U.S. Futures Little Changed Ahead of Producer Data; Cisco Raises Full-Year Outlook
Key Facts
U.S. stock futures were described as little changed on Friday, November 13, in a session when investors were awaiting October producer price data. The Associated Press reported that Jensen Huang’s resignation as Nvidia’s chief executive raised concerns about the artificial intelligence sector. The cautious mood also followed declines in the major indexes in the previous session. The S&P 500, Dow Jones and Nasdaq Composite each fell 0.4% on Thursday, November 12. For the week through Thursday’s close, the S&P 500 and Nasdaq remained higher, while the Dow posted a smaller gain.
Attention is turning to the producer price index for final demand, after the index rose 1.3% in September. Prices for final goods increased 2.6%, while prices for final services rose 0.8% in the same month, according to the U.S. Bureau of Labor Statistics. September’s reading was the largest monthly increase since the index rose 1.7% in March 2022. On an annual basis, the index climbed 6.3% in the 12 months through September, its biggest increase since a 6.4% reading in December 2022. Energy accounted for more than 80% of the broad rise in final goods prices, after final energy prices increased 10.8% in September.
September’s jump followed increases in the final demand index of 0.5% in August and 0.2% in July, according to the Bureau of Labor Statistics. The readings highlight a mixed sequence in the pace of price increases ahead of October data. The bureau listed the report’s release for Friday, November 13, at 8:30 a.m. Eastern time. The bureau had confirmed that September’s reading was 1.3%, while the market forecast of 0.4% could not be verified. The focus is therefore on the new official reading and its components, particularly prices for goods, services and energy.
In the corporate sector, Cisco on November 12 reported record revenue of $18.5 billion in the first quarter of its fiscal 2027, up 24% year over year. Non-GAAP earnings per share came to $1.40, up 40% from the year-earlier period. The company also reported GAAP earnings per share of $1.14, compared with $0.72 in the first quarter of its previous fiscal year. Revenue in the comparable period was $14.9 billion. Cisco said its results included “record revenue of $18.5 billion, up 24% year over year.”
Cisco raised its fiscal 2027 outlook to revenue of between $74.8 billion and $75.8 billion, and non-GAAP earnings per share of between $5.47 and $5.53. The updated outlook puts first-quarter performance within the financial trajectory the company set for the rest of the year. The results come as markets track corporate investment in network infrastructure and artificial intelligence, two areas cited in coverage of the results and sector concerns. The available information did not include a verified figure for Cisco’s share price move following the announcement. The company’s financial results and guidance therefore remain the key documented details about it in this session.
Alongside investor concerns about Nvidia, a global outage disrupted Microsoft services, affecting email accounts and some applications around the world. The company said a broad range of Microsoft 365 services linked to Exchange Online and email were affected. The Associated Press report described the outage’s immediate impact on markets as limited. The disruption adds a technical factor to investors’ monitoring of technology companies, while U.S. futures remained little changed, according to the same report. The producer price data scheduled for November 13 is among the near-term events markets are watching.