Stocks Set to Open Lower as Risk Sentiment Weakens, U.S. Jobs Data and Earnings in Focus

Economic Data - The U.S. producer price index (PPI) for final demand increased by +0.5% month-over-month (m/m) and +3.0% year-over-year (y/y) in December, surpassing expectations of +0.2% m/m and +2.7% y/y [1] - The core PPI, excluding food and energy, rose by +0.7% m/m and +3.3% y/y in December, also exceeding expectations of +0.2% m/m and +2.9% y/y [1] - The Chicago PMI for January rose to 54.0, significantly above the expected 43.5 [1] Stock Market Performance - Major equity averages on Wall Street ended lower, with chip stocks like KLA Corp. (KLAC) dropping over -15% and Advanced Micro Devices (AMD) falling more than -6% [2] - Mining stocks also declined sharply, with Coeur Mining (CDE) down over -16% and Hecla Mining (HL) sliding more than -14% [2] - PennyMac Financial Services (PFSI) plummeted over -33% after reporting disappointing Q4 results [2] - Conversely, Deckers Outdoor (DECK) surged more than +19% after better-than-expected FQ3 results and an increase in full-year guidance [2] Corporate Earnings and Economic Outlook - Investors are anticipating a new round of corporate earnings reports from major companies including Alphabet (GOOGL), Amazon.com (AMZN), and others, with S&P 500 companies expected to report an average +8.4% increase in Q4 earnings compared to the previous year [8][9] - The U.S. January Nonfarm Payrolls report is awaited for insights into the labor market and its implications for monetary policy, with revisions expected to show a significant markdown in hiring pace [10] - Several Federal Reserve officials are scheduled to speak this week, with discussions likely focusing on the current inflationary environment and interest rate policies [11] Global Market Trends - The Euro Stoxx 50 Index is down -0.07%, with mining stocks declining due to falling metal prices [14] - In Japan, the Nikkei 225 Index closed lower as risk sentiment soured, despite initial gains from a weaker yen and positive election polls [19] - China's Shanghai Composite Index experienced a significant drop, influenced by disappointing economic data and geopolitical concerns [16][17] Company-Specific Developments - Oracle (ORCL) announced plans to raise $45 billion to $50 billion for cloud infrastructure expansion, raising concerns about its debt burden [4][21] - Nvidia (NVDA) shares fell about -2% after CEO Jensen Huang clarified that the proposed $100 billion investment in OpenAI was not a commitment [4][22] - Palantir Technologies (PLTR) rose over +2% in pre-market trading following an upgrade from William Blair [22]