Here are five things you need to know for Wednesday, February 16:
1. — Stock futures fall as focus on rates outweighs concerns between Russia and Ukraine
U.S. stock futures edged lower on Wednesday after a three-day losing streak last night on easing tensions between Russia and Ukraine, as investors resume their focus on inflation and markets. rates ahead of a key retail sales reading before trading begins.
The Federal Reserve’s hawkish turn on inflation, which has triggered forecasts of up to five rate hikes by the end of the year, could be further reinforced later today with the release of the lawsuit. minutes from its January policy meeting, although bets on a 50 basis point move in March are still significant, with a 58% probability based on CME Group’s FedWatch tool.
Outside influences are also important, with Britain recording the fastest inflation since 1992 last month at 5.5%, a tally that all but guarantees the Bank of England will hike rates again – for the third times since December – when it meets in London next month.
Still, the easing of tensions in and around Crimea, where Russian troops are believed to have withdrawn – although President Joe Biden has stressed that this has not been verified by Moscow – has added some cautious optimism to markets. on Wednesday, with European stocks gradually moving into positive territory and the US dollar index, a favorite safe haven, slipping lower against its global peers.
On Wall Street, futures tied to the Dow Jones Industrial Average point to an opening low of 25 points while those tied to the S&P 500 are priced for a retreat of 4.5 points.
Nasdaq Composite futures point to a 20-point decline for the tech-focused benchmark, with 10-year Treasury yields holding steady at 2.042% in overnight trades.
2. — Auto Market Should Drive Retail Sales Amid Adverse Inflation
January retail sales are expected to signal a significant jump in consumer spending to start the year, adding further upward pressure on prices and the Fed’s view on near-term inflation.
Car sales are expected to provide the biggest boost to overall retail sales, which are expected to rise 1.8% from a year ago after December’s sharp 1.9% drop.
Comparisons with last year remain tricky, however, given that January 2021 sales were flattered by the second round of pandemic-era stimulus checks, although rising wages may support this year’s reading, alongside aggressive post-holiday discounts from national retailers.
Data is expected at 8:30 a.m. Eastern Time.
3. — ViacomCBS shares fall after failed fourth quarter results, Paramount name change
ViacomCBS VIAC Shares fell in premarket trading after the network and streaming media group reported weaker-than-expected fourth-quarter results and unveiled plans to change its name to Paramount.
ViacomCBS said it hopes to have 100 million streaming subscribers by 2024, up from an earlier forecast of around 70 million, and plans to spend more than $6 billion annually on content for its Paramount CBS offerings, Showtime, MTV and Comedy Central. to compete with market leaders Disney (SAY) – Get The Walt Disney Company Report and Netflix (NFLX) – Get the report from Netflix, Inc..
The group posted a December quarter profit of 26 cents a share, well below Street forecasts, on revenue of $8 billion, a 16% increase from a year ago.
Shares of ViacomCBS were marked 7.11% lower in premarket trading to indicate an opening price of $33.43 each.
4. — Focus on Nvidia Q4 earnings following the collapse of the arms deal
Nvidia (NVDA) – Get the NVIDIA Corporation report Shares fell in premarket trading ahead of the chipmaker’s fourth-quarter earnings after the closing bell.
After taking a hit from the collapse of its planned $43 billion takeover of UK-based chip designer Arm Holdings, Nvidia will come under further pressure to detail its 2022 earnings forecast as it also seeks to capture an increase in demand for chips in data centers. than continued gains in the gaming market.
Analysts are looking for net income of $1.22 per share for the January quarter on revenue of about $7.42 billion, a 48.4% increase over the same period last year.
“Demand continues to outstrip supply, especially in games,” Oppenheimer analyst Rick Schafer said. “Management is increasing dual-source capability with foundry partners TSMC/Samsung and constraints are expected to ease significantly in the second half of the year”
Nvidia shares fell 0.2% in premarket trading to show an opening price of $264.75 each.
5. — AirBnb shares rise as travel grows, Hybrid Work Boost boosts Q4 revenue
Airbnb (ABNB) – Get the Class A report from Airbnb, Inc. Shares rose in premarket trading after the home rental group posted a fourth stronger-than-expected profit as bookings and prices improved in the final weeks of the pandemic.
Airbnb said December quarter earnings were 8 cents per share, on revenue of $1.53 billion, and forecast revenue for the current quarter of between $1.41 billion and $1.48 billion. dollars.
The group said average daily fares rose 20% from a year ago to $154, a trend it expects to continue in the coming year as travel picks up. improve and that the flexibility of hybrid offices allows more people to choose temporary workplaces.
“Remote work has freed many people from the need to be in an office,” CEO Brian Cheksy told investors on a conference call Tuesday night. “And as a result, people are spreading to thousands of towns and cities, staying for weeks, months, even entire seasons at a time.”
Airbnb shares rose 3.3% in premarket trading to show an opening price of $186.00 each.