Here are five things you must know for Wednesday, February 16:
1. -- Stock Futures Edge Lower As Rate Focus Overtakes Russia-Ukraine Concern
U.S. equity futures edged lower Wednesday, after snapping a three-day losing streak last night on easing tensions between Russian and Ukraine, as investors resume their inflation and rate focus ahead of a key reading of retail sales prior to the start of trading.
The Federal Reserve's hawkish shift on inflation, which has triggered forecasts of as many as five rate hikes between now and the end of the year, could be further cemented later today with the release of minutes from its January policy meeting, although bets on a 50 basis point move in March are still substantial, with a 58% probability based on the CME Group's FedWatch tool.
Outside influences are also significant, with Britain recording the fastest inflation since 1992 last month, at 5.5%, a tally that all but ensures that the Bank of England will raise rates again -- for the third time since December -- when it meets in London next month.
Still, easing tensions in and around the Crimea, where Russia troops have reportedly pulled back -- although President Joe Biden has stressed there has been no verification of that from Moscow -- has added a degree of cautious optimism in markets Wednesday, with European stocks inching into positive territory and the U.S. dollar index, a safe-haven favorite, slipping lower against its global peers.
On Wall Street, futures tied to the Dow Jones Industrial Average are indicating a 25 point opening bell dip while those linked to the S&P 500 are priced for a 4.5 point retreat.
Nasdaq Composite futures are indicating a 20 point slide for the tech-focused benchmark as 10-year Treasury note yields hold at 2.042% in overnight trading.
2. -- Car Market Set To Boost Retail Sales Amid Inflation Headwind
January retail sales are likely to indicate a significant jump in consumer spending to start the year, adding even more upward pressure on prices and the Fed's view on near-term inflation.
Car sales are set to provide the strongest boost to headline retail sales, which are forecast to rise 1.8% from last year following the shock 1.9% slide recorded in December.
Comparisons to last year remain tricky, however, given that January 2021 sales were flattered by the second round of pandemic-era stimulus checks, although rising wages could provide support for this year's reading, alongside aggressive post-holiday discounting from national retailers.
The data is expected at 8:30 am Eastern time.
3. -- ViacomCBS Shares Tumble After Q4 Earnings Miss, Paramount Name Change
ViacomCBS VIAC shares tumbled in pre-market trading after the network and streaming media group posted weaker-than-expected fourth quarter earnings and unveiled plans to change its name to Paramount.
ViacomCBS said it hopes to have 100 million streaming subscribers by 2024, up from an earlier forecast of around 70 million, and pans to spend more than $6 billion a year on content for its Paramount CBS, Showtime, MTV and Comedy Central offerings as it looks to compete with market leaders Disney (DIS) and Netflix (NFLX).
The group posted December quarter earnings of 26 cents per share, well shy of Street forecasts, on revenues of $8 billion, a 16% increase from last year.
ViacomCBS shares were marked 7.11% lower in pre-market trading to indicate an opening bell price of $33.43 each.
4. -- Nvidia Q4 Earnings In Focus Following Arm Deal Collapse
Nvidia (NVDA) shares nudged lower in pre-market trading ahead of the chipmaker's fourth quarter earnings after the closing bell.
After taking a knock from the collapse of its planned $43 billion takeover of Arm Holdings, a U.K.-based chip designer, Nvidia will be under added pressure to detail its 2022 profit forecasts as it seeks to capture a surge in data center chip demand as well as ongoing gains in the gaming market.
Analysts are looking for a January quarter bottom line of $1.22 per share on revenues of around $7.42 billion, a 48.4% increase from the same period last year.
"Demand continues to outpace supply, particularly in gaming," said Oppenheimer analyst Rick Schafer. "Management is increasing dual source capacity with foundry partners TSMC/Samsung and constraints are expected to ease considerably in the second half of the year"
Nvidia shares were marked 0.2% lower in pre-market trading to indicate an opening bell price of $264.75 each.
5. -- AirBnb Shares Jump As Travel, Hybrid Work Boost Lifts Q4 Earnings
Airbnb (ABNB) shares moved higher in pre-market trading after the home rental group posted stronger-than-expected fourth earnings as bookings and prices improved in the waning weeks of the pandemic.
Airbnb said December quarter earnings rose to a Street-beating 8 cents per share on revenues of $1.53 billion, and forecast a current quarter top line of between $1.41 and $1.48 billion.
The group said average daily rates were up 20% from last year to $154, a trend it expects to continue into the coming year, as travel improves and hybrid office flexibility allows more people to chose temporary work locations.
"Remote work has untethered many people from the need to be in an office," CEO Brian Cheksy told investors on a conference call late Tuesday. "And as a result, people are spreading out to thousands of towns and cities, staying for weeks, months, or even entire seasons at a time."
Airbnb shares were marked 3.3% higher in pre-market trading to indicate an opening bell price of $186.00 each.
