Market Watch: Dow futures contract remained mostly flat, while S&P 500 futures gained 5 points or 0.1%, and Nasdaq 100 futures increased 32 points or 0.2%.
Stock futures are mostly positive due to tech stock rebound, FedEx’s upbeat full-year financial forecast, and Rivian’s surge in shares, boosted by Volkswagen’s $5 billion investment in the electric truck maker.
FedEx rose
FedEx’s shares surged by over 13% after the shipping giant revealed an upbeat outlook and plans for a $2.5 billion share buyback in its current financial year. The Memphis-based company expects full-year revenue growth in the low- to mid-single digit, with earnings in its 2025 fiscal period expected to be between $20 to $22 per share.
Pool shares sink
Pool stock fell 7% after the swimming pool products distributor cut its earnings and revenues expectations due to a downturn in consumer spending on home improvement projects. Pool warned that construction activity may slip by 15% to 20% this year and sales year-to-date have decreased by 6.5% compared to 2023.
Rivian Got $5 billion investment
Volkswagen plans a $5 billion investment in Rivian, a high-end electric truck group. The partnership could provide VW with up to $5 billion in capital, forming a 50/50 joint venture for sharing electric vehicle architecture and software. The move aims to boost EV offerings amid increasing competition from China and Tesla.
Economic Calendar
- 7:00 Â MBA Mortgage Applications
- 10:00Â New Home Sales
- 10:30Â EIA Petroleum Inventories
- 11:00Â Survey of Business Uncertainty
- 11:30Â Results of $28B, 2-Year FRN Auction
- 1:00 PMÂ Results of $70B, 5-Year Note Auction
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Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow, the benchmark and tech-heavytouched record marks last week.
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow,
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
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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.