Markets Retreat as Fed Chairman Powell Speaks; CMG, FTNT, UBER, GOOGL, DIS and CME Update

[0] The Dow Jones Industrial Average decreased by 0.6%, and the Russell 2000 declined by 1.4%.[1] Nasdaq Composite: 11,887.45, down 1%.

Chipotle Mexican Grill (CMG) has seen a decrease of more than three percent in their stock price following the announcement of their fourth quarter comparable same-store sales growth of five point six percent, which is significantly lower than the predicted seven point four percent.[2] Shares of Fortinet (FTNT) surged over 12% in pre-market trading after the company predicted full-year revenue between $5.37 billion and $5.43 billion; surpassing the consensus estimate of $5.36 billion. Meanwhile, Uber Technologies (UBER) climbed more than +6% in pre-market trading after reporting Q4 revenue of $8.61 billion, stronger than the consensus of $8.47 billion.[2]

On the earnings front, Cybersecurity firm Fortinet (FTNT) soared 10.9% in heavy volume, following a beat on its Q4 earnings per share and positive 2023 revenue guidance. Shares of Alphabet (GOOGL) experienced a 7.7% drop after an unfortunate incident occurred at its AI event, which was meant to showcase its new chatbot, Bard[3] The bot encountered an error during its initial presentation.[4] The stock dropped beneath its 200-day moving average, but regained stability at its 21-day line.[4] Walt Disney (DIS) rallied after solid earnings and announcing 7,000 job cuts as part of its transformation plan under Bob Iger.[5]

Jerome Powell, Chairman of the Federal Reserve, is set to give a speech at the Economic Club of Washington on Tuesday.[6] His comments suggest the Fed will likely raise the fed funds rate by a smaller quarter points each at the March and May meetings, although data will determine the final decision.[7] The yield on 10-year US treasury bonds decreased by 5 basis points to 3.58%.[1] [8] The Nasdaq 100 futures (NDX:IND) rose by 1.2%, S&P futures (SPX) increased by 0.7%, and Dow futures ([9]

The stock of CME Group rose

0. “Stocks Fall as Investors Keep Eye on Path of Interest Rates” The Wall Street Journal, 8 Feb. 2023, https://www.wsj.com/articles/global-stocks-markets-dow-update-02-08-2023-11675858404

1. “Futures Strong As Disney Jumps; Why This Rally Looks Healthy” Investor’s Business Daily, 9 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-disney-jumps-why-this-market-pullback-looks-healthy/

2. “Markets Today: Stocks Fall on Mixed Corporate Earnings Results” Barchart, 8 Feb. 2023, https://www.barchart.com/story/news/14015987/markets-today-stocks-fall-on-mixed-corporate-earnings-results

3. “Stocks Fall Back on Mixed Earnings and Higher Bond Yields” Barchart, 8 Feb. 2023, https://www.barchart.com/story/news/14021624/stocks-fall-back-on-mixed-earnings-and-higher-bond-yields

4. “Stock Market Closed Near Day’s Lows; Pure Barre Parent Gaps Down Sharply” Investor’s Business Daily, 8 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/stock-market-inches-up-from-lows-google-demo-causes-stocl-to-drop

5. “Nasdaq, S&P, Dow futures rally ahead of jobless claims” Seeking Alpha, 9 Feb. 2023, https://seekingalpha.com/news/3934080-nasdaq-sp500-dow-jones-stock-market

6. “Counter Moves, Powell’s Speech, Russia Deficit, Microsoft and Google’s AI Rumble” RealMoney, 7 Feb. 2023, https://realmoney.thestreet.com/markets/counter-moves-powell-s-speech-russia-deficit-microsoft-and-google-s-ai-rumble-16115359

7. “Nasdaq, S&P Futures Dip As Fed’s Data-Dependency Introduces Caution – Invesco QQQ Trust, Series 1 (NASDAQ” Benzinga, 8 Feb. 2023, https://www.benzinga.com/news/earnings/23/02/30803509/nasdaq-s-p-futures-dip-as-feds-data-dependency-introduces-caution-disney-earnings-on-tap

8. “Nasdaq, S&P, Dow futures rally ahead of jobless claims” msnNOW, 9 Feb. 2023, https://www.msn.com/en-us/money/markets/nasdaq-sandp-dow-futures-rally-ahead-of-jobless-claims/ar-AA17hzYM

9. “Stock Market News Today: GOOG and Tech Selloff Lead Stocks Lower” TipRanks, 8 Feb. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-slide-as-markets-reassess-powells-words