U.S. Stock Futures See Downturn:
Tuesday’s trading session opened on a lower note, extending the previous day’s downturn as the market grapples with the possibility of the Federal Reserve’s rate cuts being postponed to the latter half of the year. This shift in sentiment follows closely on the heels of robust U.S. manufacturing data, prompting a reevaluation of an imminent rate reduction.
Economic Indicators Under the Microscope:
Investors are bracing for a busy day with key economic figures on the agenda, including job openings and durable orders for February. These precede the highly anticipated March payrolls report due Friday, setting the stage for a week filled with critical insights into the nation’s economic health.
Dollar Strengthens Amid Rate Cut Speculations:
The possibility of a delayed rate cut has inadvertently bolstered the U.S. dollar, with the currency nearing a more than four-month apex against a basket of major counterparts. This newfound strength is notably pronounced in its pairing with the Japanese yen, nearing levels that previously incited intervention by Japanese authorities.
IPO Market Springs to Life:
In corporate news, the IPO scene is witnessing renewed activity with Rubrik’s announcement to go public, signaling a rejuvenation in companies seeking capital market entry after a hiatus. This comes in the wake of notable listings by Reddit and Astera Labs, hinting at a gradual resurgence in public tech investing following a marked slowdown attributed to inflation and interest rate hikes.
Oil Prices Climb on Demand Optimism:
The oil market experienced an uplift, fueled by promising demand indicators from China and the U.S., alongside escalating tensions in the Middle East. The upcoming OPEC+ meeting is awaited with keen interest as it reviews market conditions amidst these unfolding global dynamics.
$LOW- Zelman downgraded Lowe’s to Neutral from Outperform with a $265 price target.$ORLY- Truist raised the firm’s price target on O’Reilly Automotive to $1,234 from $1,149 and keeps a Buy rating on the shares as part of a broader research note on Hardlines/Broadlines in the Consumer sector. Truist Card Data suggests that spending trends have largely been solid across its coverage, which is also largely consistent with reports from the covered retailers throughout this extended Q4 earnings season, the analyst tells investors in a research note. The firm is adjusting its price targets to reflect a broader market multiple expansion, also noting that while most retailers are still expecting somewhat softer trends in the first half of the year, this is to be followed by moderately better sales in the second half as comparisons ease.
$TSM- Susquehanna analyst Mehdi Hosseini raised the firm’s price target on TSMC to $180 from $160 and keeps a Positive rating on the shares. The firm ncreased estimates driven by better wafer ASP’s and raised its target due to EPS power moving up toward $10 and continued valuation re-rating.
$BA- Last year, work inside Boeing’s (BA) Renton, Washington factory halted on a future 737 MAX jet, Andrew Tangel and Sharon Terlep of The Wall Street Journal reports. Two weeks had passed since workers flagged damaged rivets on a fuselage that needed to be fixed. The section was assembled by Spirit AeroSystems (SPR) in Wichita, Kansas and was shipped to Boeing’s plant. Once the target time for completion passed, employees escalated the situation to a “Tier 3” priority to get high-level attention at the factory, according to an internal Boeing log. The same plane would later lose its door plug panel in flight months later.
Melius Research earlier today downgraded Boeing to Hold from Buy. The analyst sees “too many overhangs” for the shares, including execution issues, a slower than expected 737 production ramp, and continued losses at Boeing Defense. The firm views expectations of the company producing $10B of free cash flow in 2026 as optimistic. Melius believes Boeing “is headed for, and in need of, a multiyear restructuring.”
$TSLA- Cathie Wood’s ARK Investment bought 84K shares of Tesla yesterday
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