Stock Futures Pointed Lower as Rate Hike Fears Weigh

The 10-year Treasury yield is on the rise again

Digital Content Manager
Apr 22, 2022 at 9:14 AM
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Stock futures are pointed lower this morning, after yesterday's dramatic losses on the heels of Fed Chairman Jerome Powell's comments indicating bigger rate hikes could be coming next month. Futures on the Dow Jones Industrial Average (DJIA) are showing a 117-point drop, as the 10-year Treasury yield rises again. S&P 500 Index (SPX) futures are eyeing a dip as well, though the index looks like the only one that may avoid another weekly loss. Elsewhere, Nasdaq-100 Index (NDX) futures are slightly above breakeven.

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

  • AT&T calls popped after a core wireless revenue jump.
  • Enphase Energy stock sees bear note after sector review.
  • Plus, unpacking SAM's surprise quarterly loss; Snap issues modest sales growth outlook; what's sinking 1 apparel retailer.

Futures 0422

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts traded on Thursday, and 986,892 put contracts. The single-session equity put/call ratio rose to 0.72, and the 21-day moving average remained at 0.57.
  2. Boston Beer Company Inc (NYSE:SAM) is down 3.2% ahead of the bell, after the brewery posted a surprise quarterly loss of 16 cents per share, as well as a revenue miss. The company noted shipment volume fell 25% year-over-year, while its gross margins also suffered. Year-to-date, SAM has already shed more than 31%.
  3. Social media concern Snap Inc (NYSE:SNAP) is up 0.5% before the open, despite missing Wall Street's first-quarter earnings expectations by a small margin to report losses of 2 cents per share. The security is brushing off a modest second-quarter sales growth forecast as well. So far this year, SNAP has shed 37.4%.
  4. Another name slashing its sales growth outlook is Gap Inc (NYSE:GPS). The equity is down 16.7% in the premarket, after the apparel retailer noted higher competition and more promotions, while announcing the exit of Old Navy President and CEO Nancy Green. Year-over-year, GPS is down a hefty 56.4%.
  5. Today brings the S&P Markit manufacturing purchasing manager's index (PMI), as well as the Markit services PMI.


Fed Comments Weigh on Asian, European Markets

Stocks in Asia mostly slipped today, as investors unpacked U.S. Fed Chair Jerome Powell's comments, as well as an update from Yi Gang, the Governor of the People's Bank of China. Yi said the bank will increase support for the economy, calling the country's monetary policy "accommodative" amid the wave of Covid-19 cases. China's Shanghai Composite was the only winner with a 0.2% gain, while the Hong Kong Hang Seng dipped 0.2%. Elsewhere, the South Korean Kospi lost 0.9%, while Japan's Nikkei dropped 1.6%.

European markets are falling midday, focusing on U.S. Fed Comments as well. London's FTSE 100 is down 0.8%, after data showed retail sales volumes in the U.K. dropping below expectations in March. Meanwhile, the French CAC 40 and German DAX are sharply lower, down 1.5% and 1.7%, respectively.


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