Market Sentiment
Dow futures contract down 44 points, or 0.1%, while the S&P 500 futures fell 2 points, or 0.1%, and the Nasdaq 100 futures remained largely steady..
Microsoft, Alphabet earnings ahead
Microsoft and Alphabet will release their latest quarterly profits after New York trade closes on Tuesday, in the first wave of potentially market-moving corporate results this week.
The findings come after Microsoft’s stock market valuation reached $3 trillion for the first time last week.
Microsoft’s investment in OpenAI’s ChatGPT chatbot, which has become a symbol of generative AI enthusiasm, underpins this sky-high price. Analysts will undoubtedly watch the company’s executives’ views on how to deploy the new technology, especially at Azure.
Alphabet introduced Gemini, an advanced AI play. Sundar Pichai, CEO of YouTube, called this model “one of the biggest science and engineering efforts we’ve undertaken.”
AI will be a focus for Advanced Micro Devices (NASDAQ:AMD) after the bell today. Earlier this month, analysts raised their semiconductor group price estimate due to rising demand for AI-powered processors.
Boeing withdraws 737 Max 7 safety exemption request
Boeing has withdrawn its request for a safety exemption for a new batch of its popular 737 Max planes, as it grapples with the aftermath from a dangerous mid-air door plug break earlier this month.
The exception would have accelerated U.S. regulators’ approval of Boeing’s 737 Max 7. Most investors expected it to be approved in the first half of the year.
Both the Max 7 and Boeing’s Max 10 certification timelines are currently uncertain. According to Reuters, the corporation may have to release design revisions sooner than expected.
Boeing also retracted its exemption application after U.S. legislators pressured it last week. U.S. Senator and aviation subcommittee chair Tammy Duckworth strongly opposed the plan, calling it “catastrophic consequences on passenger safety.”
BYD falls after poor earnings estimate
Warren Buffett-backed BYD (SZ:002594), which just overtook Tesla (NASDAQ:TSLA) as the world’s largest electric vehicle (EV) maker by sales volume, estimated full-year earnings that missed analyst estimates, sending shares lower on Tuesday.
The Chinese EV manufacturer predicts yearly earnings of 29 billion to 31 billion yuan, up 86.49% from last year. The rate would be much slower than the 446% 2022 net earnings growth.
According to a Nomura research note, the prognosis was 4% to 10% below expectations, the Wall Street Journal stated.
BYD warned of “fierce competition” in China’s EV business, which has fueled a price war among Chinese manufacturers trying to attract price-conscious buyers. The Shenzhen-based company said it has shown “strong resilience” to these constraints due to “rapid” foreign sales growth and supply chain cost reductions.
Economic Calendar
7:45 AM ICSC Weekly Retail Sales
8:55 AM Johnson/Redbook Weekly Sales
9:00 AM Monthly Home Prices M/M for November
9:00 AM S&P CaseShiller 20-City M/M for November
10:00 AM JOLTs Job Openings for December
10:00 AM Consumer Confidence for January
4:30 PM API Weekly Inventory Data
Other Key Events:
- China NBS Manufacturing for January
- China NBS Non-Manufacturing for January
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2023 Chinese growth exceeds objective, but difficulties persist
China’s economy grew slightly less than predicted in the fourth quarter due to sluggish spending and a property market slump, but it narrowly beat government expectations for 2023.Gross domestic product rose 5.2% year-over-year in the three months to Dec. 31, the National Bureau of Statistics reported Wednesday. The reading was weaker than 5.3% predictions but up from 4.9% the quarter before.This raised 2023 growth to 5.2%, above Beijing’s 5% target. Despite COVID-19 limits, activity increased from 3% in 2022 due to a lower base for comparison. Except for the three pandemic-era closures, it was the lowest yearly expansion rate since 1990.Last year, the Chinese economy was hampered by falling consumer spending, a housing market crash, and deflation. The world’s second-largest economy has demographic concerns, as shown by new data showing a faster population fall in 2023.
Last year, the Chinese economy was hampered by falling consumer spending, a housing market crash, and deflation. The world’s second-largest economy has demographic concerns, as shown by new data showing a faster population fall in 2023.
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