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Stocks drift higher as traders await Fed meeting minutes

Stocks drift higher as traders await Fed meeting minutes

U.S. stocks rose slightly on Wednesday, steadying after recent selling sparked amid growing concerns about the impact of inflation on company profits and the broader economy. Traders also awaited the Federal Reserve’s meeting minutes later in the day, which may help further clarify the path of monetary policy in the near-term.

The S&P 500 edged up after Tuesday’s renewed rout. The Dow and Nasdaq also ticked higher. Treasury yields declined on the long end of the curve, and the benchmark 10-year yield fell to hold just above 2.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Investors this week have eyed a growing list of companies citing the effects that inflation have had and will have on results going forward. Retailers including from Walmart and Target last week to Dick’s Sporting Goods (DKS) and Abercrombie & Fitch (ANF) this week slashed their earnings forecasts for the year as the companies absorbed rising goods and transportation costs. And elsewhere, Snap (SNAP) warned earlier this week that it would post weaker-than-expected sales and profit results this year as the macroeconomic environment “deteriorated further and faster than anticipated.” This was taken as a harbinger of softer results for a bevy of ad-driven tech stocks, sending the Nasdaq Composite to its lowest close since Nov. 2020 on Tuesday.

As the grim company guidance piles up, Wall Street is looking for signs that the Federal Reserve’s interest rate hikes and monetary policy tightening will achieve bringing down inflationary pressures. The Fed is set to release the minutes from its early May meeting Wednesday afternoon, which will offer additional details about how policymakers have been thinking of adjusting policy further to rein in rising prices. Fed Chair Jerome Powell earlier this month suggested additional 50 basis point rate hikes would likely be appropriate at the Fed’s next two meetings.

“The challenge right now is we’re in this new chapter of the inflation story. If you’ll recall, last year it started with whether it’s transitory — turns out, it wasn’t. Then it became about the Fed at the end of last year and earlier this year, whether or not they would tighten significantly. And they did, and now all that’s priced in,” James Liu Clearnomics founder and CEO, told Yahoo Finance Live. “And now what the market is looking at is are basically the fundamentals around how inflation affects corporate profitability and consumer demand.”

And beyond the domestic concerns, a myriad of international concerns — from Russia’s war in Ukraine, to China’s ongoing COVID outbreak — have further infused volatility into the market.

“The Fed can’t really do anything about what’s going on between Russia and Ukraine, they can’t really do anything about China’s COVID zero policies … and a lot of traders are starting to get concerned,” Shawn Cruz, TD Ameritrade head trading strategist, told Yahoo Finance Live.

“The way the market to me is reacting to that, is one, there’s de-leveraging going on. There are some liquidation events out there as well, and that is one of those ‘selling begets more selling’ type of environments. And then the other one is, there’s just not enough confidence out there to come in there and meaningfully put money back to work,” he added. “Once you start to see leverage start going back up, cash coming in from the sidelines, that to me would be an indication that there is at least a little bit more certainty in the outlook for a lot of these people on the sidelines to come back in.”

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9:31 a.m. ET: Stocks open lower before shaking off losses

Here were the main moves in markets as of 9:31 a.m. ET:

  • S&P 500 (^GSPC): -9.53 (-0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,931.95

  • Dow (^DJI): -114.27 (-0.36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,814.35

  • Nasdaq (^IXIC): -22.24 (-0.20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,242.21

  • Crude (CL=F): +$0.89 (+0.81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $110.66 a barrel

  • Gold (GC=F): -$13.90 (-0.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,851.50 per ounce

  • 10-year Treasury (^TNX): -2.6 bps to yield 2.7340{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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9:12 a.m. ET: Durable goods orders disappoint in April

U.S. durable goods orders decelerated in April and were downwardly revised in March, offering an at least early sign that businesses may be pulling back on investments as economic uncertainties mount.

Orders for durable goods, or manufactured products intended to last at least three years, rose by 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in April compared to March, the Commerce Department said Wednesday. This came in below the 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rate consensus economists were expecting, according to Bloomberg data. In March, durable goods orders rose by 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, with this rate revised down from the 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} previously reported.

Non-defense capital goods orders excluding aircraft also missed expectations, rising by 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in April versus the 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} anticipated. This metric rose by 1.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in March, and serves as a closely watched proxy for business investment. Still, non-defense capital goods shipments excluding aircraft, which factors into GDP, rose by a better-than-expected 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} last month.

“It’s entirely possible that the recent slowing is nothing more than a temporary reaction to the spike in energy prices; firms might be waiting to see how consumers respond,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in an email about the report. “So far, we see no evidence of any hit — housing excepted — but we also can’t rule out the idea higher rates are directly causing some capex [capital expenditures] to be deferred, even though firms are sitting on huge piles of cash accumulated during the pandemic.”

“For now, a decent increase in capital spending on equipment in the second quarter seems assured, given the lags from previous strength in orders, but the outlook for H2 has become a bit more cloudy,” he added.

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7:55 a.m. ET: Dick’s Sporting Goods becomes latest retailer to slash full-year outlook given ‘evolving macroeconomic conditions’

Dick’s Sporting Goods shares sank by more than 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Wednesday morning after the retailer became one of the latest to lower its full-year earnings and sales guidance as economic uncertainty resurged.

The sporting goods retailer said it now sees adjusted earnings totaling between $9.15 and $11.70 per share for the 2023 fiscal year, with this range coming in well below the $11.70 to $13.10 a share seen previously. Comparable store sales will likely fall between 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} this year, the company added, compared to a prior outlook for sales to come in between unchanged and down 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Dick’s Sporting Goods said it updated its outlook “to reflect the impact of evolving macroeconomic conditions,” according to its earnings release Wednesday morning.

Following the release, the stock was on track to post a sixth straight day of losses, or its longest losing streak since early Dec. 2021, as shares fell in sympathy with other major retailers over the past week.

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7:23 a.m. ET: Stock futures edge lower

Here’s where markets were trading Wednesday morning:

  • S&P 500 futures (ES=F): -5.25 points (-0.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,935.25

  • Dow futures (YM=F): -55 points (-0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,825.00

  • Nasdaq futures (NQ=F): -9.5 points (-0.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,761.50

  • Crude (CL=F): +$1.47 (+1.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $111.24

  • Gold (GC=F): -$14.10 (-0.76{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,851.30 per ounce

  • 10-year Treasury (^TNX): -2.6 bps to yield 2.734{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of steep losses, markets were up in Monday morning trading. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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Stocks drift higher as traders brace for Fed decision

Stocks drift higher as traders brace for Fed decision

U.S. stocks traded mixed Wednesday, with investors looking ahead to the Federal Reserve’s latest monetary policy decision against the backdrop of elevated inflation and a still-tight U.S. labor market.

The S&P 500 and Nasdaq declined, while the Dow gained intraday. Treasury yields rose across the curve, and the benchmark 10-year yield hovered just below 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, or near its highest level since late 2018.

Investors are awaiting the Federal Reserve’s monetary policy statement and press conference from Chair Jerome Powell later Wednesday afternoon. The central bank is widely expected to raise interest rates by 50 basis points for the first time since 2000. Such a hike would be double the 25 basis-point increase the Fed unleashed in mid-March, which itself had been the first rate hike since 2018. This would bring the target range for the federal funds rate between 0.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 1.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, compared to the current range of between 0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 0.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Expectations for this supersized rate hike have built for weeks now amid market participants, especially given commentary from key Federal Reserve officials appearing to support such a move. Powell said during a public appearance with the International Monetary Fund earlier this month that he believed it would be “appropriate … to be moving a little more quickly” on raising rates, and that 50 basis points were “on the table” for May. And the Fed is also expected to use the May meeting to announce the start of quantitative tightening, or rolling assets off the central bank’s $9 trillion balance sheet.

Prospects of higher interest rates have stirred up volatility in equity markets, which had grown accustomed over the past two years to ultra-low interest rates and generally easy-money monetary policies. At the same time, however, many pundits have suggested the Fed allowed its pandemic-era supportive policies to run too long, allowing inflation to soar to the fastest rates since the 1980s. And after GDP growth turned negative in the U.S. in the first three months of the year, a lingering question remains whether the Fed will now be able to tighten policies without tipping the economy into a deep downturn.

“Because the market has priced in a 50 basis point rate hike at the Federal Reserve’s May meeting, the focus will immediately shift to just how many half-point hikes the Fed expects to initiate over the balance of 2022,” Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence, wrote in an email Tuesday. “The Fed would shock markets if it failed to deliver on more aggressive policy via a 50 basis point rate hike on Wednesday.”

“The Federal Reserve’s credibility is on the line, given the surge in inflation, which has proved to be anything but transitory,” Booth added. “Interest rates are too low and markets have been way too accustomed to almost unlimited liquidity from the Fed’s bond purchases. Powell’s greatest folly would be to insist that the economy is very strong in the face of overwhelming evidence that it is slowing and slowing fast.”

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9:35 a.m. ET: Stocks open little changed

Here were the main moves in markets as of 9:33 a.m. ET:

  • S&P 500 (^GSPC): +1.28 (+0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,176.76

  • Dow (^DJI): +4.50 (+0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,133.29

  • Nasdaq (^IXIC): -20.90 (-0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 12,544.49

  • Crude (CL=F): +$4.65 (+4.54{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $107.06 a barrel

  • Gold (GC=F): unchanged at $1,870.60 per ounce

  • 10-year Treasury (^TNX): +1.9 bps to yield 2.9790{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

8:30 a.m. ET: US private payrolls missed expectations in April, rising by 247,000 vs. 383,000 expected

Payrolls rose less-than-expected in the U.S. private sector last month, as employers worked to fill persistent vacancies to help meet demand.

Private-sector payrolls grew by 247,000 in April, ADP said in its closely watched monthly report on Wednesday. This came following an increase of 479,000 private payrolls in March, according to ADP’s revised monthly print. Consensus economists were looking for private payrolls to rise by 383,000, according to Bloomberg data.

The U.S. services sector saw the largest gains in private payrolls last month, with nearly every industry group adding back jobs. However, job growth slowed compared to March, contributing to the headline deceleration in total private payroll gains. Leisure and hospitality employers added back 77,000 jobs in April, which while still the most of any industry group, was less than half the gain in payrolls from March. This was followed by professional and business services, with payrolls rising by 50,000 in April, and education and health services with gains of 48,000. In the goods-producing sector, payrolls grew on net in each of the manufacturing, construction and mining industries.

Plus, by company size, small business saw a marked downturn in employment last month. Small businesses, or those with 49 employees or fewer, shed a total of 120,000 payrolls last month, while medium and large businesses gained 46,000 and 321,000, respectively.

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7:39 a.m. ET: Uber posts better-than-expected quarterly results, guidance

Uber (UBER) posted estimates-topping first-quarter results and current-quarter guidance Wednesday morning, with the ride-hailing company signaling it was working through driver shortages while maintaining solid profitability.

Revenue more than doubled during the first quarter to reach $6.9 billion, topping estimates for $6.1 billion, according to Bloomberg-compiled data. Adjusted EBITDA increased to $168 million, also coming in ahead of the $135 million expected. Trips during the first quarter increased by 18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over last year to reach 17.1 billion, underscoring the ongoing recovery in rider demand.

For the current quarter, Uber said it sees gross bookings coming in between $28.5 million and $29.5 billion, and adjusted EBITDA of between $240 million and $270 million.

Uber shares pared losses in early trading following the results. Earlier during the overnight session, Uber shares had slumped in sympathy with Lyft’s stock, which slid after the ride-hailing company offered a current-quarter revenue and profit forecast that fell short of analyst expectations.

Uber was previously scheduled to report its quarterly results after market close on Wednesday, but after Lyft’s report, “rescheduled to provide a more timely update on the company’s performance and guidance before the market opens,” according to a statement.

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7:29 a.m. ET Wednesday: Stock futures gain

Here’s where markets were trading ahead of the opening bell

  • S&P 500 futures (ES=F): +16.75 points (+0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,186.00

  • Dow futures (YM=F): +122 points (+0.37{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,155.00

  • Nasdaq futures (NQ=F): +44.75 points (+0.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,132.25

  • Crude (CL=F): +$3.88 (+3.79{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $106.29 a barrel

  • Gold (GC=F): -$4.30 (-0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,866.30 per ounce

  • 10-year Treasury (^TNX): +0.4 bps to yield 2.962{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:01 p.m. ET Tuesday: Stock futures open mixed

Here’s where markets were trading Tuesday evening:

  • S&P 500 futures (ES=F): +1.5 points (+0.04{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,170.75

  • Dow futures (YM=F): -2 points (-0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,031.00

  • Nasdaq futures (NQ=F): +22.75 points (+0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,110.25

NEW YORK, NEW YORK - APRIL 28: Traders work on the floor of the New York Stock Exchange (NYSE) on April 28, 2022 in New York City. The Dow Jones Industrial Average was up in morning trading as markets continued to move through a period of volatility over inflation concerns and the war in Ukraine. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – APRIL 28: Traders work on the floor of the New York Stock Exchange (NYSE) on April 28, 2022 in New York City. The Dow Jones Industrial Average was up in morning trading as markets continued to move through a period of volatility over inflation concerns and the war in Ukraine. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

Read the latest financial and business news from Yahoo Finance

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Stock futures drift sideways after rally

Stock futures drift sideways after rally

U.S. stocks were mostly higher Friday to build on gains from an up day on Wall Street that saw all three major indexes close sharply higher in the previous session as investors further mulled the path forward for interest rates and a host of new sanctions against Russia.

The S&P 500 inched up 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and the Dow Jones Industrial Average registered a small gain of 60 points. The Nasdaq Composite struggled for direction as it wavered around the flatilne. All three benchmarks closed out Thursday’s higher by more than 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, placing the indexes on pace for a second straight week of gains if levels hold through Friday’s close.

Developments in Russia’s war in Ukraine remained in focus as President Joe Biden meets with NATO allies in Europe. The U.S. leveled a fresh set of sanctions against Russia and vowed to provide more aid to Ukraine. Biden also said he would support removing Russia from the G20.

Despite the ongoing geopolitical conflict, stocks have remained relatively resilient this week in the face of upbeat economic data and a chorus of commentary from Federal Reserve officials reiterating the central bank’s more hawkish path forward to rein in inflation. In one of the latest datapoints underscoring the ultra-tight labor market, weekly jobless claims set the lowest level since 1969 last week, as companies held onto their existing workers amid widespread labor shortages.

Against this backdrop — and with inflation running at the hottest level in 40 years — central bankers have stepped up talk of tightening monetary policy. Chicago Federal Reserve President Charles Evans said Thursday he was “open” to the notion of a 50 basis-point interest rate hike at a forthcoming Fed meeting if needed. This echoed remarks from other Fed policymakers including San Francisco Fed President Mary Daly, who said earlier this week that if the Fed needed to do 50 basis points, then “50 is what we’ll do.” Fed Chair Jerome Powell earlier this week also signaled a willingness to roll out a larger-than-typical 50-basis point rate hike to address inflation, if deemed necessary.

While prospects of higher interest rates and tighter financial conditions were met with consternation among investors and choppiness in markets earlier this year, traders have begun to digest the prospects of a more hawkish Fed. Still, some strategists cautioned that volatility would likely still be in the cards in the near-term.

“We remain pretty bullish on the market overall but I do think that volatility is here to stay,” Ross Mayfield, Baird investment strategy analyst, told Yahoo Finance Live on Thursday.

“As far as catalysts, there’s a lot of stuff out there. There’s war in Ukraine. The market’s not moving as much on the day-to-day headlines there, but it doesn’t mean that there still couldn’t be a major catalyst from that event, either to the upside or the downside,” Mayfield added. “The Fed — we’ve got a pretty good picture of what they’re planning on doing, but any hints as we get towards May about 50 basis point rate hikes or balance sheet reduction or what that might look like could be a catalyst.”

Others offered a similar take.

“There has been quite a bit of bearish sentiment. We see money managers holding excess cash — more than normal, almost 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on average in cash,” Loreen Gilbert, WealthWise Financial CEO, told Yahoo Finance Live. “I do not think the volatility is over. While we’re happy about some good market bounces on the upside, we’re looking also to see what’s going to happen going forward.”

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9:30 a.m. ET: Stocks open in the green following Thursday’s gains

Here were the main moves in markets at the start of Friday’s session:

  • S&P 500 (^GSPC): +6.95 (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,527.11

  • Dow (^DJI): +72.28 (+0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,780.22

  • Nasdaq (^IXIC): -7.95 (-0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,183.89

  • Crude (CL=F): -$2.67 (-2.38{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $109.67 a barrel

  • Gold (GC=F): -$11.40 (-0.58{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,950.80 per ounce

  • 10-year Treasury (^TNX): +4.4 bps to yield 2.3850{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

7:35 a.m. ET: Bed Bath & Beyond nears settlement with GameStop ape Ryan Cohen

Bed Bath & Beyond (BBBY) is approaching a settlement with GameStop executive chairman Ryan Cohen, Bloomberg reported on Friday. The deal could see three board members added to Bed Bath & Beyond.

Cohen, founder of the online pet goods retailer Chewy, disclosed a 9.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} stake in Bed Bath & Beyond earlier in March.

In a letter to Bed Bath & Beyond, Cohen said the company’s execution under CEO Mark Tritton has bordered on terrible, compensation is not realistic and the business should be split up (Buy Buy Baby business sold off) and then sold entirely to financial sponsors (private equity).

“We have carefully assessed Bed Bath’s assets, balance sheet, corporate governance, executive compensation, existing strategy and potential alternatives,” Cohen said in a letter obtained by Yahoo Finance. “While we like Bed Bath’s brand and capital allocation policy, we have concerns about leadership’s compensation relative to performance and its strategy for reigniting meaningful growth.”

Representatives for Cohen and Bed Bath & Beyond didn’t immediately reply to Yahoo Finance’s request for comment.

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7:10 a.m. ET: Contracts on main indexes hover near flatline ahead of main trading session

Here were the main moves in markets at in pre-market trading Friday:

  • S&P 500 futures (ES=F): +9.00 points (+0.20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,521.50

  • Dow futures (YM=F): +58.00 points (+0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,662.00

  • Nasdaq futures (NQ=F): +31.75 points (+0.22{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,795.50

  • Crude (CL=F): -$1.68 (-1.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $110.66 a barrel

  • Gold (GC=F): -$11.20 (-0.57{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,951.00 per ounce

  • 10-year Treasury (^TNX): 0.00 bps to yield 2.3410{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:10 p.m. ET Thursday: Stock futures open little changed

Here’s where the major stock index futures opened Thursday evening:

  • S&P 500 futures (ES=F): +2.25 points (+0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,514.75

  • Dow futures (YM=F): +31 points (+0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,635.00

  • Nasdaq futures (NQ=F): -2.75 points (-0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,761.00

NEW YORK, NEW YORK - MARCH 11: Traders work on the floor of the New York Stock Exchange (NYSE) on March 11, 2022 in New York City. The Dow Jones Industrial Average was up over 200 points in morning trading on the last day of a volatile week for global markets. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MARCH 11: Traders work on the floor of the New York Stock Exchange (NYSE) on March 11, 2022 in New York City. The Dow Jones Industrial Average was up over 200 points in morning trading on the last day of a volatile week for global markets. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter. Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Stock futures drift, oil rises as Wall Street digests Fed rate hike

Stock futures drift, oil rises as Wall Street digests Fed rate hike

U.S. stock futures stumbled in pre-market trading Thursday following a pivotal session on Wall Street marked by the Federal Reserve’s long-anticipated move to hike short-term interest rates for the first time in three years.

Contracts tied to the S&P 500, Dow and Nasdaq dipped ahead of the open after all three indexes closed higher Wednesday as investors digested the move. Futures tied to the S&P 500 were down 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} as of 7:00 a.m. ET to 4,344.50 , and the Dow shed about 90 points to 33,968.00. Nasdaq futures edged 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} lower to 13,899.00. Meanwhile, WTI Crude Oil futures gained 4.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to near $100 per barrel.

At the end of its two-day policy-setting meeting, the central bank revealed Wednesday that it will lift the benchmark Federal Funds Rate by 0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, to a target range of 0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 0.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The move was in line with what market participants had anticipated after Fed Chair Jerome Powell indicated in Congressional testimony earlier this month a 25 basis-point bump was distinctly possible.

​​“By raising interest rates, the Federal Reserve has begun the process of unwinding their pandemic-era stimulus measures in an effort to tame inflation,” Bankrate chief financial analyst Greg McBride said in a note. “This isn’t a one-and-done but the start of a series of rate hikes for the remainder of this year and well into next.”

The Fed also unveiled in its updated Summary of Economic Projections, or “dot plot,” which reflects the individual economic projections of policymakers on the Federal Open Market Committee, that the median member anticipates up to six more rate hikes in 2022, which would bring rates 1.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher at the end of this year. Before Wednesday’s decision, the benchmark interest rate was deliberately held near zero since mid-2020 as part of the Fed’s easy-money policies used to keep financial conditions running smoothly during the pandemic.

“The Fed didn’t rock the boat much,” LPL Financial chief market strategist Ryan Detrick said. “Yes, they lowered economic expectations in 2022 while also increasing inflation, but much of that was already priced into things. Overall, they still see strong growth, which helps support the recovery.”

The Marriner S. Eccles Federal Reserve Board building is seen in Washington, DC, March 16, 2022. - The Federal Reserve is expected to announce the first interest rate increase since the Covid-19 pandemic began at the conclusion of its policy setting meeting later today. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

The Marriner S. Eccles Federal Reserve Board building is seen in Washington, DC, March 16, 2022. – The Federal Reserve is expected to announce the first interest rate increase since the Covid-19 pandemic began at the conclusion of its policy setting meeting later today. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

Although the key decision provided some clarity to investors who for months have awaited for the central bank to take steps forward on tightening monetary conditions, the Fed’s path forward remains muddied by geopolitical turmoil in Eastern Europe. War in Ukraine and penalizing sanctions against Russia for its invasion of the country have raised uncertainty in recent weeks over the conflict’s toll on the global economic picture.

The Fed acknowledged in a statement that came out of its meeting that implications for the U.S. economy are “highly uncertain” but likely to worsen already decades-high inflationary pressures.

“Playing catch up is the theme that Fed officials signaled to markets today as the narrative has shifted from normalizing monetary policy to laying the groundwork for a more restrictive policy and moving beyond neutral,” Allianz Investment Management senior market strategist Charlie Ripley said in commentary.

Elsewhere in markets, shares of Warren Buffett’s Berkshire Hathaway closed at $500,000 for the first time on Wednesday. The price underscored Berkshire’s status as a defensive stock at a time markets have been roiled by economic and geopolitical uncertainty.

Berkshire’s Class A shares have advanced 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in 2022, even as the S&P 500 is down about 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-to-date. Prior to a relief rally on Wednesday, the benchmark index on Tuesday (the 50th trading day of the year) locked in its 6th worst start to a year ever, data from LPL financial reflected. The silver lining? The previous five worst starts were followed by notable gains, with an average gain for the rest of the year of 36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, with the exception of only 2001.

“Although we aren’t expecting 36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} gains the rest of this year, it does suggest that things might be quite bad now, but we’ve been here before and we’ve seen stocks come back way more than expected,” LPL’s Detrick said.

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9:03 a.m. ET: New U.S. home construction rebounds to strongest pace since 2006

U.S. housing starts in February rose to the strongest pace since 2006, pointing to better success by homebuilders navigating material and labor snafus during the month.

Residential starts jumped 6.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} last month to a 1.77 million annualized rate, according to data out of Washington out Thursday. Applications to build, a measure of future construction, abated to an annualized 1.86 million units but remained elevated overall.

Economists surveyed by Bloomberg estimated a pace of 1.7 million for housing starts in February.

MIAMI, FLORIDA - APRIL 16: Construction workers build a home on April 16, 2021 in Miami, Florida. The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced that housing starts surged 19.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in March to their highest level since 2006. (Photo by Joe Raedle/Getty Images)

MIAMI, FLORIDA – APRIL 16: Construction workers build a home on April 16, 2021 in Miami, Florida. The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced that housing starts surged 19.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in March to their highest level since 2006. (Photo by Joe Raedle/Getty Images)

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8:30 a.m. ET: Jobless claims fall to 214,000 in latest weekly data

Applications for unemployment insurance fell in the latest weekly data to extend a broader trend downward after surging COVID-19 infections earlier this winter briefly disrupted the labor market’s recovery to start the year.

The Labor Department latest weekly jobless claims report showed 214,000 claims were filed in the week ended March 12, coming in better than the 220,000 economists surveyed by Bloomberg had expected.

Jobless claims came in below 250,000 for a seventh consecutive week and hovered around pre-pandemic levels. Continuing claims, which track the total number of individuals claiming benefits across regular state programs, have held well below levels from even before the pandemic, coming in under 1.5 million for four straight weeks now compared to an average of around 1.7 million per week in 2019.

Although COVID’s impact on the labor market has appeared to ease, the economic toll the war in Eastern Europe may have remains unclear.

“Staggeringly high inflation is set to go higher in forthcoming reports because of impacts from Russia’s invasion of Ukraine and continuing supply chain disruptions including in China,” Mark Hamrick, senior economic analyst at Bankrate, wrote in an email. “These higher costs crimping household budgets risk dampening consumer discretionary purchases. It remains to be seen how much this could negatively affect the job market in the months to come.”

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7:03 a.m. ET: Futures slip, oil rises as investors continue to weigh rate hike

Here’s how markets fared ahead of the open Thursday

  • S&P 500 futures (ES=F): -9.00 points (-0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,349.00

  • Dow futures (YM=F): -67.00 points (-0.20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,992.00

  • Nasdaq futures (NQ=F): -32.00 points (-0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,921.00

  • Crude (CL=F): +$4.20 (+4.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $99.24 a barrel

  • Gold (GC=F): +$35.20 (+1.84{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,944.40 per ounce

  • 10-year Treasury (^TNX): +2.8 bps to yield 2.1880{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:02 p.m. ET Wednesday: Futures tick up after stocks close higher following Fed decision

Here’s where stock futures were ahead of the overnight session Wednesday:

  • S&P 500 futures (ES=F): +8.25 points (+0.19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,366.25

  • Dow futures (YM=F): +51.00 points (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,110.00

  • Nasdaq futures (NQ=F): +29.25 points (+0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,982.25

  • Crude (CL=F): +$0.30 (+0.32{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $95.34 a barrel

  • Gold (GC=F): +$17.00 (+0.89{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,926.20 per ounce

  • 10-year Treasury (^TNX): +2.8 bps to yield 2.1880{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - MARCH 16: Traders work on the floor of the New York Stock Exchange (NYSE) on March 16, 2022 in New York City. The Dow started off the day in positive territory, extending yesterday's rally. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MARCH 16: Traders work on the floor of the New York Stock Exchange (NYSE) on March 16, 2022 in New York City. The Dow started off the day in positive territory, extending yesterday’s rally. (Photo by Spencer Platt/Getty Images)

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Stock futures drift after tech-led drop, Disney shares dip after earnings miss

Inventory futures attained Thursday morning to get well some losses just after a technological know-how-led drop across the important fairness indexes, with traders mulling symptoms that elevated inflation is continue to reverberating across the recovering financial system. 

The S&P 500 was on observe to rise immediately after back-to-back sessions of losses. The Nasdaq outperformed, with some of Wednesday’s greatest know-how laggards publishing a rebound. 

With no noteworthy financial knowledge owing out on Thursday thanks to the Veterans Working day getaway, traders have been remaining to go on responding to the most current batch of mixed economic facts. And in the meantime, a couple of closely viewed firms skipped quarterly earnings estimates, nevertheless most S&P 500 companies have topped expectations throughout third-quarter earnings period to date. 

Following market place close on Wednesday, Dow-ingredient Disney (DIS) described disappointing product sales and income as Disney+ subscriber growth slowed a lot more than envisioned. Over and above Meat (BYND) also presented a weak existing-quarter profits forecast, pointing to ongoing sluggishness in the plant-primarily based meat option-maker’s profits traits. Affirm (AFRM), nonetheless, saw shares soar in the premarket session, with the buy-now-shell out-afterwards economical engineering system topping quarterly profits anticipations and unveiling an expanded payments partnership with Amazon. 

Elsewhere, nonetheless, elevated desire for electrical-vehicle stocks and for shares of recently public businesses confirmed number of indicators of slowing down right after Rivian Automotive’s (RIVN) community debut. The Amazon-backed EV-maker’s stock closed bigger by 29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from its IPO price tag of $78 for each share on its to start with working day buying and selling on the Nasdaq. 

A higher-than-predicted soar in the Bureau of Labor Statistics’ Consumer Price Index was a specific supply of concern for traders on Wednesday, suggesting elevated rate pressures had been continue to existing throughout lots of types. The print also overshadowed some other upbeat financial information on the labor market’s recovery, as preliminary unemployment promises dipped to get to a fresh pandemic-period low previous 7 days. 

The broadest evaluate of customer rate improvements rose by a staggering 6.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in Oct when compared to the prior 12 months, symbolizing the most significant yearly increase in 31 several years. 

“This is definitely telling us, I believe, that cost pressures are more persistent. They are broader. They are not just narrowly targeted on those people categories, regardless of whether it is really autos and the source-constrained goods. And it is really heading to previous lengthier than envisioned,” Matthew Luzzetti, Deutsche Financial institution main U.S. economist, told Yahoo Finance Reside. 

Importantly, stickiness in inflation also implies that the Federal Reserve will have to have to phase in quicker than formerly anticipated to increase fascination fees in order to support provide growing costs in examine. Markets are pricing in an preliminary hike to convey costs up from their existing in close proximity to-zero levels by mid-2022 — but a lot more prints demonstrating elevated inflation could pull those expectations ahead, Luzzetti included. And by now, consumers’ outlooks on inflation have improved significantly, with the New York Federal Reserve reporting this week that consumers’ brief-expression inflation anticipations jumped to a file significant of 5.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. 

“We do think that the Fed is heading to have to increase charges next year. They have signaled that they are heading to taper through the center of the 12 months, and that’s our baseline at this level,” Luzzetti explained. “But if you continue to see selling price pressures like this over the coming months and far more persistent, it may perhaps result in them to have to act earlier than anticipated.”

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7:47 a.m. ET Thursday: Inventory futures get better some losses

Here is where markets ended up investing ahead of the opening bell:

  • S&P 500 futures (ES=F): +16.25 details (+.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,658.25

  • Dow futures (YM=F): +44 points (+.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,036.00

  • Nasdaq futures (NQ=F): +98.25 details (+.61{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,078.75

  • Crude (CL=F): -$.59 (-.73{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $80.75 a barrel

  • Gold (GC=F): +$12.30 (+.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,860.60 for each ounce

  • 10-calendar year Treasury (^TNX): +12.1 bps to produce 1.5700{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:11 p.m. ET Wednesday: Stock futures drift reduce in advance of inflation information

Here is wherever markets were investing Wednesday evening:

  • S&P 500 futures (ES=F): +3 details (+.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,645.00

  • Dow futures (YM=F): -8 details (-.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,984.00

  • Nasdaq futures (NQ=F): +12.5 factors (+.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,993.00

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 8, 2021. REUTERS/Brendan McDermid

A trader will work on the ground of the New York Inventory Exchange (NYSE) in New York Town, U.S., November 8, 2021. REUTERS/Brendan McDermid

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Emily McCormick is a reporter for Yahoo Finance. Comply with her on Twitter

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Stock futures drift higher as Wall Street eyes better-than-expected jobs report

Inventory futures rose Friday early morning as traders eyed the Labor Department’s Oct employment report, which confirmed a greater-than-predicted pick-up in payroll advancement and a further advancement in the unemployment amount. 

Contracts on the S&P 500 highly developed. A day previously, the blue-chip index rallied to a record high, logging a sixth straight file near as technologies shares superior. The Nasdaq also jumped amid the wide shift larger in tech shares, even though the Dow closed decrease for the 1st time in 6 periods.

Wall Street’s aim on Friday was on the Labor Department’s October positions report. This mirrored an encouraging acceleration in job progress, suggesting employers have been beginning to select up the pace of hiring to support fill widespread vacancies and satisfy elevated desire. 

Non-farm payrolls rose by 531,000 previous thirty day period, in contrast to the 450,000 predicted. Payrolls have been also upwardly revised for both equally August and September. The unemployment level dipped to 4.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, or the cheapest due to the fact March 2020. And common hourly earnings rose at a 4.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} 12 months-on-yr tempo, with wages pushed better as providers competed for staff amid common labor scarcities.

The Oct report instructed detrimental impacts from the Delta variant wave in late summer were starting to dissipate, especially supplied the jump in employing in leisure and hospitality industries and other high-get hold of parts of the financial system. 

And importantly for traders, the labor current market info helped vindicate the Federal Reserve’s most current choice to pare again on some of its financial policy guidance as the economic climate helps make much more development in its restoration. 

The central bank opted earlier this week to announce the begin of its asset-obtain tapering software, but declined to give particulars for the dollar volume of more tapering future year or the timing of interest rate hikes. The Fed mentioned that individuals would count on how the financial restoration unfolded. However, in his write-up-FOMC assembly push meeting on Wednesday, Powell also mentioned that there was “continue to floor to cover to attain maximum employment both in terms of employment and in phrases of participation.” 

Meanwhile, traders also eyed the hottest set of earnings final results from some closely viewed companies. Shares of Peloton (PTON) slumped right after the at-property health and fitness tools organization presented a disappointing forecast for the present-day quarter and slashed its total-12 months guidance, suggesting more decelerating advancement soon after a 2020 surge in need for household work out gear. Uber (UBER), also, supplied adjusted revenue steering that skipped Wall Street’s estimates, though the trip-hailing organization managed to change first-ever adjusted financial gain for its most up-to-date quarter. And shares of Pinterest (PINS) jumped soon after traders appeared past the company’s declining consumer base to target on estimates-topping 3rd-quarter earnings and earnings, which arrived in improved than feared soon after peer ad-driven media platforms together with Snap (SNAP) let down the Road with results and steering. 

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7:45 a.m. ET Friday: Stock futures increase ahead of work opportunities report

Here’s where by marketplaces have been buying and selling Friday early morning:

  • S&P 500 futures (ES=F): +10.5 factors (+.22{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,683.75

  • Dow futures (YM=F): +34.00 points (+.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 36,043.00

  • Nasdaq futures (NQ=F): +47.75 points (+.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,378.50

  • Crude (CL=F): $79.52 per barrel, +$.71 (+.90{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996})

  • Gold (GC=F): $1,792.90 per ounce, -$.60 (-.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996})

  • 10-year Treasury (^TNX): +.8 bps to produce 1.532{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:07 p.m. ET Thursday: Stock futures drift lower 

Here’s where by marketplaces had been buying and selling as the right away session kicked off: 

  • S&P 500 futures (ES=F): -2.25 points (+.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,671.00

  • Dow futures (YM=F): -29 factors (-.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,980.00

  • Nasdaq futures (NQ=F): -4.5 factors (-.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,326.25

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 20, 2021. REUTERS/Brendan McDermid

Traders do the job on the flooring of the New York Stock Trade (NYSE) in New York City, U.S., Oct 20, 2021. REUTERS/Brendan McDermid

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter