Markets Down
US index futures are falling this morning as investors digest another wave of corporate earnings. The decline is intensifying:
- Nasdaq 100: -0.7%
- S&P 500: -0.5%
- Dow Jones: -0.5%
Macroeconomics & the Fed
- Inflation: December's producer price index came in above expectations, rekindling concerns about inflation.
- Monetary Policy: Donald Trump announced his intention to appoint Kevin Warsh as Fed Chair. Known for his tough stance on monetary policy in the 2010s, Warsh could now take a more opportunistic approach, betting on a disinflationary cycle linked to productivity, according to economist Dario Perkins.
- Bonds yields: Yields are rising across the curve:
- 10-year: +3.2 bps to 4.27%
- 30-year: +4.6 bps to 4.90%
- 2-year: +0.7 bps to 3.57%
Corporate Earnings
Winners
- SanDisk (SNDK) +20%: Explosive results thanks to data center demand (+64% Q/Q). Q3 guidance well above consensus. Partnership extension with Kioxia until 2034.
- Deckers Outdoor (DECK) +13%: Record UGG and HOKA sales. Upward revision to annual forecasts above consensus.
- SoFi Technologies (SOFI) +7.6%: Strong growth in loans and members. Guidance for 2026 above expectations.
- Tesla (TSLA) +3%: Rumors of a merger with SpaceX or integration with xAI, tied to orbital data center projects powered by Starlink.
- Verizon (VZ) +2%: Solid results with growth in postpaid subscribers. Robust 2026 forecasts.
Losers
- KLA Corp (KLAC) -11%: Solid results but disappointing free cash flow and market caution despite strong guidance.
- Newmont (NEM) -8.6% and Freeport-McMoRan (FCX) -6.3%: Pressure on the mining sector.
- Schneider National (SNDR) -15%: Lower results and 2026 guidance well below consensus.
Tech & Consumer
- Apple (AAPL) -0.25%: Solid results driven by record iPhone sales. JPMorgan maintains its Overweight rating and raises the price target to $325.
- Record product margins confirmed for the upcoming quarters.
What to Watch Today
- Market reaction to the prospect of a monetary policy shift under Kevin Warsh.
- Continuation of major earnings reports.
- Bond yield trends and inflationary pressures.
