The Market News Today: ISM Services PMI Anticipated with Lingering Inflation Concerns

James Hyerczyk
Updated: Mar 5, 2024, 10:16 UTC

Key Points:

  • ISM Services PMI: Expected at 53.0; inflation concerns linger.
  • Apple's China iPhone Sales: Drop 24%, Huawei's surge challenges.
  • Moody's Downgrades: NY Community Bank faces deposit retention challenges.
  • AMD vs. Nvidia: Intense battle for AI chip dominance unfolds.
  • February CPI Report: Market braces for potential surge in inflation.
The Market News Today

In this article:

ISM Services PMI Expected at 53.0, Inflation Concerns Linger”

The US is set to release the ISM Services PMI at 15:00 GMT, with expectations ranging from 51.0 to 54.3. Despite easing inflation-related concerns after the PCE Price Index met expectations, price pressures are anticipated to persist. Following a disappointing manufacturing measure last Friday, markets may react sensitively to any negative surprises. However, analysts don’t anticipate a shift in the Fed’s cautious stance on interest rates based solely on less buoyant sentiment indicators.

Apple’s iPhone Sales in China Drop 24% Amidst Huawei’s Surge

Counterpoint’s report reveals a significant decline in Apple’s iPhone sales in China, down 24% year-on-year, while Huawei experiences a remarkable 64% increase. Apple’s market share slips to 15.7%, placing fourth, as Huawei claims second place with a 16.5% share. Increased competition from domestic rivals and aggressive pricing tactics challenge Apple’s position. Meanwhile, Huawei’s resurgence in premium smartphone sales and strategic pricing contribute to its success in the Chinese market. (Reuters)

Moody’s Slashes New York Community Bank Deposit Rating, Raises Concerns

Moody’s latest deposit rating cut for New York Community Bank sparks concerns about retaining deposits. The bank’s main subsidiary faces a downgrade to Ba3, three levels below investment grade. Analysts predict potential contractual obligations from business clients, while the bank’s stock plummets amid a 73% decline this year. With deposits under scrutiny, concerns arise about flight of funds and the bank’s ability to maintain operations amidst the rating downgrade. (CNBC)

Tech Titans AMD and Nvidia Clash Over AI Chip Dominance”

As artificial intelligence drives a surge in chip demand, industry giants AMD and Nvidia vie for dominance. Deloitte predicts AI chip sales will surpass $50 billion in 2024, with Nvidia’s recent market surge adding over $277 billion in value. AMD’s MI300X challenges Nvidia’s H100 in AI, prompting analysts to raise price targets. With forecasts of continued growth, both companies aim to capture market share, intensifying competition in the semiconductor sector. (The Street)

February CPI Report: The Next Market Catalyst?

Fundstrat’s note highlights the upcoming February CPI report, due on March 12, as a pivotal moment for investors. Tom Lee warns of potential anxiety if the inflation reading is ‘hot,’ building on January’s unexpected spike. Seasonal pricing dynamics suggest January’s trends could extend into February, possibly leading to hawkish Fed actions. Lee anticipates a significant market sell-off if the CPI report exceeds expectations, potentially challenging the stock market’s record rally. (Business Insider)

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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