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Record Cyber Monday spending, Shein IPO filing reports - what's moving markets

Published 28/11/2023, 10:30
© Reuters

Investing.com -- U.S. stock futures oscillate around the flatline following a dip in the prior session, but equities remain on track to post November gains. Investors are also eyeing a potentially record-breaking amount of spending by American consumers on Cyber Monday. Elsewhere, reports say fast-fashion retailer Shein has confidentially filed for a U.S. listing, in what could be a boon for the stagnant IPO market.

1. Futures mostly muted

U.S. stock futures were mixed on Tuesday after equities in New York started off the new week in the red.

By 04:58 ET (09:58 GMT), the Dow futures contract and S&P 500 futures were both mostly unchanged, while Nasdaq 100 futures had dipped by 24 points or 0.2%.

The main indices on Wall Street dropped on Monday, marking a slight retreat as the end of what has been a mostly positive November for stocks approaches. The 30-stock Dow Jones Industrial Average and benchmark S&P 500 both declined by 0.2%, while the tech-heavy Nasdaq Composite moved down by 0.1%. However, all of them remain on track to finish higher for the month.

Markets were paying close attention to Cyber Monday. Investors are on the lookout for any cues about the spending habits of U.S. consumers heading into the key holiday shopping season, which could help clarify the path ahead for Federal Reserve interest rate policy in the coming months.

2. Cyber Monday spending expected to soar to record high - reports

Spending by American consumers is expected to have surged to an all-time high of over $12 billion on Cyber Monday, according to preliminary estimates from Adobe (NASDAQ:ADBE) Digital Insights cited by Reuters.

Expenditures on Cyber Monday, when many retailers unveil online sales, was already anticipated to break records despite lingering concerns over the state of U.S. shoppers during a time of relatively steep inflation and elevated interest rates.

In order to alleviate some of the pressure on price-squeezed customers, many retail firms are expected to have rolled out deep discounts and buy now, pay later services, Adobe told Reuters.

The analytics firm now projects that between $12B to $12.4B was spent on items ranging from Barbie dolls to smart devices, Reuters reported. At the top end, it would be a 9.7% increase versus Cyber Monday last year.

3. Shein confidentially files for IPO - reports

Chinese fast-fashion retailer Shein has confidentially filed for an initial public offering in the U.S., according to media reports citing people familiar with the matter.

Various reports said the value of Shein -- the pandemic-era darling backed by large investors like venture capital group Sequoia China and the Abu Dhabi sovereign wealth fund Mubadala -- stood at around $64B to $66B last year.

Reports also suggested that a potentially massive listing of the company could help to reinvigorate the IPO market following two years of sluggish activity.

Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM) and Morgan Stanley (NYSE:MS) have all reportedly been selected as lead underwriters for the offering.

Known for its extremely low prices, Shein has enjoyed a rapid rise from a local powerhouse in China to a global player. The surge in popularity has been particularly noticeable in the U.S., which has become Shein's largest market.

4. Binance founder ordered to temporarily stay in U.S.

Changpeng Zhao, the founder of cryptocurrency exchange Binance who pleaded guilty last week to breaching American anti-money laundering laws, has been ordered by a federal judge to remain in the U.S. temporarily.

Zhao must now stay in the country until a court in Seattle determines whether he should remain until his sentencing hearing in February or be allowed to return to the United Arab Emirates, where he has citizenship.

Justice Department officials have said that because the government does not have a formal extradition treaty with the UAE, they may not be able to secure Zhao's return to the United States. Zhao's lawyers have asked that he be able to travel, arguing that he "voluntarily flew" to the U.S. to register his guilty plea.

Zhao, who has also stepped down as Binance's chief executive, was released on a $175 million bond last week. Binance, meanwhile, has agreed to pay over $4.3B in penalties and has pleaded guilty to violating anti-money laundering and sanctions laws.

5. Oil rises amid hopes for OPEC+ output cuts

Oil prices edged higher Tuesday on hopes that OPEC+ will agree to extend or even deepen its ongoing production cuts at a meeting later this week.

By 04:59 ET, the U.S. crude futures traded 1.3% higher at $75.85 a barrel, while the Brent contract climbed 1.2% to $80.84 per barrel.

The Organization of the Petroleum Exporting Countries and its allies, also known as OPEC+, is set to hold an online ministerial meeting on Thursday.

The gathering was delayed from Sunday after disagreements between members over production targets, but the group's de facto leader Saudi Arabia has seemingly worked to find consensus on the need to expand output cuts.

There has been a sharp fall in oil prices over the last month, as oversupply concerns grew following strong production data from non-OPEC countries such as the United States.

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