March S&P500 E-Mini Futures ESH2024 Nasdaq 100 E-Mini futures for March are down -0.11%. NQH2024 Stocks fell -0.03% this morning as investors looked for clues on the timing of future Federal Reserve rate cuts ahead of the release of US inflation data scheduled for Tuesday.
In Friday trading, Wall Street's major averages ended lower.Marvell Technology Co., Ltd. MRVL The company fell more than -11%, making it the top decliner on the Nasdaq 100 after the specialty semiconductor company released disappointing first-quarter earnings forecasts.Also, Costco Wholesale Co., Ltd. Fee The company plunged more than -7%, becoming the top decliner on the S&P 500 after the major retailer reported lower-than-expected second-quarter earnings. In addition, Broadcom, Inc. AVGO The company fell approximately -7% after first-quarter semiconductor solutions revenue fell short of expectations. On the bullish side, Gap Inc. GPS It rose more than +8% after the retailer reported better-than-expected Q4 results.
Nonfarm payrolls rose by 275,000 last month, more than analysts expected of 198,000, and up 229,000 from January (353,000), the U.S. Department of Labor reported Friday. (modified from ). Additionally, the U.S. unemployment rate unexpectedly rose in February to 3.9%, the highest level in two years, lower than the expected unchanged rate of 3.7%. Furthermore, the average hourly wage in the US in February was +0.1% month-on-month and +4.3% year-on-year, which was lower than the expected +0.2% month-over-month and +4.4% year-on-year.
“The report wasn't necessarily a 'perfect' signal for the Fed, but it also didn't seem to contain anything that would derail its rate cut plans,” said Chris Larkin of E*Trade. Morgan Stanley.
Chicago Fed President Austan Goolsby said Friday that he expects policymakers to cut interest rates this year as inflation continues to decline. “As inflation declines, we will likely move toward loosening restrictions later this year,” Goolsby said in an interview on Fox News.
On the other hand, U.S. interest rate futures have a 3.0% probability that the Federal Reserve Monetary Policy Committee will cut interest rates by 25 basis points (bp) later this month, and a 24% probability that the FOMC will cut interest rates by 25 basis points (bp) in May. .4% is incorporated.
In terms of profits, notable companies such as Oracle ORCLDollar Tree DLTRRenner LenAdobe adobeDollar General DGAlta Beauty ultraDick's Sporting Goods DKSand Jabiru Circuit JBL The company is scheduled to announce its quarterly results this week.
On the economic data front, the February US consumer inflation report will be the biggest highlight next week. Market participants also have access to other economic data, including U.S. Core CPI, Retail Sales, Core Retail Sales, PPI, Core PPI, New Unemployment Insurance Claims, Crude Oil Inventories, Business Inventories, Export Price Index, and Import Prices. I'm sure you'll be keeping an eye on the series of announcements. Index, New York Empire State Manufacturing Business Index, Industrial Production, Manufacturing Production, Michigan Consumer Sentiment (preliminary).
U.S. economic data was mostly blank on Monday.
In the bond market, the US 10-year yield was 4.071%, down -0.42%.
Euro Stoxx 50 futures fell -0.85% this morning, extending losses seen overnight in Asia following Wall Street's selloff on Friday, and investors anticipating the release of the main US inflation indicator later this week. We are preparing for Declines in technology and basic resources stocks are leading the overall market decline. Meanwhile, investors will focus on US consumer price developments, UK labor market data, consumer price growth in Germany and elsewhere, and euro zone industrial output this week. In corporate news, Currys (CURY.LN) is down more than -8% after Elliott Investment Management announced on Monday that it had decided not to make a new takeover offer for the British electricity retailer. It fell. BE Semiconductor Industries NV (BESI.NA) also plunged more than -8% after Morgan Stanley lowered its price target for the Dutch group's shares.
European economic data was mostly blank on Monday.
Asian stock markets were mixed and calm today. China's Shanghai Composite Index (SHCOMP) ended up +0.74%, while Japan's Nikkei 225 Stock Index (NIK) ended at -2.19%.
China's Shanghai Composite Index closed higher today as a recovery in consumer prices fueled optimism about the country's revival of economic momentum. Solar stocks extended recent gains on Monday as the outlook for the sector improved amid speculation that the government would ease regulations on renewable energy installations. As a result, in Hong Kong, Xinyi Solar Holdings soared over +11% and Flat Glass Group rose over +10%. Real estate stocks also rose after Reuters reported that Chinese regulators met with financial institutions and asked big banks to step up lending support to state-backed real estate developer China Vanke. Meanwhile, China's consumer prices rose for the first time in six months due to Spring Festival-related spending, according to data released by the National Bureau of Statistics on Saturday. At the same time, China's producer prices continued to decline in February, marking the 17th consecutive month of negative growth. In corporate news, BAIC BluePark New Energy Techno Co Ltd rose about +10% after revealing plans to set up his 390 million yuan platform company.
China's February CPI was +1.0% m/m and +0.7% y/y, beating expectations of +0.7% m/m and +0.3% y/y.
China's February PPI was -2.7% y/y, lower than the expected -2.5% y/y.
Japan's Nikkei 225 stock index ended sharply lower today, falling below 39,000 yen, amid growing speculation that the Bank of Japan will raise interest rates at its March 18-19 meeting. Export-heavy auto stocks underperformed on Monday as the yen's rise against the dollar last week dragged on, with Nissan Motor Co. and Toyota Motor Corp. down more than 3%. Tech stocks also fell after Nvidia and other U.S. tech stocks fell on Friday amid profit-taking. The Cabinet Office said on Monday that Japan's economy grew at an annualized rate of 0.4% in the October-December period, reversing the initially reported 0.4% decline and supporting the Bank of Japan's case for raising interest rates for the first time since 2007. , reports indicate that central banks are considering abolishing yield curve control programs, and that an increasing number of policymakers are leaning toward abolishing negative interest rates given the expected large wage increases this year. As a result, Japanese government bond yields rose on Monday as investors remained cautious. Ahead of next week's Bank of Japan policy meeting, investors' attention is now squarely on economic data, the annual wage negotiations between labor unions and management, and their policy implications. Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, rose +0.05% to 21.96.
Japan's GDP for the fourth quarter was reported to be +0.1% QoQ and +0.4% YoY, beating expectations of -0.1% QoQ and -0.4% YoY.
Premarket US Stock Mover
Stocks exposed to cryptocurrencies rose in pre-market trading, with the price of Bitcoin topping $71,000 for the first time.marathon digital Mara It has increased by more than +6%.Also, hat 8 mining hut Up more than +4%, Coinbase Global coin It has increased by more than +6%.
boeing company BA Shares fell about -0.8% in pre-market trading following a report in the Wall Street Journal that the U.S. Department of Justice has launched a criminal investigation into the Alaska Airlines 737 MAX incident.
Hyatt Hotels Corporation H The stock fell more than -1% in pre-market trading after Morgan Stanley downgraded the stock from overweight to equal weight with a $156 price target.
Bilibili Co., Ltd. Billi Shares rose more than 7% in pre-market trading after JPMorgan upgraded the stock from underweight to neutral with a price target of $11.
Excel Energy Co., Ltd. cell The stock rose more than 1% in pre-market trading after Wolf Research upgraded the stock from peer perform to outperform with a price target of $58.
Today's US Earnings Spotlight: Monday through March 11th
Oracle (ORCL), Legend Bio (LEGN), Caseys (CASY), Vail Resorts (MTN), Natura & Co (NTCO), Asana (ASAN), Polestar Automotive Holding A (PSNY), Fortrea Holdings (FTRE), Ocular Therapeutix Inc (OCUL), Ballard (BLDP), Yala (YALA).
On the date of publication, Oleksandr Pirypenko did not have (directly or indirectly) positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see his Barchart Disclosure Policy here.