U.S. stocks are lower as the markets continue to digest earnings data and last night's State of the Union Address from President Joe Biden. Meanwhile, yesterday's commentary from Fed Chairman Jerome Powell remains in focus after he acknowledged that inflation pressures are coming down but more needs to be done to finish to job. Earnings season continues to roll on, with Chipotle Mexican Grill missing estimates, but Uber Technologies topped quarterly expectations and issued a positive outlook, and Yum! Brands also bested the Street's projections. Outside earnings, Activision Blizzard is falling as U.K. regulators are challenging Dow member Microsoft Corporation's near $69 billion takeover agreement of the gaming company. The economic calendar is relatively light, but mortgage applications rebounded last week, and after the opening bell wholesale inventories ticked higher. Treasury yields are modestly moving to the upside, and the U.S. dollar is little changed. Crude oil prices are nudging higher and gold is dipping. Asia finished mixed and Europe is trading to the upside with the markets continuing to grapple with monetary policy uncertainty.
At 10:45 a.m. ET, the Dow Jones Industrial Average is down 0.2%, the S&P 500 Index is declining 0.6%, and the Nasdaq Composite is falling 1.0%. WTI crude oil is climbing $0.14 to $77.28 per barrel, and Brent crude oil is gaining $0.34 at $84.03 per barrel. The gold spot price is trading $1.80 lower to $1,883.00 per ounce, and the Dollar Index is little changed at 103.47. Natural Gas prices have traded in a range of $2.488-2.657 and were last seen trading lower by $0.07 (or - 2.71%) to $2.514/MMBtu.
Source: Schwab Center for Financial Research
Today’s Bullish Activity
Leading the point gainers list this morning is Inspire Medical Systems Inc. (INSP + $20.48 to $270.06) after the medical technology company reported Q4 earnings of $0.10 per share ($0.64 beat) on revenue that rose 75.9% year-over-year (YoY) to $137.9M (slightly above the $137.75M consensus estimate). Looking ahead, the company said that full-year 2023 (FY23) revenue is expected to come in a range of $560-570M (above the $545.71M expected) with FY23 gross margin expected to come in a range of 83-85%. Puts are outnumbering calls ~3:1 with the February 17th 240.00 put being the highest volume contract (volume is 171).