Federal Reserve Watch for March 1 Fed's MBS Holdings Should Fall to Zero, Fed Governor Waller Says, Daily Roundup of Key US Economic Data for March 1.
#Google's revenue reached $238B in 2023, facing competition and growth concerns, with stock stagnant at $138.
#Carvana investors' lawsuit dismissed, stock rose post-earnings despite sales tactics scrutiny.
#NASA cancels $2B Maxar-led project, citing poor performance and cost overruns.
#Nissan nears $400M investment in Fisker for electric pickup platform, causing Fisker stock dip.
#Ransomware attack hits UnitedHealth Group's Change Healthcare, impacting healthcare sector financially.
#Boeing in talks to acquire Spirit AeroSystems to address quality issues for 737 MAX.
#Nvidia becomes 3rd most valuable company at $2.05 trillion, with Dell's positive forecast boosting both stocks.
Federal judge upholds #Medicare's right to negotiate drug prices, affecting AstraZeneca.
#Apple stock down 7.5% below $180 support level, Nasdaq up 1.6%, S&P 500 set to close up 0.8%.
#SaoPaulo court orders Meta to stop using its name in Brazil within 30 days due to lawsuit.
#Starbucks faces union pushback, stock down 1.8%, with efforts to improve union relationship ongoing.
#Dell stock soars 28% post Q4 beat, with revenue hitting $22.32B and EPS at $2.20.
#NYCB faces challenges due to Q4 charge on CRE loans, analyst downgrades, and Fed rate hikes.
#Reddit's revenue hit $804M in 2023, projected to rise to $1.55B by 2025 with potential in data licensing & AI.
#Cohere, a #Nvidia backed startup, raised $270M at $2.2B valuation for enterprise generative AI.
#GoldmanSachs maintains Buy rating & $232 target on Apple, optimistic on growth & innovation.
#CVS & Walgreens to sell mifepristone abortion pill, FDA certified, Supreme Court to discuss access.
#NY Community #Bank faces troubles with earnings restated, CEO change, Moody's credit downgrade.
#Blackstone Real Estate Income Trust sees decreased withdrawal requests, net assets drop, shares down.
S&P 500 up 28% in 2024, #US stocks favored for growth, global indices lag behind.
#NetApp beats Q results with $1.94/share earnings, raises outlook, J.P. Morgan skeptical on storage hardware spend.
#Zoom Video Communications buy back 7% of shares, driving positive market response.
#Spirit Aerosystems soars on Boeing acquisition reports, FAA probes 737 Max incidents.
#Zscaler stock rose 82% in 12 months, fell 9.7% post strong Q2 earnings, concerns on cybersecurity spend.
#Dell stock soars 24% on AI server demand, beats earnings expectations, analysts bullish on growth potential.
#BYD experiences a 39% drop in EV sales, affecting overall Chinese auto
#market predictions. Early-year market weakness impacts EV sector and stocks.
#Telecom Italia's fixed network sale to KKR faces opposition from top investor Vivendi, impacting TIM's strategy and future performance.
#Nvidia stock surges 60%, outperforming #AMD and Dell in hardware orders. Analysts positive on AMD's Data Center segment.
#Dow Jones Transport Avg shows strength amid shipping challenges, with carriers eyeing acquisitions for long-term growth.
#Meta Platforms declines Google's Android XR partnership, focusing on owning AR, VR, and mixed reality platforms.
#AES focuses on providing clean power, aiming for 7%-9% EPS growth by 2027, transitioning to renewables.
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#FuboTV exceeds revenue expectations, with projected 2024 revenue and subscriber numbers. Faces lawsuit against major media companies.
#Archer-Daniels-Midland faces internal control weakness, CFO on leave amid accounting probe. Shares up despite challenges.
#Canadian #AI startup Cohere expands to NYC for talent and funding, targeting enterprise sector with major tech support.
#Tesla stock falls due to pricing changes in China and the U.S., facing competitive EV market challenges.
Dell's #AI server demand surges, #stock hits new high, benefiting Nvidia and AMD. Positive outlook for chip sector.
#PlugPower remains optimistic about the future, despite missing 2023 financial expectations. Confidence in cash flow stability.
#China EV sales in Feb: Li Auto +22%, XPeng -24%, NIO -33%, combined down 5% YoY.
#Nasdaq hits new high, up 6.1%, driven by AI sector but risks noted. NYCB faces $2.4B hit.
Daily Roundup of Key US Economic Data for March 1
The #ISM manufacturing index fell to 47.8 in February from a 49.1 level in January, led by declines in the index readings for new orders, production, and employment.
"The #US manufacturing sector continued to contract (and at a faster rate compared to January), with demand slowing, output easing and inputs remaining accommodative," ISM Manufacturing Committee Chairman Timothy Fiore said.
The S&P Global manufacturing #PMI was revised higher to 52.2 in February from the flash estimate of 51.5 and was above the 50.7 reading in January.
Construction spending fell by 0.2% in January following a 1.1% gain in December. Private residential construction rose by 0.2% on 0.6% gain in single-family building that was partially offset by a 0.1% drop in multi-family building and 0.1% decline in remodeling activity.
#Private nonresidential construction was down 0.1% in January, while public construction fell by 0.9%.
The University of #Michigan consumer sentiment index for February was revised lower to 76.9 from the preliminary estimate of 79.6 and is now below January's reading of 79.0.
#Michigan said that inflation expectations were virtually unchanged from January and consumers see the economy little changed from the start of the year.
The Kansas City #Fed's services index rose to 12 in February from minus 2 in January, in contrast to other regional services data already released that indicated contraction in the sector. The ISM's services reading will be released on March 5.
The #Q1 GDPnow estimate from the #Atlanta Fed is for a 2.1% increase, a downward revision from a 3% gain in the previous estimate on Thursday. The next update is scheduled for March 6.
The St. Louis Fed's GDP nowcast estimate for Q1 was revised down to a 0.92% gain from the 1.40% growth estimate a week ago.
#FederalReserve Governor Christopher Waller (voter) said he would like to see the central bank's holdings of mortgage-backed securities fall to zero and its Treasury holdings to shift toward shorter-dated securities to better align with its policy rate.
Dallas Fed President Lorie Logan (nonvoter) said that it will be "appropriate" at some point to slow the pace of balance sheet runoff when holdings reach a certain level, but did not specify what level that is or when the timing will be right.
The Fed's board released its semi-annual report to Congress, which recapped its actions over the last year to bring down inflation and said that the pace of price appreciation has slowed, but remains above target. As usual, the report contains little new information, turning the focus to Fed Chairman Jerome Powell's testimony on March 6 and March 7.
Richmond Fed President Tom Barkin (voter) said in an interview on CNBC that he is in no hurry to cut rates, repeating that the data will be the driver of the Federal Open Market Committee's decisions.
Recent comments of note:
(Feb. 29) New York Fed President John Williams (voter) said that it is likely that the FOMC will lower interest rates "later" in 2024, but added that there is no rush to act, allowing the Fed to wait until it is clear that inflation is slowing back toward the 2% target.
(Feb. 29) Atlanta Fed President Raphael Bostic (voter) said that it could be appropriate to begin lowering interest rates in the summer if the economy evolves as expected, but cautioned that the slowing of inflation is going to continue to be bumpy and that incoming data will determine the timing of the Fed's actions.
(Feb. 29) Cleveland Fed President Loretta Mester (voter) said that she believes banks should be prepared and encouraged to take advantage of the Fed's discount window borrowing option at times of liquidity shortage. She did not touch on monetary policy in her speech.
(Feb. 28) Williams said that the journey back to the FOMC's 2% inflation goal is likely to be bumpy, but expects price appreciation to return there later in 2024 and will remain data-dependent when making monetary policy decisions.
(Feb. 28) Boston Fed President Susan Collins (nonvoter) said that she expects that the FOMC will lower rates later in 2024, but she needs to see a continued slowdown in inflation not only for goods but for housing and services, as well as a moderation in labor demand.
(Feb. 27) Fed Governor Michelle Bowman (voter) said that she will "remain cautious" in considering future monetary policy change and noted that it will "eventually become appropriate" to lower the policy rate. However, Bowman said that the FOMC is not at that point yet and that cutting rates too soon could require future increases. She added that she is willing to raise rates further if needed if inflation rebounds.