US Stock Market Preview: Indices Dip, Awaiting Retail Sales Data; ChatGPT Launches Insurance Comparison Tool.

Market Overview

As of Monday morning, U.S. stock futures are all down: Dow futures are down 0.19%, Nasdaq futures are down 0.16%, and S&P 500 futures are down 0.14%.

Major Tech Stocks

Most major tech stocks are also experiencing declines in pre-market trading.

• Micron Technology (MU) is down over 2%.
• Alphabet (GOOG) is down nearly 1%.
• Nvidia (NVDA) and Broadcom (AVGO) are up nearly 1%.
• TSMC (TSM) is up over 2%.

Chinese Stocks

Popular Chinese stocks are mostly up in pre-market trading.

• ASE Technology (ASX) is up over 1%.
• Hesai (HSAI) is down over 1%.

Alphabet's Financing Strategy

Alphabet is launching a significant financing campaign to support its $185 billion AI infrastructure investment.

The company has begun selling Swiss franc-denominated bonds and plans to issue bonds in British pounds, marking its first entry into these markets. This follows a record $20 billion bond issuance in the U.S.

TSMC's Record Revenue

TSMC reported a record revenue of NT$401.26 billion (approximately $12.71 billion) for January, marking a nearly 20% month-over-month increase and a nearly 40% year-over-year increase.

The company’s board approved a capital budget of $44.962 billion for advanced process capacity upgrades.

AI Developments

Alibaba has launched the RynnBrain AI model, designed to enhance robotic capabilities, outperforming major competitors like Google and Nvidia in various assessments.

Baidu has initiated the "O Plan," aiming to integrate its search and cloud teams to enhance user experience through AI.

Earnings Reports

• Coca-Cola (KO) reported Q4 net revenue of $11.8 billion, below expectations, leading to a nearly 4% drop in pre-market trading.

• Ferrari (RACE) reported a Q4 net profit of €381 million, exceeding expectations, resulting in a pre-market increase of over 9%.

• Philips (PHG) saw a pre-market rise of over 8% after reporting Q4 sales and profits that surpassed expectations.

Market Sentiment

The market is currently assessing the implications of upcoming economic data, including U.S. retail sales and labor costs, as well as geopolitical tensions affecting trade and energy sectors.

Conclusion

Investors are closely monitoring earnings reports and economic indicators as they navigate a volatile market landscape influenced by AI advancements and geopolitical developments.