Stock Market Update

The S&P 500 futures are down one point and are trading in-line with fair value, the Nasdaq 100 futures are up 40 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are down 45 points and are trading 0.1% below fair value.

There's a mixed vibe in early trading as participants wait on the January Consumer Price Index report at 8:30 ET. Fed Chair Powell also continues his semiannual testimony today in the House. 

Earnings news since yesterday's close garnered mixed responses. Lyft (LYFT) is down sharply in front of the open and DoorDash (DASH) sports a solid pre-open gain after reporting results.

Treasuries are steady ahead of the inflation report. The 10-yr yield is unchanged at 4.54%.

In corporate news:

• Super Micro Computer (SMCI 42.53, +3.90, +10.1%): projects Q2 earnings and sales below consensus; guides FY25 revenue in-line with consensus; sees $40 bln in revs possible in FY26; announces private placement of $700.0 million of new 2.25% convertible senior notes due 2028 and amendments to existing 0.00% convertible senior notes due 2029; delays 10-Q filing; in late 2024, received subpoenas from DOJ and SEC requesting documents following short seller report; SMCI is cooperating with these document requests
• Lyft (LYFT 12.45, -1.94, -13.5%): beats by $0.07, beats on revs, Gross Bookings up 15% yr/yr; Sees Q1 Gross Bookings growth of 10-14%; Focused on margin expansion in 2025
• DoorDash (DASH 204.28, +11.19, +5.8%): misses by $0.01, beats on revs; reports Adjusted EBITDA in-line with prior guidance
• Gilead Sciences (GILD 100.45, +4.31, +4.5%): beats by $0.16, beats on revs; guides FY25 EPS above consensus; increases quarterly cash dividend 2.6% to $0.79/share from $0.77/share
• Occidental Petro (OXY 48.95, +0.36, +0.7%): 10% owner Warren Buffett's Berkshire Hathaway (BRK.A / BRK.B) bought 763,017 shares at $46.640 - $47.00 worth approx. $35.7 mln
• Zillow (ZG 78.29, -5.55, -6.6%): beats by $0.01, beats on revs; guides Q1 revs below consensus; expects low to mid-teens revenue growth in FY25
• Confluent (CFLT 34.46, +4.36, +14.5%): beats by $0.03, beats on revs; guides Q1 EPS in-line; guides FY25 EPS in-line

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: +2.6%, China's Shanghai Composite: +0.9%, India's Sensex: -0.2%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: +0.6%.
  • In economic data:
    • Japan's January M2 Money Stock 1.3% yr/yr, as expected (last 1.3%). January Machine Tool Orders 4.7% yr/yr (last 12.6%)
    • India's January CPI 4.31% yr/yr (expected 4.60%; last 5.22%). December Industrial Production 3.2% yr/yr (expected 3.9%; last 5.0%) and Manufacturing Output 3.0% m/m (last 5.5%)
  • In news:
    • There is renewed uncertainty whether Australia will receive an exemption from new U.S. tariffs on steel and aluminum imports.
    • Japan has officially requested to be excluded from the tariffs
    • Bank of Japan Governor Ueda said that appropriate policy will be conducted to achieve the 2.0% inflation target.
    • China is reportedly tightening rules on new copper smelters to reduce overcapacity.
• Major European indices trade on a mostly higher note with Spain's IBEX (+0.8%) continuing its recent outperformance while the STOXX 600 index is reaching a fresh record high. STOXX Europe 600: +0.1%, Germany's DAX: +0.3%, U.K.'s FTSE 100: UNCH, France's CAC 40: UNCH, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.8%.
  • In economic data:
    • Italy's December Industrial Production -3.1% m/m (expected -0.1%; last 0.3%); -7.1% yr/yr (last -1.6%)
  • In news:
    • ABN Ambro, Banco BPM, and Heineken beat quarterly expectations, with the latter boosting other beverage stocks.
    • Bank of France expects domestic growth of just 0.1% to 0.2% in Q1.