Nasdaq-100 futures climbed, as the one stock to rule them all inspired optimism after Nvidia’s latest report. The tech-heavy index saw futures leap higher by 0.9%. Concurrently, S&P 500 futures also experienced a notable increase, adding 0.5% to the board. Meanwhile, the Dow Jones Industrial Average futures experienced a modest uptick this morning.

European markets trade bullishly Thursday morning, as traders processed the insights from the latest U.S. Federal Reserve meeting. The pan-European Stoxx 600 index saw a slight increase of 0.2% by 11:18 a.m. in London. Sector performance was mixed, with technology stocks leading the gains by 1.2%, bolstered by Nvidia’s announcement. On the other hand, utilities faced a downturn, falling by 2.25%.

Asia-Pacific stock markets displayed a mixed performance following the release of the U.S. Federal Reserve meeting minutes. The Hang Seng index in Hong Kong felt the brunt of the unease, dropping 1.77% and leading the losses across the region. Similarly, China’s CSI 300 index fell by 1.16% In contrast, Japan’s Nikkei 225 bucked the trend with a 1.26% rise, finishing at 39,103.22, while the broader Topix index also saw gains, up 0.64% to 2,754.75. South Korea’s central bank maintained its benchmark policy rate steady at 3.5%.

Economic Calendar

Earnings Calendar

Notable reports for Tuesday before the bell include BJ, DAVA, HLNE, BEKE, MDT, MNRO, NTES, RL, SCVL, TITN, TGI, & WB.  After the bell include INTU, LGF.A, ROST, STEP, & WDAY.

News & Technicals’

Jamie Dimon, the Chairman and CEO of JPMorgan Chase, has expressed concerns over the economic trajectory of the U.S., suggesting that a “hard landing” is a possibility that cannot be dismissed. Addressing attendees at the JPMorgan Global China Summit in Shanghai, Dimon conveyed to CNBC the potential for a “stagflation” scenario in the U.S. economy. This situation, characterized by sustained high inflation coupled with stagnant growth and elevated unemployment rates, represents a challenging economic condition. Furthermore, Dimon indicated that despite these concerns, there is still room for interest rates to increase marginally. His insights underscore the complex economic landscape and the delicate balance policymakers must maintain to navigate through such uncertainties.

E.l.f. Beauty has achieved a significant milestone, marking its first fiscal year with over $1 billion in sales, an impressive 77% growth. This remarkable performance has surpassed Wall Street’s expectations, setting a high bar for the company. However, E.l.f. Beauty is tempering expectations for the current fiscal year, projecting a moderation in its growth trajectory that is anticipated to fall short of analysts’ predictions. This cautious outlook follows a warning from Ulta Beauty’s CEO, Dave Kimbell, about a deceleration in the beauty sector. E.l.f.’s results reflect both the company’s resilience and the broader industry’s challenges in maintaining growth momentum.

Pfizer, the pharmaceutical behemoth, is embarking on a strategic initiative to streamline costs over the coming years, aiming to mitigate the sharp downturn in its Covid-related business segments. This new cost-reduction program is set to complement an existing $4 billion austerity measure, which was put in place in response to the waning demand for Pfizer’s Covid vaccine and the oral antiviral medication, Paxlovid. According to a recent securities filing, the company has outlined that the initial phase of this program will concentrate on enhancing operational efficiencies. Pfizer anticipates that these efforts will culminate in substantial savings, projecting around $1.5 billion in cost reductions by the conclusion of 2027.

The higher for longer theme of the FOMC roused the bears, however, NVDA quickly changed the sentiment becoming the one stock that that rules them all!  That said, caution is advised as the market’s initial exuberance this morning could face volatility in response to reactions to the economic reports.

Trade Wisely,

Doug