Stock Futures Dip as Investors Await Inflation Report Release
Stock futures saw a minor dip on Monday evening as investors prepared for the release of a significant inflation report. By 6:50 pm ET (11:50 pm GMT), stock futures ticked 0.1% lower and dipped 0.2%.
In extended deals, ZoomInfo Technologies Inc surged 22.9% after reporting earnings per share (EPS) of $0.26, beating expectations of $0.25, on revenues of $316.4 million, exceeding the expected $310.68 million. The company also provided solid guidance for the first quarter and full year.
Arista Networks declined 6.9% after reporting Q4 EPS of $2.08, surpassing the expected $1.7, on revenues of $1.54 billion, slightly exceeding the expected $1.53 billion.
Cadence Design Systems Inc declined 6.5% despite reporting EPS of $1.38, beating the expected $1.34. Revenues were reported at $1.07 billion, exceeding the expected $1.06 billion.
During regular trading hours, the S&P 500 index closed at a new record high, although it ended the day slightly down by nearly 0.1%. The index recently achieved a milestone by closing above 5,000 for the first time last Friday. It also saw a slight decrease, slipping by 0.3%. However, all three major indexes have maintained a five-week winning streak.
Investors are now turning their attention to the January inflation report, due on Tuesday morning, for the latest insights into inflation. Federal Reserve officials are expected to scrutinize the report’s findings closely as they consider the future course for rate policy.
Tuesday will also see several high-profile companies release their earnings reports. In the morning, beverage titan Coca-Cola Co, toy manufacturer Hasbro Inc, and hospitality giant Marriott International Inc will announce their results. After the market closes, casino operator MGM Resorts International and kidney dialysis company DaVita HealthCare Partners Inc will also announce their results.
On the bond markets, yields were at 4.179%.
Analyst comment
Positive news: ZoomInfo Technologies Inc reported better-than-expected earnings and provided solid guidance.
Negative news: Arista Networks and Cadence Design Systems Inc reported declines despite beating earnings expectations.
Neutral news: Stock futures dipped slightly as investors awaited the inflation report.
As an analyst, the market is expected to experience some uncertainty and volatility as investors await the inflation report. High-profile earnings reports from companies such as Coca-Cola, Hasbro, and Marriott will also have an impact. The bond market’s yield of 4.179% may suggest increased investor interest in bonds.
