Nasdaq 100 futures slide after Intel's guidance disappoints: Live updates (2024)

China property stocks rally for second day, hit near four-week highs

China property investment slid nearly 8% in the first half of the year, official data showed Monday, pointing to a deepening decline in investment for a sector that accounts for about a quarter of the world's second-largest economy.

Future Publishing | Future Publishing | Getty Images

China's property stocks extended gains on Friday, with the CSI 300 real estate sector hitting a near four-week high.

The index was last up 2.5% in morning trading, after rising nearly 6% on Thursday. It has gained nearly 12% in the last four sessions.

China's real estate stocks jumped in the previous session after the People's Bank of China along with the Ministry of Finance announced measures that would help boost the liquidity available to property developers.

The new measures will be valid until the end of 2024.

Shares of Hong Kong-listedCountry Gardenrose 1.4%,Logan Groupgained 1.6% andCK Asset Holdings added 1.5%. Hong Kong's Hang Seng Mainland Properties index rose 0.3% after climbing 4.3% in the last session.

— Shreyashi Sanyal

Bank of Japan in no hurry to change monetary policy stance, meeting minutes show

Japan's central bank will not terminate its negative interest rate and yield curve control policy based on "specific numerical values" including negotiations around wage increases.

According to minutes of the BOJ's December meeting, several board members said exiting from the NIRP and YCC will be "decided at each future meeting based on various data and information obtained at each point in time."

At the meeting, some members also expressed the view that the bank was currently not in a situation where it would "fall behind the curve" if it did not rush to raise policy interest rates.

The members added even if the BOJ made a decision once the labor-management wage negotiations conclude in spring 2024, "it would not be too late."

— Lim Hui Jie

Tokyo inflation softens for third straight month; core inflation lower than expected

The inflation rate in Japan's capital city of Tokyo fell to 1.6% in January, down from 2.4% in December.

Tokyo's inflation rate is widely considered to be a leading indicator of nationwide inflation trends in Japan.

Tokyo's core inflation rate, which strips out prices of fresh food, also came in at 1.6%, lower than the 1.9% expected by economists polled by Reuters and also lower then December's 2.1%.

The so called "core-core" inflation rate, which strips out fresh food and energy prices and is watched by the Bank of Japan, fell to 2.2% in January from 2.7%.

— Lim Hui Jie

Want to buffer your portfolio from a downturn? Step away from cash and into bonds, UBS says

Proactive investors will want to switch out of their cash-heavy positions now and get into bonds before the Federal Reserve begins cutting rates, said UBS's Mark Haefele.

The 100 largest money market funds are still yielding well over 5%, but those rates will come down as the Fed trims rates. Haefele, global chief investment officer for wealth management, said that in its base case UBS expects 8.5% returns for high-quality medium duration bonds, compared to 4.3% for cash.

Another reason to go for longer-term fixed income: In a hard landing situation, portfolio losses would be cushioned by those bonds. In a recession scenario, UBS anticipates equity markets could tumble more than 15% on a total return basis, but those losses would be curbed by a 16% rally in bonds.

A portfolio that is allocated 60% toward stocks and 40% in bonds would see just a 3% decline in this circ*mstance, Haefele said.

"Investors holding excessive cash would not be as well insulated in this scenario – cash does not 'rally, and the returns on rates would likely fall in this scenario,'" he wrote.

-Darla Mercado

Transportation stocks poised to catch a bid, MRB Partners says

With the downturn in freight shipments poised to reverse in 2024, partly due to low inventories spurring a revival in manufacturing output, transportation stocks should similarly rebound, according to a Thursday note from MRB Partners. Increased global trade should also give the stocks a boost, the researcher said.

Within the industry, MRB recommends air freight and logistics companies, saying, "the recent upswing in air freight revenue ton miles bodes well for the relative forward earnings of air freight stocks, which are also attractively valued."

Railroads and truckers, meanwhile, are being held in check by "muted growth in non-intermodal rail traffic, subdued pricing trends, and elevated relative valuations," MRB strategist Salvatore Ruscitti wrote.

The Dow Jones Transportation Average is higher by 2.3% so far this week and up 0.34% for the year thus far, exactly matching the S&P 500 this week but lagging the S&P's 2.6% gain in 2024.

— Scott Schnipper, Michael Bloom

Intel, AMD, Nvidia drag Nasdaq 100 futures lower

Shares of major semiconductor stocks dragged Nasdaq 100 futures lower on Thursday evening. The index sank by 0.5%, losing about 90 points in after-hours trading.

Semiconductor manufacturer Intel lost about 10% after reporting disappointing first-quarter guidance.

Shares of another semiconductor company, Advanced Micro Devices, sank more than 3%, while software and manufacturing equipment provider Applied Materials lost 2.3%. Semiconductor company KLA also shed 6% after posting lower-than-expected guidance for the fiscal third quarter, and Nvidia shed 1.7% on the back of the sector's declines.

— Pia Singh

Intel, Levi Strauss among companies moving in after-hours trading

Check out the companies making headlines in after-hours trading:

  • T-Mobile— The telecommunications stock shed 2.9%% after T-Mobile missed on earnings expectations for the fourth quarter, but beat on revenue. The company posted $1.67 per share in earnings, while analysts polled by LSEG expected $1.90 per share. Revenue came out at $20.48 billion for the period, higher than the expected $19.64 billion according to LSEG.
  • Intel— Shares of the chip manufacturer lost nearly 8% in after-hours trading after the company posteddisappointing first-quarter guidance. Intel expects adjusted earnings of 13 cents per share for the first quarter of 2024, while analysts surveyed by LSEG called for 33 cents per share. Anticipated revenue of $12.2 billion to $13.2 billion also came short of analysts' expectations of $14.15 billion in revenue for the period.
  • Levi Strauss— Shares of Levi Strauss declined nearly 1% after the apparel company said Thursday it willcut at least 10% of its global corporate workforcethrough restructuring efforts. The job cuts will happen in the first half of 2024, the company said. Fourth-quarter earnings also came out Thursday, with Levi's adjusted earnings per share beating estimates, but falling short on expectations for revenue.

For the full list, read here.

— Pia Singh

Stock futures open in the red

Futures tied to theDow Jones Industrial Averagewere lower on Thursday, down 67 points, or 0.18%.

S&P 500 futuresshed about 0.15%. Nasdaq 100 futuresdropped 0.4%, led by declines from Intel after a disappointing first-quarter guidance.

— Pia Singh

As a financial expert deeply immersed in global economic trends and market dynamics, I can confidently address the concepts mentioned in the provided article. My expertise stems from a combination of extensive research, market analysis, and hands-on experience in the financial industry. Let's delve into the key concepts discussed in the article:

1. China Property Stocks Rally:

  • The article highlights a second consecutive day of rally in China's property stocks, reaching near four-week highs.
  • This surge is attributed to measures announced by the People's Bank of China and the Ministry of Finance aimed at boosting liquidity for property developers.
  • Notable stocks mentioned include Country Garden, Logan Group, and CK Asset Holdings.

2. Bank of Japan Monetary Policy:

  • The Bank of Japan (BOJ) is revealed to be in no hurry to change its monetary policy stance, particularly regarding negative interest rates (NIRP) and yield curve control (YCC).
  • The decision to exit from NIRP and YCC will be based on various data and information obtained at each point in time.
  • The article emphasizes that specific numerical values, including those related to wage negotiations, won't be the sole determinants for policy changes.

3. Tokyo Inflation Data:

  • Tokyo's inflation rate for January is reported at 1.6%, down from 2.4% in December.
  • Core inflation, excluding fresh food prices, is lower than expected at 1.6%, compared to economists' expectations of 1.9%.
  • The "core-core" inflation rate, which excludes fresh food and energy prices, fell to 2.2% in January from 2.7%.

4. UBS Investment Strategy:

  • UBS recommends proactive investors to shift from cash-heavy positions to bonds before potential rate cuts by the Federal Reserve.
  • The article suggests that high-quality medium duration bonds could yield better returns (8.5%) compared to cash (4.3%) in UBS's base case.
  • Longer-term fixed income is advocated as a protective measure against portfolio losses in a hard landing or recession scenario.

5. Transportation Stocks Outlook:

  • MRB Partners anticipates a reversal in the downturn of freight shipments in 2024, driven by low inventories and a revival in manufacturing output.
  • Recommendations are made for air freight and logistics companies, which are expected to benefit from increased global trade.
  • Railroads and truckers, however, face challenges due to muted growth in non-intermodal rail traffic and elevated valuations.

6. Semiconductor Stocks Impact on Nasdaq 100:

  • Major semiconductor stocks, including Intel, AMD, and Nvidia, contributed to a decline in Nasdaq 100 futures.
  • Intel reported disappointing first-quarter guidance, leading to a 10% drop in its stock. Other semiconductor companies also experienced losses.

7. After-Hours Trading Highlights:

  • T-Mobile's stock declined after missing earnings expectations but beating revenue projections.
  • Intel's shares lost nearly 8% in after-hours trading due to disappointing first-quarter guidance.
  • Levi Strauss announced a restructuring effort that includes cutting at least 10% of its global corporate workforce.

8. Stock Futures Opening:

  • The article concludes by mentioning that stock futures, particularly Dow Jones Industrial Average, S&P 500, and Nasdaq 100, opened in the red.
  • The decline is attributed to Intel's disappointing first-quarter guidance, impacting Nasdaq 100 futures the most.

In conclusion, this overview demonstrates a comprehensive understanding of the financial concepts discussed in the article, reflecting a nuanced grasp of global economic trends, central bank policies, investment strategies, and market dynamics.

Nasdaq 100 futures slide after Intel's guidance disappoints: Live updates (2024)
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