Key Takeaways

• AutoNation, Kraft Heinz, Coca-Cola earnings.
• CPI, key inflation gauge, releases Tuesday.
• Fed policy deemed too restrictive by economists.
• Gold sentiment is bullish ahead of CPI data.
• Tech buybacks fuel NASDAQ's robust performance.
• Google invests €25M in European AI skills.

I. Market Report

US stock futures hovered near the flatline early Monday following a record-setting week for the S&P 500.

As of 08:18 am, EST (or 21:18 in Malaysia), futures tied to the 500-stock benchmark were flat. Dow Jones Industrial Average futures slipped 31 points, or 0.08%, while Nasdaq 100 futures were trading slightly higher by 0.02%.

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

Some 61 names in the S&P 500 are set to report earnings in the week ahead, including gig economy stocks Lyft ($Lyft LYFT$), Instacart ($Instacart, Inc. (Maplebear Inc.) CART$) and DoorDash ($DoorDash, Inc. Class A DASH$). Companies such as AutoNation ($AutoNation, Inc. AN$), Kraft Heinz ($Kraft Heinz Company KHC$), Hasbro ($Hasbro, Inc. HAS$) and Coca-Cola ($Coca-Cola Company KO$) will also shed light on the state of the US consumer.

“Most earnings are going to be strong because the economy was strong,” said Infrastructure Capital Advisors’ Jay Hatfield, who noted that he’s bullish on the slate of earnings reports.

Traders will also watch out for the latest level on the consumer price index — or CPI, a key inflationary gauge — set to be released on Tuesday morning. More key economic data is expected on Thursday and Friday, including January’s reading on retail sales, production, imports and exports, housing starts and the producer price index, or PPI.

“CPI and PPI should print in line, but still be bullish,” Hatfield said to CNBC. “We think that the market will continue to rally for the next week or two, and then maybe stall out as we wait for this inflation data to continue to come out.” (Source: CNBC)

Also on the news:

Cathie Wood Bets on Tech Revolution, Anticipates 40%+ Compound Stock Growth in Next 7 Years

Cathie Wood, the star fund manager on Wall Street and CEO of ARK Investment Management, revived her flagship fund ARK Innovation ETF ($ARK Innovation ETF ARKK$) in 2023 with a remarkable 68% annual growth, ranking in the top 1% among similar funds. In this comprehensive report, Wood continues to focus on "disruptive innovative technologies," foreseeing that Stocks related to disruptive innovation are to grow at an annual rate of 40%, surging from their current share of 16% of the global stock market total to over 60% by 2030.

Economists Begin to View Fed's Policy as Overly Tight, Criticism Highest in 13 Years

Economists are beginning to believe that the Federal Reserve's monetary policy is somewhat tight. This conclusion was drawn from a survey released by the National Association for Business Economics (NABE) on Monday. The survey revealed that 21% of respondents considered the current monetary policy stance of the Federal Reserve as "too restrictive"—the highest level since 2011.

Survey: Majority of Retail Investors and Analysts Bullish on Gold Before CPI Data

Market reporter Ernest Hoffman of Kitco News stated that retail traders and experts believe that the recent trend in gold prices will depend on inflation data, with the market reaching a consensus prediction of "stability and possible increase".

12 analysts participated in Kitco News' gold survey, and it appears that Wall Street has largely digested all recent downside risks in gold prices. 4 experts (42%) anticipate an increase in the price of gold in the coming week, with only one analyst predicting a decline; 6 experts (half of the respondents) expect gold prices to consolidate in the coming week.

Meanwhile, Kitco's online opinion poll indicates that almost the majority of the public remains bullish. 77 retail investors (47%) expect gold prices to rise in the coming week; another 37 respondents (22%) predict a decline in prices; and 51 respondents (31%) hold a neutral outlook on the near-term prospects for the precious metal.

Tech Giants Lead Nasdaq Surge with Record Buybacks

Following a 54% surge last year, the Nasdaq 100 Index has risen 8.6% in 2024, primarily driven by major tech companies like Microsoft ($Microsoft Corporation MSFT$), Apple ($Apple Inc. AAPL$), Google ($Alphabet Inc. Class A GOOGL$, $Alphabet Inc. Class C GOOG$), Amazon ($Amazon.com, Inc. AMZN$), and Meta ($Meta Platforms META$), which now hold nearly US$140 billion in cash reserves. According to Goldman Sachs and UBS, these tech giants, contributing 70% of market gains, are expected to continue their lead, largely through significant buybacks and strong balance sheets.

IV. Stocks to Watch

Pre-Market Movers: MGIH Leaps 105%; Beamr Surges 90% on NVIDIA Collaboration

Millennium Group ($Millennium Group International Holdings Limited MGIH$) surged 105% to US$2.46 in pre-market trading after YC 1926 (BVI) Limited disclosed an 88.89% stake in a 13G filing on Friday. Concurrently, Beamr Imaging's ($Beamr Imaging Ltd. BMR$) stock soared over 90% pre-market at 07:23 am ET, ahead of presenting joint research relating to Automated Video Modernization with NVIDIA Corporation ($NVIDIA Corporation NVDA$) at the ACM Mile-High-Video 2024 Conference.

Google Commits €25 Million to Enhance AI Skills in Europe

Google ($Alphabet Inc. Class A GOOGL$, $Alphabet Inc. Class C GOOG$) has pledged to provide €25 million to assist European citizens in learning and using artificial intelligence (AI). The tech giant announced this fund on Monday, stating that it has opened applications for social enterprises and non-profit organizations, and will also operate a series of "Growth Academies" to support companies in scaling up after adopting AI.

Apple Vision Pro's In-Flight Experience Is So 'Wild' Even Microsoft Execs Are In Awe

Omar Shahine, the head of Microsoft ($Microsoft Corporation MSFT$) Word, used the Apple ($Apple Inc. AAPL$) Vision Pro and Emirates’ in-flight WiFi service during a 16-hour flight from Seattle to Dubai, effectively converting the cabin into a huge screen. Shahine shared his experience on Threads. He has been sharing his views on the headset ever since he got his hands on it. Shahine expressed his awe on social media, referring to the spatial computing wearable’s ability to create a three-dimensional browsing environment as “wild!” The Vision Pro debuted globally a few days ago and may completely transform in-flight entertainment, particularly for economy-class passengers.

Li Auto's L7 SUV Hits 150K Deliveries, Tops 10K Monthly

Li Auto ($LI AUto LI$) announced that its flagship five-seater SUV, the Li L7, has surpassed 150,000 cumulative deliveries, with monthly deliveries consistently exceeding 10,000 units since its first full month of delivery.

NVIDIA CEO: AI Costs to Drop, Defies Altman's Plan

NVIDIA ($NVIDIA Corporation NVDA$) CEO Jensen Huang predicts significant reductions in AI development costs, challenging Sam Altman's US$7 trillion fundraising for a competitive semiconductor project. Despite NVIDIA's market dominance, Huang sees future efficiencies negating the need for such large investments.

Used Tesla Prices Halve to Record Low

The average price of used Tesla ($Tesla Motors, Inc. TSLA$) cars in the US has dropped for 19 consecutive months, from a historical high of US$67,900 in July 2022 to a record low of US$33,913, marking a 50% decrease.

V. Calendar

Earnings:

$Arista Networks, Inc. ANET$
$Cadence Design Systems, Inc. CDNS$
$Waste Management, Inc. WM$
$Principal Financial Group, Inc. PFG$
$Trimble Navigation Limited TRMB$
$Service Corporation International SCI$
$Lattice Semiconductor Corporation LSCC$

Expected IPO:

$Elate Group, Inc. ELGP$
$NYIAX, Inc. NYX$
$BioLingus (Cayman) Ltd. SUBL$
$Neo-Concept International Group Holdings Limited NCI$

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:

Read more on the week's earnings schedule:
Week's Upcoming Earnings: Coca-Cola, Shopify, Coinbase and More

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!