Global Markets Update
The beat of the global market drum today strikes an unpredictable rhythm. In the Asia-Pacific region, the day’s melody ended with a mix of tones. Whether falling or standing firmly, indices such as China’s Shanghai Composite and South Korea’s KOSPI played to a different tune than Japan’s Nikkei and Australia’s ASX All Ordinaries, who seem to tap their feet to a different beat. On the other hand, India’s SENSEX belted up, Taiwan’s TAIEX jazzed higher, and Hong Kong’s Hang Seng danced a lively jig spurred by Non-Energy Materials. Across the oceans, the European markets are midday buskers, and U.S. equity futures are tuning up for a positive opening.
The pages of the U.S. stock market saga are turning once more, as investors hope to recapture ground lost over the last two days. However, the day’s performance shall hang in suspense on the threads of Fed Chair Powell’s rhetoric during his twin-day testimony in Washington.
Waiting for Powell
Fed Chair Powell, stepping into the limelight, holds the market’s heartstrings in his hands. The day’s spotlight is his to own as financial observers keenly await his words. Yesterday’s February Service PMI reports painted a picture of continued robustness in the economy and an upward climb in selling prices – a tale that bolsters expectations of Powell treading the path of cautious interest rate cuts.
As investors hold their breath, eyes glued to Powell’s every inflection, could enthusiastic words from the Fed Chair smooth the waters or tip the boat of rate cut expectations further adrift?
With the spotlight on Powell, even this morning’s ADP Employment Report could add a twist to the plot. If whispers of 150,000 new jobs in February materialize, the case for Powell keeping his rate-cutting sword sheathed will only deepen.
Market Movements & Economic Musings
The rhythms of the Euro Area paint a contrasting picture where retail sales saw a year-on-year dip in January, against the market’s predictions. Meanwhile, at the Bank of Canada corner, all ears are perked for whispers of interest rate changes during the 9:45 AM ET announcement, reminiscent of the U.S. market’s anticipatory hum.
Back in the U.S., job market aficionados eagerly await the unveiling of the January Job Openings & Quits report, shedding light on the employment landscape. The day’s crescendo might come at 2 PM ET with the appearance of the Fed Beige Book, capturing the essence of economic insights from various regional Fed banks.
As the market pendulum swings, sectors rise or fall, ushering in a new era where wider representation is king. This year’s musical composition sees Financials, Industrials, and Healthcare sharing the limelight with Consumer Discretionary, Technology, and Communication Services, unlike the market melodies of yesteryears.
While the giants like Target Corp (TGT) may sway the markets with post-earnings feats, names like Monster Beverage (MNST), Mondelez International (MDLZ), Coca-Cola (KO), and PepsiCo (PEP) might need to tune up their performance to keep pace. The market’s symphony of growth continues to play out – a fusion of unpredictability and promise.
- Dow Jones Industrial Average:
Unveiling the Market Dynamics: A Deep Dive into Today’s Financial News
Stocks on the Radar
Before the opening bell, companies such as Abercrombie & Fitch (ANF), Brown Forman (BF.B), Campbell Soup (CPB), EVgo (EVGO), Foot Locker (FL), and Thor Industries (THO) are gearing up to unleash their quarterly earnings into the equities market.
This morning, the pre-market landscape is buzzing with 282 S&P 500 names being actively traded, with 231 gainers and 51 decliners. However, the likes of Estee Lauder (EL) and Ross Stores (ROST) are feeling the heat ahead of the market’s kickstart. On the flip side, cybersecurity is set for a radiant day post the robust earnings reported by CrowdStrike (CRWD) last night. Companies like Verisk Analytics (VRSK), Palo Alto Networks (PANW), and Fortinet (FTNT) are anticipated to lead the pack.
The shares of CrowdStrike (CRWD) witnessed a meteoric rise in after-market trading following the sensational January quarter performance. Their revenue surged by 32.6% year-over-year to a colossal $845.3 million, and the company foresees current quarter revenue in the range of $902.2-$905.8 million, outshining the $899.53 million consensus. Additionally, CrowdStrike made waves by announcing the acquisition of cybersecurity startup Flow Security, a deal slated to be sealed this quarter.
Conversely, Ross Stores (ROST) displayed exceptional results for the January quarter, primarily driven by a remarkable 7% surge in same-store sales, surpassing the company’s 2%-3% guidance. Despite this feat, the market’s focus shifted to a downbeat guidance for the upcoming year, with projected EPS of $5.64-$5.89 against the $5.90 consensus. Ross Stores attributed this caution to the lingering effects of elevated housing, food, and gasoline costs on the discretionary spend of their low-to-moderate income customer base. However, to soften the blow, Ross Stores upped its quarterly dividend by 10% and greenlit a new two-year $2.1 billion share repurchase initiative.
In a contrasting tale, Nordstrom (JWN) fell short of market expectations with its January quarter results, coupled with a mixed outlook for the impending year. Nordstrom forecasts a sales growth range of -1.0% to +2.0% compared to the previous year. During the fourth quarter, Nordstrom witnessed a 3% dip in sales, while Nordstrom Rack’s net sales soared by 14.6%. The standout categories for Nordstrom included Active, Beauty, and Women’s Apparel, exhibiting robust growth compared to the prior year.
Insight into IPOs
If you’re keen on unraveling the world of initial public offerings, delve into Nasdaq’s Latest & Upcoming IPOs page for a comprehensive exploration.
Post-Market Anticipations
After the market’s closure today, Infinera (INFN), Kodiak Gas Services (KGS), and Victoria’s Secret (VSCO) are all set to divulge their quarterly performance figures. For more on the upcoming quarterly earnings disclosures, navigate to Nasdaq’s Earnings Calendar.
Upcoming Economic Calendar
Thursday, March 7
- China: Imports/Exports – February
- Eurozone: European Central Bank Interest Rate Decision
- US; Weekly Initial & Continuing Jobless Claims
- US: Productivity & Unit Labor Costs – 4Q 2023
- US: Consumer Credit – January
Friday, March 8
- Japan: Eco Watchers Survey – February
- Eurozone: Employment Change, GDP – 4Q 2024
- US: Employment Report – February
A Reflective Note
“You will never know how strong you are until being strong is your only choice.” ~ Bob Marley
Disclosures
The thoughts and opinions presented here are solely those of the author and do not necessarily mirror the perspectives of Nasdaq, Inc.
