Market Watch: Dow futures contract fell 40 points, S&P 500 futures dropped 12 points, and Nasdaq 100 futures fell 85 points.
On Tuesday, corporate earnings, particularly from Tesla and Alphabet, will be the focus, while Wiz has reportedly declined a Google deal, and Vice President Kamala Harris is set to run for presidency.
Harris support
Kamala Harris is in a strong position to receive the Democratic Party’s nomination for the November presidential election against Donald Trump.
An AP survey shows she has the support of at least 2,214 delegates. Biden endorsed Harris after he announced he will not seek reelection.
However, she still needs to be officially nominated. A HarrisX/Forbes poll showed Trump widening his lead in the 2024 presidential race, with Biden and Harris trailing by six percentage points.
Tesla earnings
The quarterly corporate earnings season is underway, with results from General Motors, Coca-Cola, Comcast, UPS, and Spotify due before the bell.
Tesla and Alphabet are the first “Magnificent Seven” stocks to report, with Tesla’s second-quarter margin likely to hit a five-year low.
Wiz’s deal
Wiz, a cybersecurity firm, has turned down a $23 billion deal with Google-parent Alphabet, according to a memo.
Wiz CEO Assaf Rappaport stated that the company will now focus on an initial public offering and aim to achieve an annual recurring revenue of $1 billion.
This decision will be a setback for Google, which has been investing in cloud infrastructure.
Economic Calendar
- 10:00 AMÂ Existing Home Sales
- 10:00 AMÂ Richmond Fed Mfg. Index
- 01:00 PMÂ Results of $69B, 2-Year Note Auction
- 01:00 PMÂ Money Supply
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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.