Dow Futures Eye Triple-Digit Pop Ahead of Fed Decision

Wall Street is preparing for more hawkish moves from the Fed

Digital Content Manager
May 4, 2022 at 9:06 AM
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Stock futures are gaining some steam ahead of the open, as investors look ahead to the Federal Open Market Committee's (FOMC) big interest rate decision this afternoon. The Fed is expected to lift interest rates by half a percentage point, and cut its roughly $9 trillion balance sheet by $95 billion.

Futures on the Dow Jones Industrial Average (DJIA) are eyeing a 111 point pop at last check, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are sporting sizeable gains of their own. As far as economic data goes, the ADP private payrolls report for April showed a 247,000 jump, though the number missed expectations by a wide margin. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White offers up some context for that dismal April.
  • This Cincinnati-based stock typically outperforms in May.
  • Plus, Moderna earnings impress; UBER brushing off upbeat results; and SBUX digs into it deficit.  

futures may 4

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.01 million call contracts traded on Tuesday, and 549,609 put contracts. The single-session equity put/call ratio fell to 0.54, and the 21-day moving average stayed at 0.59.
  2. In premarket trading, Moderna Inc (NASDAQ:MRNA) has added 5.8% after its first-quarter earnings and revenue easily topped analysts' estimates. Moderna stock is down 37.7% for the year, however, going into today. 
  3. The shares of Uber Technologies Inc (NYSE:UBER) are down 3.3% this morning, despite the ride-sharing giant posting a first-quarter loss and revenue that topped expectations, while also noting growth in food deliveries. Uber stock is down nearly 33% in 2022. 
  4. Starbucks Corporation (NASDAQ:SBUX) reported earnings that fell in line with estimates and revenue that slightly topped forecasts for its fiscal second quarter. In response, the coffee stock is up 6.9% before the bell, though it carries a 36.3% year-to-date deficit. 
  5. Also on tap today is international trade balance data and the S&P Global U.S. services PMI, and the ISM services index. 

OV Futures May 4

Upcoming Rate Decision Weighs on Markets Overseas 

Asian markets were lower on Wednesday, as investors eyed a potential interest rate hike in the U.S., as well as a roughly 3% jump in oil prices. Hong Kong’s Hang Seng shed 1.1%, as Alibaba (BABA) and Tencent Music Entertainment (TME) tumbled, while South Korea’s Kospi settled 0.1% lower. Meanwhile, Japan’s Nikkei and China’s Shanghai Composite remained closed for a holiday.

The incoming stateside interest rate decision is also weighing on European markets. Plus, the European Commission imposed new oil sanctions on Russia, in response to the latter’s continued attacks on Ukraine. Investors are also sifting through earnings reports from the likes of Volkswagen and Siemens Healthineers. At last check, France’s CAC 40 is down 0.5%, London’s FTSE 100 is 0.4% lower, and the German DAX is eyeing a 0.1% loss.

 

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