Good morning traders and investors of the r/stocks sub! Welcome to Hump Day! Here are your pre-market stock movers & news on this Wednesday, April the 6th, 2022-
Stock futures fall for a second day as rates jump with the Fed set to tighten policy aggressively
Stock futures dipped for a second day on Wednesday and rates soared to new heights as investors bet the Federal Reserve is about to aggressively tighten policy to fight inflation, and in turn slow the economy.
Minutes from the Fed’s most-recent meeting are slated for release Wednesday afternoon. The minutes come from last month’s meeting when the central bank raised rates and indicated six more hikes were coming this year. Investors are bracing for new details about the Fed’s plan to reduce its balance sheet after comments from Fed officials knocked down stocks on Tuesday.
Futures on the Dow Jones Industrial Average fell 220 points, or 0.65% on Wednesday. S&P 500 futures were down 0.9%, and Nasdaq-100 index futures shed 1.5%. All three major averages were headed for their second day of declines.
The 10-year Treasury yield jumped above 2.65% on Wednesday, hitting a three-year high and continuing its rapid climb this week. The rate ended Monday at 2.40%.
Fed Governor Lael Brainard in a speech on Tuesday indicated support for higher interest rates and said a “rapid” reduction of the central bank’s balance sheet could begin as soon as May. Following her remarks, the Dow pulled back by about 280 points and the Nasdaq Composite slid 2.3%.
“It is of paramount importance to get inflation down,” Brainard said during a Minneapolis Fed webinar. Brainard has been nominated to be vice chair of the Federal Open Market Committee.
San Francisco Fed President Mary Daly also shared concerns about inflation. “I understand that inflation is as harmful as not having a job,” Daly said.
Tech shares led Tuesday’s losses and were set to fall again on Wednesday as investors rotated out of the group and braced for higher rates to slow the economy. Chipmakers suffered some of the biggest declines, with Nvidia and Marvell Technology falling more than 5% and 6%, respectively. Both companies were set to continue their descent on Wednesday.
Tesla, Microsoft, and Amazon shares were also slated to fall more than 2% on Wednesday and Twitter shed 3% premarket after rallying this week amid news that Elon Musk purchased a large stake in the company. As the Federal Reserve hikes rates investors have begun rotating into stocks with stable profits, shying away from those offering future growth.
Investors continued to monitor the latest developments out of Europe, as the Ukraine-Russia war continues. The European Union and the U.S. are preparing to slap new sanctions on Russia after evidence emerged of war crimes allegedly committed by Russian forces. The new sanctions include a ban on Russian coal imports. (Click here for the latest.)
Crude prices, which have been volatile since the war began, rose again on Wednesday after dipping Tuesday. U.S. oil prices were up by 1.1% at $103.09 per barrel, while international benchmark Brent gained about 1%% to trade at $107.66 per barrel.
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)
Twitter (TWTR) – Twitter fell 1.5% in premarket trading, potentially breaking a three-day win streak that has seen it gain nearly 32%. Elon Musk – now Twitter’s largest shareholder – changed the type of SEC filing regarding his share purchase to show it was not “passive.”
STOCK SYMBOL: TWTR
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Spirit Airlines (SAVE) – Spirit said its board will consider a new $3.6 billion cash takeover offer from JetBlue (JBLU). Spirit had agreed in February to be bought by Frontier Airlines parent Frontier Group (ULCC) for $2.9 billion in cash and stock. Spirit slid 2.8% in the premarket, with JetBlue dropping 3.7% and Frontier falling 3.9%.
STOCK SYMBOL: SAVE
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Tilray (TLRY) – Tilray rose 2.1% in the premarket after reporting an unexpected profit for its latest quarter, even as revenue fell below analyst estimates. The cannabis producer also announced a deal with supermarket chain Whole Foods, which will sell the hemp powders produced by Tilray’s Manitoba Harvest subsidiary.
STOCK SYMBOL: TLRY
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Rivian (RIVN) – Rivian shares gained 1.7% in the premarket after the company said it was on pace to achieve its previously stated production target of 25,000 electric vehicles this year.
STOCK SYMBOL: RIVN
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Occidental Petroleum (OXY) – The energy producer’s shares added 1.7% in premarket action after Stifel Financial began coverage with a “buy” rating. Stifel said Occidental remains attractively priced even after it nearly doubled so far this year, noting a largely underappreciated low carbon business.
STOCK SYMBOL: OXY
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Intel (INTC) – Intel announced it suspended business operations in Russia, following last month’s suspension of semiconductor shipments to customers in Russia and Belarus. Intel fell 1.1% in premarket trading.
STOCK SYMBOL: INTC
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Gogo (GOGO) – Gogo surged 10.4% in premarket trading after the aviation industry broadband provider announced its stock would join the S&P SmallCap 600 index prior to Friday’s open.
STOCK SYMBOL: GOGO
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Array Technologies (ARRY) – Array Technologies rallied 14.5% in the premarket after the renewal energy equipment maker reported better-than-expected quarterly revenue and issued an upbeat revenue outlook. It also named Kevin Hostetler as its new CEO, effective April 18, replacing the retiring Jim Fusaro.
STOCK SYMBOL: ARRY
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Simply Good Foods (SMPL) – The maker of nutritional foods and snacks reported better-than-expected profit and revenue for its latest quarter and raised its sales forecast for the current year.
STOCK SYMBOL: SMPL
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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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