As the trading week begins, US stock futures are showing signs of recovery, rebounding from the declines witnessed at the close of last week. The prevailing anticipation of an essential inflation report has traders recalibrating their positions. In the premarket phase, the Standard & Poor's 500 and the Nasdaq Composite each recorded gains of 0.5%, while the Dow Jones Industrial Average saw a slightly higher increase of 0.7%.
Concurrently, Asian stock markets exhibited mixed to lower performance, contrasting with European markets that primarily traded in the green. This week, the financial spotlight is set to shine on the personal income and outlays report scheduled for release on Friday. Investors are particularly keen on the personal consumption expenditure (PCE) core price index, which is favored by the Federal Reserve as an inflation gauge. In addition to the key inflation report, Monday's economic calendar comprises several significant indicators.
Scheduled for 8:30 am ET, the Chicago Fed National Activity Index for January will be released, followed by the Dallas Fed Manufacturing survey later at 10:30 am. Furthermore, consumer confidence metrics, new home sales reports, and broader economic growth projections will also feature prominently this week. Multiple companies are gearing up to unveil their latest financial results, creating additional attention among investors.
Summit Therapeutics, Domino's Pizza, Owens Corning, and Westlake are among those set to report before the market opens. Likewise, ONEOK, Public Storage, Diamondback Energy, Trip.com, Zoom Communications, and Hims & Hers Health will issue their earnings after hours. In the tech sector, shares of Nvidia reflected a 1.2% increase in pre-bell trading, as market expectations build up ahead of the tech titan's quarterly earnings announcement anticipated later in the week.
However, Apple experienced a 1% dip following the tech company’s commitment to invest over $500 billion in the US over the next four years, with an explicit focus on bolstering its artificial intelligence and silicon engineering initiatives. Adding to the market dynamics, Alibaba’s US-listed stock fell by 2.8% after the Chinese e-commerce leader revealed ambitions to allocate approximately 380 billion Chinese renminbi ($52.4 billion) over the next three years to enhance its cloud computing and artificial intelligence capabilities. Before the market opens today, the cryptocurrency market displayed slight fluctuations, with Bitcoin edging down by 0.1% to $95,681.
Furthermore, West Texas Intermediate crude oil increased marginally by 0.1%, trading at $70.49 a barrel. In the bond market, yields on the 10-year Treasury notes rose by 2.1 basis points to reach 4.44%. Gold prices also saw a slight uptick of 0.2%, settling at $2,959 per ounce. Overall, as financial markets brace for a week filled with crucial economic data and corporate earnings, investors remain vigilant in managing their positions amidst these variable conditions..