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1. Futures Edge Down
U.S. stock futures are pointing slightly lower this morning as traders evaluate President Donald Trump’s remarks on interest rates and trade tariffs.
- By the Numbers (03:31 ET | 08:31 GMT):
- Dow Futures: -21 points (-0.1%)
- S&P 500 Futures: -7 points (-0.1%)
- Nasdaq 100 Futures: -40 points (-0.2%)
The S&P 500 hit a record high yesterday, closing above previous peaks from December, with all three major indices marking their fourth straight day of gains.
Key market drivers include:
- Trump at Davos: Speaking remotely at the World Economic Forum, Trump called for lower global interest rates and signaled optimism about a potential U.S.-China trade deal after his conversation with Chinese President Xi Jinping.
- Fed Policy: The Federal Reserve is expected to hold interest rates steady at its upcoming meeting.
2. Boeing Warns of Quarterly Loss
Boeing (NYSE: BA) announced a deeper-than-expected quarterly loss of $5.46 per share (approximately $4 billion), far exceeding analyst expectations of a $1.84 per-share loss.
The company cited:
- Worker Strikes: Over 33,000 employees participated in stoppages.
- Government Project Charges: Additional costs from U.S. contracts.
- Safety and Operational Issues: Including fallout from a mid-air panel blowout on a 737 MAX early this year.
Losses for 2024 could now total nearly $12 billion. CEO Kelly Ortberg stated the company is addressing “near-term challenges” while taking steps to stabilize operations.
3. Trump Orders Crypto Working Group
President Trump signed an executive order creating a new working group to regulate the cryptocurrency industry. Key actions include:
- Rules for Crypto Firms: Addressing concerns from companies denied banking services by lenders due to regulatory directives.
- National Stockpile of Digital Tokens: Exploring its feasibility.
- Blocking a U.S. CBDC: Trump barred the creation of a central bank digital currency.
This move aligns with his promise to support crypto markets while reducing regulatory burdens imposed under the Biden administration.
4. Bank of Japan Hikes Rates
The Bank of Japan raised its policy interest rate by 25 basis points, its third hike in 2024. Officials hinted at more increases if economic activity meets expectations, with higher inflation forecasts driving the decision.
5. Crude Oil Set for Weekly Losses
Oil prices are on track for their worst weekly performance since November.
- WTI Crude: $74.62 (-0.1%)
- Brent Crude: $78.22 (-0.1%)
Price declines were driven by Trump’s calls for increased U.S. production and reduced climate-related restrictions, as well as OPEC pressure to lower global crude prices.
6. Analyst Updates & Ratings
- Upgrades:
- Logitech International (LOGI): Upgraded by Morgan Stanley to Equal-Weight, price target raised to $92.
- Downgrades:
- Boston Beer Co. (SAM): Downgraded by Piper Sandler to Neutral, target lowered to $275.
- Veeva Systems (VEEV): Downgraded by Goldman Sachs to Sell, target lowered to $200.
- Price Target Changes:
- Crocs (CROX): Keybanc lowers target from $150 to $120, maintains Overweight.
- Electronic Arts (EA): Stifel lowers target from $159 to $133, maintains Hold.
For the full list of updates, check the Stock News Blog section on the OptionsPlayers platform.
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