Five things to know before the market opens on Tuesday, January 24th:
1. — Equity futures fall for profits
U.S. stock futures traded slightly lower on Tuesday, and the dollar held on to gains against global peers as investors geared up for a big day of corporate earnings on Wall Street.
Despite global inflationary pressures and still-hawkish central banks, equities have held up so far as investors anticipate the possibility of Fed rate hikes waning and a gradual U.S. recession. Tone but not spectacular.
CME Group’s FedWatch has 82.5% chance of a similar rate hike in March, effectively confirming the likelihood that the Fed Funds rate will rise to a range of 4.5% to 4.75%.
The benchmark 10-year Treasury yield edged lower in overnight trading, dropping 2 basis points to 2.502%, while the 2-year bond pegged at 4.219%. The US Dollar Index, which tracks the US dollar against a basket of global peers, was marked at 102.12, down 0.02%.
But with the S&P 500’s reported earnings taking up about half of the market this week, the focus will shift to both December quarter earnings and short-term outlook provided by business executives in various sectors.
Data from Refinitiv show that overall S&P 500 earnings fell 2.9% from last year to a share-weighted average of $443.4 billion, but that figure dropped about 7.3% when the precarious energy sector was removed. weakens to decrease.
Towards the start of the trading day on Wall Street, futures tied to the S&P 500 have opened with a 2-point bell dip, while those tied to the Dow Jones Industrial Average are set to drop 65 points. The Nasdaq is down 50 points.
2. — Amazon Offers Subscription Plans for Generic Drugs
Amazon AMZN announced late Tuesday that it will offer a subscription service to deliver a range of generic medicines to US customers with home delivery.
The $5/month plan, which Amazon has dubbed RxPass, includes over 50 mediations covering ailments from diabetes to high blood pressure. This fee is on top of the standard $139 annual Amazon Prime membership.
The healthcare initiative plans to cut thousands of workers, primarily focused on Amazon Stores and their PXT organizations, amid what Amazon calls an “uncertain and difficult” global economy. It’s because
Amazon shares fell 0.37% in pre-market trading to open at $97.16 each.
3. — Google Reportedly Faces DoJ Investigation, Seeks Control of Ad Market
alphabet (Google) – Get Free ReportIt is the parent company of Google.
Bloomberg first sued Google, along with 11 state attorneys general, in 2020 for alleged anti-competitive and exclusive practices in the search and search advertising market. I was told that I could submit.
Google, which operates both an ad-buying and ad-selling platform in digital marketing, faces antitrust fines totaling more than $8 billion from Europe’s powerful competition commissions, including 2018 The deal included a $5 billion fine levied on Android-operated smartphones to app exclusive sales.
Google shares were down 01.34% in premarket trading, opening at $156.625 each.
4. — General Electric stock fell ahead of its fourth-quarter earnings report
general electric (GE) – Get Free Report Stocks rose slightly in pre-market trading ahead of the industry group’s final quarterly earnings report as a full conglomerate before the opening bell.
GE, which spun off its healthcare division, GE Healthcare Technologies, earlier this year, also plans to spin off an energy business called GE Vernova in 2024 through a tax-free transaction.
In GE’s final update, which includes contributions from all three GE units, analysts call for adjusted net income of $1.13 per share, up 22.8% from the year-ago quarter and revenue of $21.6 billion.
In late October, GE forecast full-year free cash flow of $4.5 billion, despite cutting its full-year earnings forecast to $2.80 per share from $2.40 amid supply chain disruptions and cost pressures. I repeated.
GE shares fell 0.34% in pre-market trading, pointing to opening prices of $79.50 each.
5. — Focus on Microsoft’s results as tech giants boost Nasdaq’s rise
microsoft (MSFTMore) – Get Free Report The stock fell slightly in market trading before the closing bell rang ahead of the company’s second-quarter earnings announcement.
Analysts are likely to focus on growth in the group’s main Azure cloud division amid widespread concerns over business investments over a weakening economy and shrinking profit margins.
Microsoft itself has more than 100,000 yuan from its comprehensive “intelligent cloud” division, which can be seen between $21.25 billion and $21.55 billion, and its personal computing business, which has a projected range of between $14.5 billion and $14.9 billion. We anticipate lower-than-expected earnings. He announced first-quarter earnings in October.
The group also “adjusts costs” to meet customer demand and uses AI and other advanced technologies.
For the three months ending in December, Microsoft’s second fiscal quarter, Street expects adjusted earnings of $2.30 per share, or earnings of approximately $52.97 billion.
Microsoft shares fell 0.074% in pre-market trading, pointing to opening prices of $242.40 each.