Futures Pointing To Extended Pullback On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Friday, 10 February 2023 09:26:12 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It?s a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a lower open on Friday, with stocks likely to extend the significant pullback seen over the course of the previous session. Concerns about the outlook for interest rates may continue to weigh on Wall Street amid worries the Federal Reserve may need to raise rates higher than currently anticipated in order to bring down inflation. The downward momentum also comes amid a negative reaction to some of the latest earnings news, with shares of Lyft (LYFT) plummeting by 31.6 percent in pre-market trading. The steep drop by Lyft comes after the ride-sharing company reported an unexpected fourth quarter loss and provided disappointing revenue guidance for the current quarter. Travel company Expedia (EXPE) may also move to the downside after reporting fourth quarter results that missed analyst estimates on both the top and bottom lines. Meanwhile, shares of Yelp (YELP) are likely to see initial strength after the consumer review platform reported fourth quarter results roughly in line with estimates and provided upbeat guidance for 2023. Not long after the start of trading, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of February. The report includes readings one short-term and long-term inflation expectations that could impact the outlook for interest rates. After failing to sustain an initial move to the upside, stocks showed a significant downturn over the course of the trading session on Thursday. The major averages pulled back well off their early highs and into negative territory. The major averages climbed off their worst levels going into the close but remained firmly in the red. The Dow fell 249.13 points or 0.7 percent to 33,699.88, the Nasdaq slumped 120.94 points or 1.0 percent to 11,789.58 and the S&P 500 slid 36.36 points or 0.9 percent to 4,081.50. The sharp pullback on Wall Street partly reflected ongoing interest rate concerns following hawkish comments by some Federal Reserve officials. Edward Moya, senior market analyst at OANDA, noted some traders were placing bets the Fed will have to "do a lot more tightening than what Wall Street is pricing in." "Arguments are being made for the Fed to raise rates to 6%, with one strategist calling for a move towards 8%" Moya said. "A month ago, it seemed very likely that the Fed would be done raising rates in March and now that view could be changing." The interest rate worries offset the positive sentiment generated in reaction to the latest batch of corporate earnings news. Shares of Disney (DIS) showed a notable downturn on the day after helping lead the initial advance despite the entertainment giant reporting better than expected fiscal first quarter results. Disney CEO Bob Iger also announced the company would be cutting 7,000 jobs as part of a broader cost-cutting and restructuring plan. In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits rebounded by slightly more than expected in the week ended February 4th. The Labor Department said initial jobless claims rose to 196,000, an increase of 13,000 from the previous week's unrevised level of 183,000. Economists had expected jobless claims to inch up to 190,000. The uptick came after jobless claims decreased in four out of the five previous weeks, falling to their lowest level since hitting 181,000 in the week ended April 23, 2022. Airline stocks moved sharply lower over the course of the session, resulting in a 3.6 percent nosedive by the NYSE Arca Airline. With the steep drop on the day, the index hit its lowest closing level in almost a month. Substantial weakness also emerged among oil service stocks, as reflected by the 3.1 percent plunge by the Philadelphia Oil Service Index. The sell-off by oil service stocks came amid a decrease by the price of crude oil. Gold stocks also came under pressure amid a decrease by the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 2.3 percent. Steel, banking and chemical stocks also showed significant moves to the downside, moving lower along with most of the other major sectors. --------------------------------------------------------------- Read the latest breaking news stories about the hottest companies. [Click here to Find Out More.]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( The University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of February at 10 am ET. The consumer sentiment index is expected to inch up to 65.0 in February from 64.9 in January. At 12:30 pm ET, Federal Reserve Board Governor Christopher Waller is due to speak on Digital Assets before a Global Interdependence Center Digital Money, Decentralized Finance, and the Puzzle of Crypto event. Philadelphia Federal Reserve President Patrick Harker is also scheduled to speak at the Global Interdependence Center Digital Money, Decentralized Finance, and the Puzzle of Crypto event at 4 pm ET. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Stocks in Focus Shares of Newell Brands (NWL) are seeing significant pre-market weakness after the consumer products company reported better than expected fourth quarter earnings but warned of an unexpected loss in the current quarter. Financial technology company Affirm Holdings (AFRM) is also likely to extend the steep drop seen on Thursday after Morgan Stanley downgraded its rating on the company?s stock to Equal Weight from Outperform. On the other hand, shares of Cloudflare (NET) are moving sharply higher in pre-market trading after the close service provider reported better than expected fourth quarter results and provided upbeat guidance. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Europe European stocks have moved lower on Friday amid lingering uncertainty around inflation and further interest rate hikes by the U.S. Federal Reserve. Treasury yields spiked after Richmond Fed President Thomas Barkin said it's important for the U.S. central bank to continue to raise rates to ensure it brings inflation back to the 2 percent target. Closer to home, the Bundesbank's president Joachim Nagel, reaffirmed his call for more interest rate increases. In economic news, investors weighed data showing the U.K. economy narrowly avoided falling into a recession in the fourth quarter. Gross domestic product held steady in the final quarter of 2022, as expected, after shrinking 0.2 percent in the third quarter, according to data released by the Office for National Statistics. In December, GDP fell 0.5 percent following a 0.1 percent increase in November. In 2022, GDP grew 4.0 percent, following a 7.6 percent spike in 2021. While the German DAX Index has tumbled by 1.4 percent, the French CAC 40 Index is down by 1.2 percent and the U.K.?s FTSE 100 Index is down by 0.7 percent. Adidas has moved sharply lower. The German footwear maker has warned of an operating loss of as much as ?700 million in 2023 from the fallout over its dispute with rapper and former partner Ye. PUMA SE shares have also slumped Healthcare group Fresenius has also shown a notable move to the downside a day after confirming it was exploring steps to relinquish control of its dialysis subsidiary. Bermuda-based insurer Lancashire Holdings has also tumbled after it reported loss before tax of $2.8 million for fiscal 2022. British online fashion retailer ASOS has also plunged after appointing Sean Glithero as interim CFO. Standard Chartered has also dove after First Abu Dhabi Bank, the United Arab Emirates' biggest lender, said it was not currently evaluating a buyout offer. Bouygues has also fallen in Paris. Its affiliate Bouygues Telecom said it disputes the ruling by the Paris Commercial Court ordering the company to pay Free Mobile 308 million euros in damages. Meanwhile, Saga shares have jumped. Responding to recent media coverage, the holiday group confirmed that it is in exclusive discussions with Open Insurance Technologies Pty Ltd regarding a possible sale of Acromas Insurance Co. Ltd. Swedish defense equipment maker Saab has also soared after it reported an increase in fourth-quarter operating profit and raised its dividend. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks ended mixed on Friday amid ongoing uncertainty about where inflation and interest rates are headed. The dollar ticked higher after a spike in short-term U.S. Treasury yields as Richmond Fed President Thomas Barkin said it's important for the U.S. central bank to continue to raise rates to ensure it brings inflation back to the 2 percent target. Gold was marginally lower in Asian trading, while oil extended losses on signs of rising inventories in the U.S. Mainland China and Hong Kong stocks fell after China's inflation data came in lower than expected, suggesting weak demand. Chinese consumer price inflation rose to 2.1 percent in January from 1.8 percent in December, the National Bureau of Statistics reported. This was slightly below economists' forecast of 2.2 percent. Producer prices declined at a faster pace of 0.8 percent after easing 0.7 percent in December. Economists had forecast prices to drop 0.5 percent. China's Shanghai Composite Index slipped 0.3 percent to 3,260.67, while Hong Kong's Hang Seng Index plunged 2.0 percent to 21,190.42, dragged down by tech stocks. Japanese shares eked out modest gains as a slew of strong earnings reports offset investor anxiety ahead of BoJ Governor nominations. The Nikkei 225 Index rose 0.3 percent to 27,670.98, while the broader Topix finished marginally higher at 1,986.96. Chip-making equipment maker Tokyo Electron jumped 4.4 percent after raising its earnings outlook for the year. Advantest added 1.5 percent and Screen Holdings climbed 2.7 percent. Kobe Steel soared 15 percent after raising its full-year profit forecast and announcing a record-high full-year dividend. Seoul stocks ended lower amid the prospect of further rate hikes by the Federal Reserve to tame inflation. The Kospi shed 0.5 percent to close at 2,469.73. SK Hynix and Korean Air both fell around 1 percent. Hybe dropped 1.5 percent after it agreed to acquire a 14.8 percent stake in rival K-pop agency SM Entertainment to become its largest shareholder. Australian markets fell notably as the Reserve Bank of Australia boosted its forecast for core inflation and wage growth this year and predicted further increases in interest rates. The benchmark S&P/ASX 200 Index closed 0.8 percent lower at 7,433.70, dragged down by mining and energy stocks. The broader All Ordinaries Index ended down 0.8 percent at 7,631.10. Power producer AGL Energy gave up 2.4 percent after posting its second-biggest six-month net loss and lowering its annual profit outlook. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It?s a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are climbing $0.69 to $78.75 a barrel after falling $0.41 to $78.06 a barrel on Thursday. Meanwhile, after sliding $12.20 to $1,878.50 an ounce in the previous session, gold futures are slipping $5.30 to $1,873.20 an ounce. On the currency front, the U.S. dollar is trading at 130.68 yen versus the 131.59 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0691 compared to yesterday?s $1.0740. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. 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