Stock Futures Set to Stumble as Fed Fatigue Returns

Stock futures are indicating a lower open this morning, as Wall Street's encouraging start to 2023 takes a breather. Investors are wary of the current interest rate environment, especially after Atlanta Fed President Raphael Bostic noted yesterday that interest rates could stay above 5% for a "long time."

In prepared remarks made at a central bank forum in Sweden this morning, Fed Chair Jerome Powell avoided the sensitive topic of interest rate policy and the overall state of the U.S. economy. At last check, Dow Jones Industrial Average (DJIA) futures were off by triple digits, while S&P 500 Index (SPX) and Nasdaq-100 (NDX) futures were staring at a sizable drop as well.

Continue reading for more on today's market, including:

• Senior V.P. of Research Todd Salamone is eyeing a certain options trend. 
• Meet the chip stock ripe for a short squeeze.
• Plus, Boeing downgraded; Coinbase reduces workforce; and Frontline breaks free. 

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts and 943,216 put contracts traded on Monday. The single-session equity put/call ratio fell to 0.58 and the 21-day moving average stayed at 0.80.
2. Boeing Co (NYSE:BA) stock is 2.5% lower before the open, after Morgan Stanley downgraded the blue-chip to "equal-weight" from "overweight," noting the risk-reward catalysts have already been realized. Boeing stock was up 9.4% already in 2023, and closed at its highest level since February.
3. Coinbase Global Inc (NASDAQ:COIN) stock is off by 2.2% ahead of the bell, after the crypto company announced plans to cut 20% of its workforce. COIN fell to a record low of $31.55 on Jan. 6 and is the latest tech company to slash jobs.
4. The shares of Frontline Ltd. (NYSE:FRO) are up 24% in premarket trading, after the shipping company announced it was ending its combination agreement with Euronav. FRO is up 51.1% year-over-year.
5. Keep an eye on the NFIB small-business index and revised wholesale inventories today.

Overseas Stocks Steady but Sluggish

Markets in Asia were mixed, after tech stocks helped the Nasdaq to a two-day rally. The Nikkei in Japan led gains in the region with a 0.8% pop, following a higher-than-expected consumer price index and a weakening yen. In China, the Shanghai Composite shed 0.2% and Hong Kong’s Hang Seng dipped 0.3%, despite economic reopening hopes. South Korea’s Kospi finished fractionally higher, after the country’s November account balance shifted from a surplus to deficit.

Trepidation in global sentiment is weighing on stocks in Europe today, after two U.S. Federal Reserve officials reiterated the central bank’s hawkish policy. Investors are now awaiting a speech from Fed Chairman Jerome Powell, while the European Central Bank (ECB) said interest rates will “have to rise significantly” to tackle inflation in a “timely” fashion. At last check, Frances’s CAC 40, the German DAX, and London’s FTSE 100 are down 0.7%, 0.5%, and 0.3%, respectively.