Stocks Climb Before The Open As Investors Await Key U.S. GDP Data, Nvidia Forecast Boosts Sentiment

March S&P 500 futures (ESH23) are up +0.39%, and March Nasdaq 100 E-Mini futures (NQH23) are up +0.72% this morning after three major U.S. benchmark indices finished the regular session in a mixed fashion as worries over the Federal Reserve’s rate-hike path weighed on sentiment following the release of the FOMC minutes from the last meeting. 

The minutes of the Fed’s Jan. 31st-Feb. 1st meeting showed that Federal Reserve policymakers called for further monetary policy tightening until there were “substantially” more signs of decelerating inflation, with a “few” members favoring raising the central bank’s key rate by 50 basis points as a tight labor market threatens to underpin inflation. “The participants favoring a 50-basis point increase noted that a larger increase would more quickly bring the target range close to the levels they believed would achieve a sufficiently restrictive stance, taking into account their views of the risks to achieving price stability in a timely way,” the minutes showed Wednesday.

Federal Reserve Bank of New York President John Williams said Wednesday the U.S. central bank remains committed to its 2% inflation goal, highlighting that monetary policy must bring demand down in line with constrained supply to lower inflation. “Our job is clear: our job is to make sure we restore price stability, which is truly the foundation of a strong economy,” Williams said. 

After the release of Fed minutes, U.S. rate futures have priced in a 73.0% chance of a 25 basis point rate increase and a 27.0% chance of a 50 basis point hike at the next monetary policy meeting in March. 

On the earnings front, NVIDIA Corporation (NVDA) climbed about +8% in pre-market trading after the semiconductor giant reported upbeat Q4 results and issued an above-consensus Q1 revenue forecast. Also, Etsy Inc (ETSY) rose more than +5% in pre-market trading after the company posted better-than-expected Q4 sales. However, eBay Inc (EBAY) fell over -5% in pre-market trading despite Q4 results topping expectations.

Meanwhile, quarterly reports from Intuit (INTU), Booking (BKNG), Moderna (MRNA), NetEase (NTES), Autodesk (ADSK), Block (SQ), and Warner Bros Discovery (WBD) are set to be released today.

Today, all eyes are focused on the U.S. GDP preliminary data in a couple of hours. Economists, on average, forecast that U.S. GDP will stand at +2.9% q/q in the fourth quarter, compared to the third-quarter value of +3.2% q/q.

Also, investors will likely focus on the U.S. GDP Price Index, which came in at +4.4% q/q in the third quarter. Economists foresee the fourth-quarter figure to be +3.5% q/q.

U.S. Initial Jobless Claims data will come in today. Economists expect this figure to stand at 200K, compared to last week’s number of 194K.

U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be +2.083M, compared to last week’s value of +16.283M.

In addition, investors are likely to focus on a speech from Atlanta Federal Reserve President Raphael Bostic for more clues on the Fed’s monetary policy trajectory.

In the bond markets, United States 10-Year rates are at 3.943%, up +0.51%.

The Euro Stoxx 50 futures are up +0.47% this morning as investors digested the latest Federal Reserve minutes as well as key Eurozone CPI reading for January. Eurozone CPI has been reported at -0.2% m/m and +8.6% y/y in January, in line with expectations. In corporate news, shares of Rolls-Royce Holdings Plc (RR-.LN) surged over +18% after the company reported better-than-expected full-year results and issued a solid outlook for the year ahead.

Eurozone Core CPI data was also released today.

Eurozone January Core CPI stood at -0.8% m/m and +5.3% y/y, compared to expectations of -0.8% m/m and +5.2% y/y.

Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.11%, while the Japanese market was closed for a holiday.

China’s Shanghai Composite today closed lower amid persistent fears of rising U.S. interest rates as minutes from this month’s Federal Reserve meeting showed that members are still committed to fighting inflation. At the same time, the Bank of Korea kept its interest rates at 3.5%, a first after nearly a year of rate hikes, lifting sentiment in the region. 

Pre-Market U.S. Stock Movers

Lucid Group Inc (LCID) fell about -8% in pre-market trading after the company reported mixed Q4 results and its Q4 deliveries fell short of expectations.

Dutch Bros Inc (BROS) slid over -5% in pre-market trading after the company reported mixed Q4 results and posted weaker-than-expected FY23 guidance.

Teladoc Inc (TDOC) plunged about -7% in pre-market trading after the company’s Q4 EPS missed expectations, and its FY23 revenue guidance missed consensus.

Advanced Micro Devices Inc (AMD) rose over +3% in pre-market trading on NVIDIA’s strong results.

Unity Software Inc (U) dropped over -7% in pre-market trading after the company posted better-than-expected Q4 revenue but issued light Q1 guidance.

Intel Corporation (INTC) gained more than +1% in pre-market trading after Morgan Stanley upgraded the stock to equal weight from underweight.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - February 23rd

Alibaba ADR (BABA), Intuit (INTU), Booking (BKNG), American Tower (AMT), Moderna (MRNA), MercadoLibre (MELI), NetEase (NTES), Keurig Dr Pepper (KDP), Muenchener Rueckver Ges (MURGY), Autodesk (ADSK), American Electric Power (AEP), Block (SQ), Warner Bros Discovery (WBD), Cheniere Energy (LNG), Newmont Goldcorp (NEM), VICI Properties (VICI), BAE Systems PLC (BAESY), PG E (PCG), CBRE A (CBRE), Edison (EIX), Alnylam (ALNY), Genuine Parts (GPC), Telefonica ADR (TEF), DTE Energy (DTE), Quanta Services (PWR), Insulet (PODD), Sun (SUI), Pembina Pipeline (PBA), ChipMOS Tech (IMOS), Live Nation Entertainment (LYV), Iron Mountain (IRM), Gaming & Leisure Properties (GLPI), Alliant Energy (LNT), Grab Holdings (GRAB), Erie Indemnity (ERIE), Domino’s Pizza Inc (DPZ), Celanese (CE), AMH 4 Rent (AMH), Teleflex (TFX), Life Storage (LSI), Penumbra Inc (PEN), CubeSmart (CUBE), Morningstar (MORN), Floor & Decor (FND), Bath & Body Works (BBWI), Novocure Ltd (NVCR), Vipshop (VIPS), Grupo Aeroportuario Sureste ADR (ASR), Chemed (CHE), Medical Properties (MPW), MasTec (MTZ), EMCOR (EME), DISH Network (DISH), Planet Fitness Inc (PLNT), Topbuild Corp (BLD), Primerica (PRI), TechnipFMC (FTI), Universal Display (OLED), ExlServices (EXLS), Southwestern Energy (SWN), MP Materials (MP), FTI Consulting (FCN), BWX Tech (BWXT), Wayfair Inc (W), Option Care Health (OPCH), Fox Factory (FOXF), Stericycle (SRCL), Ryman Hospitality Properties (RHP), Altair Engineering (ALTR), Cable One Inc (CABO), Denbury Resources (DEN), Lantheus Holdings Inc (LNTH), Beacon Roofing (BECN), Clearway Energy C (CWEN), Select Medical (SEM), Vir Biotech (VIR), Quaker Chemical (KWR), Envestnet (ENV), Enerplus (ERF), YETI (YETI), Intellia Therapeutics Inc (NTLA), SPX Corp (SPXC), Papa John's (PZZA), iRhythm Tech (IRTC), Bausch Health (BHC), Main Street Capital (MAIN), Cogent (CCOI), Nomad Foods (NOMD), Cushman & Wakefield (CWK), Atlas Air (AAWW), Guardant Health (GH), Insmed (INSM), Arcosa (ACA), Mister Car Wash (MCW), Prothena (PRTA), Steven Madden (SHOO), Alarm.com Holdings (ALRM), Northern Oil&Gas (NOG), Primo Water (PRMW), TransAlta Corp (TAC), Expro Holdings NV (XPRO), Osisko Gold Ro (OR), Relay (RLAY), MGP Ingredients (MGPI), Xencor Inc (XNCR), Oceaneering International (OII), NV5 Global (NVEE), Zeta Global Holdings (ZETA), Farfetch A (FTCH), World Fuel Services (INT), First Majestic Silver (AG), Revolve (RVLV), NAble (NABL), Air Transport Services (ATSG), Hillman Solutions (HLMN), Laureate Education (LAUR), LegalZoom.com (LZ), Commscope Hlding (COMM), Eldorado Gold (EGO), Rent-A-Center (RCII), EchoStar (SATS), Agios Pharm (AGIO), Alkami Technology (ALKT), The Providence Service (MODV), Dynavax (DVAX), MannKind (MNKD), Kaiser (KALU), Vericel Corp Ord (VCEL), Centerra Gold (CGAU), Travere Therapeutics (TVTX), HNI (HNI), HudBay Minerals (HBM), Playa Hotels & Resorts (PLYA), Definitive Healthcare (DH), Tennant (TNC), TriMas (TRS), Teekay Tankers (TNK), Nikola (NKLA), Opendoor Tech (OPEN), Siriuspoint (SPNT), SpartanNash Co (SPTN), MFA Financial (MFA), Netstreit (NTST), Shyft Group Inc (SHYF), LeMaitre Vascular (LMAT), Carvana (CVNA), Open Lending (LPRO), Beyond Meat (BYND), Sweetgreen (SG) , Riskified (RSKD).

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