Wall Street Today | Most Of the S&P Gains, Palantir Leads
RECAP
Stocks traded in mixed directions Tuesday following a pullback that saw bond yields rise after comments from Federal Reserve Chairman Jerome Powell all but dashed hopes for an interest-rate cut in March. The Fed's Metser reiterated Powell's claim that lowering rates too soon was not an option, sending treasuries higher.
The $S&P 500 Index(.SPX.US$ traded 0.23% higher, the $Dow Jones Industrial Average(.DJI.US$ rose just 0.37%, and the $Nasdaq Composite Index(.IXIC.US$ fell 0.07%.
MACRO
Treasury Yields Dip Further as Traders Assess More Hawkish Fedspeak
On Tuesday, Cleveland Fed President Loretta Mester said it would be a mistake to cut rates too soon or too quickly without sufficient evidence that inflation is moving sustainably back to 2%. Her remarks reinforced the central bank's need to push back on the timing of the first rate cut this year.
Meanwhile, Treasury's $54 billion of 3-year notes was met with decent demand and helped to keep Tuesday's buying momentum intact.
The $U.S. 2-Year Treasury Notes Yield(US2Y.BD$ dropped 9.1 basis points to 4.379%, the $U.S. 10-Year Treasury Notes Yield(US10Y.BD$ fell 8 basis points to 4.083%, and the $U.S. 30-Year Treasury Bonds Yield(US30Y.BD$ retreated 5.7 basis points to 4.288% from 4.345% on Monday.
Ten- and 3-year Treasury yields had ended Monday with their biggest two-day advances since June 2022 and March 2020, respectively. The 2-year rate had its biggest two-day advance since May of last year.
SECTORS
Chinese Tech Stocks Climb Back
China concept stocks, those Chinese companies that trade on U.S.-based exchanges, rebounded today following a ~7% climb in the CSI 1000.
Leading the Charge was $XPeng(XPEV.US$ , $Bilibili(BILI.US$ at +11%, followed by Li Auto and IQ. Chinese EV companies rallied following an analyst upgrade to Li Auto, and general downtown facing the Tesla stock price.
Crude Oil Closes Higher as the EIA Sees Falling Inventories and Lower US Production
West Texas Intermediate (WTI) crude oil closed higher on Tuesday, climbing for a second day as the Energy Information Administration said it sees oil inventories falling in the current quarter on expectations of OPEC+ cuts and US production declining from record levels.
WTI crude oil for March delivery closed up US$0.53 to settle at US$73.31 per barrel, while April Brent crude, the global benchmark, closed up US$0.60 to US$78.59.
In its influential monthly Short-Term Energy Outlook, the agency said it sees inventories dropping by 0.8-million barrels per day during the current quarter, supporting prices. As well, it sees US oil production dropping off a record.
"We forecast production will return to almost 13.3 million b/d in February but then decrease slightly through the middle of 2024 and will not exceed the December 2023 record until February 2025," the outlook noted.
COMPANIES
Palantir Mentions AI and Does Not Disappoint
$Palantir(PLTR.US$ rose 30% after the software company posted better-than-expected revenue growth in the fourth quarter. Strong demand from the company's commercial customers offset lighter-than-expected government revenue. In an interview with Barron's, CEO Alex Karp said the commercial business in the quarter was "bombastic, baller, incomprehensibly good."
Ford Reports Q4 Earnings
$Ford Motor(F.US$ stock climbed 6.9% after the market close as the automaker reported quarterly earnings of $0.29 per share, which beat the analyst consensus estimate of $0.13 by 123.08 percent. This is a 43.14 percent decrease over earnings of $0.51 per share from last year.
Toyota Rallies to All-Time High Amid Plans to Invest $1.3 Billion in Kentucky EV Plant
$Toyota Motor(TM.US$ rose nearly 10% intraday Tuesday to an all-time intraday high after the Japanese auto giant announced plans to invest $1.3 billion in its Kentucky facility for electric vehicle production. The move will include production of a new three-row electric SUV for the U.S. market.'
AMC Theatres Shares Slip Below $4 as Original Meme Stock Hits All-Time Low
Shares of $AMC Entertainment(AMC.US$ jumped 11% Tuesday after dropping below $4 on Friday and Monday to hit an all-time intraday low.
Coherent Stock Rallies 16% on Profit Beat and Bullish Comments on Product Launch
$Coherent(COHR.US$ stock was up almost by 16% in regular trading on Tuesday after the Santa Clara, Calif.-based optical communications and subsystems company said its latest quarter marked the third quarter of strong orders for its datacom transceivers.
Snap Just Disclosed Major Job Cuts
$Snap Inc(SNAP.US$ reported quarterly sales of $1.36 billion, which missed the analyst consensus estimate of $1.38 billion by 1.03 percent. This is a 4.69 percent increase over sales of $1.30 billion last year. The firm sees next quarter revenue sees Q1 revenue coming in at $1.095B-$1.135B Vs $1.12B Est.
Source: Bloomberg, Dow Jones, CNBC, Reuters
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