Early Look

Tuesday, February 18, 2025

U.S. futures are edging higher as investors return from the three-day President’s Day holiday weekend, with S&P futures (Spuz) +0.2% above 6,151 eyeing a new all-time high. As for last week, the S&P 500 ended up 1.47%, the Nasdaq jumped 2.61%, and the Dow edged higher by 0.47%. Treasury prices drop after Fed Governor Waller said recent economic data support keeping interest rates on hold (US 10-year yields rise almost 4 bps to 4.51%.) Fed officials over the long weekend signaled a firm belief that rates should stay at current levels to combat rising inflation. That has turned the spotlight on Wednesday’s release of minutes from the Fed’s January meeting. The other story over the weekend was US-Russia talks on ending the Ukraine war gripping markets, as Trump and Putin’s teams meet in Saudi Arabia on Monday. In Asian markets, The Nikkei Index gained 95 points to 39,270, the Shanghai Index fell -31 points to 3,324, and the Hang Seng Index jumped 360 points to 22,976. In Europe, the German DAX is down -27 points to 22,771, while the FTSE 100 is up 10 points to 8,778. Oil edged higher as OPEC+ considers delaying output increases and Kazakhstan’s crude exports through Russia were slowed by a Ukrainian drone attack. Traders are also monitoring talks between top US and Russian officials that could pave the way for a meeting of presidents Donald Trump and Vladimir Putin on ending the war in Ukraine.

• The Dow Jones Industrial Average slid -165.35 points, or 0.37%, to 44,546.08.
• The Nasdaq Composite gained 81.13 points, or 0.41%, to 20,026.77.
• The Russell 2000 Index declined -2.20 points, or 0.10% to 2,279.87.

• 8:30 AM ET                  Empire Manufacturing for February
• 10:00 AM ET NAHB Housing Market Index for February
• 10:20 AM ET                Fed’s Daly Speaks to American Bankers Association
• 4:00 PM ET                   Net Long Term TIC Flows for December

• Earnings After the Close: ADEA ANDE ANET BELFA BKD BMBL BRSP BXC CDNS CE CHCT COMP CRK CSGP CSR CVI CYH DDVN EQT ESI FLS FOUR GNW GOOD HALO HCKT IFF IOSP JBGS LZB MED MGY MTDR NGVT OXY PEN QUAD RUSHA SEVN SMLR SON TCMD TOL TRUE UAN UIS WTTR

• China House Prices for January

• @lisaabramowicz1 notes on “X”, Investors’ cash holdings are at 15-year lows in the latest Bank of America fund manager survey, which shows a huge overweight to US equities and the lowest levels of recession fears in 3 years.”
• UK pay growth picked up to its highest level in eight months and employment unexpectedly rose.

• A Delta Air Lines (DAL) regional jet flipped upside down upon landing at Canada’s Toronto Pearson Airport on Monday amid windy weather following a snowstorm, injuring 18 of the 80 people on board, officials said.
• Diamondback Energy (FANG) agreed to acquire certain subsidiaries of Double Eagle and accelerate development of the Midland Basin, confirming a prior report in The Wall Street Journal. FANG reached an agreement with Double Eagle in exchange for 6.9 million shares of its common stock and $3 billion in cash.
• Entergy (ETR) Q4 adjusted EPS $0.66 vs. est. $0.63; sees FY25 adjusted EPS $3.75-$3.95 vs. est. $3.92.
• H&E Equipment Services (HEES) has accepted a bid from Herc Rentals (HRC) of nearly $5.3B, rebuffing an earlier takeover offer from equipment rental rival United Rentals (URI), according to people briefed on the matter. per Financial Times reporting.
• Sealed Air (SEE) announces leadership changes and re-affirms full year 2024 outlook; says appoints Dustin Semach as President and CEO as Patrick Kivits steps down as Sealed Air CEO and board member.

• Discover Financial Services (DFS) January credit card delinquency rate 1.80% and credit card charge-off rate 2.63% at Jan end – SEC filing
• Janus Henderson Group Plc (JHG) is pursuing opportunities in Saudi Arabia as it looks to grow its footprint in the Middle East and boost regional investment, Bloomberg reported.
• JPMorgan Chase & Co (JPM) credit card delinquency rate 0.88% at January and credit card charge-off rate 1.64% in January – SEC filing.
• KKR (KKR) has signed an agreement with Italy’s Eni (E) to buy an additional 5% stake in Eni’s biofuel business Enilive for 587.5 million euros ($614.17 million), bringing its total stake to 30%, the energy group said.

• Medtronic (MDT) Q3 adj EPS $1.39, vs. est. $1.36; Q3 revs rose 2.5% y/y to $8.29B vs. est. $8.33B; Q3 adj gross margin 66.6% vs. 66.1% y/y and reiterates full year revenue and EPS guidance.
• Oculis (OCS) 5M share Secondary priced at $20.00 per share.

• Broadcom Inc. (AVGO) has had informal talks with its advisers about making a bid for Intel Corp.’s (INTC) chip-design and marketing business, the Wall Street Journal reported, citing people familiar with the matter. Nothing has been submitted to Intel and Broadcom could decide not to pursue a deal, according to the Journal
• Roku (ROKU) files mixed securities shelf.