Nasdaq set for higher open after Apple earnings, inflation data

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 26, 2022. REUTERS/Brendan McDermid

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  • Apple is ramping up after posting record sales during the holiday quarter
  • Caterpillar tumbles on lower margin pressure in first quarter
  • Futures down: Dow 0.31%, S&P 0.09%, Nasdaq 0.17%

Jan 28 (Reuters) – The Nasdaq was expected to open higher on Friday after strong results from Apple Inc, while the latest reading from the Federal Reserve’s preferred gauge for gauging inflation eased concerns of a higher rise. rapid interest rates.

The iPhone maker (AAPL.O) gained 3% in premarket trading after posting record sales for its flagship phones during the holiday quarter.

The price index for basic personal consumption expenditure rose 0.5% for the month of December, in line with expectations. Read more

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“It looks like the overall number was a bit better than the market expected, and so that’s causing a slight pre-market reversal,” said Peter Cardillo, chief market economist at Spartan Capital Securities at New York. .

Still, inflation accelerated to 4.9% year-on-year in December, the biggest rise since 1983, while consumer spending tumbled last month amid tight supply chains and raging COVID-19 infections.

Wall Street’s major indexes are on track for their fourth straight weekly decline as traders and big banks raised bets to nearly five rate hikes by December after the Federal Reserve hinted at a rate hike in March and warned of lingering inflation.

“While it doesn’t sound like fun, we are coming out of a period of 0% interest rates and trillions of dollars in Fed asset purchases,” said Darrell Spence, an economist at Capital Group.

“We knew this had to happen one day, and now that we are leaving this environment and moving to a different regime, we should expect a bit more volatility.”

Geopolitical tensions between Russia and the West over Ukraine have also increased market volatility, with the Wall Street Fear Indicator (.VIX) lately rising 0.75 points to 31.24.

The benchmark S&P 500 (.SPX) narrowly avoided correction for the fourth time this week on Thursday. Small caps suffered the most, with the Russell 2000 Index (.RUT) down 20.8% from its November 8 closing high and confirming a bear market.

As of 8:58 a.m. ET, Dow e-minis were down 106 points, or 0.31%, S&P 500 e-minis were down 4 points, or 0.09%, and Nasdaq 100 e-minis were up 23.5 points, or 0.17%.

Russell 2000 futures were down 0.6%.

The fourth quarter earnings season has been mixed so far. Of the 145 S&P 500 companies that reported earnings on Thursday, 79.3% beat earnings expectations, according to data from Refinitiv.

Visa (VN) gained 4.3% after beating Wall Street’s quarterly estimates as more international travel and e-commerce led to higher spending volumes. Read more

Caterpillar Inc (CAT.N) fell 4.0% after the world’s largest heavy equipment maker warned of pressure on margins from rising production and labor costs work. Read more

VF Corp (VFC.N) fell 5% after the owner of Vans slashed its full-year revenue outlook on delivery delays and labor shortages, while the hardware maker storage company Western Digital (WDC.O) fell 8.1% on dismal forecasts.

“Supply chain issues are going to be with us for at least the first half of this year…these issues combined with higher interest rates and geopolitical tensions will continue to weigh on stocks for some time to come” , said Sam Stovall, chief investment officer. strategist at CFRA Research.

No-commission brokerage Robinhood Markets Inc (HOOD.O) fell 12.1% after posting a net loss. Read more

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Reporting by Devik Jain and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur

Our standards: The Thomson Reuters Trust Principles.

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