Stock Futures Rise Amid Big Tech Earnings, Fed Meeting

Investors are also awaiting a key Fed decision

Deputy Editor
Jul 27, 2022 at 9:21 AM
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Stock futures are eyeing a significant pop on Wednesday morning, as both Google-parent Alphabet (GOOGL) and Microsoft (MSFT) rise after their respective earnings reports, despite top- and bottom-line misses. Investors are also awaiting a key interest rate decision from the Federal Reserve, which will conclude its two-day meeting at the end of the day's session. In response, Dow Jones Industrial Average (DJIA) futures are pacing for a 145-point pop, while futures on both the Nasdaq-100 Index (NDX) and the S&P 500 Index (SPX) also sit firmly above fair value.

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

  • This is what the fall in copper prices means for the broader market.
  • Why this video streaming stock drew mixed analyst attention.
  • Plus, more on GOOGL and MSFT's quarterly reports; and Teva Pharmaceutical agrees to massive settlement.

Futures Chart July 27_2022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.10 million call contracts and 841,364 put contracts traded on Tuesday. The single-session equity put/call ratio rose to 0.76, and the 21-day moving average stayed at 0.67.
  2. Microsoft Corporation (NASDAQ:MSFT) sports a 3.1% premarket lead, despite the FAANG concern reporting top- and bottom-line misses for its fiscal fourth quarter. Some tapering off in the company's cloud business resulted in the company's slowest earnings growth in two years. However, Microsoft still issued an upbeat forecast, predicting double-digit percentage growth in currency-adjusted sales and operating income this quarter. Coming into today, MSFT was down 25.1% in 2022.
  3.  Alphabet Inc (NASDAQ:GOOGL), meanwhile, boasts a 3.9% gain before the open, even after missing analysts' profit and revenue estimates. The Google-parent's second quarter results were dented by a decrease in advertiser spending, though some traders were braced for even worse results. Year-to-date, GOOGL has taken a 27.5% haircut.
  4. Teva Pharmaceutical Industries Ltd (NYSE:TEVA) reached a settlement worth up to $4.25 billion, stemming from its alleged role in the opioid crisis. TEVA is up around 21.9% ahead of the opening bell, which should help it breech its year-to-date and year-over-year breakeven levels, should the gains hold.
  5. Federal Chairman Jerome Powell will hold a press conference today, after the announcement of the Fed funds target rate. Durable goods, core capital equipment, and trade in goods orders are also on tap, in addition to the pending home sales index.

OV Buzz July 27

Asian Markets Tumble After IMF Trims Global GDP Forecasts

Markets in Asia slipped today, led by the Hong Kong Hang Seng, which dropped 1.1% as real estate stocks dragged the index lower. Country Garden stock plummeted over 15% after announcing the sale of 870 million shares. Meanwhile, Japan’s Nikkei shed 0.2%, while China’s Shanghai Composite inched 0.05% lower. The South Korean Kospi was the only winner, adding 0.1%. News from the International Monetary Fund (IMF) weighed globally as well, after trimming its global GDP forecasts for this year and next.

European markets are higher midday, as investors unpack earnings while awaiting the Fed decision out of the U.S. Elsewhere, German consumer sentiment is expected to slide to record lows in August. The German DAX is up 0.5% at last check, while the French CAC 40 rises 0.4%, and London’s FTSE 100 tacks on 0.6%.

 

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