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Wall Street is about to rebound after a surprising Hot US inflation data sent shares tumbling this week.
S&P 500 futures rose 0.5% before the bell and Dow Jones Industrial Average futures gained 0.3%.
With little market-moving economic data due on Wednesday, attention is once again focused on corporate earnings.
Lyft shares surged 62% after the bell on Tuesday thanks to a typo in the ride-hailing company’s earnings release that caused investor algorithms, also known as “bots,” to go into overdrive. shopping frenzy. Lyft’s fourth-quarter report initially forecast that a major profit metric was expected to rise by 500 basis points in 2024. However, the company soon informed investors that there was one too many zeros in that number and corrected it to 50. Shares retreated after the correction, but remain nearly 22% higher before the bell after the company beat most expectations for the quarter.
Online booking of Airbnb vacation rentals fell 5% after reported having lost 349 million dollars in the fourth quarter due to an income tax agreement with Italy. The company forecast first-quarter revenue that would meet or beat Wall Street expectations; However, Airbnb said the pace of booking growth is likely to “moderate” from the fourth quarter to the first.
The latest quarterly results from Cisco Systems and Wyndham Hotels will be released after the bell on Wednesday.
In Europe at midday, the French CAC 40 gained 0.6%, while the German DAX added 0.4%. Britain’s FTSE 100 rose 0.9%.
Hong Kong’s Hang Seng Index resumed trading after the Lunar New Year holiday, rising 0.8% to 15,879.38 after opening lower. Mainland Chinese markets remain closed all week.
Japan’s benchmark Nikkei 225 index lost 0.7% to 37,703.32. Australia’s S&P/ASX 200 fell 0.7% to 7,574.70. South Korea’s Kospi fell 1.1% to 2,620.42.
India’s Sensex gained 0.2% and the Bangkok SET lost 0.6%.
Back in the US, Tuesday report The Labor Department showed that the consumer price index rose 0.3% from December to January, up from a 0.2% increase the previous month. Compared to a year ago, prices rose by 3.1%.
Even after the surprising inflation report, the most likely outcome remains that the US economy makes a soft landing and avoids a painful recession as inflation cools, according to Alexandra Wilson-Elizondo, co-chief investment officer of the multi-asset solutions business at Goldman Sachs Asset Management.
But he said there was still a risk that the economy could fall into a recession under the weight of high interest rates, or that inflation would accelerate again.
Federal Reserve officials have said they were planning three rate cuts this year, as inflation is expected to cool toward its 2% target from its peak above 9% two summers ago. Previously, traders were forecasting up to six cuts in 2024. Now, they are largely betting on three or four cuts.
In other trading, benchmark U.S. crude rose 16 cents to $78.03 a barrel. Brent crude, the international standard, rose 22 cents to $82.99 a barrel.
The US dollar hovered above 150 Japanese yen again, falling to 150.65 yen from 150.86 yen. In other currency trading, the euro was worth $1.0707, down from $1.0712.