US Market Preview | Multiple Fed Officials to Make Speeches; Canoo Plunges Over 28% Due to Weak Guidance; Wall Street Lowers Tesla Delivery Data
M+ Global Updates 02/04/2024 20:33

Key Takeaways

  • JPMorgan: Equity Surge Amid Rate Hike Delays Sparks Concern
  • Canoo Plunges Over 28% Pre-Market Due to Weak Guidance
  • Tesla's Global Delivery Data Faces a Test as Wall Street Lowers Expectations
  • Apple: New Device-End Model Surpasses GPT-4, Aims to Save Siri

I. Market Report

S&P 500 futures pointed to a second day of losses to start the new quarter as bond yields increased and traders lowered the odds that the Federal Reserve would cut interest rates in June.

As of 08:00 am, EST (or 20:00 in Malaysia), futures tied to the broad-market index ticked lower by 0.36%. Futures tied to the 30-stock Dow fell 202 points, or 0.51%, as shares of UnitedHealth declined, while Nasdaq 100 futures dipped 0.48%.

II. Market Movers

As of 08:00 am, EST (or 20:00 in Malaysia), top pre-market movements are as follows:

Ticker Chg. Company
TPET 114.81% $Trio Petroleum Corp. TPET$
XTIA 88.83% $XTI Aerospace, Inc. Common Stock - Common Stock XTIA$
LIFW 64.91% $MSP Recovery, Inc. - Class A Common Stock LIFW$
MBTCR -78.02% $Nocturne Acquisition Corp. Rights -26.12.25 For Shares MBTCR$
ACOR -75.51% $Acorda Therapeutics, Inc. ACOR$
GRTS -38.3% $Gritstone Oncology GRTS$

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: 16:00 to 21:30 in Malaysia
  • After-hours market: 04:00 to 08:00 the next day in Malaysia

Please note that regular trading hours are from 21:30 to 04:00 UTC.

III. Flash Headlines

Markets on Edge: US's March Job Data in Focus

Monday saw declines in both the Dow and the S&P 500, influenced by strong manufacturing data that cast doubt on the Fed's predicted three rate cuts. AJ Bell's Investment Director Russ Mould highlighted the critical balance markets seek in Friday's non-farm payrolls data, aiming to avoid extremes that could affect interest rate decisions.

JPMorgan: Equity Surge Amid Rate Hike Delays Sparks Concern

JPMorgan strategists warn of a concerning divergence as US stocks climb 30% since October, despite delayed Fed rate cut forecasts. They caution equities may be overlooking risks, with earnings growth needed to close the gap, amid bond market complacency towards inflation.

Wall Street Bear Sees Bubble Amid AI Frenzy

Albert Edwards of Société Générale remains a staunch bear on Wall Street, cautioning against a historic bubble in US stocks, which continue to hit record highs. Edwards, who foresaw the dot-com bubble, warns of a potential crash, especially with the current AI frenzy, likening it to the tech bubble over two decades ago. Despite the S&P 500's 27% rise from its October 2022 low, Edwards suggests this could signal the Fed to maintain tight monetary policy. Analysts' optimism and earnings forecasts are cooling, challenging the justifications for high valuations amidst an AI-driven profit surge.

US-UK Forge First Global AI Safety Partnership

The US and the UK have established an AI safety science partnership to collaborate on research, safety evaluations, and guidance. A memorandum of understanding was signed in Washington, committing to joint testing for cutting-edge AI models, fulfilling a promise from last November's AI safety summit. This marks the first global bilateral agreement on AI safety, planning at least one public joint test and considering personnel exchanges between AI safety research institutions.

IV. Stocks to Watch

Canoo Plunges Over 28% Pre-Market as This Year's Revenue Guidance Appears Weak

Electric vehicle manufacturer Canoo ($Canoo GOEV$ ) saw a significant pre-market drop of over 28% in the US stock market as of 20:05 GMT+8. Canoo revealed its fourth-quarter performance up to December 31st, with revenue of $367,000, falling short of analysts' expectations of $700,000. The adjusted loss per share was $1.73, slightly better than analysts' forecast of a loss of $1.77 per share. The company anticipates revenue for 2024 to fall between $50 million and $100 million, significantly lower than analysts' projection of $152.5 million.

Apple: New Device-End Model Surpasses GPT-4, Aims to Save Siri

Apple's $Apple Inc. AAPL$ researchers have claimed to have developed a model that can run on devices and, in certain aspects, outperform GPT-4. Specifically, their research focuses on the problem of reference resolution in Natural Language Processing (NLP), which involves identifying the relationships between various entities mentioned in text. In essence, it involves determining the specific objects to which a word or phrase refers. This research is poised to improve the Siri intelligent assistant on Apple devices.

Tesla's Global Delivery Data Faces a Test as Wall Street Lowers Expectations

The news indicates that Tesla $Tesla Motors, Inc. TSLA$ sold 89,064 cars in China in March. According to FactSet data, Wall Street's current consensus for Tesla's global deliveries in the first quarter is 457,000 vehicles. However, just last week, this figure was reported as 471,000 vehicles. In the fourth quarter of last year, Tesla's deliveries reached a record 484,507 vehicles.

Citi Completes Restructuring Plan, Cutting Tech Banking Jobs in the US

According to insiders, Citigroup ($Citigroup Inc. C$ ) has been gradually implementing its restructuring plan, with a new round of layoffs in its US investment banking division last week. It is reported that the technology, media, and telecommunications sectors are among the hardest hit areas of Citigroup, affecting both senior bankers and more junior staff. Last week, Citigroup released a statement stating that "significant actions" around the restructuring plan have concluded, resulting in the subsequent layoffs.

NIU Electric Rises 2.3% in Pre-Market, NXT's First Month Sales Exceed CNY125 Million

Electric vehicle manufacturer Niu ($Niu Technologies NIU$ ) saw a 2.3% pre-market rise in the US stock market. In terms of news, from its debut on February 29th to March 31st, Niu's high-end smart electric two-wheeler, NXT, achieved a total channel sales revenue exceeding CNY125 million, with a total sales volume of 13,349 units, of which the high-end version NXT Ultra accounted for 48% of the sales. Niu Electric anticipates that the full-year sales volume in 2024 will fall between 1 million and 1.2 million units, corresponding to a year-on-year growth of approximately 41% to 69%.

V. Calendar

Earnings:

$Paychex, Inc. PAYX$
$Allego N.V. Ordinary Share ALLG$
$Dave & Buster's Entertainment, Inc. PLAY$

Expected IPO:

$Massimo Group MAMO$
$Zhibao Technology ZBAO$

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:

22:00 GMT+8 USD Factory Orders (MoM) (Feb)
22:00 GMT+8 USD JOLTs Job Openings (Feb)
22:10 GMT+8 USD FOMC Member Bowman Speaks
00:00+1 GMT+8 USD FOMC Member Williams Speaks
00:05+1 GMT+8 USD FOMC Member Mester Speaks
01:30+1 GMT+8 USD FOMC Member Daly Speaks

Read more on the full week's calendar:
Weekly Watch | US Jobs Report To Be Released; Tesla Set to Announce Delivery Numbers; HK Stock Market Closed on Monday and Thursday

Finally, just a little reminder:

The regular trading hours for US stocks in the Winter Time are from 21:30 to 04:00+1 GMT+8, with pre-market trading available from 16:00 to 21:30.

Have a nice trading day!

Disclaimer:

The content is provided as general information only and should not be taken as investment advice. All the contents shall not be taken as a recommendation to buy or sell any security or financial instruments. Any action you take resulting from information, analysis, or commentary on this article is your responsibility. Please consult your investment advisor before making any investments.

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