Market Watch: Dow futures contract fell by 50 points or 0.1%, S&P 500 futures fell by 9 points or 0.2%, and Nasdaq 100 futures shed 43 points or 0.2%..
Stock futures fell amid upcoming presidential debate and inflation data. Micron shares fell after quarter outlook fails to meet expectations, while Levi Strauss’s sales missed estimates.
Levi slumped
Levi Strauss shares slumped after a slight miss in fiscal second-quarter revenue, causing a 12% drop. The company’s revenue increased by 7.8% to $1.44 billion, slightly below forecasts. However, the company reiterated its financial outlook and announced an 8% dividend increase.
Micron shares sink
Micron shares fell after the company revealed a disappointing Q4 financial outlook, which disappointed investors due to increased interest in artificial intelligence. The company’s revenue was expected to be $7.6 billion, with a plus or minus $200 million. Analysts were seeking stronger guidance from the company, which has been a major beneficiary of the AI craze. The decline in Micron’s stock price also affected shares in semiconductor peers.
Biden-Trump debate
The Biden-Trump debate is expected to focus on age, with the two oldest candidates, Joe Biden and Donald Trump, facing accusations of physical and mental unfitness. The debate could help both candidates prove their fitness to undecided voters.
Economic Calendar
- 8:30Â Durable Goods
- 8:30Â GDP Q1
- 8:30 Â International Trade in Goods (Advance)
- 8:30Â Initial Jobless Claims
- 8:30Â Corporate Profits
- 8:30Â Retail Inventories (Advance)
- 8:30Â Wholesale Inventories (Advance)
- 10:00Â Pending Home Sales
- 10:30Â EIA Natural Gas Inventory
- 11:00Â Kansas City Fed Mfg Survey
- 1:00 PMÂ Results of $44B, 7-Year Note Auction
- 4:30 PMÂ Fed Balance Sheet
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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.