📊 Rate Hikes Ahead? Nvidia's Big Reveal

» Yesterday Wrap Up: Weakness in technology stocks weighed on the overall market as Nvidia fell more than -4%.

» Earnings Today: Nvidia, Rivian, Fidelity, Marathon Oil (Calendar & Estimates 👇)

» Economic Data Today: MBA Mortgage Applications, FOMC Minutes (Calendar & Estimates 👇)

» Fed Speakers Today: Bowman and Bostic

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» Market sentiment has pivoted unexpectedly, with traders and investors now contemplating the possibility of interest rate hikes by the Federal Reserve, a stark reversal from the previously anticipated rate cuts. This shift, underscored by recent remarks from Fed officials and economic indicators, signals a complex landscape where inflation concerns and robust economic data push the debate towards potential rate increases. (blog)

» Nvidia ($NVDA) is set to report its fiscal Q4 earnings, spotlighting its dramatic ascent to a $1.8 trillion market cap driven by the AI boom, with its GPUs like the H100 at the forefront. Amid expectations of a 240% revenue increase and a more than sevenfold surge in net income, all eyes are on potential sustained growth rates and the impact of major tech companies' AI investments. (blog)

» Palo Alto Networks ($PANW) experienced a significant drop in late trading following a downward adjustment of its fiscal year revenue forecast to between $7.95 billion and $8 billion, down from prior estimates of up to $8.2 billion, indicating a potential slowdown in tech spending. Despite maintaining its earnings and free cash flow outlook for fiscal 2024, the company's revised forecast and subsequent 21% stock decline underscore challenges in achieving profitable growth amidst customer spending fatigue in cybersecurity. (blog)

» Amazon ($AMZN) is poised to replace Walgreens ($WBA) in the Dow Jones Industrial Average ($DJIA) next week. This strategic update, driven by Walmart's stock split and the evolving American economy, aims to boost consumer retail exposure within the DJIA, reflecting Amazon's significant growth and diversified business model beyond its original online retail roots. (blog)

» American Airlines ($AAL) has increased checked bag fees for the first time in over five years, with the first bag on domestic flights now costing $35 when booked online, and is revising which travel agency bookings can earn frequent flyer miles. The changes, aimed at enhancing revenue amid declining airfares and rising operational costs, also include increased fees for a second checked bag and adjustments to overweight bag charges. (blog)

» Ether, the cryptocurrency powering the Ethereum network, briefly crossed the $3,000 threshold for the first time since April 2022, signaling a notable moment in the digital currency markets. (blog)

» The Conference Board has revised its economic outlook for the U.S., moving away from its previous recession prediction, despite the Leading Economic Index (LEI) indicating a continued, albeit slowing, decline in future economic activity. This change, influenced by positive contributions from six of the LEI's 10 components and a significant surge in stock prices, suggests a more optimistic future for the U.S. economy, with expectations of solid growth driven by a robust labor market and consumer spending. (blog)

Certain earnings releases scheduled for today:

Tuesday’s Jan leading indicators release was bearish for stocks: -0.4% m/m, weaker than expectations of-0.3% m/m, and the fifteenth consecutive month that leading indicators have declined.

Today’s releases include mortgage applications and FOMC minutes.

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- Mark Zuckerberg