Stock Market Update

Equity futures point to a lower opening this morning following a mostly lower finish yesterday. NVIDIA (NVDA 184.63, -0.26, -0.1%) rolled after despite a stellar beat-and-raise earnings report, which paved the way for a weak day across mega-cap and semiconductor names. The S&P 500 garnered some support around its 50-day moving average (6,900.47), and continued strength in software and select cyclical names saw the S&P 500 Equal Weighted Index post a solid gain. 

Several more prominent tech earnings are in the fold this morning, including a big move from Dell (DELL 136.47, +15.02, +12.4%). 

Block (XYZ 65.25, +10.72, +19.7%) is up even higher after CNBC reported the company is laying off roughly half of its headcount as it plans to use AI to automate more work. The AI disruption theme across white-collar jobs was particularly harsh to the financials sector on Monday. 

Elsewhere, economic data will be back at the forefront with the 8:30 a.m. release of the January PPI (Briefing.com consensus 0.3%) and Core PPI (Briefing.com consensus 0.3%).

In geopolitical news, negotiations between the U.S. and Iran led to understandings on some issues but left gaps on others. Talks will continue next week, according to Axios. 

In coporate news:

• Block (XYZ 65.25, +10.72, +19.7%) will cut its workforce by about 40% as the company looks to use smaller teams and automate more work with AI, according to CNBC. 
• CoreWeave (CRWV 85.85, -11.78, -12.1%) beat revenue expectations, its loss of $0.89 per share, may not be comparable to the FactSet Consensus of ($0.50). 
• Dell (DELL 136.47, +15.02, +12.4%) beat EPS expectations by $0.36, beat revenue expectations, and provided upside EPS and revenue guidance for Q1 and FY27.
• Intuit (INTU 383.25, -11.17, -2.8%) beat EPS expectations by $0.47 and beat revenue expectations. The company guided Q3 EPS below consensus with revenues above consensus. 
• Netflix (NFLX 91.00, +6.39, +7.6%) is up nicely after the company backed out of its deal for Warner Bros Discovery (WBD 28.40, -0.40, -1.4%), leaving Paramount Skydance (PSKY 12.06, +0.88, +7.9%) the winner.

Reviewing overnight developments:

Equity indices in the Asia-Pacific ended the week on a mostly higher note while South Korea's Kospi (-1.0%) hit a fresh record high before reversing. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: +1.0%, China's Shanghai Composite: +0.4%, India's Sensex: -1.2%, South Korea's Kospi: -1.0%, Australia's ASX All Ordinaries: +0.3%.

In news:

• The People's Bank of China will scrap the 20% reserve requirement ratio for forward foreign exchange sales on Monday.
• Japan's Tokyo Core CPI decelerated to 1.8% in February from 2.0%. On that note, Economy Minister Kiuchi said that signs of inflation are slowing and that real wages should turn positive soon.
• China's National People's Congress will start on Thursday with press reports suggesting that the party will seek to promote social welfare and sustainability over growth at all costs.

In economic data:

• Japan's February Tokyo CPI 1.6% yr/yr (last 1.5%) and Tokyo Core CPI 1.8% yr/yr (expected 1.7%; last 2.0%). January Industrial Production 2.2% m/m (expected 5.5%; last -0.1%), January Retail Sales 1.8% yr/yr (expected 0.1%: last -0.9%), January Construction Orders 5.7% yr/yr (last 20.2%) and January Housing Starts -0.4% yr/yr (expected -1.9%; last -1.3%)
• Hong Kong's January trade deficit HKD14.1 bln (last deficit of HKD63.3 bln). January Imports 38.1% m/m (last 30.6%) and Exports 33.8% m/m (last 26.1%)
• Australia's January Private Sector Credit 0.5% m/m (expected 0.7%; last 0.8%) and Housing Credit 0.6% m/m (last 0.7%)
• India's Q3 GDP 7.8% yr/yr (expected 7.2%; last 8.2%)

Major European indices trade near their flat lines. STOXX Europe 600: +0.1%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.5%, France's CAC 40: -0.2%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -0.1%.

In news:

• U.K.'s Labour party came in third place in a regional by-election, serving as a reminder of weak support for the ruling party and Prime Minister Starmer.
• Airline operator IAG reported strong results for Q4 while BASF achieved a profit thanks to cost savings.
• Germany's flash CPI for February will be released at 8:00 ET and is expected to show a slight deceleration in yr/yr CPI to 2.0% from 2.1% in January.

In economic data:

• Germany's January Import Prices Index 1.1% m/m (expected 0.6%; last -0.1%); -2.3% yr/yr (last -2.3%)
• France's Q4 GDP 0.2% qtr/qtr, as expected (last 0.2%); 1.1% yr/yr, as expected (last 0.9%). Q4 Nonfarm Payrolls -0.1% qtr/qtr, as expected (last -0.1%). January Consumer Spending 0.5% m/m (expected 0.4%; last -0.5%). February CPI 0.7% m/m (expected 0.5%; last -0.3%); 1.0% yr/yr (expected 0.8%; last 0.3%). February PPI 0.5% m/m (last 0.3%). January Jobseeker total 3.09 mln (last 3.117 mln). o Spain's February CPI 0.4% m/m (last -0.4%); 2.3% yr/yr (expected 2.2%; last 2.3%). December Current Account surplus EUR1.80 bln (last surplus of EUR210 mln)
• Swiss Q4 GDP 0.1% qtr/qtr (expected 0.2%; last -0.4%); 0.7% yr/yr (last 0.6%). February KOF Leading Indicators 104.2 (expected 103.0; last 103.3)