The U.S. dollar and stock markets are on the rise, with Wall Street gearing up for a robust opening. Futures for major U.S. indices are showing impressive gains: the Dow Jones is up 3%, the S&P 500 climbs 2.2%, and the Nasdaq 100 increases by 1.7%.

Tesla shares, owned by Trump's new best buddy Elon Musk, have soared 13% in pre-market trading. American bank stocks are also enjoying a boost, thanks to rising bond yields. JP Morgan, Bank of America, Citigroup, Goldman Sachs, and Wells Fargo have seen pre-market gains ranging from 6.5% to 9.5%. The bond market is buzzing with expectations of stronger growth and potential inflation, as the 10-year U.S. Treasury yield jumps to 4.45% from 4.27% the day before.

Asset managers, health insurers, oil and gas companies, cryptocurrency groups, defense firms, and semiconductor companies are all on the upswing, along with Trump Media & Technology Group, which surged as much as 35% pre-opening. Bitcoin has hit a record high, climbing 8% to just under $75,000, driven by hopes of favorable regulatory and fiscal measures for cryptocurrencies under Trump's administration.

On the flip side, renewable energy stocks are down, as Trump plans to cut funding for the industry under the Inflation Reduction Act. Rising bond yields are also squeezing homebuilders. Chinese stocks listed in the U.S. are declining due to the looming threat of tariffs.

European markets have reacted positively, though with a touch of caution. The Stoxx Europe 600 index increased by 0.8%, despite worries that Trump's potential protectionist policies, particularly increased tariffs, could challenge European exporters.

Yesterday, markets were in a celebratory mood. The rally was all-encompassing: equities, oil, gold, bond yields, bitcoin. Tech giants led the charge, with Palantir Technologies surging 23%. The Nasdaq 100 gained 1.32%, climbing back above the 20,000-point mark. Financiers are banking on pro-digital-economy policies to cement American tech's dominance in the stock market.

Meanwhile, investors are still navigating a whirlwind of corporate earnings. Today, all eyes are on Costco, a key indicator of American consumer spending. Qualcomm and Arm will shed light on the tech industry. In Europe, Danish giant Novo Nordisk reported third-quarter results in line with forecasts but lowered its annual sales and earnings guidance. Not exactly thrilling news.

In the Asia-Pacific region, Chinese equities are feeling the heat from Trump's return to the White House, with the Hang Seng dropping 2.2% amid tariff concerns. Elsewhere, the trend is upward. The Tokyo Stock Exchange advanced by 2.3%, buoyed by a weaker yen. Australia and India rose by 0.8% and 1.1%, respectively. South Korea, however, dipped by 0.5%.

Today's economic highlights:

In the US, today’s calendar includes weekly oil inventories. In Europe, the main indicators are the final reading of the services PMI and producer prices. All the agenda is here. 

The dollar is up to EUR 0.9356 and GBP 0.7778. The ounce of gold is down to USD 2,691. Oil fell, with North Sea Brent at USD 73.97 a barrel and US light crude WTI at USD 70.23. The yield on 10-year US debt rose to 4.44%. Bitcoin is up to USD 74,230.

In corporate news:

  • Companies rising after their quarterly results: Kinross Gold Corporation, Trump Media & Technology Group, Mercury Systems...
  • Companies down after the close of trading following their quarterly results: Super Micro Computer, Exact Sciences, Microchip Technology, Lumen Technologies...
  • Nvidia regains first place as the world's largest capitalization, ahead of Apple.
  • Super Micro Computer says it cannot predict when it will file its annual report.
  • Apple is expected to be fined under the EU's Digital Markets Act.
  • Chevron halts production at Gulf of Mexico sites due to tropical storm Rafael.
  • KKR acquires more than a third of Fuji Soft 's shares in the first part of its two-stage takeover bid.
  • Cardinal Health approves a quarterly dividend, payable on January 15, 2025.
  • Lumen Technologies has raised its annual free cash flow forecast on Tuesday due to significant cloud-related orders.
  • Cvs Health's quarterly revenue rose by 6.2% to $95.4 billion, exceeding the expected $92.75 billion.
  • Devon Energy exceeded earnings estimates for its third quarter on Tuesday, with increased production offsetting lower prices.
  • Microchip Technology expects third-quarter revenue and earnings to be below consensus on Tuesday, citing sluggish demand from automotive sector clients amid economic uncertainty.
  • International Flavors & Fragrances has increased its annual revenue forecast due to steady volume growth across all segments.
  • Emerson Electric offered on Tuesday to buy the remaining shares of Aspentech it doesn't already own, valuing the company at $15.1 billion, as it seeks to focus more on industrial automation.

Key earnings reports today: Costco Wholesale Corporation, Qualcomm, ARM Holdings, Gilead Sciences, Mercadolibre...

Analyst recommendations:

  • Celanese Corporation: Deutsche Bank upgrades to buy from hold with a price target reduced from USD 135 to USD 110.
  • Choice Hotels International, Inc.: Jefferies downgrades to hold from buy with a target price of USD 150.
  • Cummins Inc.: Vertical Research Partners downgrades to hold from buy with a target price raised from USD 340 to USD 350.
  • Ryman Hospitality Properties, Inc.: Jefferies upgrades to buy from dropped coverage with a target price of USD 130.
  • Snap Inc.: Baptista Research upgrades to hold from buy with a price target raised from USD 12.90 to USD 13.70.
  • Apellis Pharmaceuticals, Inc.: Goldman Sachs maintains its buy recommendation and reduces the target price from USD 71 to USD 36.
  • Exact Sciences Corporation: Bernstein maintains its outperform rating and reduces the target price from USD 90 to USD 70.
  • Globalfoundries, Inc.: Evercore ISI maintains its outperform recommendation and reduces the target price from USD 71 to USD 55.
  • Globus Medical, Inc.: Piper Sandler & Co maintains its overweight recommendation and raises the target price from USD 80 to USD 100.
  • Masimo Corporation: Wolfe Research maintains its outperform recommendation and raises the target price from USD 150 to USD 190.
  • Qualys, Inc.: Truist Securities maintains its hold recommendation with a price target raised from USD 120 to USD 145.
  • Sirius Xm Holdings Inc.: Baptista Research maintains its hold recommendation with a price target raised from 3.40 to USD 30.90.
  • Super Micro Computer, Inc.: Barclays maintains its equalweight recommendation and reduces the target price from 42 to USD 25.
  • Targa Resources Corp.: Wells Fargo maintains its overweight recommendation and raises the target price from USD 153 to USD 190.
  • Vornado Realty Trust: Compass Point Research & Trading maintains a neutral recommendation with a price target raised from USD 32 to USD 40.
  • Wynn Resorts, Limited: HSBC maintains its buy recommendation with a price target reduced from 127 to USD 99.
  • Astrazeneca Plc: AlphaValue/Baader Europe upgrades to buy from add with a price target raised from GBP 140.49 to GBP 141.19.
  • BP Plc: Landesbank Baden-Wuerttemberg downgrades to hold from buy with a target price reduced from GBX 560 to GBX 440.
  • Burberry Group Plc: RBC Capital upgrades to outperform from sector perform with a price target raised from GBX 650 to GBX 900.
  • Smith & Nephew: Berenberg downgrades to hold from buy with a target price reduced from 14.50 to GBP 10.50.