Stock Market Today: Stocks eye tech rebound with Powell and jobs in focus

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U.S. equity futures bumped higher Wednesday, while Treasury yields slipped to the lowest levels in a month, ahead of Federal Reserve Chairman Jerome Powell's first day of testimony on Capitol Hill and the start of a key series of data releases from the labor market.

Updated at 7:11 AM EST

Best Foot forward?

Foot Locker shares slumped 6.7% in pre-market trading after the sportswear retailer, which is heavily-reliant on Nike NKE products, posted better-than-expected fourth quarter profits but issued a muted 2024 forecast. 

Foot Locker said it sees adjusted earnings in the region of $1.50 to $1.70 per share this year, with overall sales largely flat to 2023 levels, as it pushes its goal for profit margin improvement two years forward into 2028.

$FL Q4 '23:

Net loss $4.13 EPS, Non-GAAP EPS income $0.38
Sales up 2.0%, comp sales down 0.7%
Inventory down 8.2%

'24 outlook: Pos. comp sales growth & EBIT margin expansion expected. Non-GAAP EPS guide $1.50-$1.70, includes non-recurring charge of $0.10. pic.twitter.com/e5dCXuPbnU— FwdQuarter (@FwdQuarter) March 6, 2024

Stock Market Today

Stocks ended sharply lower Tuesday, with losses for nearly all the so-called Magnificent 7 tech stocks dragging the Nasdaq into a 1.65% decline, the worst since early January, as investors booked profits from the benchmark's recent gains ahead of Powell's semiannual appearance before lawmakers today.

Powell, who will first face the House Financial Services Committee, is likely to be grilled on the state of the economy and prospects for inflation, which have slowed notably over the past year but remain some distance from the Fed's preferred 2% target. 

The Fed chairman is also expected to comment on the prospect of a soft landing for the U.S. economy, where inflation is tamed without inducing recession. 

A key component of that aim will come from resilience in the job market, where unemployment remains close to the lowest levels in five decades and wages are rising faster than the pace of inflation.

The Bureau of Labor Statistics will publish its closely tracked estimate of job openings for the month of January at 10 am Eastern Time. Payroll-processing group ADP releases its National Employment report on private-sector hiring at 8:15 am Eastern Time. 

Benchmark 10-year Treasury note yields were marked 2 basis points lower from last night's levels at 4.161% heading into the New York trading session. Two-year notes were little changed at 4.568%.

On Wall Street, investors will be looking for a rebound in Magnificent 7 tech stocks, as well as solid updates from Foot Locker  (FL)  and Campbell Soup  (CPB)  prior to the opening bell.

Among premarket movers, CrowdStrike  (CRWD)  shares soared 23%. The cybersecurity group forecast stronger-than-expected full-year profit as it takes on larger rival Palo Alto Networks  (PANW) .

In broader markets, futures contracts tied to the S&P 500 suggest a 17 point opening-bell gain for the benchmark, with those linked to the Dow Jones Industrial Average indicating an 85 point advance.

The tech-focused Nasdaq, meanwhile, is set for a firmer 116 point gain thanks in part to premarket advances for Tesla  (TSLA) , Nvidia  (NVDA)  and Advanced Micro Devices  (AMD) .

In overseas markets, Europe's Stoxx 600 was marked 0.24% higher in Frankfurt, and close to the all-time highs it reached earlier this week, ahead of a key European Central Bank policy meeting Thursday. 

Britain's FTSE 100, meanwhile, was marked 0.34% higher prior to the government's annual budget statement from Finance Minister Jeremy Hunt later today in London.

Overnight in Asia, losses on Wall Street failed to hold down gains for regional benchmarks. The MSCI ex-Japan index rose 0.59% thanks in part to solid gains in Hong Kong and Taiwan. Japan's Nikkei 225, meanwhile, ended 0.017% lower as the yen firmed to 149.72 against the U.S. dollar. 

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