Good morning traders and investors of the r/stocks sub! Welcome to Thursday! Here are your pre-market stock movers & news on this Thursday, June the 16th, 2022-
Dow futures fall more than 500 points as Wall Street loses Wednesday’s post-Fed rally
U.S. stock index futures were under pressure Thursday, putting the major averages to give up the solid gains made in the previous session.
Futures contracts tied to the Dow Jones Industrial Average dropped 1.6%, or 500 points. S&P 500 futures were down 2%, while Nasdaq 100 futures shed 2.3%. All three futures contracts had earlier been trading in positive territory.
The 10-year Treasury yield resumed its massive June run on Thursday, reversing higher overnight. The 10-year yield was last around 3.44% after ending May at 2.84%.
Those moves come after the Federal Reserve implemented its largest interest rate hike since 1994 on Wednesday. The Fed raised rates by 75 basis points, as was widely anticipated.
“Clearly, today’s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common,” Federal Reserve Chairman Jerome Powell said at a news conference following the decision.
Stocks took a leg higher Wednesday after Powell said that a 50 or 75 basis point increase “seems most likely” at the next meeting in July, indicating the central bank’s commitment to fighting inflation. Powell did caution, however, that decisions will be made “meeting by meeting.”
The major averages ended the session higher, with the Dow and S&P 500 both snapping five-day losing streaks. The 30-stock benchmark added about 304 points, or 1%, while the S&P 500 advanced 1.46%. The tech-heavy Nasdaq Composite was the relative outperformer, rising 2.5%.
However, market sentiment appeared to sour once again Thursday as other central banks around the globe adopted more aggressive policy stances and investors questioned whether the Fed can pull off a soft landing.
The Swiss National Bank overnight raised rates for the first time in 15 years. The Bank of England was set on Thursday to raise rates for the fifth straight time.
“Central banks in Switzerland and Hungary hiked rates by more than anticipated (while Brazil hiked inline and Taiwan raised actually a bit less), continuing the trend of aggressive policy tightening globally (the BOE is expected to increase rates in less than two hours while the world piles pressure on the BOJ to defend its 25bp target),” wrote Adam Crisafulli of Vital Knowledge.
“Meanwhile, gas prices are climbing in Europe as Russia dials back supplies further, creating increased inflationary pressures for the ECB. The combination of central bank tightening and upward pressures on energy costs is pushing yields higher around the world, undercutting equity sentiment,” he said.
Tech shares moved lower in premarket trading following Wednesday’s bounce, with Tesla, PayPal, Nvidia, Amazon and Netflix all down more than 3%.
“There is an astonishing level of tech selling right now,” wrote CNBC’s Jim Cramer in a tweet Thursday. “It is breathtaking to watch as sellers are sending the best techs down gigantically at 5 a.m.”
Travel stocks including United, Delta and Carnival also took a leg lower.
The major averages entered Thursday’s session down for the week and well below record levels.
The S&P 500 and Nasdaq Composite are both in bear market territory, down roughly 21% and 32% from their all-time highs in January and November, respectively. The Dow, meantime, is 17% below its Jan. 5 all-time intraday high.
Rampant inflation, which is at the highest level in 40 years, has weighed on the major averages, as have fears around slowing economic growth and the possibility of a recession.
Morgan Stanley chief U.S. equity strategist Michael Wilson warned that the inflation problem won’t be solved overnight.
“It also raises the risk of a recession because you’re bringing forward rate hikes even faster, and I don’t think it’s going to help the bond market,” he said on CNBC’s “Closing Bell.”
Economic data out Thursday includes weekly jobless claims numbers, with economists surveyed by Dow Jones forecasting a 220,000 print. Housing starts will also be released, while Adobe and Kroger will report quarterly updates.
STOCK FUTURES CURRENTLY:
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YESTERDAY'S MARKET MAP:
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TODAY'S MARKET MAP:
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YESTERDAY'S S&P SECTORS:
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TODAY'S S&P SECTORS:
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TODAY'S ECONOMIC CALENDAR:
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THIS WEEK'S ECONOMIC CALENDAR:
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THIS WEEK'S UPCOMING IPO'S:
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THIS WEEK'S EARNINGS CALENDAR:
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THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:
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EARNINGS RELEASES BEFORE THE OPEN TODAY:
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EARNINGS RELEASES AFTER THE CLOSE TODAY:
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YESTERDAY'S ANALYST UPGRADES/DOWNGRADES:
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YESTERDAY'S INSIDER TRADING FILINGS:
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TODAY'S DIVIDEND CALENDAR:
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THIS MORNING'S STOCK NEWS MOVERS:
(source: cnbc.com)
Jabil (JBL) – The contract electronics manufacturer saw its stock rise 1.2% in premarket trading after beating top and bottom-line estimates for its latest quarter. Jabil earned an adjusted $1.72 per share, 10 cents above estimates, and said it continued to see solid demand from its customers.
STOCK SYMBOL: JBL
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Commercial Metals (CMC) – The metal products manufacturer reported an adjusted quarterly profit of $2.61 per share, beating the $2.02 consensus estimate, and revenue also topped Wall Street forecasts. Commercial Metals also said it was anticipating upbeat financial performance for the current quarter amid a strong construction market. The stock rallied 4.6% in the premarket.
STOCK SYMBOL: CMC
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Tesla (TSLA) – Tesla fell 3.8% in premarket trading after Reuters reported that Tesla has increased prices on its U.S. models amid a jump in the price of raw materials and supply chain snags.
STOCK SYMBOL: TSLA
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Twitter (TWTR) – Twitter gained 2.3% in premarket action following a Wall Street Journal report that Elon Musk will reiterate his desire to own Twitter at an all-hands meeting today. Musk has threatened to pull out of his Twitter buyout deal, accusing the company of withholding information on spam accounts.
STOCK SYMBOL: TWTR
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Warner Brothers Discovery (WBD) – The media company’s stock slid 4% in the premarket after J.P. Morgan rated the stock “neutral,” citing a macroeconomic environment that could impact ad spending.
STOCK SYMBOL: WBD
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KLA (KLAC) – The maker of semiconductors and electronics equipment said it expected an adjusted current-quarter profit of $4.93 to $6.03 per share, compared with the $5.50 consensus estimate. It also announced a $6 billion share repurchase program and a 24% dividend hike ahead of its 2022 Investor Day.
STOCK SYMBOL: KLAC
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Revlon (REV) – Revlon filed for Chapter 11 bankruptcy protection as the cosmetics maker deals with a debt load of roughly $3.3 billion. Shares slid 4.4% in the premarket.
STOCK SYMBOL: REV
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Amazon.com (AMZN) – Amazon said its annual “Prime Day” shopping event would be held from July 12 to 13. Last year’s “Prime Day” event generated an estimated $3.5 billion in sales. Amazon fell 2.8% in premarket trading.
STOCK SYMBOL: AMZN
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Abbott Laboratories (ABT) – Abbott said it was halting production of its EleCare specialty baby formula at its Sturgis, Michigan plant after severe storms flooded areas of the plant. Abbott said the flooding would likely delay production and distribution for a few weeks, and its stock fell 2% in the premarket.
STOCK SYMBOL: ABT
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FULL DISCLOSURE:
/u/bigbear0083 has no positions in any stocks mentioned. Reddit, moderators, and the author do not advise making investment decisions based on discussion in these posts. Analysis is not subject to validation and users take action at their own risk.
DISCUSS!
What's on everyone's radar for today's trading day ahead here at r/stocks?
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