US Stock Futures Waver as Earnings Disappoint, Yields Rise
Futures Little Changed After Treasury Secretary's Remarks
American stock index futures experienced volatility as disappointing corporate earnings reignited concerns over US stock valuations.
Key Earnings Disappointments
Qualcomm Inc., the leading smartphone processor provider, dropped over 5% in premarket trading amid concerns about slowing demand for new handsets. Ford Motor Co. declined 6% after issuing a profit warning, while Skyworks Solutions Inc. plummeted by more than 20% due to intensifying industry competition.
Treasury Secretary's Intervention
Treasury Secretary Scott Bessent downplayed the impact of Federal Reserve monetary tightening, focusing on the government's efforts to lower Treasury yields. However, some investors remain skeptical, citing persistent inflation and a solid economy that may limit further policy easing.
10-Year Treasury Yield Ticks Higher
The 10-year Treasury yield rose slightly on Thursday, although it remains near a one-month low. Analysts predict that a significant economic slowdown is necessary for a substantial decline in yields.
More Earnings Expected
Key earnings releases are expected today, including Amazon.com Inc., which will report results after the market close.
European Markets
European stocks performed better, with Societe Generale SA and AstraZeneca Plc rising on upbeat earnings. A.P. Moller-Maersk A/S jumped nearly 9% following a $2 billion buyback announcement.
UK Economic News
German factory orders surged in December, providing optimism for the beleaguered manufacturing sector. UK stocks outperformed, while the pound weakened due to expectations of an interest rate cut from the Bank of England later today.
Upcoming Key Events
* UK rate decision (Thursday)
* US initial jobless claims (Thursday)
* Fed speakers Christopher Waller and Lorie Logan (Thursday)
* Amazon earnings (Thursday)
* US nonfarm payrolls, unemployment, consumer sentiment (Friday)
* Fed speakers Michelle Bowman and Adriana Kugler (Friday)
Market Movements
Stocks:
* S&P 500 futures: Little changed
* Nasdaq 100 futures: -0.1%
* Dow Jones Industrial Average futures: Little changed
* Stoxx Europe 600: Up 0.6%
* MSCI World Index: Little changed
Currencies:
* Bloomberg Dollar Spot Index: Up 0.3%
* Euro: Down 0.4% to $1.0361
* British pound: Down 0.7% to $1.2420
* Japanese yen: Up 0.1% to 152.42 per dollar
Cryptocurrencies:
* Bitcoin: Up 1.7% to $98,622.29
* Ether: Up 0.5% to $2,802.22
Bonds:
* 10-year Treasury yield: Up 1 basis point to 4.43%
* Germany's 10-year yield: Little changed at 2.37%
* Britain's 10-year yield: Down 2 basis points to 4.42%
Commodities:
* West Texas Intermediate crude: Up 0.8% to $71.63 per barrel
* Spot gold: Down 0.1% to $2,863.16 an ounce