Nasdaq QQQ Invesco ETF (QQQ-Q) Quote

What you need to know…

TheS&P 500 Index ($SPX) (SPY) on Friday closed down -0.07%, theDow Jones Industrials Index ($DOWI)(DIA) closed up +0.16%, and theNasdaq 100 Index ($IUXX) (QQQ)closed down -0.55%.

Stocks on Friday settled mixed, with the Dow Jones Industrials climbing to a new record high. Stocks found support Friday on optimism the Federal Reserve will be able to engineer a soft landing. Friday’s U.S economic reports on Dec personal spending and Dec pending home sales were better than expected, while price pressures eased after the U.S. Dec PCE core deflator, the Fed's preferred measure of inflation, rose at the slowest pace in 2-3/4 years.

Weakness in chip stocks weighed on the overall market after Intel close down more than -11% after issuing a bleak Q1 earnings forecast.Also, KLA Corporation closed down more than -6% after forecasting weaker-than-expected Q3 adjusted EPS.

On the positive side, American Express closed up more than +6% after forecasting better-than-expected 2024 EPS. Also, Capital One Financial closed up more than +4% after reporting Q4 net revenue above consensus. In addition, makers of laboratory tools are climbing today after Sartorius AG, a major German laboratory equipment supplier, reported a stronger-than-expected book-to-bill ratio in Q4.

U.S. Dec personal spending rose +0.7% m/m, stronger than expectations of +0.5% m/m, while Nov personal spending was revised higher to up +0.4% m/m from +0.2% m/m.

The U.S. Dec PCE core deflator, the Fed's preferred measure of inflation, eased to +2.9% y/y from +3.2% y/y in Nov, better than expectations of +3.0% y/y and the slowest pace of increase in 2-3/4 years.

U.S. Dec pending home sales rose +8.3% m/m, stronger than expectations of +2.0% m/m and the largest increase in 3-1/2 years.

The markets are discounting the chances for a -25 bp rate cut at 3% at the next FOMC meeting on Jan 30-31 and 48% for that same -25 bp rate cut for the following meeting on March 19-20.

U.S. and European government bond yields on Friday were mixed.The 10-year T-note yield rose +3.3 bp to 4.151%. The 10-year German bund yield rebounded from a 1-1/2 week low of 2.239% and rose +0.9 bp to 2.299%. The 10-year UK gilt yield fell -1.8 bp to 3.964%.

ECB Governing Council member Kazaks said while interest rates "should start to go down," barring any major shocks, the gravest error the ECB could make would be a premature easing that allows inflation to bounce back.

German Feb GfK consumer confidence unexpectedly fell -4.3 to an 11-month low of -29.7, weaker than expectations of an increase to -24.6.

Tokyo Jan CPI eased to +1.6% y/y from +2.4% y/y in Dec, weaker than expectations of +2.0% y/y and the slowest pace of increase in 22 months.

Overseas stock markets on Friday settled mixed. The Euro Stoxx 50 closed up +1.16%. China’s Shanghai Composite Index closed up +0.14%.Japan’s Nikkei Stock Index closed down -1.34%.

Today’s stock movers…

Intel (INTC) closed down more than -11% to lead losers in the S&P 500, Dow Jones Industrials, and Nasdaq 100 after forecasting Q1 adjusted revenue of $12.2 billion-$13.2 billion, well below the consensus of $14.25 billion.

Fair Isaac Corp (FICO) closed down more than -6% after reporting Q1 adjusted EPS of $4.81, weaker than the consensus of $5.06, and forecast full-year adjusted EPS of $22.45, well below the consensus of $23.97.

KLA Corporation (KLAC) closed down more than -6% after forecasting Q3 adjusted EPS of $4.66-$5.86, the midpoint below the consensus of $5.83.

Western Digital (WDC) closed down more than -3% even after reporting better-than-expected Q2 earnings results after Morgan Stanley said it expected more upside.

Cruise stocks retreated Friday after Carnival cautioned that instability in the Red Sea could negatively impact the company’s operations. As a result, Carnival (CCL), Royal Caribbean Cruises Ltd (RCL), and Norwegian Cruise Line Holdings (NCLH) closed down more than -3%.

Arthur J Gallagher (AJG) closed down more than -2% after reporting Q4 brokerage organic revenue rose +7.20%, weaker than the consensus of +7.84%.

Norfolk Southern (NSC) closed down more than -1% after reporting Q4 adjusted EPS of $2.83, weaker than the consensus of $2.87.

Visa (V) closed down more than -1% after reporting Q1 total processed transactions of $57.50 billion, below the consensus of $57.77 billion.

American Express (AXP) closed up more than +7% to lead gainers in the S&P 500 and Dow Jones Industrials after forecasting 2024 EPS of $12.65-$13.15, stronger than the consensus of $12.40.

Capital One Financial (COF) closed up more than +4% after reporting Q4 net revenue of $9.50 billion, better than the consensus of $9.45 billion.

Makers of laboratory tools moved higher Friday after Sartorius AG, a major German laboratory equipment supplier, reported a stronger-than-expected book-to-bill ratio in Q4. As a result, Bio-Rad Laboratories (BIO) closed up more than +4%, and Charles River Laboratories (CRL) closed up more than +3%. Also, Danaher (DHR) closed up more than +2%, and Thermo Fisher Scientific (TMO) and Waters (WAT) closed up more than +1%.

Booz Allen Hamilton Holding Corp (BAH) closed up more than +13% after reporting Q3 adjusted EPS of $1.41, above the consensus of $1.14, and raised its 2024 adjusted EPS to $5.25-$5.40 from a previous forecast of $4.95-$5.10, stronger than the consensus of $5.05.

Autoliv (ALV) closed up more than +2% after reporting Q4 sales of $2.75 billion, better than the consensus of $2.73 billion.

L3Harris Technologies (LHX) closed up more than +2% after reporting Q4 adjusted EPS of $4.35, better than the consensus of $3.31.

ResMed (RMD) closed up more than +2% as analysts have raised their price targets on the stock by an average of +6.5% since the company reported earnings on Wednesday.

Estee Lauder (EL) closed up more than +1% on positive carryover from a +10% jump in LVMH, which reported stronger-than-expected Q4 sales.

Across the markets…

March 10-year T-notes (ZNH24) on Friday closed down -9 ticks, and the 10-year T-note yield rose by +3.3 bp to 4.151%. Mar T-notes on Friday posted moderate losses on stronger-than-expected U.S. economic reports. Dec personal spending increased more than expected, and Dec pending home sales posted their largest monthly increase in 3-1/2 years. Losses in T-notes were limited after the Dec PCE core deflator, the Fed's preferred measure of inflation, rose less than expected at the slowest pace in 2-3/4 years, a dovish factor for Fed policy.

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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

I'm an experienced financial analyst with a keen interest in market dynamics and economic indicators. Over the years, I've closely followed various financial markets, including equities, bonds, and commodities, and have a solid understanding of the factors influencing their movements.

Analyzing the article you provided, here's a breakdown of the key concepts mentioned:

S&P 500 Index ($SPX) (SPY): A stock market index that measures the performance of 500 large companies listed on stock exchanges in the United States.
Dow Jones Industrials Index ($DOWI) (DIA): Another stock market index that tracks the performance of 30 large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and the NASDAQ.
Nasdaq 100 Index ($IUXX) (QQQ): An index composed of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
Federal Reserve: The central banking system of the United States, responsible for conducting monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates.
Dec PCE Core Deflator: The Personal Consumption Expenditures (PCE) Price Index measures the change in prices of goods and services purchased by consumers, excluding food and energy. The core deflator excludes volatile items like food and energy.
Q1 Earnings Forecast: Anticipated financial performance of companies for the first quarter of the fiscal year.
Basis Points (bp): A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equal to one-hundredth of a percentage point (0.01%).
ECB Governing Council: The decision-making body of the European Central Bank (ECB) responsible for setting monetary policy for the Eurozone.
Consumer Confidence Index: A measure of consumers' optimism about the state of the economy, which influences their willingness to spend.
CPI (Consumer Price Index): A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.
Book-to-Bill Ratio: A financial ratio used to evaluate a company's ability to fulfill future orders based on the orders it has received and billed for.
Stock Movers: Companies experiencing significant changes in their stock prices due to various factors such as earnings reports, forecasts, or market sentiment.
Earnings Per Share (EPS): A company's net profit divided by its number of outstanding shares, representing the portion of a company's profit allocated to each outstanding share of common stock.
Yield: The income return on investment, usually expressed as an annual percentage rate, earned from holding a particular security.
Market Sentiment: The overall attitude of investors toward a particular security or financial market, which influences buying and selling decisions.

By understanding these concepts, investors can better interpret market movements and make informed decisions regarding their investments.

Nasdaq QQQ Invesco ETF (QQQ-Q) Quote - Press Release (2024)

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