Prices in China keep falling

The S&P 500

The S&P 500 hits 5,000 points for the first time ever, and the Nasdaq 100 sets a new record high. Hong Kong underperformed the APAC region, as China's consumer prices fell at their steepest pace in more than 14 years. The National Bureau of Statistics said consumer price index fell 0.8% last month, year-over-year (YoY). Economists had forecast a 0.5% fall. The annual consumer price index (CPI) decline in January was the biggest since September 2009, mainly led by a sharp drop in food prices. The producer price index slid 2.5% from a year earlier in January after a 2.7% fall the previous month.

Wholesale inventories

1.30pm, Initial jobless claims. Expectations were for 220,000 new claimants last week, after 224,000 the previous one. A bit later, at 3 p.m.Wholesale inventories forecast to rise by 0.4% in December month-over-month (MoM).

AstraZeneca

AstraZeneca forecasts higher revenue and profit for 2024, betting on strong uptake of its infant RSV shot and resilient demand for its cancer and rare disease drugs. For 2023, AstraZeneca reported revenue of $45.81 billion and core EPS of $7.26 billion, both broadly in line with expectations. Unilever posted an underlying operating profit of $9.9 billion and an operating margin of 16.7%, up 200 basis points YoY.

Siemens

Siemens reports first-quarter profit slightly ahead of expectations despite seeing a slowdown at its factory automation unit. Industrial profit rose by 3% to €2.72 billion, beating forecasts of €2.64 billion. Revenue rose 2% to €18.41 billion, below €18.58 billion, mainly due to unfavorable currency moves.

Societe Generale

French bank Societe Generale reports a sharp drop in fourth-quarter net income of nearly 60% to €430 million, but still beating the €333 million average anticipated by analysts. Group revenue in the quarter dropped by almost 10% to about €6 billion. SocGen also announced a proposed dividend of 90 euros per share. A similar report from its French rival Credit Agricole. The bank reports group net income of €1.33 billion, down 25% but above analysts' estimate of €1.28 billion. Sales missed expectations, coming in at 6.04 billion euros in the last three months of 2023, up 1.2% but below the average estimate of 6.16 billion euros. The bank hiked its dividend by 24% for 2023, compared to 2022, to 1.05 euros per share.

Disney

Disney shares rose to a one-year high yesterday evening after the release of the entertainment giant's quarterly earnings. It was a mixed publication. Earnings were better-than-expected at $1.22 per share, but revenue missed expectations, coming in at $23.5 billion. The Disney+ streaming service shed 1.3 million subscribers, nearly double the loss forecast by analysts. Analysts anticipated growth across all three segments: entertainment, experience, and sports. But revenue for the entertainment segment dropped 7%. But investors were pleased by a $3 billion share repurchase program for the current fiscal year and a dividend of 45 cents per share, a 50% increase from the dividend paid in January. Share price gains were also supported by a series of announcements. Disney entered the world of gaming by taking a $1.5 billion stake in Epic Games.

The two companies will work together to create a "huge Disney universe" where consumers will be able to interact with characters and stories from Disney, Pixar, Marvel, Star Wars, and Avatar. Bob Iger also unveiled details about the streaming launch of the ESPN sports network. It will be bundled with Disney+ and Hulu and is likely to launch in August 2025. On Tuesday, Disney announced it would form a joint venture with Fox and Warner Bros. Discovery to launch a streaming sports service. With these announcements, Bob Iger hit back at detractors. Disney has been under pressure from activist investor Nelson Peltz, who, along with former Disney executive Jay Rasulo, wants to join the company's board.

PayPal

It was a different outcome for PayPal. The online payment company dropped 8.7% in extended trading after a disappointing forecast. The company expects adjusted earnings per share of $5.10 for 2024, unchanged from a year earlier. It did not provide an outlook for revenue and operating margin for the full year. That eclipsed better than forecast earnings and sales for the fourth quarter. PayPal posted a fourth-quarter adjusted profit of $1.48. Analysts, on average, had expected $1.36 per share. Revenue rose 9% to $8 billion in the quarter, on a currency-neutral basis, also beating expectations of $7.88 billion.

Philip Morris

There are no all-session stocks due to report today, but a couple worth mentioning. Philip Morris International should post earnings of $1.45 per share on revenue of just over $9 billion. Philip Morris has been focusing on reduced-risk products. The growth of heated tobacco products such as IQOS and ZYN means the group is likely to become a majority smoke-free company by 2025. Kenvue was formerly the consumer healthcare division of Johnson & Johnson. This quarter will conclude its first full year as a standalone firm. The street anticipates earnings of 28 cents per share or revenue of $3.6 billion.