Stock Futures Shift Lower as Investors Brace for Fed Minutes

The central bank is expected to hike rates today

Digital Content Manager
Apr 6, 2022 at 9:18 AM
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All eyes are on the Federal Reserve's meeting minutes, which will be released later this afternoon. Dow Jones Industrial Average (DJIA) futures are pointed 205 points lower, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are eyeing a sharp pre-market drop as well. Wall Street expects the central bank to announce aggressive rate hikes, which may dampen economic growth amid record inflation, following the Fed's hawkish comments yesterday. Investors are also eyeing a surging 10-year Treasury yield, the struggling tech sector, and the potential for additional sanctions against Russia.

Continue reading for more on today's market, including:

  • The best and worst stocks to own before Easter.
  • Merck stock looks like a solid second-quarter bet.
  • Plus, Tilray stock pops on surprise profit; Rivian Automotive's encouraging production update; and mining stock attracts fresh coverage.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw over 1.2 million call contracts traded on Tuesday, and 740,196 put contracts. The single-session equity put/call ratio rose to 0.58, and the 21-day moving average stayed at 0.57.
  2. Tilray Inc (NASDAQ:TLRY) is up 5% before the bell, brushing off a revenue miss after the cannabis giant posted a surprise quarterly profit. In addition, the company revealed a deal with Whole Foods to sell hemp powders produced by its subsidiary Manitoba Harvest. 
  3. Electric vehicle (EV) maker Rivian Automotive Inc (NASDAQ:RIVN) announced the company is well on its way to meet its production target of 25,000 vehicles in 2022. The security is up 2.5% ahead of the open, but still carries a dismal 59.3% year-to-date deficit.
  4. Occidental Petroleum Corporation (NYSE:OXY) is up 1.4% in the premarket, after Stifel initiated coverage with a "buy" rating. The firm noted the company is attractively priced, with an underappreciated low carbon business. Year-over-year, OXY has added 120.2%.
  5. It will be a quiet day on Wall street, with little on deck besides the release of the Fed meeting minutes.
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Asian Markets Drop as Tech Sector Takes a Breather

Markets in Asia were mostly lower today, as tech stocks slipped after taking a cue from their U.S. counterparts. China's Caixin services Purchasing Managers' Index (PMI) fell 10 points to 42.0 in March, marking its lowest reading since February 2020, as Covid-19 continues to run rampant. Readings below the 50 mark indicate a contraction on a monthly basis. China's Shanghai Composite inched 0.02% higher, while Hong Kong's Hang Seng led the losers with a 1.9% drop. Elsewhere, Japan's Nikkei lost 1.6%, while the South Korean Kospi shed 0.9%.

European markets are swimming in red ink today, as investors digest yesterday’s hawkish U.S. Fed comments and more sanctions against Russia. London's FTSE 100 is 0.4% lower midday, while the French CAC 40 and German DAX are off 2.1% and 2%, respectively.

 




 
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