Today’s Big Picture
Asia-Pacific stock markets ended the day mixed. Both Australia’s ASX All Ordinaries and China’s Shanghai Composite fell just under 0.20%, Hong Kong’s Hang Seng was down 0.71% in a mixed day led by Health Technology names. Taiwan’s TAIEX ended the day flat, up only 0.05%, Japan’s Nikkei rose 0.29%, India’s SENSEX added 0.46%, and South Korea’s KOSPI closed 0.94% higher led by Finance, and Producer Manufacturing names. European markets are trading higher in midday trade and US stock futures are showing a positive opening.
We have a big morning of economic data with the Retail Sales and Producer Price Index both released before the market open. Primary retail sales are expected to rebound, rising 0.8% compared to January after the nearly 1.0% drop that month. Excluding auto sales, the market sees February Sales up 0.5%. The headline Producer Price Index (PPI) for February is also expected to climb, rising 1.1% YoY compared to January’s 0.9% move. Helping to fuel that expectation is the rebound in energy prices and as many consumers know those at the gas pump.
The Core PPI market is for it to drop to 1.9% YoY, down from 2.0% the month before, but so far, the majority of February inflation data and comments have moved in a different direction. If we see that trend continue with this morning’s PPI numbers, both headline and core, it would be another reason for the Fed to take a more cautious tone when it comes to rate cuts after next week’s policy meeting.
Data download
International Economy
Hard to believe, we know, but there were no major economic releases for economies outside the US this morning. We suggest you enjoy this short break while it lasts.
Domestic Economy
In addition to this morning’s Retail Sales and Producer Price Index reports for February, January’s Business Inventories data will be released at 9 AM ET. Coming out of the post-holiday shopping sales season, we’ll be looking to see if retail and retailer inventories are inflated as we move into the spring season.
The US House of Representatives overwhelmingly approved a bill on Wednesday that would have given TikTok’s Chinese owner ByteDance about six months to remove the short-video app’s US assets or face a ban, in the biggest threat to the app since the Trump administration. -management.
Markets
Technology giveth and Technology taketh away as the sector gave back just over half of its Tuesday gains, falling 1.08% on the heels of Intel (INTC) government contract news that disrupts the entire sector. Overall, sectors were mixed with leadership coming from Energy which gained 1.60% followed by Materials, up 0.99%. The Russell 2000 led broad indexes, gaining 0.30%, the Dow rose 0.10% while the S&P 500 fell 0.19% and the Nasdaq Composite closed 0.54% lower.
Shares of PayPal (PYPL) reacted positively to news of the company installing former SoFi executive Aaron J. Webster as the new Chief Enterprise Services Officer. Shares traded 4.03% higher on the news. Here’s how market indicators stack up year-over-year:
- Dow Jones Industrial Average: 3.59%
- S&P 500: 8.29%
- Nasdaq Composite: 7.77%
- Russell 2000: 2.20%
- Bitcoin (BTC-USD): 74.11%
- Ether (ETH-USD): 74.52%
Stocks to Watch
Dick’s Sporting Goods (DKS), Dollar General (DG), G-III Apparel (GIII)and Hello Group (MOMO) are expected to release quarterly earnings before shares begin trading later this morning. Premarket breadth is healthy today, as 248 names in the S&P 500 have traded hands so far this morning with 190 gainers and 58 decliners. Dollar General (DG) sits on top of the decliners board and Tesla (TSLA) traders are busy this morning, approaching 700,000 shares at the time of writing, indicating about a 1.50% decline before the open. Names grabbing a healthy bid this morning include Microchip Technology (MCHP), Skyworks Solutions (SWKS)and Modern (MRNA).
Home builder Lennar (LEN) reported February quarter EPS that easily cleared the consensus forecast, however revenue for the period came in at $7.31 billion, missing the $7.39 billion forecast. New orders during the quarter increased 28% to 18,176 homes, while its dollar value rose 21% to $7.7 billion. Coming out of the quarter, Lennar’s backlog was 16,270 homes up from 14,892 at the end of November. Deliveries increased 23% to 16,798 homes, in line with guidance of 16,500-17,000, and management is targeting 19,000-19,500 new deliveries in the current quarter.
A well-known Apple partner Foxconn (FXCOF) reported stronger-than-expected quarterly results and shared that it expects “significant” growth in 2024 driven by demand for AI servers. Management noted that the annual growth in GPU modules will more than double this year, while revenue from the AI server business is expected to exceed 40% per year and account for more than 40% of total server business.
Foxconn expects the inventory digest in networking products to have a slight impact on growth momentum in the first half of 2024. But, looking at the entire segment of cloud and network products this year, the company believes that strong growth is still achievable. Foxconn said it expects revenue for the first quarter to decline slightly from a year earlier, with revenue for smart computer electronics also likely to decline in the period.
Shares of Robinhood rose more than 10% after the release of its February performance data. The company reported a 16% increase in assets under custody from the previous month and a large 59% jump from February 2023. Trading volumes showed significant growth, with equity notional trading volumes reaching $80.9 billion, options contracts traded at $119.1 million, and crypto notional. trading volume hitting $ 6.5 million, marking a 36%, 12% and 10% increase, respectively, compared to January volumes.
Fisker (FSR) Shares fell more than 40% in after-market trading last night following reports of the company’s potential bankruptcy. The electric vehicle maker has struggled with mechanical problems in its Ocean SUV and financial challenges, leading to doubts about its ability to continue operations.
BP Pulse, BP (BP) electric car charging brand, has acquired the freehold of one of the largest truck stops in Europe, Ashford International Truckstop in Kent as part of its strategic drive to create a pan-European network of electric truck charging infrastructure.
IPOs
Readers who want to delve into the upcoming IPO calendar should visit Nasdaq’s Latest and Upcoming IPOs page.
After Today’s Market Close
Adobe (ADBE), Blink Charging (BLNK), PagerDuty (PD), Smartsheet (SMAR)and Ulta Beauty (ULTA) are expected to report quarterly results after shares stop trading today. Those looking for more on upcoming quarterly earnings reports should head over to Nasdaq’s Earnings Calendar.
On the Horizon
Friday, March 15th
- United States: Import/Export Prices – February
- United States: Industrial Production & Capacity Utilization – February
- United States: The University of Michigan Consumer Sentiment Index (Preliminary) – March
Thought for the Day
“We are cups, constantly and calmly filled. The trick is to know how to turn ourselves upside down and let the beautiful things go.” —Ray Bradbury
Revelations
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.