The S&P 500 Index ($SPX) (SPY) jumps +0.24% while the Dow Jones Industrials Index ($DOWI) (DIA) climbs +0.44%, and the Nasdaq 100 Index ($IUXX) (QQQ) experiences a dip of -0.08% today.
Today’s market scenario is a mixed bag. The S&P 500, Dow Jones Industrials, and Nasdaq 100 reached all-time highs. But profit-taking in the tech sector after a strong rally this week dragged the Nasdaq 100 into negative territory.
Global bond yields are on the decline, providing support to stocks. Dovish comments from ECB members influenced a drop in yields after ECB President Lagarde mentioned encouraging Eurozone compensation numbers. Moreover, ECB Governing Council member Centeno hinted at a potential interest rate cut in March due to prevailing downside risks to inflation and growth.
U.S. stocks are benefiting from the positive momentum in European equity markets, with the Euro Stoxx 50 hitting a 23-year high today.
Market sentiments are pricing in the probability of a -25 bp rate cut at 2% for the March 19-20 FOMC meeting, and a 23% chance for the subsequent meeting on April 30-May 1.
Overseas markets present a mixed picture with the Euro Stoxx 50 rising by +0.47%, China’s Shanghai Composite closing up by +0.55%, and Japan’s Nikkei Stock Index observing a holiday closure.
Interest Rates
March 10-year T-notes (ZNH24) witness a rise of +4 ticks, leading to a 10-year T-note yield decline of -2.7 bp to 4.293%. These T-notes have rebounded from a recent 2-3/4 month low, with the 10-year T-note yield retracting from a high of 4.349%.
European government bond yields are on the downward trend. The 10-year German bund yield is down by -5.6 bp at 2.385%, while the 10-year UK gilt yield has recorded a decline of -4.5 bp to 4.060%.
U.S. Stock Movers
The cybersecurity sector, previously underperforming, is showing vigor today due to attractive valuations. Leading the charge is Palo Alto Networks (PANW) with a more than +4% surge in the Nasdaq 100. Additionally, Zscaler (ZS) and SentinelOne (S) are up by +2%, and Fortinet (FTNT) registers a gain of over +1%.
Live Nation Entertainment (LYV) achieves a more than +3% increase post reporting Q4 revenue of $5.84 billion, surpassing the consensus estimate of $4.73 billion.
Carvana (CVNA) enjoys a massive boost of over +40% after reporting Q4 gross profit of $402 million, outperforming the consensus of $388.1 million.
Block Inc (SQ) rallies by more than +17% following an upward revision of its 2024 adjusted Ebitda forecast to at least $2.63 billion from the prior estimate of $2.40 billion, surpassing the consensus of $2.41 billion.
Rocket Cos. (RKT) observe an increase of more than +4% after reporting Q4 adjusted revenue of $885 million, exceeding the consensus of $770.8 million.
VICI Properties (VICI) register a climb of more than +2% after reporting Q4 FFO/share of 72 cents, beating the consensus of 63 cents.
Nvidia (NVDA) reaches a new record high with a surge of more than +1%, building on yesterday’s +16% jump post reporting stellar Q4 earnings and strong Q1 forecast. The Nasdaq 100’s top gainer lures attention with its performance.
Edison International (EIX) shows a rise of more than +2% following the Q4 core EPS report of $1.28, topping the consensus of $1.16.
Warner Bros Discovery (WBD) depict a decline of over -13%, leading the S&P 500 and Nasdaq 100 losers, after reporting Q4 revenue of $10.28 billion, falling short of the consensus of $10.46 billion.
Booking Holdings (BKNG) suffer a drop of more than -8% post forecasting a full-year gross bookings growth slightly below 7%, weaker compared to the expected 9.9% increase.
Insulet (PODD) witness a decline of more than -5% after forecasting 2024 revenue growth in the range of 12% to 17%, with the midpoint failing to meet the consensus of 16.6%.
MercadoLibre (MELI) observe a decrease of over -12% after reporting Q4 EPS of $3.25, substantially lower than the consensus of $7.17.
EOG Resources (EOG) register a fall of more than -3% post reporting Q4 adjusted EPS of $3.07, failing to meet the consensus of $3.11.
Penumbra (PEN) show a decrease of over -4% post forecasting a full-year revenue in the range of $1.230 billion to $1.270 billion, with the midpoint below the consensus of $1.267 billion.
Airbnb (ABNB) indicate a drop of more than -2% owing to insider selling signs after an SEC filing revealed CFO Stephenson sold $1.14 million worth of shares on Tuesday.
Noble Corp (NE) project a decline of more than -2% after forecasting a full-year adjusted Ebitda in the range of $925 million to $1.03 billion, with the midpoint below the consensus of $1.1 billion.
Earnings Reports (2/23/2024)
Today’s noteworthy earnings reports include Frontier Communications Parent (FYBR), Hyatt Hotels Corp (H), Lamar Advertising Co (LAMR), RB Global Inc (RBA), and Warner Bros Discovery Inc (WBD).
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Rich Asplund did not hold any positions in the securities mentioned in this article, directly or indirectly, at the time of publication. The information presented here is strictly for informational purposes. For a detailed overview, refer to the Barchart Disclosure Policy.
The content and opinions expressed here are those of the author and don’t necessarily align with those of Nasdaq, Inc.
