Key Takeaways

• Market Eyes on US CPI Revision: Potential Impact on Monetary Policy Outlook
• Yellen Warns of Non-Bank Mortgage Lender Risks, Eyeing Potential Collapse
• After a 48% Surge, ARM Proclaims the AI Boom Is Just Beginning
• Bitcoin Breaks $47K, Boosting Crypto Stocks: CAN, MARA, RIOT, COIN Surge
• PepsiCo Q4 Revenue Falls Short of Expectations

I. Market Report

Stock futures were around flat Friday morning after the S&P 500 crossed the historic 5,000 milestone for the first time during intraday trading.

As of 08:18 am, EST (or 21:18 in Malaysia), futures on the Dow Jones Industrial Average were unchanged, while S&P 500 futures rose 0.15%, and Nasdaq 100 futures nudged up 0.24%.

II. Pre-Market Movers

As of 08:12 am, EST (or 21:12 in Malaysia), top premarket movements are as follows:

Note: We are pleased to inform you that our app now supports pre/after-market trading for US stocks. The trading hours for these sessions are as follows:

• Pre-market: 17:00 to 22:30 in Malaysia
• After-hours market: 05:00 to 09:00 the next day in Malaysia

Please note that regular trading hours are from 22:30 to 05:00 UTC.

III. Flash Headlines

Market Eyes on US CPI Revision: Potential Impact on Monetary Policy Outlook

At 9:30 p.m. Malaysian time on Friday, the US Bureau of Labor Statistics is set to release seasonally adjusted revisions of monthly inflation rates, a key figure that Wall Street and economists are watching closely. Federal Reserve Chairman Jerome Powell has indicated that the January CPI report and the 2023 annual CPI revisions, which may alter the inflation outlook, are incoming. He expressed a desire for the revisions to affirm the progress observed while emphasizing that policy is based on data, not hopes. The market generally does not expect the CPI revision to cause significant fluctuations or to substantially affect the Federal Reserve's monetary policy outlook.

US Treasury Nears Pandemic High with $25 Billion 30-Year Bond Auction

The US Treasury auctioned off US$25 billion worth of 30-year bonds on Thursday. The auction amount for the long-term US bonds was only US$2 billion less than the record set during the COVID-19 pandemic, which was US$27 billion.

Yellen Warns of Non-Bank Mortgage Lender Risks, Eyeing Potential Collapse

US Treasury Secretary Janet Yellen has informed Congress that regulators are monitoring the risks posed by non-bank mortgage lenders, warning that one institution might collapse under market strain. Speaking at a hearing, Yellen warned that although the banking industry is generally well-capitalized, it faces risks from commercial real estate loans, with vacancy rates, especially in major US metropolitan areas, having soared.

UBS Analysts Predict Oil Price Decline If Trump Re-Elected President

Analysts at UBS have suggested that if Donald Trump were re-elected as President, it could lead to a decline in oil prices. Despite his support for fossil fuels, they believe, considering other factors, his presidency would overall hurt oil and natural gas prices.

IV. Stocks to Watch

After a 48% Surge, ARM Proclaims the AI Boom Is Just Beginning

UK chip design company ARM Holdings ( $Arm Holdings Ltd. ARM$ ) surged 48% overnight, marking the largest single-day increase since its initial public offering (IPO) in September last year. The company’s CEO, Rene Haas, said, “Artificial intelligence will not shape or form a speculative cycle in any way. We believe that artificial intelligence is the most profound opportunity of our lifetime, and we are just getting started.”

Cloudflare Surges Over 24% in Pre-Market Trading on Strong Q4 Results

Cloudflare ( $Cloudflare NET$ ) reported Q4 revenue of $362 million, a 31.95% year-on-year increase, surpassing market expectations of $353 million. Its loss per share was $0.08, compared to a loss of $0.14 per share in the same period last year, and beating market expectations of a loss per share of $0.11.

Bitcoin Breaks $47K, Boosting Crypto Stocks: CAN, MARA, RIOT, COIN Surge

Bitcoin has surpassed the US$47,000 mark for the first time since January 11, registering an increase of 3.64% within a day. In pre-market trading, cryptocurrency-related stocks rose, with Canaan Inc. ($ $Canaan Inc. CAN$ ) surging over 18%, Marathon Digital Holdings Inc. ($ $Marathon Digital MARA$ ) climbing 11%, Riot Platforms Inc. ($ $Riot Platforms RIOT$ ) gaining over 9%, and Coinbase Global, Inc. ($ $Coinbase Global, Inc. COIN$ ) advancing over 6%, following the news of Bitcoin breaking the US$46,000 threshold.

Pinterest Drops Over 8% Premarket as Next Quarter Guidance Disappoints

Pinterest ( $Pinterest PINS$ ) reported Q4 revenue of $981 million, an 11.86% year-on-year increase, slightly below the market’s expected value of $990 million. Its earnings per share were $0.30, compared to $0.03 in the same period last year, surpassing the market’s expected value of $0.23. The company forecasts an adjusted EBITDA for the next quarter in the range of -$95 million to -$55 million, significantly lower than the analysts’ average expectation of -$33 million.

PepsiCo Q4 Revenue Falls Short of Expectations

PepsiCo ( $PepsiCo, Inc. PEP$ ) reported a decline in Q4 revenue from $28 billion to $27.85 billion, which was below analysts’ average expectation of $28.37 billion. Its adjusted earnings per share were $1.78, surpassing Wall Street’s average expectation of $1.72.

V. Calendar

Earnings:

$PepsiCo, Inc. PEP$

$Canopy Growth Corporation CGC$

$Enbridge Inc. ENB$

Expected IPO:

$Trident Digital Tech Holdings TDTH$

$Wetouch Technology WETH$

$Telomir Pharmaceuticals TELO$

$BBB Foods Inc. TBBB$

$Metagenomi Technologies, LLC MGX$

$Helix Acquisition Corp. II Class A HLXB$

Please note that the timing of IPOs is subject to change at any time (including being advanced or delayed). Investors should therefore keep up-to-date with relevant news.

Events:

No notable events and data

For the whole week's Calendar, please check out our Weekly Watch column:
Weekly Watch | Fed Speakers Unleashed, Jobless Claims in Focus; Upcoming Alibaba, Disney, And McDonald's Earnings; HK Market Early Close Friday

Finally, just a little reminder:

The regular trading hours for US stocks in the Winter Time are from 22:30 to 05:00+1 GMT+8, with pre-market trading available from 17:00 to 22:30.

Have a nice trading day!