Fed Chair Jerome Powell said the central bank needs "more evidence" before rate cuts
Futures on the Dow Jones Industrial Average (DJIA), Nasdaq-100 Index (NDX), and S&P 500 Index (SPX) are pointed lower this morning, after U.S. Federal Reserve Chairman Jerome Powell told “60 Minutes” on Sunday that the central bank needs more evidence that inflation is cooling off before cutting rates, though he did express optimism over the economy. Traders are also keeping an eye on the earnings confessional, which today features reports from blue chips Caterpillar (CAT) and McDonald's (MCD).
Continue reading for more on today's market, including:
- Looking back on a busy week of Big Tech earnings.
- Bulls took advantage of Apple stock's latest dip.
- Plus, MAT downgraded; McDonald's misses on revenue; chip stock bags lofty bull note.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.9 million call contracts and 1.2 million put contracts traded on Friday. The single-session equity put/call ratio fell to 0.62 while the 21-day moving average remained at 0.71.
- J.P. Morgan Securities downgraded Mattel Inc (NASDAQ:MAT) to "neutral" from "overweight," citing Barbie fatigue, higher freight costs, and expectations of weak holiday sales for the retail sector in 2023 that could bleed into this year. MAT is down 1.4% in premarket trading, and sports a 10.8% year-over-year deficit.
- Fast food concern McDonald's Corp (NYSE:MCD) announced a fourth-quarter earnings win earlier, but missed revenue estimates as conflict in the Middle East squeezed sales. The shares are down 0.7% before the bell, but still sport a 12.8% lead for the past 12 months.
- Nvidia Corp (NASDAQ:NVDA) stock scored a lofty price-target hike from Goldman Sachs to $800 from $625 earlier. The firm noted continued artificial intelligence (AI) demand as a reason for today's bull note. The chip stock is up 3.1% ahead of the open, and has already added 33.6% this year.
- Federal Reserve speeches and blue-chip earnings on tap this week.
Asian Markets Fall Following China Services Data
Asian markets finished mostly lower on Monday, though China stocks got a boost after the People’s Bank of China’s stimulus measures went into effect. The country’s services sector also expanded for the 13th-straight month in January, but expansion was softer than December’s reading. Japan’s Nikkei was the only winner, adding 0.5%, while Hong Kong’s Hang Seng fell 0.2%, South Korea’s Kospi lost 0.9%, and China’s Shanghai Composite shed 1%.
European bourses are struggling for direction today, as the U.S. Federal Reserve’s musings regarding interest rates continue to be unpacked globally. London’s FTSE 100 is up 0.5% at last glance, while the French CAC 40 is down 0.02%, and the German DAX rises 0.02%.