Stock Market Update

The S&P 500 futures are down six points and are trading 0.1% below fair value, the Nasdaq 100 futures are down 40 points and are trading 0.2% below fair value, and the Dow Jones Industrial Average futures are down 115 points and are trading 0.3% below fair value.

There's not a lot of conviction in early trading after yesterday's positive finish. Pre-open declines in the mega cap space have contributed to modest downside moves in futures linked to the S&P 500, Nasdaq 100, and Dow industrials, along with negative responses to some earnings news.

Applied Materials (AMAT) and Palo Alto Networks (PANW) are some of the premarket losers after reporting earnings results.

There is a big batch of economic news to get through today, including January Retail Sales at 8:30 ET.

The 10-yr yield is unchanged at 4.53% and the 2-yr yield is down two basis points to 4.29%.

In corporate news:

• Applied Materials (AMAT 175.41, -8.86, -4.8%): beats by $0.10, reports revs in-line; guides Q2 EPS in-line, revs in-line
• Palo Alto Networks (PANW 192.36, -9.52, -4.7%): beats by $0.03, reports revs in-line; guides AprQ EPS in-line, revs in-line; guides FY25 EPS above consensus, revs in-line
• DraftKings (DKNG 48.96, +2.51, +5.4%): misses by $0.12, reports revs in-line; raises FY25 revenue guidance
• Airbnb (ABNB 161.31, +20.27, +14.4%): beats by $0.15, beats on revs, bookings growth of 12%; guides Q1 revs below consensus, expects stable bookings growth; says North American consumer has been strong
• Coinbase Global (COIN 291.50, -6.62, -2.2%): beats by $2.57, beats on revs; Provides Q1 outlook, including subscription and services revenue of $685-$765 mln
• Moderna (MRNA 31.10, -0.82, -2.6%): misses by $0.23, beats on revs; guides FY25 revs in-line

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a mostly higher note with Hong Kong's Hang Seng (+3.7%) building on this week's strength. Japan's Nikkei: -0.8% (+0.9% for the week), Hong Kong's Hang Seng: +3.7% (+7.0% for the week), China's Shanghai Composite: +0.4% (+1.3% for the week), India's Sensex: -0.3% (-2.5% for the week), South Korea's Kospi: +0.3% (+2.7% for the week), Australia's ASX All Ordinaries: +0.2% (+0.5% for the week).
  • In economic data:
    • China's January New Loans CNY5.13 trln (expected CNY770.0 bln; last CNY990 bln), January Outstanding Loan Growth 7.5% yr/yr (expected 7.3%; last 7.6%), and January Total Social Financing CNY7.06 trln (expected CNY6.40 trln; last CNY2.86 trln)
    • South Korea's January Export Price Index 8.5% yr/yr (last 10.5%) and Import Price Index 6.6% yr/yr (last 6.8%). January Unemployment Rate 2.9% (last 3.7%)
    • India's January WPI Inflation 2.31% yr/yr (expected 2.50%; last 2.37%)
    • Singapore's Q4 GDP 0.5% qtr/qtr (expected 0.1%; last 3.0%); 5.0% yr/yr (expected 4.3%; last 5.7%)
    • New Zealand's January FPI 1.9% m/m (last 0.1%) and January Business NZ PMI 51.4 (last 45.9)
  • In news:
    • President Trump and India's Prime Minister Modi signed an agreement to expand collaboration in defense, energy, and trade routes.
    • The Bank of Japan's Board is expected to gain a hawkish member once Junko Koeda is confirmed next week.
    • A former Reserve Bank of Australia policymaker cautioned that the market is overestimating the likelihood of a 25-basis point cut next week.
• Major European indices are on track for a mixed finish to the week. STOXX Europe 600: +0.2% (+2.2% week-to-date), Germany's DAX: -0.3% (+3.5% week-to-date), U.K.'s FTSE 100: -0.1% (+0.6% week-to-date), France's CAC 40: +0.4% (+2.8% week-to-date), Italy's FTSE MIB: +0.6% (+2.9% week-to-date), Spain's IBEX 35: +0.2% (+2.1% week-to-date).
  • In economic data:
    • Eurozone's Q4 GDP 0.1% qtr/qtr (expected 0.0%; last 0.4%); 0.9% yr/yr, as expected (last 0.9%). Q4 Employment Change 0.1% qtr/qtr, as expected (last 0.2%); 0.6% yr/yr (expected 0.8%; last 1.0%)
    • Germany's January WPI 0.9% m/m (expected 0.2%; last 0.1%); 0.9% yr/yr (last 0.1%)
    • Spain's January CPI 0.2% m/m, as expected (last 0.5%); 2.9% yr/yr (expected 3.0%; last 2.8%). January Core CPI 2.4% yr/yr, as expected (last 2.6%)
    • Swiss January PPI 0.1% m/m, as expected (last 0.0%); -0.3% yr/yr (last -0.9%)
  • In news:
    • Strong quarterly results from Hermes have contributed to a positive showing in luxury names.
    • Halifax observed that first-time buyers make up 20% of the U.K.'s housing market.
    • Eurozone's GDP expanded a slight 0.1% in Q4.