U.S. stock futures were trading lower on Wednesday morning, giving back some of the previous session’s gains, as investors wait to hear from more Federal Reserve policymakers and additional corporate earnings reports.[0] Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) were down 0.14%, 0.22%, and 0.17%, respectively, as of 4.30 a.m.[1] Wednesday, EST[2] At 10:29 Eastern Time (15:29 Greenwich Mean Time), the Dow Jones Industrial Average had decreased by 111 points, representing a 0.3% decline, while the S&P 500 had decreased by 0.2% and the NASDAQ Composite had increased by 0.[3]
Yesterday, traders were analyzing the remarks of Federal Reserve Chair Jerome Powell, who spoke at The Economic Club of Washington.[4] At the Economic Club of Washington, D.C., Powell is taking part in a question and answer session, and his responses will most certainly be examined for indications of where the Federal Reserve is leaning in terms of future interest rate decisions.[5] Based on the speech, it appears that the Federal Reserve will maintain their hawkish position until there is a continued high rate of wage inflation, particularly in the services industry.[4] It is anticipated that the Fed will shift direction only once inflationary pressures begin to have an effect on the labor market.[4]
Chipotle Mexican Grill (CMG) experienced a decline in after-hours trading yesterday due to their failure to meet analysts’ expectations on the earnings front.[6] Royal Caribbean (NYSE:RCL) saw a rise in stock prices after announcing Q4 losses that were smaller than anticipated.[4] Notable companies that are releasing earnings today include The Walt Disney Co. (DIS) and Uber (UBER).[4] On Thursday and Friday, additional companies set to report include PepsiCo (PEP), AbbVie (ABBV), and PayPal Holdings (NASDAQ:PYPL).[4]
The price of oil rose, with West Texas Intermediate (WTI) crude increasing 0.7% to $73.93 per barrel.[7] The yield on the 10-year U.S. Treasury increased by 10 basis points, bringing it to[8] Bed Bath & Beyond Inc. (BBBY) shares tumbled 43% to $3.3250 after the company announced a proposed $225 million offering of Series A Convertible Preferred Stock and warrants.[3]
In extended deals, Catalent (CTLT) surged more than +25% after a Bloomberg report said that Danaher is said to be interested in acquiring the company.[9]
0. “Dow futures down 90 pts; Disney heads earnings slate By Investing.com” Investing.com, 8 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-futures-down-90-pts-disney-heads-earnings-slate-2998059
1. “Dow futures little changed, Chegg tanks 21.5% after earnings By Investing.com” Investing.com, 6 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-futures-little-changed-chegg-tanks-215-after-earnings-2996544
2. “Stock Market News Today: Futures Slide as Markets Reassess Powell’s Words” TipRanks, 8 Feb. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-slide-as-markets-reassess-powells-words
3. “Dow Falls 150 Points; US Trade Gap Widens In December – Holley (NYSE:HLLY), Bed Bath & Beyond (NASDAQ:BBB” Benzinga, 7 Feb. 2023, https://www.benzinga.com/news/earnings/23/02/30765930/dow-falls-150-points-us-trade-gap-widens-in-december
4. “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
5. “Stock market news today: Yields jump ahead of speech from Fed’s Powell” Markets Insider, 6 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-dow-sp500-bond-yields-jerome-powell-2023-2
6. “Dow futures trade lower, Chipotle dips 4.6% after earnings By Investing.com” Investing.com, 7 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-futures-trade-lower-chipotle-dips-46-after-earnings-2997610
7. “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
8. “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/
9. “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