Dow Futures Fall 470 Points, Interest Rate Hike Rally Fails

Meanwhile, jobs data is due out later today

Deputy Editor
Jun 16, 2022 at 9:00 AM
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Stock futures are signaling an end to yesterday's post-Fed rally, which followed the central bank's sharpest interest rate hike since 1994. Dow Jones Industrial Average (DJIA) futures are around 470 points lower, as the 10-year Treasury yield resumes its surge -- last seen around 3.44%. Elsewhere, futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are firmly in the red as well. Looking ahead, Wall Street is awaiting some key economic data in the form of jobs data.

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

  • Check out the newest Schaeffer's Market Mashup, featuring OCC Principal and OIC Instructor Mark Benzaquen.
  • Oil stock could continue to move higher.  
  • Plus, unpacking Jabil's earnings results; Elon Musk to reiterate Twitter buyout hopes; and cosmetics company files for bankruptcy protection. 

Futures Chart June 16

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1 million call contracts and 730,735 put contracts traded on Wednesday. The single-session equity put/call ratio fell to 0.70, and the 21-day moving average stayed at 0.63.
  2. Jabil Inc (NYSE:JBL) stock is 0.7% lower in premarket trading, with the security brushing off a fiscal third-quarter earnings and revenue beat, spurred by solid demand. Coming into today, JBL was already down 16.4% year-to-date.   
  3. According to a report from the Wall Street Journal, Elon Musk plans to reiterate his desire to own Twitter Inc (NYSE:TWTR) at an all-hands meeting later today. The news comes after the Tesla (TSLA) CEO threatened to pull out of his buyout bid due to information discrepancies concerning Twitter's spam accounts. Last seen down 2.2% before the bell, TWTR has shed nearly 37% in the last 12 months.
  4. Cosmetic maker Revlon Inc (NYSE:REV) is down 4.4% in electronic trading, after news that the company filed for Chapter 11 bankruptcy protection in the face of a roughly $3.3 billion debt load. On track to add to significant year-to-date losses, REV already sported an 80.2% deficit for 2022. 
  5. Today will bring building permits and housing starts data, as well as the Philadelphia Fed manufacturing index.

buzzjune16

International Markets React to Rate Hikes in U.S.

Asian markets were mixed on Thursday following the Federal Reserve’s aggressive rate hike yesterday, and renewed weakness in Chinese tech stocks. In response, the Shanghai Composite in China dropped 0.6%, the Hong Kong Hang Seng shed 2.2%, the South Korean Kospi eked out a 0.2% win, and the Nikkei in Japan rose 0.4%.

In Europe, markets are tumbling as investors also kept an eye on yesterday’s Fed decision, as well as the Bank of England’s (BoE) plan to once again hike interest rates – marking the central bank’s 10th-straight hike – in an effort to combat inflation. In response, The London FTSE 100 is 2.9% lower at last check, while the German DAX is down 3.1%, and the French CAC 40 is off 2.4%.

 

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