March Nasdaq 100 E-Mini futures (NQH25) are trending down -0.91% this morning as disappointing results from Alphabet and Advanced Micro Devices weighed on sentiment.
Alphabet (GOOGL) slid over -7% in pre-market trading after the Google parent reported weaker-than-expected Q4 revenue as growth in its cloud business slowed. Also, Advanced Micro Devices (AMD) slumped more than -8% in pre-market trading after the chipmaker posted weaker-than-expected Q4 data center revenue, and its full-year forecast for the data center business failed to impress investors.
Market participants now look ahead to a fresh batch of U.S. economic data, comments from Federal Reserve officials, and corporate earnings reports, with a particular focus on results from entertainment giant Disney.
In yesterday’s trading session, Wall Street’s three main equity benchmarks closed higher. Palantir Technologies (PLTR) jumped about +24% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the data analytics company posted upbeat Q4 results and issued above-consensus Q1 and FY25 revenue guidance. Also, megacap technology stocks advanced, with Apple (AAPL) and Tesla (TSLA) rising more than +2%. In addition, Super Micro Computer (SMCI) climbed over +8% after the artificial intelligence server maker announced that it would provide an FQ2 business update on February 11th. On the bearish side, Estee Lauder (EL) plunged more than -16% and was the top percentage loser on the S&P 500 after the cosmetics and skin care company provided a downbeat FQ3 outlook and announced job cuts. Also, Merck & Co. (MRK) slumped over -9% and was the top percentage loser on the Dow after halting shipments to China of its Gardasil vaccine and offering a weak FY25 forecast.
A Labor Department report released on Tuesday showed that the U.S. JOLTs job openings fell to 7.600M in December, weaker than expectations of 8.010M. Also, U.S. December factory orders fell -0.9% m/m, weaker than expectations of -0.7% m/m and marking the largest decline in 6 months.
“[The latest reading on U.S. job openings] eases upside risks into Friday’s employment report in a way that is helpful for the Federal Reserve and markets,” said Krishna Guha at Evercore.
Fed Vice Chair Philip Jefferson said on Tuesday, “As long as the economy and the labor market remain strong, I see it as appropriate for the Committee to be cautious in making further adjustments... I do not think we need to be in a hurry to change our stance.”
Meanwhile, U.S. rate futures have priced in an 83.5% chance of no rate change and a 16.5% chance of a 25 basis point rate cut at the conclusion of the Fed’s March meeting.
Fourth-quarter corporate earnings season rolls on, and investors await new reports from notable companies today, including The Walt Disney Company (DIS), Qualcomm (QCOM), Arm Holdings (ARM), Uber Technologies (UBER), and Ford Motor (F). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +7.5% increase in quarterly earnings for Q4 compared to the previous year.
On the economic data front, all eyes are focused on the U.S. ADP Nonfarm Employment Change data, which is set to be released in a couple of hours. Economists, on average, forecast that the January ADP Nonfarm Employment Change will stand at 148K, compared to the December figure of 122K.
Investors will also focus on the U.S. ISM Non-Manufacturing PMI and the S&P Global Services PMI. Economists expect the January ISM Non-Manufacturing PMI to arrive at 54.2 and the S&P Global Services PMI to be 52.9, compared to the previous values of 54.1 and 56.8, respectively.
U.S. Trade Balance data will come in today. Economists foresee this figure standing at -$96.50B in December, compared to -$78.20B in November.
U.S. Crude Oil Inventories data will be released today as well. Economists estimate this figure to be 2.400M, compared to last week’s value of 3.463M.
In addition, market participants will be looking toward speeches from Fed officials Barkin, Goolsbee, Bowman, and Jefferson.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.471%, down -0.93%.
The Euro Stoxx 50 Index is down -0.27% this morning as investors digested more corporate earnings reports and business activity data from the region. Technology and automobile stocks underperformed on Wednesday. At the same time, healthcare stocks gained ground. A survey released on Wednesday showed that Eurozone business activity returned to growth in January following two months of contraction, driven by the stabilization of demand. Meanwhile, investors kept a close watch on escalating global trade tensions, though the measures enacted by the U.S. and China have been less severe than the market had initially feared. In corporate news, Novo Nordisk A/S (NOVOB.C.DX) gained over +3% after the Danish drugmaker posted stronger-than-expected Q4 net profit amid surging demand for its Wegovy obesity drug. Also, GSK Plc (GSK.LN) climbed more than +5% after the British pharmaceutical giant boosted its long-term sales guidance. In addition, Banco Santander S.A. (BNC.LN) surged over +6% after reporting record annual profit and announcing a new 10 billion euro share buyback program.
France’s Industrial Production, Eurozone’s Composite PMI, Eurozone’s Services PMI, and Eurozone’s PPI data were released today.
The French December Industrial Production came in at -0.4% m/m, weaker than expectations of -0.1% m/m.
Eurozone January Composite PMI stood at 50.2, in line with expectations.
Eurozone January Services PMI arrived at 51.3, weaker than expectations of 51.4.
Eurozone December PPI has been reported at +0.4% m/m and 0.0% y/y, compared to expectations of +0.5% m/m and -0.1% y/y.
Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.65% and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.09%.
China’s Shanghai Composite Index closed lower today as trading resumed after the Lunar New Year holidays, with investors digesting recent trade developments between China and the U.S. On Tuesday, the U.S. imposed a 10% tariff on Chinese goods, leading Beijing to announce retaliatory tariffs on U.S. exports, including oil, gas, coal, cars, and farm equipment, set to take effect on February 10th. U.S. President Donald Trump and Chinese leader Xi Jinping are expected to speak soon, though the exact timing of the conversation remains uncertain. Trump told reporters he’ll speak to the Chinese president at the appropriate time. E-commerce stocks plunged on Wednesday after the U.S. Postal Service temporarily halted parcels from China and Hong Kong. At the same time, software stocks soared as sentiment was lifted by the potential growth of AI applications following DeepSeek’s release of a lower-cost large language model. Meanwhile, a private-sector survey released on Wednesday showed that China’s services activity expanded at a slower rate in January, aligning with official data as demand and supply weakened at the start of the year. In other news, Bloomberg reported that China’s antitrust watchdog is preparing for a potential investigation into Apple’s policies and the fees it charges app developers. In corporate news, BAIC BluePark New Energy Technology gained nearly +3% after its subsidiary, Beijing Auto BluePark New Energy Technology, posted a surge in production and sales in January.
The Chinese January Caixin Services PMI stood at 51.0, weaker than expectations of 52.3.
Japan’s Nikkei 225 Stock Index closed slightly higher today, giving up most of its early gains as the yen strengthened amid expectations that the Bank of Japan will persist with interest rate hikes. Automobile stocks advanced on Wednesday, with Toyota Motor climbing over +3% after the company raised its full-year operating profit forecast. Government data released on Wednesday showed that Japan’s inflation-adjusted real wages increased by 0.6% year-over-year in December, supported by a rise in winter bonuses, marking a second consecutive monthly gain. Separately, a private-sector survey revealed that Japan’s service activity grew for the third straight month in January, aided by a rebound in new export business due to Asian demand. Strong wage data and an expansionary services PMI reading in Japan bolster expectations that the Bank of Japan will keep hiking interest rates in 2025. Meanwhile, Kazuhiro Masaki, director-general of the BOJ’s monetary affairs department, said on Wednesday that the central bank will continue to raise interest rates if underlying inflation moves toward its 2% target as anticipated. In other corporate news, Honda Motor surged over +8%, while Nissan Motor slid more than -4% following news that Nissan’s board plans to reject Honda’s proposed terms for a merger between the two automakers. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -2.07% to 22.72.
The Japanese January au Jibun Bank Services PMI arrived at 53.0, stronger than expectations of 52.7.
Pre-Market U.S. Stock Movers
Alphabet (GOOGL) slid over -7% in pre-market trading after the Google parent reported weaker-than-expected Q4 revenue as growth in its cloud business slowed.
Advanced Micro Devices (AMD) slumped more than -8% in pre-market trading after the chipmaker posted weaker-than-expected Q4 data center revenue, and its full-year forecast for the data center business failed to impress investors.
Apple (AAPL) fell over -2% in pre-market trading after Bloomberg reported that China’s antitrust watchdog is preparing for a potential investigation into the company’s policies and the fees it charges app developers.
Chipotle Mexican Grill (CMG) dropped more than -5% in pre-market trading after the burrito chain cut its full-year sales outlook.
Mattel (MAT) surged over +14% in pre-market trading after the company posted upbeat Q4 results and issued strong FY25 adjusted EPS guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - February 5th
Walt Disney (DIS), Qualcomm (QCOM), Arm (ARM), Boston Scientific (BSX), Uber Tech (UBER), Fiserv (FI), MicroStrategy (MSTR), O’Reilly Automotive (ORLY), McKesson (MCK), Illinois Tool Works (ITW), Emerson (EMR), Aflac (AFL), MetLife (MET), Itau Unibanco (ITUB), Johnson Controls (JCI), Allstate (ALL), Cencora Inc (COR), Corteva (CTVA), Cognizant A (CTSH), Ford Motor (F), Ares Management (ARES), Old Dominion Freight Line (ODFL), Yum! Brands (YUM), AvalonBay (AVB), CDW Corp (CDW), Corpay (CPAY), T Rowe (TROW), PTC (PTC), STERIS (STE), News Corp (NWS), Molina Healthcare (MOH), Mid-America Apartment (MAA), Axa Equitable (EQH), Hologic (HOLX), News Corp A (NWSA), Align (ALGN), Ares Capital (ARCC), Performance Food Group Co (PFGC), U-Haul Holding (UHAL), Skyworks (SWKS), UDR (UDR), Coherent (COHR), Stanley Black Decker (SWK), Bio-Techne (TECH), Dayforce (DAY), Evercore (EVR), Bunge (BG), Globe Life (GL), Murphy USA (MUSA), Regal Beloit (RRX), Crown (CCK), Omega Healthcare (OHI), Qiagen (QGEN), NewYork Times (NYT), Rexford Inl Rty (REXR), FirstService (FSV), The Ensign (ENSG), Wex (WEX), First Industrial RT (FR), UGI (UGI), Reynolds (REYN), Timken (TKR), Moelis & Co (MC), Tenable (TENB), Radian (RDN), Sitime Corp (SITM), Kemper (KMPR), Black Hills (BKH), Spire (SR), RXO Inc (RXO), Rayonier (RYN), ASGN (ASGN), Enersys (ENS), Viking Therapeutics Inc (VKTX), Griffon (GFF), Impinj (PI), Envista Holdings (NVST), Harley-Davidson (HOG), Symbotic (SYM), FormFactor (FORM), Capri Holdings (CPRI), TTM (TTMI), Central Garden&Pet (CENT), Hillenbrand (HI), Azenta (AZTA), Vishay Intertechnology (VSH), Liveramp (RAMP), CONMED (CNMD), ePlus (PLUS), Criteo Sa (CRTO), DHT Holdings Inc (DHT), PC Connection (CNXN), Kennametal (KMT), Stewart Info Services (STC), Silicon Motion (SIMO), CSG Systems (CSGS), Lucky Strike Entertainment (LUCK), Horace Mann Educators (HMN), Universal Technical Institute (UTI), BrightView Holdings (BV), Costamare (CMRE), Alpha & Omega Semiconductor (AOSL), Safehold (SAFE), Blue Bird (BLBD), Digi (DGII), Deluxe (DLX).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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