Stocks Mixed Before The Open As Fed Fears Persist, Target Earnings On Tap

March S&P 500 futures (ESH23) are trending up +0.07% this morning after three major U.S. benchmark indices ended the regular session higher as investors digested an early round of U.S. economic data and hunted for bargains following the worst week of the year on Wall Street. Three major U.S. stock indexes were fueled primarily by gains in the Consumer Goods, Industrials, and Technology sectors.

In Monday’s trading session, Tesla Inc (TSLA) led the gains in consumer discretionary, surging over +5% after the electric automaker said its German production plant was producing 4,000 cars per week ahead of schedule. Also, Seagen Inc (SGEN) climbed over +10% after the Wall Street Journal reported that Pfizer was in early talks to acquire the company. In addition, Union Pacific Corporation (UNP) gained about +10% after the announcement of the departure of CEO Lance Fritz amid pressure from major shareholder Soroban Capital Partners.

Data on Monday showed durable goods orders fell more than expected to -4.5% m/m in January, but core durable goods orders increased +0.7% m/m in January, above estimates of +0.1% m/m. Also, U.S. pending home sales demonstrated the biggest increase in 2-1/2 years, standing at +8.1% m/m in January compared to expectations of +1.0% m/m. 

“While durable goods orders continue to disappoint, the underlying details suggest business investment improved somewhat at the start of the year, adding to the list of indicators painting the U.S. economy as steady,” Stifel said in a note.

Fed Governor Philip Jefferson said Monday that inflation for services in the United States remains “stubbornly high.” “I am under no illusion that it is going to be easy to get the inflation rate back down to 2%,” Jefferson said.

On the earnings front, Zoom Video Communications Inc (ZM) rose over +6% in pre-market trading after the company reported better-than-expected Q4 results and posted an upbeat FY24 profit forecast. At the same time, Workday Inc (WDAY) slid more than -2% in pre-market trading after the company posted better-than-expected Q4 results, but its Q1 and FY24 revenue guidance fell short of expectations. 

Meanwhile, major companies like Target Corporation (TGT), Monster Beverage Corp (MNST), HP Inc (HPQ), Rivian Automotive Inc (RIVN), and Norwegian Cruise Line Holdings Ltd (NCLH) are set to report their earnings today.

Today, all eyes are focused on the U.S. CB Consumer Confidence data in a couple of hours. Economists, on average, forecast that February CB Consumer Confidence will stand at 108.5, compared to the previous value of 107.1.

Also, investors are likely to focus on the U.S. Chicago PMI data, which was 44.3 in January. Economists foresee the new figure to be 45.0.

U.S. S&P/CS HPI Composite - 20 n.s.a. will be reported today. Economists foresee this figure to stand at +5.8% y/y in December, compared to the previous number of +6.8% y/y.

U.S. Richmond Manufacturing Index will come in today as well. Economists expect this figure to be -6 in February, compared to -11 in January.

In the bond markets, United States 10-Year rates are at 3.943%, up +0.55%.

The Euro Stoxx 50 futures are down -0.05% this morning as investors digested hotter-than-expected inflation figures from France and Spain. At the same time, European Central Bank Chief Economist Philip Lane said Tuesday that “eurozone inflation pressures have begun to ease” but also noted that the ECB would not end rate hikes until it is confident price growth is moving back toward the 2% target. Also, British Prime Minister Rishi Sunak announced late Monday that the U.K. signed a new trade deal with the European Union on post-Brexit trade rules for Northern Ireland. In corporate news, shares of Bayer Ag (BAYN.D.DX) plunged over -4% after the agriculture and healthcare company said operating earnings would likely fall in 2023, hurt by higher costs.

France’s Consumer Spending, France’s CPI (preliminary), France’s GDP (preliminary), and Spain’s CPI (preliminary) data were released today.

The French January Consumer Spending stood at +1.5% m/m, stronger than expectations of +0.4% m/m.

The French February CPI has been reported at +0.9% m/m and +6.2% y/y, stronger than expectations of +0.7% m/m and +6.1% y/y.

The French GDP came in at +0.1% q/q in the fourth quarter, in line with expectations.

The Spanish February CPI was at +1.0% m/m and +6.1% y/y, stronger than expectations of 0.0% m/m and +5.9% y/y.

Asian stock markets today settled mixed. However, China’s Shanghai Composite Index (SHCOMP) closed up +0.66%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.08%.

China’s Shanghai Composite today closed higher as investors braced for a reading on the Purchasing Managers’ Index on Wednesday. The reading is expected to throw more light on the prospect of an economic rebound in China this year after the country relaxed most COVID-19 curbs. At the same time, data on Tuesday showed the country’s per capita spending fell -0.2% in 2022 as severe COVID-19 restrictions weighed on the world’s second-biggest economy.

Japan’s Nikkei 225 Stock Index closed slightly higher even after preliminary data showed that the country’s industrial production dropped sharply in January, with investors awaiting more clues on the Bank of Japan’s monetary policy trajectory. The index’s upward momentum was fueled by gains in the Precision Instruments, Electrical/Machinery, and Machinery sectors. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up 0.90% to 16.74.

The Japanese January Industrial Production stood at -4.6% m/m, weaker than expectations of -2.6% m/m.

Pre-Market U.S. Stock Movers

Adamis Pharma (ADMP) surged about +21% in pre-market trading after announcing the merger with DMK Pharmaceuticals.

Progyny Inc (PGNY) climbed over +14% in pre-market trading after the company reported upbeat Q4 results and issued above-consensus Q1 revenue guidance.

Hims Hers Health Inc (HIMS) rose more than +9% in pre-market trading after the company posted better-than-expected Q4 results and released strong FY23 revenue guidance.

Aptinyx Inc (APTX) plunged about -56% in pre-market trading after the company announced the Phase 2 Study of NYX-458 did not demonstrate sufficient efficacy.

Arconic Corp (ARNC) fell over -3% in pre-market trading after Goldman Sachs downgraded the stock to sell from neutral.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Tuesday - February 28th

Target (TGT), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Bayer AG PK (BAYRY), Monster Beverage (MNST), Sempra Energy (SRE), AutoZone (AZO), Agilent Technologies (A), Ross Stores (ROST), Alcon (ALC), HP Inc (HPQ), Coupang LLC (CPNG), Verisk (VRSK), Ecopetrol ADR (EC), Rivian Automotive (RIVN), First Solar (FSLR), JM Smucker (SJM), Axon Enterprise (AXON), Bentley (BSY), Builders FirstSource (BLDR), Suzano Papel ADR (SUZ), Sarepta (SRPT), Black Knight (BKI), Masimo (MASI), New Fortress Energy (NFE), Jones Lang LaSalle (JLL), Dentsply (XRAY), ADT (ADT), Nexstar (NXST), Norwegian Cruise Line (NCLH), Endeavor Group (EDR), Grifols ADR (GRFS), Adecco Group (AHEXY), Spirit Realty (SRC), Api Group Corp (APG), Miniso (MNSO), Natera Inc (NTRA), IGT (IGT), Sotera Health (SHC), Ryan Specialty Group Holdings (RYAN), Southwest Gas Hold (SWX), SeaWorld Entertainment (SEAS), Jackson Financial (JXN), Inter Parfums (IPAR), AMC Entertainment (AMC), Assured Guaranty (AGO), Duolingo (DUOL), Ambarella (AMBA), Olaplex Holdings (OLPX), Nelnet (NNI), Playtika (PLTK), Shoals Technologies Group (SHLS), Shift4 Payments Inc (FOUR), Marqeta (MQ), Privia Health Group (PRVA), Thoughtworks Holding (TWKS), Adapthealth (AHCO), Dorman (DORM), Revance The (RVNC), Enviva Partners LP (EVA), Rogers (ROG), Grocery Outlet (GO), Flywire (FLYW), Hayward Holdings (HAYW), Jamf (JAMF), Mirati Therapeutics (MRTX), Urban Outfitters (URBN), Golar (GLNG), Perficient (PRFT), Kontoor Brands (KTB), Cracker Barrel Old (CBRL), Omnicell (OMCL), International Seaways (INSW), Talos Energy (TALO), Rocket Lab USA (RKLB), Xpel (XPEL), TG (TGTX), Goodrx (GDRX), Delek Logistics Partners LP (DKL), CarGurus (CARG), First Advantage (FA), Payoneer Global Inc (PAYO), Supernus (SUPN), Silk Road Medical (SILK), Buenaventura Mining ADR (BVN), eXp World (EXPI), ICF International (ICFI), Delek US Energy (DK), Pacira (PCRX), Vizio Holding (VZIO), Veritiv Cor (VRTV), Gogo Inc (GOGO), Service Properties (SVC), Alignment Healthcare LLC (ALHC), Brp Gr (BRP), Procept Biorobotics (PRCT), Syndax Pharmaceuticals (SNDX), Warby Parker (WRBY), Amphastar P (AMPH), Compass (COMP), Alphatecs (ATEC), Schrodinger (SDGR), Virgin Galactic Holdings (SPCE), Myriad Genetics (MYGN), Figs (FIGS), Beauty Health Co (SKIN), Montrose (MEG), Owens&Minor (OMI), Cytek Biosciences (CTKB), Easterly Government Properties (DEA), Alexander&Baldwin (ALEX), Ecovyst (ECVT), Arcus Biosciences (RCUS), Huron (HURN), 3D Systems (DDD), Gulfport Energy Operating (GPOR), Clean Energy (CLNE), Aurinia Pharma (AUPH), Iovance Biotherapeutics (IOVA), Radius Global Infrastructure (RADI), iHeartMedia A (IHRT), Orthopediatrics (KIDS).

More Stock Market News from Barchart

• Stocks Edge Higher on Positive Corporate News and Lower Bond Yields
• Concerns Have Resurfaced About Chinese Technology Stocks
• Stocks Climb on Increased M&A Activity and Lower Bond Yields
• Markets Today: Stock Indexes Push Higher on M&A Activity