- Asian shares slip on South Korea risk, dollar on guard ahead of payrolls
Asian stocks slipped on Friday on political ructions in South Korea, while dollar bulls waited anxiously to see if
U.S. payrolls challenged or cemented expectations of a rate cut this month. MSCI’s broadest index of Asia
Pacific shares outside Japan fell 0.3% in part due to a 1.7% drop in South Korea’s KOSPI. The Korean won fell
0.8% to 1,425.42 per dollar, tumbling towards the low of 1,443.4 hit on Tuesday after President Yoon Suk
Yeol declared martial law in the country. - Dow drops more than 200 points, S&P 500 retreats from record as big payrolls report looms
U.S. stocks were lower on Thursday as investors awaited Friday’s big jobs report. The Dow Jones Industrial
Average dipped 248.33 points, or 0.55%, to close at 44,765.71. Meanwhile, the Nasdaq Composite slipped
0.18% to end at 19,700.26. The S&P 500 dropped 0.19%, settling at 6,075.11. The three major averages saw
solid gains in the previous session, posting record closes. The problem you have is that valuations are
stretched across the board, said Keeley Teton portfolio manager Brian Leonard in an interview with CNBC.
You’re sitting at records, but there’s not a lot of enthusiasm or euphoria. Historically, when the records
happened, the valuations were more reasonable. Traders on Thursday looked ahead to key U.S. employment
data on Friday. Economists polled by Dow Jones forecast the U.S. economy added 214,000 jobs in November.
This labor report could inform the Federal Reserve’s rate decision at its policy meeting later this month. On
Wednesday, Fed Chair Jerome Powell said that the U.S. economy is strong enough for the central bank to
move carefully on rate cuts. - Oil prices dip as extended OPEC+ supply cuts highlight weak demand
Oil prices slipped in early Asian trading on Friday, with weak demand in focus after the OPEC+ group
postponed planned supply increases and extended deep output cuts to the end of 2026. Brent crude
futures fell by 9 cents, or 0.1%, to $72 per barrel by 0116 GMT. U.S. West Texas Intermediate crude
futures fell by 4 cents, or 0.1%, to $68.27 per barrel. For the week, Brent was on track to drop more than 1%,
while WTI hung on to a marginal 0.1% gain. The Organization of the Petroleum Exporting Countries and its
allies on Thursday pushed back the start of oil output rises by three months until April and extended the full
unwinding of cuts by a year until the end of 2026. - Gold heads for second weekly fall; focus on U.S. payrolls data
Gold prices edged higher on Friday but headed for a second straight week of decline, while market
participants braced for the U.S. payrolls data that is expected to provide cues on the interest rate cut
trajectory. Spot gold rose 0.3% to $2,638.66 per ounce by 0346 GMT after hitting its lowest since Nov. 26
earlier in the session. Prices are down about 0.4% so far this week. U.S. gold futures rose 0.5% to $2,661.00. - India keeps interest rate unchanged amid rising inflation risks and a slowing economy
India’s central bank expectedly kept the benchmark interest rate unchanged at 6.50% on Friday as it struggles
to contain rising inflation without hurting growth in Asia’s third-largest economy. The decision came in line
with economists’ expectation in a Reuters poll, as India’s consumer prices inflation surged to a 14-month high
of 6.21% in October, significantly higher than the RBI’s target of 4% and also above its tolerance ceiling of 6%.
The Reserve Bank of India has held the interest rate steady since February last year, however, a sharper-than
anticipated slowdown in India’s economic growth has made the central bank’s task tougher. - Japan Base Pay Gains by Record, Keeps Door Open for BOJ Hike
Base salaries for regular workers in Japan rose by a record, a further indication of progress toward a positive
economic cycle that will support market speculation of a near-term rate hike by the central bank. Base pay
for full-time workers increased by 2.8% in October from a year ago, the biggest gain for comparable data
back to 1994, the labor ministry reported Friday. Real cash earnings remained unchanged, avoiding a decline
for the first time in three months, and beating economist estimates of a decrease. Growth in nominal wages
for all workers accelerated to 2.6% from 2.5% the previous month, matching estimates. A more stable
measure of wage trends that avoids sampling problems and excludes bonuses and overtime showed wages
for full-time workers increased by 2.8%. - Le Pen Sees French Budget in Weeks If Macron Eases Debt Path
Marine Le Pen said France can overcome government collapse to deliver a budget in a matter of weeks, so
long as the next prime minister is prepared to narrow the deficit more slowly. The longtime face of the
French far right spoke just hours after voting to topple the government of Michel Barnier by backing a no
confidence motion over the 2025 budget plans. Barnier formally resigned on Thursday. - Trump says venture capitalist David Sacks will be AI and crypto ‘czar’
Venture investor and podcaster David Sacks will join the Trump administration as the “White House A.I. &
Crypto Czar,” President-elect Donald Trump announced on Truth Social on Thursday. Sacks will guide the
administration’s policies for artificial intelligence and cryptocurrency, Trump wrote. Some of that work
includes creating a legal framework for crypto, as well as leading a presidential council of advisors on science
and technology. David will focus on making America the clear global leader in both areas, Trump wrote. He
will safeguard Free Speech online, and steer us away from Big Tech bias and censorship. The appointment
signals that the second Trump administration is rewarding Silicon Valley figures who supported his campaign.
It also indicates that the administration will push for policies that cryptocurrency entrepreneurs generally
support. - Key Ally of South Korea’s Leader Now Wants Him Gone
The leader of South Korea’s ruling party said President Yoon Suk Yeol should be suspended from office
quickly, an abrupt shift in stance that makes it more likely an impeachment motion will pass. Han Dong-hoon
of the People Power Party said Friday that he confirmed from credible evidence that Yoon ordered the arrest
of key politicians on the night he declared martial law. Keeping the president in office risks putting the
nation’s people in danger, Han said in remarks broadcast live in parliament. - OPEC+ members to delay oil production increases
The OPEC+ oil producers’ alliance has postponed plans to unwind several formal and voluntary crude
production cuts amid a lukewarm outlook for global demand, according to delegate sources and internal
documents. Despite these sets of production trims and ongoing conflict threatening the hydrocarbon-rich
Middle Eastern region, global oil prices have remained subdued for the better part of this year, under
pressure from a tepid demand outlook. - Dollar General (DG) Q3 2024 Earnings Call Transcript
Dollar General reported its Q3 2024 earnings, with net sales increasing 5% to $10.2 billion and same-store
sales increasing 1.3%. The company’s core customer remains financially constrained, but Dollar General
continues to grow market share in consumable product sales. The company’s Back to Basics plan has shown
significant progress, with improvements in store operations, supply chain, and merchandising. Dollar General
is also testing same-day home delivery from its stores and plans to increase its real estate projects in 2025,
including 575 new store openings and 2,000 full remodels. The company’s guidance for fiscal 2024 includes
expected net sales growth of 4.8% to 5.1% and same-store sales growth of 1.1% to 1.4%. Dollar General’s
CEO, Todd Vasos, expressed confidence in the company’s ability to deliver long-term sustainable growth and
achieve double-digit EPS growth in the future. - Signet Jewelers (SIG) Q3 2025 Earnings Call Transcript
Signet Jewelers reported its Q3 2025 earnings, with same-store sales down 0.7% and revenue of $1.35 billion,
down 3%. The company’s digital banners, James Allen and Blue Nile, were impacted by replatforming and
aided search upgrades, resulting in a 120 basis point impact to comp. Despite this, the company is expecting
a positive holiday performance, with same-store sales expected to be flat to up 3% in the fourth quarter. The
company’s new CEO, J.K. Symancyk, expressed enthusiasm for the company’s opportunities to evolve and
deliver value to shareholders and customers. The company also updated its full-year guidance, with same
store sales expected to be down 2% to 3% and adjusted operating income expected to be between $540
million and $570 million. - Ulta Beauty (ULTA) Q3 2024 Earnings Call Transcript
Ulta Beauty reported its Q3 2024 earnings, with net sales increasing 1.7% to $2.5 billion and comparable
sales increasing 0.6%. The company’s diluted EPS increased 1.4% to $5.14 per share. Ulta Beauty’s CEO, David
Kimbell, attributed the improved performance to the company’s efforts to reinforce its market position and
improve its performance, despite navigating headwinds such as the normalization of the U.S. beauty
category, a dynamic consumer environment, and elevated competition. The company’s prestige market share
trends improved, resulting in flat market share for the quarter, driven primarily by improvements in makeup
and hair. Ulta Beauty’s loyalty program, Ultamate Rewards, ended the quarter with 44.4 million active
members, a 5% increase from last year. The company also made progress in optimizing its new ERP system
and enhancing its digital experiences to drive traffic and sales. - DocuSign (NASDAQ:DOCU) Surprises With Q3 Sales, Stock Jumps 17%
DocuSign (NASDAQ:DOCU) reported strong Q3 results, beating analyst estimates with a 7.8% year-on-year
revenue growth to $754.8 million. The company also raised its full-year guidance for billings, revenue, and
operating income. Non-GAAP profit of $0.90 per share was 3% above consensus estimates. Despite a solid
quarter, the company’s long-term sales growth has been slower than the software sector average, and its
customer acquisition efficiency has been impacted by increasing competition. The stock jumped 17% to
$97.94 after the report. - GitLab (NASDAQ:GTLB) Beats Expectations in Strong Q3, Stock Soars
GitLab (NASDAQ:GTLB) reported a strong Q3 with revenue up 31% year-over-year to $196 million, beating
analyst estimates. The company’s non-GAAP profit of $0.23 per share was 44.4% above consensus estimates.
GitLab also raised its full-year revenue, adjusted operating profit, and adjusted EPS guidance. The company’s
net revenue retention rate was 124%, indicating strong customer satisfaction and increasing usage over time.
The stock soared 6.9% to $70.60 after the earnings report. - Lululemon stock jumps as international growth helps to offset slowing U.S. sales
Lululemon’s U.S. growth is continuing to slow, but the athletic apparel retailer is making big gains abroad,
leading to a 9% increase in sales year over year. The yoga pants company on Thursday beat Wall Street’s
expectations on the top and bottom lines and said it’s “pleased” with the start to the holiday season. Still, on
a call with analysts, CEO Calvin McDonald took a cautious tone when discussing the company’s fourth quarter
outlook. While we feel good about the start of the holiday season, we still have large volume weeks in front
of us, said McDonald. “Given the shorter holiday shopping season, we continue to be thoughtful in our
planning for quarter four overall.” Here’s how Lululemon performed in its fiscal third quarter compared with
what Wall Street was anticipating, based on a survey of analysts by LSEG: Earnings per share: $2.87 vs. $2.69
expected; Revenue: $2.40 billion vs. $2.36 billion expected. Shares climbed about 8% in extended trading
Thursday. The company’s reported net income for the three-month period that ended Oct. 27 was $352
million, or $2.87 per share, compared with $249 million, or $1.96 per share, a year earlier. Sales rose to $2.40
billion, up about 9% from $2.20 billion a year earlier. For the all-important holiday shopping quarter,
Lululemon is expecting revenue to be between $3.48 billion and $3.51 billion, representing growth of 8% to
10% from the prior year. Analysts were expecting revenue of $3.50 billion, or growth of 9.1%, which is
roughly in line with the midpoint of the guidance, according to LSEG. It’s expecting earnings per share to be
between $5.56 and $5.64, the high end of which is ahead of the $5.59 analysts had expected, according to
LSEG.
