US stocks soar as traders look to Powell’s presentation, while S&P futures advance. Three key U.S. indexes concluded the regular session in the negative.

As increasing bond yields placed stress on rate-sensitive companies ahead of a significant address from Fed Chair Jerome Powell.

US Stocks Up

March S&P 500 futures (ESH23) are trending up +0.14% this morning. Failures in the technology, communication services, and basic materials areas were the main contributors towards the decline of three main U.S. stock indices.

U.S. stock indexes ended Monday’s hour of trading weaker as increased bond yields hurt technology as well as other rate-sensitive stocks. After solid U.S. economic statistics on Friday stoked investor concerns about an assertive Federal Reserve. The U.S. Treasury yields increased, with the 10-year T-note yield reaching the one peak.

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, stated on Monday that now the prospect of the Fed raising interest rates to a peak point than first anticipated. It is increased by January’s relatively strong jobs report.

Meanwhile, citing declining inflation and a robust economy, U.S. Treasury Secretary Janet Yellen stated on Monday that the country may avoid a recession.US Stocks Earnings

Shares of Chegg Inc. (CHGG), a provider of educational services located in California, posted better-than-forecast fourth-quarter earnings but provided a bleak revenue projection for 2023.

Causing a greater than -23% decline in pre-market trade. A Fourth – quarter revenue deficit and a dim Q1 outlook also caused Pinterest Inc. (PINS) to drop around 4% in pre-market trade.

The Q4 corporate results season is still ongoing, and according to estimates, total S&P 500 earnings will have decreased 2.8% from the previous year.

US Stocks eyeing the Important Events

Market players will be eagerly observing today’s address by Jerome Powell, the chairman of the Federal Reserve, at the Economic Club of Washington, D.C. for hints regarding how the Federal Reserve bank will react to the explosive job numbers released last week.

Markets will also likely pay attention to the statistics on the US Trade Balance, which was -61.50B in November. According to analysts, the revised amount will be -68.50B.European stocks are split; BP is soaring. German industrial production is weighing.

European Stocks Trend Mixed

European stocks are split; BP is soaring. German industrial production is weighing. Tuesday’s trading on European stock markets was split. With the U.K. outperforming due to excellent results from oil major BP (NYSE: BP) and the German stock market being hurt by dismal statistics on German industrial production.

German industrial production dropped more than anticipated in December. Falling 3.1% from the prior month, significantly less than the predicted 0.7% decline. Industrial production was off 5.0% over the year before the epidemic in 2019, as well as off 0.6% from 2021 on a yearly basis.

The negative data stressed on the fact about a sharp downturn in the largest economy in the Eurozone this year. Notably given the desire of regulators at the European Central Bank to continue upping rates in order to fight inflation.

European Key Economic Events and Reports

Today’s statistics included the Halifax House Price Index for the United Kingdom, Germany’s Industrial Production, France’s Trade Balance, and Spain’s Industrial Production.

Compared to predictions of -0.8% m/m and -0.3% y/y, the U.K. January Halifax House Price Index was reported at 0.0% m/m and +1.9% y/y.

German industrial production for December came in at -3.1% m/m, below forecasts of -0.7% m/m.

The French December Trade Balance was -14.9 billion, which was lower than the predicted -12.2 billion.

Spanish industrial production for December came in at +0.6% y/y, above forecasts of -0.6% y/y.

Asian Pacific Markets Rundown

Today’s Asian stock markets ended in a diverse set. Japan’s Nikkei 225 Stock Index (NIK) officially closed -0.03%, while China’s Shanghai Composite Index (SHCOMP) closed upward +0.29%.

As market focus switched to the imminent speech by Fed Chair Jerome Powell, China’s Shanghai Composite today recovered some recent losses and closed stronger.

In contrast, Japan’s Nikkei 225 Stock Index trailed its Asian counterparts and finished somewhat weaker due to ongoing doubt on the direction of monetary policy in the nation.

Additionally, according to figures released on Tuesday, average cash earnings in December were at +4.8% y/y, nearly a 3 peak. The implied volatility of Nikkei 225 options is factored into the Nikkei Volatility, which increased by 1.78% to finish at 16.58.

US Stock Movers in US pre-Market

Following the company’s announcement of a convertible stock offering, Bed Bath & Beyond Inc (BBBY) saw a decline of nearly 31% in pre-market trading.

Skyworks Solutions Inc. (SWKS) saw a slight increase of +2% in pre-market trading following the release of the company’s 1st quarter financial results and the unveiling of a $2 billion share repurchase plan until 2025.

After Bloomberg disclosed that the company had confirmed its intention to release a ChatGPT-like bot in March, Baidu Inc (BIDU) increased by roughly +15% in pre-market activity.

After the company released dismal Q2 data, Alpha and Omega Semiconductor Ltd (AOSL) fell roughly -14% in pre-market trade.