Traders work on the floor at the New York Stock Exchange on Feb. 1, 2024.
Brendan Mcdermid | Reuters
U.S. stock futures hovered near the flatline Monday night following a sell-off spurred by higher bond yields and worries that the Federal Reserve may not cut rates as much as Wall Street had hoped.
Futures tied to the Dow Jones Industrial Average slipped 51 points, or 0.1%. S&P 500 futures also inched down 0.1%, while Nasdaq 100 futures slipped just 0.03%.
In after-hours action, shares of Palantir Technologies surged 17% after the company posted a revenue beat in the fourth quarter. NXP Semiconductors also rose 3.3% on better-than-expected results.
During Monday’s main trading session, the S&P 500 lost 0.32%, pulling back from its record high from last week that was powered by megacap tech stocks. The 30-stock Dow also retreated from its high, ending the session lower by 0.71%, and the tech-heavy Nasdaq Composite lost 0.2%.
The decline in stocks came after Federal Reserve Chair Jerome Powell reaffirmed that a rate cut at the central bank’s March meeting is unlikely. His comments, which were aired on “60 Minutes” Sunday night, led to the 10-year Treasury yield rising about 13 points Monday to 4.16%.
Bob Doll, CEO of Crossmark Global Investments, expressed concerns as to whether the market can sustain its recent rally.
“There’s a lot of momentum, but I’m worried about [the S&P 500 at] 20 times earnings, and that the Fed’s not going to live up to [rate] cut expectations. And I don’t see how we get double-digit earnings growth,” Doll said on CNBC’s “Closing Bell: Overtime” on Monday.
“I put all that together — I’m invested but I’m nervous,” Doll added.
On the economic front Tuesday, Wall Street will be keeping an eye out for the New York Fed’s household debt and credit report for the fourth quarter. Several central bank speakers are slated to give comments, including Cleveland Fed President Loretta Mester and Boston Fed President Susan Collins.
Tuesday marks around the halfway point of the earnings season. Eli Lilly, Boeing supplier Spirit AeroSystems and DuPont will all be reporting their quarterly results that morning, followed by Amgen, Chipotle Mexican Grill and Ford after the bell.
Stocks making the biggest moves after hours
Check out the companies making headlines after hours.
Palantir Technologies — Shares jumped 19.5% after Palantir posted a revenue beat in the fourth quarter. Revenue came in at $608.4 million versus the $602.4 forecast by analysts, according to LSEG, formerly known as Refinitiv. The company posted adjusted earnings of 8 cents per share, which was in line with analysts’ expectations. CEO Alex Karp also highlighted the growth in the company’s artificial intelligence platform.
NXP Semiconductors — The chipmaker gained more than 3% following stronger-than-expected fourth-quarter results. NXP announced adjusted earnings of $3.71 per share, which was 8 cents above estimates from analysts polled by LSEG. The company’s revenue of $3.42 billion also beat analysts’ forecasts of $3.40 billion.
Chegg — The stock declined 1% after revenue guidance for the first quarter came in lighter than expected. Meanwhile, the company posted adjusted earnings per share that were in line with analysts’ expectations and a revenue beat in the fourth quarter, per LSEG.
The full list can be found here.
— Hakyung Kim
Stock futures little changed Monday
U.S. stock futures open near the flatline Monday.
Futures tied to the Dow Jones Industrial Average slipped 14 points, or 0.04%. S&P 500 futures inched down 0.03%, while Nasdaq 100 futures added 0.05%.
— Hakyung Kim
