US EARLY MORNING: Nasdaq-100 futures slump after disappointing earnings updates from AAPL, AMZN, GOOG; US jobs report ahead

SNAPSHOT: US equity futures are slumping after disappointing earnings from highly concentrated mega cap names (AAPL, AMZN, GOOG the chief culprits), which is souring sentiment and weighing on equity indices. The Nasdaq underperforms, currently lower by around 1.7%; within that, AAPL was -3.2% afterhours after reporting its first revenue decline since 2019 (11.8% NDX weight), AMZN was -5.1% afterhours as it saw softer cloud revenue growth and warned of slower growth ahead (6.7% NDX weight), GOOG fell -4.9% afterhours after reporting top- and bottom-line misses and lower-than-expected ad sales (3.9% NDX weight), QCOM was -3.0% afterhours as revenue fell and its outlook was glum (1.2% NDX weight), SBUX was -1.8% afterhours as results were hit by China’s COVID surge last year (1.0% NDX weight); additionally, TSLA was -2.2% afterhours (3.5% NDX weight), also contributing to the underperformance. Elsewhere, Treasury yields are mixed, with the long-end a touch lower, while shorter-dated yields are a little higher. The Dollar Index is flat ahead of today’s data docket, which sees the release of the January non-farm payrolls data (preview below). 

PAYROLLS AHEAD: US Nonfarm Payrolls (Jan 2023) will be released at 13:30GMT/08:30EST. The pace of payroll additions is expected to cool again in January, and while the unemployment rate is likely to have risen a little, it still points to a tight labour market. Recent data has alluded to an easing in wage pressures, and this is likely to continue again in January, which will be received well by Fed officials. A continued decline here may give traders further confidence to price a path for rates more dovishly than the Fed’s current projections, and conversely, any upside surprise in the wages metrics may lead to a hawkish repricing of forward rates. Meanwhile, annual payroll benchmark revisions are difficult to predict, but some think that it will result in downward revisions to many of the prints in the second part of 2022. To download the report, please click here.

WEEKLY FLOWS: BofA Weekly flow report notes inflow to stocks and bonds, outflows from cash and gold. BofA's Bull & Bear Indicator rose to 4.2 from 3.5, to the highest levels since March 2022, seeing its biggest 3-month surge since August 2020; the upside was driven by strong EM inflows, and strong stock market breadth, BofA said. Equities saw USD 16.0bln of inflows (USD 15.6bln into ETFs, USD 0.5bln into mutual funds), and have now see inflows for the last four weeks. By region, US has now seen inflows for the last two weeks (USD 6.7bln in the latest week); Japan has seen outflows for the past two weeks (USD 0.5bln in the latest week); Europe has now seen inflows for the last three weeks (a modest USD 21mln this week); while EMs have now see inflows for the past seven weeks (USD 7.7bln this week). By style, US large caps seen USD 5.1bl inflows, US value sees USD 2.1bln inflows, small caps attract USD 1.1bln); outflows were seen in US growth (of USD 0.4bln). By sector, financials led the inflows at USD 0.9bln, energy saw 0.3bln of inflows, materials USD 0.3bln,; tech saw small outflows of USD 35mln, as did consumer, utilities, real estate, and health care.

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03 Feb 2023 - 09:20- EquitiesResearch Sheet- Source: Newsquawk

USDNASDAQ 100 IndexUnited StatesChinaAMZNAAPLGoogle IncGOOGTSLASBUXQCOMSI.USHIG.USCLX.USX.USCG.USPOST.USSNY.USGILD.USGOOGL.USQCOM.USMCHP.USCTSH.USSYNA.USCRUS.USAMZN.USSBUX.USF.USTSLA.USKSS.USJWN.USDECK.USSKX.USEuropeGILDPost Holdings IncClorox Co/TheCLXUnited States Steel CorpSanofiNonfarm PayrollsUnemployment RateFederal ReserveWagesHawkBullEquitiesTECHApple IncAlphabet IncGOOGLAdvertisingAI FPQUALCOMM IncMicrochip Technology IncMCHPTEAMCTSHSynaptics IncCirrus Logic IncAmazon.com IncInflationStarbucks CorpFord Motor CoFSouth KoreaKohl's CorpNordstrom IncDeckers Outdoor CorpCarlyle Group LP/TheHartford Financial Services GroupHIGGilead Sciences IncAsian SessionHighlightedResearch SheetEU SessionDataEURJapanHong KongNorth AmericaUkraineUnited Kingdom

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