US stocks opened lower on Wednesday, with the Dow Jones Industrial Average (DJIA) trading down 0.1% and the S&P 500 (SPX) down 0.2%.[0] The Nasdaq Composite (NDX) steadied at 11,888. Investors are awaiting comments from Federal Reserve Chair Jerome Powell, who will speak at the Economic Club of Washington D.C. later today.
[1] The yield on the 10-year U.S. treasury increased by 10 basis points to reach 3.[2]
Notable companies reporting earnings this week include Disney (DIS), BP (BP), PepsiCo (PEP), Uber (UBER), Chipotle Mexican Grill (CMG), Hilton (HLT), Wendy’s (WEN), Coty (COTY), and PayPal Holdings (PYPL).[3]
Catalent (CTLT) surged more than 25% in pre-market trading after a Bloomberg report said that Danaher is said to be interested in acquiring the company.[4] Meanwhile, Pinterest (PINS) is down more than 6% after reporting Q4 revenue of $877.2 million, weaker than the consensus of $887.2 million.[5] Skyworks Solutions (SWKS) is up more than 8% to lead gainers in the S&P 500 after reporting Q1 adjusted operating income of $491.3 million, above the consensus of $487.9 million.[5] Oak Street Health (OSH) is up more than 30% after the Wall Street Journal report that the company is close to an agreement to be acquired by CVS Health for about $10.5 billion.[5]
Chipotle Mexican Grill (CMG) fell 4.6% after the company reported Q4 EPS of $8.29 versus $8.92 expected, while revenue came in at $2.2 billion versus $2.23B expected.[6] Cruise liner Royal Caribbean (RCL) gained after posting narrower-than-expected Q4 losses.[6] Bed Bath & Beyond Inc (BBBY) shares fell 43% on Tuesday after the struggling home goods retailer announced plans to sell $1 billion in stock to raise cash.[7] [8]
Overall, investors remain cautious ahead of the Fed Chair’s comments and the upcoming earnings season.
0. “U.S. stocks open lower as investors await Powell remarks” MarketWatch, 7 Feb. 2023, https://www.marketwatch.com/story/u-s-stocks-open-lower-as-investors-await-powell-remarks-01675780401
1. “Wall Street declines ahead of Powell’s statements” Economies.com, 7 Feb. 2023, https://www.economies.com/markets/americas-news/wall-street-declines-ahead-of-powell’s-statements-42361
2. “Stock Market On The Defensive Ahead Of Powell’s Comments; C3.ai Up 150% | Investor’s Business Daily” Investor’s Business Daily, 6 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/stock-market-catches-it-breath-after-recent-gains-onsemi-shows-strength/
3. “Stock Market News Today: Indices Begin Week on a Low Note” TipRanks, 6 Feb. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-down-on-solid-jobs-report-and-fed-speech-ahead
4. “Stocks Lower On The Outlook For Hawkish Fed” Barchart, 6 Feb. 2023, https://www.barchart.com/story/news/13944294/stocks-lower-on-the-outlook-for-hawkish-fed
5. “Stocks Mixed as Markets Brace for Fed Chair Powell’s Comments” Barchart, 7 Feb. 2023, https://www.barchart.com/story/news/13980929/stocks-mixed-as-markets-brace-for-fed-chair-powells-comments
6. “Stock Market News Today: Futures Slide as Markets Reassess Powell’s Words” msnNOW, 8 Feb. 2023, https://www.msn.com/en-us/money/markets/stock-market-news-today-futures-slide-as-markets-reassess-powells-words/ar-AA17f2U1
7. “U.S. stocks are falling as investors await comments from Fed’s Powell By Investing.com” Investing.com, 7 Feb. 2023, https://www.investing.com/news/stock-market-news/us-stocks-wobble-as-investors-await-comments-from-feds-powell-2997221
8. “Stock market news live updates: Stocks start week lower as investors ponder Fed’s rate path” Yahoo News, 6 Feb. 2023, https://news.yahoo.com/stock-market-news-live-updates-february-6-2023-111713832.html