Markets Wait for Fed Decision, Crypto and Regional Banks Down | MarketReader Minute

January 31, 2024

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Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

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Wednesday, January 31, 2024

The overall market is currently experiencing normal macro volatility.

Some of the largest moves in the market today include: Ethereum has experienced a large move of -2.6%. Bitcoin has experienced a large move of -1.5%.

US crude oil inventories fell by 2.5 million barrels, surpassing market expectations and marking a second consecutive weekly decline, which could influence energy stocks and sector sentiment

Meanwhile, central banks are hinting at adopting more dovish monetary policies with anticipated interest rate cuts this year affecting investor strategies in the stock markets.

Key economic data releases such as the US Employment Cost Index and ADP employment figures will be scrutinized ahead of today’s Federal Reserve rate decision (January 31).

Wall Street futures show mixed signals amid these developments alongside global issues like Middle East tensions and China’s slowing growth. The post-meeting commentary from Fed Chairman Jerome Powell is expected to heavily sway future interest rates outlooks impacting both currency values—especially for the US Dollar—and broader financial asset prices.

AI-generated summaries of notable premarket ETF moves:

HEALTH CARE SELECT SECTOR SPDR FUND | XLV $141.25 +0.5%
The Health Care Select Sector SPDR Fund (XLV) has moved +0.4% since the previous close. The positive price movement can be attributed to strong performances from key XLV components, such as SYK (+7.37%), BSX (+4.66%) and UNH (+0.66%). Factors contributing to their success include FDA approval for BSX’s FARAPULSE Pulsed Field Ablation System and positive revenue projections overall in Q4 results.

SPDR S&P REGIONAL BANKING ETF | KRE $51.48 -2.5%
The SPDR S&P Regional Banking ETF has seen a -1.6% price movement since the previous close. The performance of key stocks in the ETF, such as CFG and ZION (-1.76%), along with NYCB‘s significant negative impact (-31.76%), have contributed to this decrease in returns.

AI-generated summaries of notable premarket stock moves:

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(Even if you don’t have an account, you can still see real-time summaries of the top 6 most unusual asset moves at the moment)

New York Community Bancorp Inc | NYCB $6.42 -36.2%
Financials, Regional Banks
New York Community Bancorp Inc’s stock price has dropped significantly by -33.9% since the previous close. This decline can be attributed to disappointing Q4 earnings, with lower-than-expected EPS and revenues reported. The company also announced a substantial decrease in its quarterly dividend, reflecting their focus on capital-building efforts amid transformational changes such as integrating Flagstar Bank and acquiring assets from Signature Bank. These actions were taken to strengthen their balance sheet but have negatively impacted investor sentiment towards the stock.

Mondelez International Inc | MDLZ $73.38 -4.5%
Consumer Staples, Packaged Foods & Meats
Mondelez International Inc’s stock price declined -4.5% since the previous close due to mixed Q4 earnings results. Although actual EPS exceeded expectations and revenues were in line, sales growth slowed as consumers pulled back amid higher prices caused by inflation. The company expects slower organic net revenue growth for 2022 compared to analyst estimates, citing potential challenges from rising commodity prices and geopolitical tensions affecting certain markets. Despite management’s confidence in sustainable growth going forward, investors may have been concerned about weaker sales performance and future headwinds impacting Mondelez International Inc’s profitability.

Teradyne Inc | TER $94.55 -9.6%
Information Technology, Semiconductor Materials & Equipment
Teradyne Inc’s stock has dropped significantly by -9.6% since the previous close. The decline can be attributed to mixed Q4 earnings, with higher-than-expected EPS but lower revenues. Additionally, Teradyne provided a disappointing guidance for Q1 2024 due to weaker demand in certain systems, leading investors to anticipate a decrease of about 4.5%-12.5% in revenue compared to last year’s same period and lower per-share profit as well.

Extreme Networks Inc | EXTR $12.56 -24.5%
Information Technology, Communications Equipment
Extreme Networks Inc’s stock price has dropped significantly, possibly due to disappointing Q2 earnings. The company reported lower-than-expected EPS of $0.24 and higher revenues at $296.4M compared to the expected $295.6M. Additionally, their guidance for Q3 2024 indicates a potential loss per share in the range of -$0.22 to -$0.17 and revenue between $200M-$210M which may have further negatively impacted investor sentiment regarding future performance.

Starbucks Corp | SBUX $99.04 +5.2%
Consumer Discretionary, Restaurants
Starbucks Corp’s stock price increased by +4.5% since the previous close due to several factors. In their Q1 earnings report, Starbucks reported lower-than-expected EPS and revenues but reaffirmed their FY24 EPS guidance. The company also lowered its revenue guidance for FY24, which may have impacted investor sentiment positively as it aligns with market expectations. Price target adjustments by JPMorgan and Citi further influenced the positive movement in Starbucks’ stock price. Despite missing estimates, strong first-quarter performance with comp sales growth of 5% contributed to investors’ optimism about long-term plans in China and solid overall results.

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