Morning Market Preview:
S&P futures are lower, down 32 to 33 points, as...
- Infrastructure-software giant Microsoft (MSFT) reported better-than-expected fourth-quarter earnings and in-line revenue but the company said cloud demand is slowing.
- The Bank of Canada is expected to raise interest rates by another 25 basis points to 4.5% when it meets today, but economists anticipate it will pause further increases due to slowing inflation.
- The U.S. Department of Justice announced it is seeking to break up Google parent Alphabet’s (GOOGL) dominance of the digital-advertising market.
- The Federal Reserve Bank of Richmond's manufacturing survey for January showed prices paid for raw materials and prices received for goods keep declining, signaling a cooldown in inflation.
European markets fell as...
- German business confidence for January rose compared to December as economists are increasingly optimistic about the growth outlook.
- British Producer Price Index ("PPI") growth for December eased for the third consecutive month, taking pressure off the Bank of England to keep raising interest rates.
- European Central Bank Governing Council member Gediminas Simkus said it should continue to raise interest rates in 50-basis-point increments to fight underlying inflation growth.
- European Central Bank Executive Board member Fabio Panetta said it should not commit to specific interest-rate hikes beyond the February monetary-policy meeting.
Asian markets gained as...
- Australia's CPI growth for December was stronger than anticipated as core prices jumped, increasing pressure on the Reserve Bank of Australia to raise interest rates even more.
- New Zealand’s fourth-quarter CPI growth held at the highest level in over three decades but undershot the Reserve Bank of New Zealand’s forecast, giving it room to slow rate hikes.
- Former Bank of Japan Executive Director for Monetary Policy Eiji Maede said it’s likely to take steps to allow interest rates to rise when Governor Haruhiko Kuroda retires.
- Markets in China, Hong Kong, and Taiwan are closed for the Lunar New Year holiday.
And ahead of...
- Energy Information Administration Crude Oil Inventory Data (10:30 a.m.)
Japan's Nikkei +0.35%, Japan's TOPIX +0.39%, China's Shanghai Composite closed, Hong Kong Hang Seng Index closed, South Korea's KOSPI +1.39%, Taiwan's TSE closed
EuroStoxx 50 -0.49%, UK FTSE -0.02%, German DAX -0.36%, French CAC -0.31%, Italian MIB -0.30%, Spanish IBEX -0.18%
Dollar +0.11%, Japanese Yen -0.28%, Euro -0.18%, British Pound -0.13%, Swiss Franc -0.11%, Chinese Yuan unchanged
WTI Crude +0.34%
Brent Crude +0.33%
Nat Gas -3.74%
U.S. Treasury 10-yr yield -2.0bps at 3.43%
U.S. Treasury 2-yr yield -5.9bps at 4.15%
German 10-yr yield -4.2bps at 2.11%
French 10-yr yield -3.6bps at 2.55%
Italian 10-yr yield -2.6bps at 3.88%
Japanese 10-yr yield +2.7bps at 0.44%
ATGN, AUBN, CBNK, CHMG, COFS, CSBB, CVBF, CVCY, ESQ, ESSA, FBMS, FBNC, FFWC, FMBL, FMOO, FNWD, FXNC, HARL, KSBI, KTHN, MCBS, NBN, NFBK, NSC, ORRF, PFBX, PSBQ, SBKO, TXT, UBFO, UNTY, WYNN, ABT, ADP, APH, BLFY, BOKF, CFFN, CPF, EXTR, FCX, GD, GPI, HBT, HES, HESM, MPX, PB, PGR, RES, T, TDY, ELV, MKTX, USAP, USB, NDAQ, BA, KMB, MNRO, NEE, NEP, and LKFN before the open.
ALRS, AMP, AXTA, AZPN, BFST, BOOT, BRKL, BWB, CACI, CALX, CASH, CATY, CCI, CNS, CSX, CUBI, EQBK, ETD, FINW, FLEX, FRBA, HBNC, HXL, INBK, KNX, LBRT, LC, LEVI, LOB, LRCX, NOW, NVEC, OBNK, PKG, PLXS, RJF, SEIC, SLG, STLD, TFIN, TSLA, URI, UVSP, WASH, WOLF, XM, CVLG, RLI, LVS, IBM, and TER after the close.
Australia – CPI for December
China – Markets Closed for Lunar New Year Holiday
U.K. – PPI for December
Germany – Ifo Business Climate and Expectations for January (4:30 a.m.)
France – Registered Job Seekers for December/Q4 (6 a.m.)
MBA Mortgage Applications (7 a.m.)
Energy Information Administration Crude Oil Inventory Data (10:30 a.m.)