As market participants brace for the impact of quarterly results, March S&P 500 E-Mini futures (ESH24) and March Nasdaq 100 E-Mini futures (NQH24) show a slight dip of -0.18% and -0.16%, respectively, this morning.
In pre-market trading, the Walt Disney Company (DIS) stands out, surging over +6% after reporting robust Q1 earnings, announcing a 50% boost in its cash dividend, and issuing a positive profit outlook for the year.
Wednesday saw Wall Street’s major averages closing higher, setting new record highs for the benchmark S&P 500 and the tech-heavy Nasdaq 100. Key gainers included Emerson Electric Company (EMR), up over +10%, Chipotle Mexican Grill Inc (CMG), climbing more than +7%, and Ford Motor Company (F), advancing over +6% post-better-than-expected Q4 results.
However, VF Corporation (VFC) plunged over -9%, making it the top percentage loser on the S&P 500, following downbeat Q3 results. Similarly, Snap Inc (SNAP) tumbled over -34% after reporting weaker-than-expected Q4 revenue.
Yesterday’s economic data revealed a widening U.S. December trade deficit to -$62.20B, slightly surpassing expectations and a weaker-than-expected increase of +$1.56B in U.S. consumer credit for December. Federal Reserve officials, including Governor Adriana Kugler and Minneapolis Fed President Neel Kashkari, were cautious about interest rate adjustments. Kugler mentioned potential rate reductions as inflation and labor markets cool, while Kashkari emphasized waiting for more inflation data before considering rate cuts.
Market expectations, however, suggest an 18.5% probability of a 25 basis point rate cut in the March FOMC meeting and a 63.4% likelihood of at least a 25 basis point rate cut in May.
According to Nasdaq, on the earnings front today, ConocoPhillips (COP), Philip Morris (PM), Duke Energy (DUK), Expedia (EXPE), Take-Two Interactive (TTWO), Capri Holdings (CPRI), Tapestry (TPR), Pinterest (PINS), and Kenvue (KVUE) are set to report quarterly figures.
Attention is also on the U.S. Initial Jobless Claims data, with economists expecting 221K compared to the previous week’s 224K. Additionally, U.S. Wholesale Inventories data and a speech from Richmond Fed President Thomas Barkin will be closely monitored. In the bond markets, U.S. 10-year rates stand at 4.110%, up +0.24%.
In Europe, the Euro Stoxx 50 futures rose +0.38%, with Unilever Plc (ULVR.L.EB) surging over +3% after reporting better-than-expected Q4 sales growth. Adyen (ADYEN.NA) climbs about +22% after exceeding full-year earnings expectations. However, AstraZeneca Plc (AZN.LN) falls more than -2% post-lower-than-expected quarterly profit, and Ap Moller Maersk A/S (MAERB.C.DX) tumbles over -13% following weaker-than-expected Q4 profit and a suspended share buyback program.
In Asia, Chinese and Japanese markets closed in the green, with the Shanghai Composite Index (SHCOMP) up +1.28% and Japan’s Nikkei 225 Stock Index (NIK) up +2.06%.
