March S&P 500 E-Mini futures (ESH24) are showing a downward trend of -0.14% this morning as market participants await the release of the Federal Reserve’s January policy meeting minutes while also looking forward to the quarterly results from chip manufacturer Nvidia.
On Tuesday’s trading session, major Wall Street indices closed in the red, with the high-tech Nasdaq 100 dropping to its lowest level in two weeks. Expeditors International of Washington Inc (EXPD) plunged over -6% and was the biggest percentage loser in the S&P 500 after the company reported disappointing fourth-quarter results. Chip stocks also retreated, as NVIDIA Corporation (NVDA) fell more than -4% in preparation for its earnings report.
Additionally, Tesla Inc (TSLA) dropped over -3% after Phillip Securities downgraded the stock to Neutral from Accumulate with a target price of $175. On the upside, Discover Financial Services (DFS) soared over +12% and was the biggest percentage gainer in the S&P 500 after Capital One Financial agreed to acquire the company in an all-stock deal worth $35.3 billion. Furthermore, Walmart Inc (WMT) advanced over 3% and was the biggest percentage gainer in the Dow after reporting better-than-expected U.S. comparable sales for the fourth quarter.
The U.S. retail giant also said it agreed to buy smart TV manufacturer Vizio Holding Corp. for about $2.3 billion.
Meanwhile, U.S. rate futures have priced in a 6.5% probability of a 25 basis-point cut at the March FOMC meeting and a 33.7% probability of a 25 basis-point cut at the May monetary policy meeting.
On the earnings front, notable companies such as NVIDIA (NVDA), Analog Devices (ADI), Synopsys (SNPS), Etsy (ETSY), Rivian Automotive (RIVN), Marathon Oil (MRO), and Lucid Group (LCID) are set to report their quarterly figures today.
Investors will closely monitor the release of the Federal Reserve’s January meeting minutes for any new insights into the trajectory of monetary policy, with markets currently pricing in four quarter-point rate cuts this year starting in June.
“For now, market pricing is consistent with our call for 100 basis points of cuts, starting in June,” Morgan Stanley stated in a note.
The U.S. economic data calendar is virtually empty on Wednesday. However, market participants will likely focus on speeches by Atlanta Fed President Raphael Bostic and Fed Governor Michelle Bowman.
In the bond markets, U.S. 10-year rates are at 4.270%, a decrease of -0.14%.
Pre-Market U.S. Stock Movers
Palo Alto Networks Inc (PANW) tumbled about -23% in pre-market trading after the cybersecurity company cut its full-year revenue and billings guidance.
SolarEdge Technologies Inc (SEDG) plunged over -14% in pre-market trading after the company issued lower-than-expected Q1 revenue guidance.
Teladoc Inc (TDOC) slumped more than -20% in pre-market trading after the telehealth and telemedicine services provider reported mixed Q4 results and provided disappointing Q1 and FY24 guidance.
Keysight Technologies Inc (KEYS) slid over -6% in pre-market trading after the company offered below-consensus Q2 guidance.
Amazon.com Inc (AMZN) gained more than +1% in pre-market trading after S&P Dow Jones Indices said on Tuesday that the online retail giant will replace Walgreens Boots Alliance Inc. in the Dow Jones Industrial Average effective next week.
The Wendy’s Co (WEN) fell over -1% in pre-market trading after JPMorgan downgraded the stock to Neutral from Overweight with a price target of $19.
Today’s U.S. Earnings Spotlight: Wednesday – February 21st
NVIDIA (NVDA), Analog Devices (ADI), Synopsys (SNPS), Suncor Energy (SU), Verisk (VRSK), Exelon (EXC), ANSYS (ANSS), Nutrien (NTR), Garmin (GRMN), Vertiv Holdings Co (VRT), Sendas Distribuidora (ASAI), Rivian Automotive (RIVN), Nordson (NDSN), Fidelity Financial (FNF), Host Hotels Resorts (HST), Marathon Oil (MRO), Avangrid Inc (AGR), HF Sinclair (DINO), Western Midstream Partners (WES), Texas Pacific (TPL), EXACT Sciences (EXAS), Repligen (RGEN), NiSource (NI), Clean Harbors (CLH), United Therapeutics (UTHR), Mosaic (MOS), Wingstop Inc (WING), Etsy Inc (ETSY), Churchill Downs (CHDN), Lucid Group (LCID), Range Resources (RRC), Wix.Com Ltd (WIX), Chord Energy (CHRD), OGE Energy (OGE), GlobalE Online (GLBE), Ionis Pharma (IONS), Owl Rock Capital (OBDC), Gildan Activewear (GIL), F G Annuities Life (FG), Dutch Bros (BROS), Alight (ALIT), Five9 (FIVN), Bausch + Lomb (BLCO), Valmont Industries (VMI), Alamos Gold (AGI), Glaukos Corp (GKOS), SM Energy (SM), Joby Aviation (JOBY), Huntsman (HUN), Jackson Financial (JXN), Ormat (ORA), Goosehead Insurance (GSHD), Sunrun Inc (RUN), Remitly Global (RELY), B2Gold (BTG), DigitalOcean Holdings (DOCN), McGrath (MGRC), Marriot Vacations Worldwide (VAC), Ziff Davis (ZD), Broadstone Net (BNL), Travel + Leisure Co (TNL), Mister Car Wash (MCW), American States Water (AWR), Genworth (GNW), Constellium Nv (CSTM), Avista (AVA), Gibraltar Industries (ROCK), Triple Flag Precious Metals (TFPM), Q2 Holdings (QTWO), AssetMark (AMK), Chesapeake Utilities (CPK), ACV Auctions (ACVA), Rogers (ROG), Camping World Holdings (CWH), Medical Properties (MPW), Outfront Media (OUT), Photronics (PLAB), SJW (SJW), Ultra Cleans (UCTT), The Cheesecake (CAKE), Ingevity (NGVT), Gentherm (THRM), Vital Energy (VTLE), Shutterstock (SSTK), Veris Residential (VRE), Tandem Diabetes Care (TNDM), Arcus Biosciences (RCUS), Kimbell Royalty (KRP), Cannae (CNNE), Jack In The Box (JACK), Equinox Gold (EQX), PROG Holdings (PRG), Kennedy-Wilson (KW), Sunnova Energy (NOVA), Forward Air (FWRD), Encore Capital (ECPG), Perdoceo Education (PRDO), Calliditas Therapeutics (CALT), Bridge Investment Group Holdings (BRDG).