Stock Market Overview
The overall market sentiment today is subdued as major indices are experiencing a downward trend. The S&P 500, Dow Jones Industrials, and Nasdaq 100 are all in negative territory, with the Nasdaq 100 hitting a 1-1/2 week low.
Inflation Concerns and Yield Movement
Inflation worries have led to a rise in T-note yields, impacting stock performance. The 10-year T-note yield surged to a 2-week high today after an unexpected jump in the US Feb import price index ex-petroleum. This, coupled with disappointing CPI and PPI reports, has fueled speculations of prolonged interest rate delay by the Fed.
Corporate News
Negative corporate announcements from companies like Jabil and Adobe are compounding market pressures. Jabil slashed its full-year earnings forecast, driving its stock down over -14%, while Adobe’s weak Q2 revenue projections pushed its shares down more than -13%.
Triple Witching and Volatility
Market volatility is expected today due to the quarterly expiration of March stock, index options, and futures, known as triple witching. The expiration of approximately $5.3 trillion worth of options could lead to unexpected stock price fluctuations.
Global Market Trends
Overseas markets show a mix of performances, with some indices such as the Euro Stoxx 50 and China’s Shanghai Composite recording gains while Japan’s Nikkei Stock Index closes lower.
Interest Rates and Bond Yields
The increase in bond yields is impacting T-note prices, with the 10-year T-note yield reaching a 2-week high. European government bond yields are also on the rise, further influencing T-note prices negatively.
Key Stock Movements
Diverse sectors are experiencing shifts in stock prices, with companies like Jabil, Adobe, Ulta Beauty, and Abbot Laboratories witnessing significant declines. Conversely, CoStar Group, Valero Energy, and various tech and pharma companies are seeing gains.
Upward Trends
Companies such as Rivian Automotive, Paccar, Cummins, Micron Technology, Marathon Petroleum, Steel Dynamics, Intuitive Surgical, Stellantis NV, and Madrigal Pharmaceuticals are experiencing upward momentum, driven by factors like analyst upgrades, price target revisions, and FDA approvals.
Upcoming Earnings Reports
Jabil Inc is set to release their earnings report on 3/15/2024, adding anticipation to market movements following the announcement.
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
