Market Watch:-S&P futures (SPX) +0.5%, Nasdaq 100 futures (NDX:IND) +0.5% and Dow futures (INDU) +0.2%.
Wall Street is expected to end the year positively as traders await the crucial payrolls report next week.
Goldman Sachs earnings
Goldman Sachs continues the first quarter earnings season in the U.S. banking sector, following disappointing results from JPMorgan Chase, Citigroup, and Wells Fargo. Investors will be interested in Goldman’s net interest income estimates and its response to calls for a split between CEO and chairman roles. An independent chair is preferable to having a single individual lead both the board and executive team.
Apple Lost its crown
Apple has lost its position as the world’s top phone maker, according to IDC data. Samsung regained the top spot after a 10% drop in smartphone shipments in Q1 2024. Apple now holds 17.3% market share, while Xiaomi, a top Chinese smartphone maker, occupied the third position with 14.1%.
Tesla layoffs
Tesla may announce large-scale redundancies amid worsening sales and weakening demand in China. The electric vehicle maker reported a drop in first quarter deliveries and set weaker production targets for 2024. Analysts at UBS predict a tougher road ahead for Tesla, with plateauing EV demand and increased competition in China potentially impacting near-to-mid-term growth. The layoffs could be announced this week.
Economic Calendar
- 2:30 Fed’s Logan: “Gender Diversity in the Workplace as a Key to Economic Growth”
- 8:30 Retail Sales
- 8:30 Empire State Mfg Survey
- 10:00 Business Inventories
- 10:00 Housing Market Index
- 8:00 PM Fed’s Daly Speech
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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.