publisher Take-Two Interactive Software, Inc (NASDAQ:TTWO) is in hot water, after its Rockstar Games subsidiary released a new trailer for its Grand Theft Auto game -- scheduled for release in 2025 -- earlier than anticipated after a leak on X. Take-Two Interactive Software stock is down 2.9% before the bell, though it remains roughly 50% higher year to date.
  5. The first week of December features a deluge of economic data and earnings.

buzzdec5

China's PMI Surges to 3-Month High

Asian markets fell sharply on Tuesday, after a flood of economic data. South Korea’s inflation rate for November dipped a smaller-than-expected 3.3%, while the rate for Japan’s capital city of Tokyo came in at 2.6%. Also in focus was China’s service purchasing managers’ index (PMI), which surged to three-month highs. Hong Kong’s Hang Seng dropped 1.9% to hit its lowest level since November 2022, while China’s Shanghai Composite and Japan’s Nikkei shed 1.7% and 1.4%, respectively. Elsewhere, South Korea’s Kospi saw a 0.8% loss.

Stocks are a mixed bag in Europe, though construction and telecom names are enjoying tailwinds. Investors are also digesting a brief trading suspension in small-cap firms on the London Stock Exchange due to an “incident.” London’s FTSE 100 is down 0.4% at last check, while France’s CAC 40 is up 0.4%, and the German DAX sports a 0.3% gain.

 

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