Key Takeaways
- U.S. manufacturing sentiment experienced a significant downturn in December, with the NY Empire State Manufacturing Index plummeting to -3.90 from its previous 18.70, signaling a contraction in the sector.
- Canadian inflation data for November showed a largely stable picture, with year-over-year CPI holding at 2.2% and Core CPI at 2.9%, though month-over-month figures indicated slight cooling.
- In pre-market trading, Zillow (ZG) shares dropped 6% following reports of Google testing real estate listings, while Zoetis (ZTS) fell 0.6% after announcing a $1.75 billion proposed convertible senior notes offering.
- Costco (COST) was downgraded to 'Sell' by Roth Capital, seeing its stock dip 0.9%, while Doximity (DOCS) surged 5.2% on an upgrade.
The U.S. economic landscape saw a notable shift in manufacturing sentiment as the NY Empire State Manufacturing Index for December recorded a sharp decline to -3.90, a significant drop from the previous month's 18.70. This unexpected contraction suggests weakening conditions in the New York manufacturing sector.
Across the border, Canada's inflation figures for November presented a more stable, albeit slightly cooling, outlook. The Consumer Price Index (CPI) year-over-year remained steady at 2.2%, matching the previous month's figure. Similarly, Core CPI year-over-year held at 2.9%. However, both CPI month-over-month and Core CPI month-over-month showed slight decreases, coming in at 0.1% and -0.1% respectively, indicating moderating price pressures.
In pre-market trading, several companies experienced significant movements. Real estate technology firm Zillow (ZG) saw its shares fall 6% amidst reports that Google is reportedly testing its own real estate listings feature, posing a potential competitive threat. Animal health company Zoetis (ZTS) also dipped 0.6% after announcing a proposed $1.75 billion convertible senior notes offering, a move that could dilute existing shareholder value.
Meanwhile, wholesale retailer Costco (COST) faced a downgrade from Roth Capital, shifting its rating to 'Sell' from 'Neutral', which contributed to a 0.9% decline in its stock. Conversely, digital health platform Doximity (DOCS) enjoyed a pre-market boost, climbing 5.2% following an upgrade from analysts, details of which were not immediately available. U.S. equity futures, including the ES, NQ, and RTY, were all showing modest gains of 0.5%, 0.6%, and 0.8% respectively, indicating a cautiously optimistic start to the trading day despite some individual stock headwinds.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.