Nasdaq Index, Dow Jones, S&P 500 News: Investors Anticipating PPI’s Impact

Key Points

• Mixed pre-market indicators ahead of U.S. producer inflation data.
• Earnings reports drive significant overnight stock movements.
• Federal Reserve policies and economic data guide today’s market.

Mixed Performance in Pre-Market Trading

The U.S. stock market shows mixed signals in Friday’s pre-market session. The S&P 500 Index and Nasdaq-100 Index are trending upwards, while the Dow Jones Industrial Average experiences a slight decline. This comes as investors anticipate the upcoming U.S. producer inflation figures (PPI), hoping to extend the broader market’s recent strong performance.

At 12:00 GMT, Dow futures are trading 38814.00, down 44.00 or -0.11%. S&P 500 Index futures are at 5055.75, up 9.25 or +0.18% and Nasdaq futures are trading 18013.50, up 100.75 or +0.56%.

Thursday’s Recap

The S&P 500 achieved a new record high on Thursday, alongside gains in the Dow and Nasdaq. Over the week, the S&P 500 has seen a modest rise of less than 0.1%. The Dow is slightly ahead with a 0.3% increase, despite experiencing its largest single-day loss since March 2023 earlier this week. The Nasdaq, however, has declined by 0.53%.

Corporate Earnings and Overnight Stock Movements

• DoorDash: Shares dropped 7.4% due to larger-than-expected losses.
• Trade Desk: Shares surged 18.9% after strong Q4 revenue and positive Q1 outlook.
• Applied Materials: Enjoyed a 12% increase in shares following favorable earnings.
• DraftKings: Reported a 44% increase in year-over-year revenue, plans to acquire Jackpocket for $750 million, and raised 2024 fiscal year guidance.
• Coinbase: Shares climbed 13% in after-hours trading, exceeding earnings expectations.
• Applied Materials: Experienced an 11% rise in shares post-market, beating earnings estimates.
• Toast: Shares grew 3% after hours, following Q4 results.

Sector Performance

Several sectors, including Consumer Discretionary, Energy, and Financials, showed positive changes, while Technology and Real Estate experienced significant gains.

Economic Outlook

Economic data indicates mixed signals, with the producer price index and housing starts reports due. Recent consumer price index data and retail sales decline suggest potential weaknesses in consumer spending.

Market Forecast

The alignment of market expectations with Federal Reserve policies suggests reduced market volatility. Positive economic data and a moderating inflation outlook could support steady growth in equities. BlackRock’s Rick Rieder forecasts a potential 10-15% return in equities this year, underpinned by a stabilizing economy and resilient consumer spending.

Technical Analysis

E-mini S&P 500 Index futures are edging higher on Friday, puttng them within striking distance of the all-time high at 5066.50. A trade through this level will signal a resumption of the uptrend. It will also negate Monday’s dramatic closing price reversal top chart pattern.

On the downside, the first support is the minor bottom at 4936.50. A trade through this level will change the minor trend to down, while shifting momentum. This could trigger a further decline into the uptrending 50-day moving average at 4850.05.

Concerns over valuation appear to have been lifted with Tuesday’s steep sell-off.