Good morning traders and investors of the r/stocks sub! Welcome to FOMC Decision Day! Here are your pre-market stock movers & news on this Hump Day, May the 4th, 2022-
Stock futures rise ahead of Fed’s big rate decision
Stock futures moved higher in early morning Wednesday as investors braced for the Federal Reserve’s big interest rate decision, where the central bank is widely expected to hike rates by half a percentage point.
Futures on the Dow Jones Industrial Average rose 143 points, or 0.4%. S&P 500 futures climbed 0.5%, and Nasdaq 100 futures advanced by 0.4%.
Markets are preparing for a hawkish Fed, and the central bank is also expected to announce a plan to cut its roughly $9 trillion balance sheet by $95 billion a month, beginning in June.
Respondents to the May CNBC Fed Survey indicated they expect the central bank to announce the long-anticipated 50 basis point hike on Wednesday, followed by a second one in June as it looks to cut its balance sheet. The majority of respondents also expect a recession at the end of the tightening cycle, the survey found.
“High inflation constrains the Fed, making easing monetary policy less likely if growth (or markets) fall. We have long argued that elevated inflation would put the Fed in a bind – when growth weakens they would not be willing to or able to ride to the rescue by loosening monetary policy,” Citi quantitative strategist Alexander Saunders said in a note to clients.
This year, stocks have fallen sharply and Treasury yields have spiked, but it is not clear if the market has fully accounted for an aggressive Fed.
“We’re at a place right now where the market’s pricing in that inflation is going to be back near pre-pandemic levels within two years with only modest Fed tightening,” said Rebecca Patterson, Bridgewater’s chief investment strategist, on CNBC’s “Closing Bell” on Tuesday. “We think that either the Fed is going to have to tighten more than expected to get inflation to their target or inflation is going to be higher than expected.”
Meanwhile, Lyft plummeted 26% in premarket trading after the ridesharing company shared on Tuesday evening weak guidance for the current quarter as it expects to invest in driver supply. Airbnb rose 3.6% as the company expects a continued travel rebound, and Starbucks added 2.4% after topping revenue estimates.
Elsewhere, chipmaker Advanced Micro Devices also moved higher after its report, gaining about 6%. Casino stock Caesars Entertainment was under pressure after missing estimates on the top and bottom lines.
On Tuesday, the Dow added 0.20%, and the S&P 500 gained 0.48%. The tech-heavy Nasdaq Composite rose 0.22%.
The moves came as the markets attempt to recover from a brutal tech-led April sell-off that saw the Nasdaq hit its worst month since 2008. The Dow and S&P 500 also finished their worst month since March 2020.
“If our ‘no recessions soon’ call is right, then the pattern we have seen so far this year will probably continue: with equities punching lower and then recovering at least partially as long as recession fails to materialize, and the rates and commodity curves continuing to move higher over time,” wrote Jan Hatzius, Goldman Sachs’ chief economist on Tuesday.
The S&P 500 is currently trading in correction territory, down about 12.4% year to date. LPL Financial’s Ryan Detrick pointed out Tuesday the current correction parallels the size and length of previous corrections after World War II.
STOCK FUTURES CURRENTLY:
(CLICK HERE FOR STOCK FUTURES CHARTS!)
YESTERDAY'S MARKET MAP:
(CLICK HERE FOR YESTERDAY'S MARKET MAP!)
TODAY'S MARKET MAP:
(CLICK HERE FOR TODAY'S MARKET MAP!)
YESTERDAY'S S&P SECTORS:
(CLICK HERE FOR YESTERDAY'S S&P SECTORS CHART!)
TODAY'S S&P SECTORS:
(CLICK HERE FOR TODAY'S S&P SECTORS CHART!)
TODAY'S ECONOMIC CALENDAR:
(CLICK HERE FOR TODAY'S ECONOMIC CALENDAR!)
THIS WEEK'S ECONOMIC CALENDAR:
(CLICK HERE FOR THIS WEEK'S ECONOMIC CALENDAR!)
THIS WEEK'S UPCOMING IPO'S:
(CLICK HERE FOR THIS WEEK'S UPCOMING IPO'S!)
THIS WEEK'S EARNINGS CALENDAR:
($AMD $SHOP $PFE $SQ $ON $BRK.B $DKNG $DVN $MOS $MRO $ABNB $MRNA $EPD $UBER $BP $FUBO $LCID $SIX $CVS $SBUX $ETSY $TWLO $GOLD $CROX $ET $MARA $GPN $AMG $MPC $PENN $NET $CAR $XPE $NTR $NXPI $DDOG $BKCC $OPEN $COP $MGM $FANG $MELI)
(CLICK HERE FOR THIS WEEK'S EARNINGS CALENDAR!)
THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:
($MRNA $CVS $GOLD $MAR $REGN $GNRC $LNG $EXPI $FUN $YUM $SUN $OTLY $RACE $ABC $MUR $WING $EMR $CDW $ATI $EAT $JCI $IONS $BWA $AMRN $TT $IDXX $CQP $BIP $HZNP $VMC $BRY $AMRX $GTES $CRL $SPR $EDIT $LITE $CLVS $NYT $TECH)
(CLICK HERE FOR THIS MORNING'S EARNINGS CALENDAR!)
EARNINGS RELEASES BEFORE THE OPEN TODAY:
(CLICK HERE FOR THIS MORNING'S EARNINGS RELEASES LINK #1!)
(CLICK HERE FOR THIS MORNING'S EARNINGS RELEASES LINK #2!)
EARNINGS RELEASES AFTER THE CLOSE TODAY:
(CLICK HERE FOR THIS AFTERNOON'S EARNINGS RELEASES #1!)
(CLICK HERE FOR THIS AFTERNOON'S EARNINGS RELEASES #2!)
(CLICK HERE FOR THIS AFTERNOON'S EARNINGS RELEASES #3!)
(CLICK HERE FOR THIS AFTERNOON'S EARNINGS RELEASES #4!)
(CLICK HERE FOR THIS AFTERNOON'S EARNINGS RELEASES #5!)
YESTERDAY'S ANALYST UPGRADES/DOWNGRADES:
(CLICK HERE FOR YESTERDAY'S ANALYST UPGRADES/DOWNGRADES LINK #1!)
(CLICK HERE FOR YESTERDAY'S ANALYST UPGRADES/DOWNGRADES LINK #2!)
YESTERDAY'S INSIDER TRADING FILINGS:
(CLICK HERE FOR YESTERDAY'S INSIDER TRADING FILINGS!)
TODAY'S DIVIDEND CALENDAR:
(CLICK HERE FOR TODAY'S DIVIDEND CALENDAR LINK #1!)
(CLICK HERE FOR TODAY'S DIVIDEND CALENDAR LINK #2!)
THIS MORNING'S STOCK NEWS MOVERS:
(source: cnbc.com)
Uber (UBER) – Uber fell 1% in premarket trading after it reported a quarterly loss and revenue that beat estimates. Uber saw ride volumes increase during the quarter while food deliveries also continued to grow.
STOCK SYMBOL: UBER
(CLICK HERE FOR LIVE STOCK QUOTE!)
Brinker International (EAT) – The parent of Chili’s and other restaurant chains fell 10 cents shy of estimates with adjusted quarterly earnings of 92 cents per share, and issued a weaker-than-expected earnings outlook. Brinker pointed to challenging commodity and labor costs, and shares tumbled 10.3% in the premarket.
STOCK SYMBOL: EAT
(CLICK HERE FOR LIVE STOCK QUOTE!)
Generac (GNRC) – The maker of backup generators and other power equipment jumped 5.3% in the premarket after beating top and bottom-line estimates for its latest quarter. Generac earned an adjusted $2.09 per share, beating the $1.94 consensus estimate.
STOCK SYMBOL: GNRC
(CLICK HERE FOR LIVE STOCK QUOTE!)
Moderna (MRNA) – Moderna shares rallied 8.1% in premarket trading, as the vaccine maker’s quarterly results came in well above estimates. Moderna earned $8.58 per share for the quarter, compared with a consensus estimate of $5.21.
STOCK SYMBOL: MRNA
(CLICK HERE FOR LIVE STOCK QUOTE!)
Tupperware (TUP) – The storage products maker saw shares slump 19.9% in the premarket after it missed top and bottom-line estimates for its latest quarter and withdrew its full-year forecast. the company cited uncertainty related to the Russia/Ukraine conflict as well as fundamental changes being made to its business.
STOCK SYMBOL: TUP
(CLICK HERE FOR LIVE STOCK QUOTE!)
Lyft (LYFT) – Lyft plummeted 25.4% in premarket trading after the ride-hailing company said it would increase spending to attract more drivers, leading to an earnings forecast that fell short of Wall Street predictions.
STOCK SYMBOL: LYFT
(CLICK HERE FOR LIVE STOCK QUOTE!)
Starbucks (SBUX) – Starbucks matched estimates with an adjusted quarterly profit of 59 cents per share, and revenue slightly above estimates. CEO Howard Schultz detailed improved wages and benefits for the coffee chain’s employees, although he added that unionized locations would need to negotiate their own deals. Starbucks jumped 6.4% in the premarket.
STOCK SYMBOL: SBUX
(CLICK HERE FOR LIVE STOCK QUOTE!)
Advanced Micro Devices (AMD) – AMD shares surged 6.1% in the premarket after the chipmaker reported a top and bottom-line beat for its latest quarter. AMD earned an adjusted $1.13 per share, compared with a consensus estimate of 91 cents. It also issued a stronger-than-expected outlook amid increased demand from data centers for its chips.
STOCK SYMBOL: AMD
(CLICK HERE FOR LIVE STOCK QUOTE!)
Airbnb (ABNB) – Airbnb posted a quarterly loss of 3 cents per share, narrower than the 29-cent loss analysts were anticipating. Revenue also beat forecasts, as travelers continued to book rentals even in the face of rising prices by hosts. Airbnb jumped 5.2% in premarket action.
STOCK SYMBOL: ABNB
(CLICK HERE FOR LIVE STOCK QUOTE!)
Match Group (MTCH) – Match Group shares slid 6.1% in premarket trading, following the news that the dating service’s CEO Shar Dubey will resign at the end of May. She’ll be replaced by Zynga (ZNGA) president Bernard Kim. Separately, Match Group reported better-than-expected profit and revenue for its latest quarter.
STOCK SYMBOL: MTCH
(CLICK HERE FOR LIVE STOCK QUOTE!)
Livent (LTHM) – The lithium producer’s shares soared 19.8% in premarket action after it posted better-than-expected quarterly earnings and raised its 2022 revenue forecast. Livent is benefiting from strong demand for lithium used in electric vehicle batteries.
STOCK SYMBOL: LTHM
(CLICK HERE FOR LIVE STOCK QUOTE!)
Akamai Technologies (AKAM) – The cybersecurity company’s shares plunged 13.9% in the premarket after Akamai missed bottom-line estimates for its latest quarter, although revenue was in line. CEO Tom Leighton noted the company faced a challenging global environment as well as headwinds related to a strong U.S. dollar.
STOCK SYMBOL: AKAM
(CLICK HERE FOR LIVE STOCK QUOTE!)
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?
Leave a Reply