Treasury yields are surging this morning
Stock futures are pointed lower this morning, with a hotter-than-expected January jobs report stirring up fears the Federal Reserve will feel emboldened to resume aggressive interest rate hikes. The U.S. economy added 517,000 jobs last month, compared to the 187,000 analysts anticipated.
As Treasury yields surge, a batch of disappointing Big Tech earnings is also weighing on both Nasdaq-100 Index (NDX) and Dow Jones Industrial Average (DJIA) futures. The three major indexes remain on track for weekly wins, however.
Continue reading for more on today's market, including:.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2;3 million call contracts and 1.1 million put contracts traded on Thursday. The single-session equity put/call ratio fell to 0.49 and the 21-day moving average stayed at 0.80.
- Alphabet Inc (NASDAQ:GOOGL) stock is down 2.9% in premarket trading, after the company missed fourth-quarter earnings and revenue expectations for its digital ad business faltered. GOOGL is also brushing off at least 12 price-target hikes and is down 27.2% year-over-year.
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Amazon.com, Inc. (NASDAQ:AMZN) shared better-than-expected
fourth-quarter results, but shares are still down 3.6% ahead of the bell. The e-commerce giant's current-quarter outlook missed estimates, which is weighing on the shares. AMZN is seeing mixed analyst reactions this morning, but has added 34.4% already in 2023.
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The shares of
Apple Inc (NASDAQ:AAPL) are down 0.6% ahead of the open, after the iPhone maker's fourth-quarter earnings and revenue came in well below expectations. The company also saw its top-line drop for the first time since 2019, with
quarterly sales down 5% year-over-year. In the last 12 months, AAPL has shed 16.9%.
- Beyond jobs data, the S&P U.S. services purchasing managers' index (PMI) and the ISM services index are due out.
European Markets Dip After Rate Decisions
Markets in Asia settled on both sides of the aisle on Friday. Hong Kong’s Hang Seng led the losses after falling in the final hour of trading, dropping 1.2%. China’s Shanghai Composite fell 0.7%, after the country’s purchasing managers’ index (PMI) jumped to 52.9 in January after the country eased covid measures. Japan’s Nikkei tacked on 0.4%, after the au Jibun Bank Japan Services PMI showed growth as well, while the South Korean Kospi added 0.5%.
European markets are mixed midday, as investors unpack this week’s rate decisions from the European Central Bank (ECB), Bank of England (BoE), and U.S. Federal Reserve. The euro zone’s January PMI came in at 50.3, up from the previous month’s 49.3 and showing the first growth in business activity since June. London’s FTSE 100 is up 0.4% at last glance while the French CAC 40 and German DAX drop 0.04% and 0.5%, respectively.