Investing.com -- Futures are little changed on Tuesday after a mixed close on Wall Street in the previous session. Tesla CEO Elon Musk’s controversial pay deal has been struck down by a Delaware judge again and the French government is on the brink of collapse. Here’s your look at what’s moving markets.
1. Futures little changed after record close for S&P 500, Nasdaq
U.S. stock futures were little changed after the S&P 500 and the Nasdaq ended the previous session at record highs, while the Dow ended slightly lower, despite topping the closely watched 45,000 level at one point.
By 04:03 ET (09:03 GMT), the Dow futures contract was up 17 points, S&P 500 futures inched up three points and Nasdaq 100 futures were down two points.
Investors were looking ahead to JOLTS jobs data later in the day, the first in a series of reports on the labor market this week ahead of Friday's November non-farm payrolls report.
Traders are closely monitoring how the labor market is faring ahead of the Federal Reserve’s December meeting amid expectations for another rate cut.
The economic calendar also includes speeches by Fed Governor Adriana Kugler and Chicago Fed President Austan Goolsbee.
On the earnings front, earnings results are due from Salesforce (NYSE:CRM) and Okta (NASDAQ:OKTA) after the bell.
2. Musk pay deal struck down - again
Tesla (NASDAQ:TSLA) shares were down around 1.4% in premarket trade after a Delaware judge upheld a previous ruling against CEO Elon Musk, rejecting his appeal to reinstate a controversial compensation package worth approximately $56 billion.
The package, the largest in U.S. corporate history, had been under scrutiny for its size and structure.
Tesla said in a post on social media platform X, which is owned by Musk, that it plans to appeal the ruling. Musk, in a separate X post, called the ruling “absolute corruption.”
“There were undoubtedly a range of healthy amounts that the board could have decided to pay Musk,” Delaware Chancery Court Judge Kathaleen St. J. McCormick (NYSE:MKC) said in her decision. “Instead, the board capitulated to Musk’s terms.”
3. France on brink of government collapse
Growing fears that Prime Minister Michel Barnier's government is teetering on the brink of collapse have roiled markets in France, the euro zone's second-biggest economy, which is under pressure due to its rising debt levels.
Barnier is expected to face no-confidence motions as soon as Wednesday after opting to push through a controversial budget bill without a vote in parliament.
His proposed budget which seeks to curb France's spiralling public deficit through 60 billion euros ($62.9 billion) in tax hikes and spending cuts, has been opposed by politicians on both the left and far right.
Bond investors fear that the collapse of the government would mean efforts to cut borrowing costs fall by the wayside.
4. Trump reiterates opposition to U.S. Steel takeover
President-elect Donald Trump on Monday reiterated his opposition to Nippon Steel's (TYO:5401) $15 billion acquisition of U.S. Steel (NYSE:X), vowing to block the deal once he takes office.
"I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan," Trump wrote on his social-media platform Truth Social.
"I will block this deal from happening. Buyer Beware!!!"
Nippon Steel, which is aiming to finalize the transaction before Trump’s inauguration on January 20, responded to his comments on Tuesday, reiterating its commitment to invest at least $2.7 billion into U.S. Steel’s unionized facilities, preserve union jobs, and introduce technological innovations.
The deal also faces opposition from the Biden administration and influential labor unions.
5. Oil prices edge higher, OPEC meeting eyed
Oil prices pushed higher on Tuesday, but looked set to remain rangebound as energy traders awaited the outcome of an OPEC+ meeting later this week.
By 04:03 ET (09:03 GMT), crude oil WTI futures climbed 0.6% to $68.75 a barrel, while the Brent contract rose 0.6% to $72.52 a barrel.
OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been looking to unwind production cuts by the first quarter of 2025. However, the outlook for surplus supply has put pressure on prices. The group accounts for about half of the world's oil production.
“Should OPEC forge ahead with prior plans to increase supply, we believe the scales would tilt heavily towards pronounced oversupply in oil”, analysts at Macquarie said in a note Sunday.