Market Watch: Dow futures contract lost 43 points or 0.1%, S&P 500 futures fell 8 points or 0.2%, and Nasdaq 100 futures fell 36 points or 0.2%.
Stock futures in the US are lower due to corporate results and upcoming economic data releases. Arm Holdings’ revenue outlook is weaker than expected, while Robinhood’s quarterly returns exceed estimates.
Arm revenue forecast
Arm Holdings’ full-year revenue forecast for 2024 fell short of estimates, despite increased enterprise spending on artificial intelligence. The company forecasted revenue between $3.8 billion and $4.1 billion, just shy of expectations. However, Arm reported a $0.36 EPS on revenue of $928 million, ahead of Wall Street projections. License revenue rose 60% to $414 million due to increased investment in Arm-based AI technology..
Robinhood earnings
Robinhood’s first-quarter earnings and revenue exceeded analyst expectations, with earnings per share of $0.18 and net revenues of $618 million. Adjusted core income rose 115% year-over-year to $247 million, thanks to strong crypto trading volumes and an elevated borrowing cost environment.
China’s imports exports
China’s exports increased by 1.5% in April, potentially signaling momentum in the manufacturing sector, which could support a broader economic recovery. Imports surged 8.4%, despite a 1.9% drop in March. The increase was partly driven by a weaker base and some recovery in domestic demand.
Economic Calendar
- 8:30 Initial Jobless Claims
- 10:30 EIA Natural Gas Inventory
- 1:00 Results of $25B, 30-Year Bond Auction
- 4:30 Fed Balance Sheet
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MFitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.
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U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.