Nasdaq, S&P 500 Futures Recede As Traders Digest Mixed Bank Earnings: All Eyes Now On Producer Inflation Data
Portfolio Pulse from Shanthi Rexaline
U.S. stock futures indicate a weaker open on Friday after mixed trading on Thursday following the consumer price inflation report. The Nasdaq Composite closed slightly up, extending its winning streak, while the S&P 500 and Dow Industrials saw marginal movements. The focus now shifts to the producer price inflation report. In premarket trading, SPY and QQQ are down, while individual stocks like TSLA, UNH, BLK, BK, DAL, BAC, and JPM show varied reactions to earnings reports and other news. Energy stocks like CVX and XOM are up due to tensions in the Red Sea. The upcoming economic data and comments from Minneapolis Fed President Neel Kashkari are also in focus.

January 12, 2024 | 12:21 pm
News sentiment analysis
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NEGATIVE IMPACT
BlackRock's stock fell despite a fourth-quarter beat, possibly due to the announcement of a $12.5 billion deal to buy Global Infrastructure Partners.
The acquisition news may raise concerns about the cost and integration process, affecting the stock negatively despite strong earnings.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Invesco QQQ ETF is down 0.55% in premarket trading, reflecting concerns over tech sector performance amidst inflation data and earnings season.
QQQ, tracking the tech-heavy Nasdaq-100, is sensitive to inflation reports that can impact tech valuations and the ongoing earnings season.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SPDR S&P 500 ETF Trust is down 0.42% in premarket trading, likely due to the anticipation of the producer price inflation report and mixed bank earnings.
SPY often moves with broader market sentiment, which is currently cautious due to inflation concerns and mixed financial sector performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla shares fell over 3% in premarket trading after announcing price cuts in China and a two-week halt at Giga Berlin due to shipment disruptions.
Price cuts in China may affect margins, and operational halts could impact production targets, leading to negative investor sentiment.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
UnitedHealth Group's stock moved down over 4% despite an earnings beat, potentially due to concerns over a higher medical loss ratio.
Investors may be focusing on the negative aspect of the higher medical loss ratio, overshadowing the earnings beat.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Chevron Corp. shares rose over 1.5% amid tensions in the Red Sea, which could impact global oil supply and prices.
Geopolitical tensions often lead to higher oil prices, which can benefit energy companies like Chevron.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 75
POSITIVE IMPACT
Exxon Mobil Corporation's stock increased over 1.5% due to potential disruptions in oil supply from the strife in the Red Sea.
Like Chevron, Exxon Mobil stands to gain from rising oil prices amid geopolitical tensions that may disrupt supply.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 75