The S&P 500 futures are down 13 points and are trading 0.3% below fair value, the Nasdaq 100 futures are down 56 points and are trading 0.3% below fair value, and the Dow Jones Industrial Average futures are down 61 points and are trading 0.2% below fair value.
This holiday-shortened week is setting up to start on a lower note, due in part to pre-open losses in influential stocks like Apple (AAPL), Tesla (TSLA), and Boeing (BA). Apple is down on reports that it will remove the blood oxygen sensor from the Apple Watch; Tesla is down after CEO Elon Musk said he is uncomfortable making Tesla a leader in AI without having ~25% voting control; and Boeing was downgraded to Equal Weight from Overweight at Wells Fargo.
Rising market rates have also contributed to the negative bias this morning. The 10-yr note yield is back above 4.00%, up seven basis points from Friday at 4.02%. The 2-yr note yield is up two basis points from Friday at 4.17%.
Market participants are also digesting earnings results from Goldman Sachs (GS) and Morgan Stanley (MS), which are both trading down now.
In other corporate news, ANSYS (ANSS) will be acquired by Synopsys (SNPS). Ansys shareholders will receive $197.00 in cash and 0.3450 shares of Synopsys common stock for each Ansys share, representing an enterprise value of approximately $35 billion based on the closing price.
Geopolitical worries are still in play this week after a Houthi missile struck a US commercial ship, according to The New York Times. Also, China is expected to increase coercive measures towards Taiwan, according to Axios, after Lai Ching-te won Taiwan’s presidential election.
On a China-related note, the People’s Bank of China left its medium-term policy rate unchanged, but there was speculation about more stimulus in the near future.
Today’s US economic data was limited to the NY Empire State Manufacturing Index, which plunged to -43.7 in January (Briefing.com consensus -4.0) from -14.5 in December.
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Originally Posted January 16, 2024 – Holiday-shortened week set to begin on a soft note
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