Stock Futures Deepen Losses as Fed Fears Mount

The 10- and 30-year U.S. Treasury yields both surged yesterday

Deputy Editor
Sep 7, 2022 at 9:18 AM
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Further Fed fears are keeping Wall Street's enthusiasm in check this morning, with stock futures on pace for quiet losses. Investors continue to monitor the Federal Reserve's interest rate hike campaign after the Wall Street Journal implied that the Federal Reserve could hike rates by another 0.75 percentage point this month. Meanwhile, bond yields are cooling this morning, but the 10-year U.S. Treasury yield yesterday hit its highest level since June, while the 30-year benchmark settled at its highest level in eight years, no doubt spooking traders.

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

  • Options traders should keep an eye on this energy stock.
  • Telecom giant announces its 16th-consecutive dividend hike.
  • Plus, 3 analyst calls to watch.

Futures Chart September 7 2022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 997,095 call contracts traded on Tuesday, and 715,023 put contracts. The single-session equity put/call ratio dipped to 0.72, while the 21-day moving average stayed at 0.67.
  2. Pinterest Inc (NYSE:PINS) is up 4.8% before the market's open, after Wolfe Research issued a bull note. The analyst upgraded the social media name to "outperform," and said that the company should be able to hit its long-term user and monetization goals thanks to guidance from its new CEO. Year-over-year, however, PINS is off by 61%.
  3. Morgan Stanley downgraded AstraZeneca plc (NASDAQ:AZN) to "equal weight" from "overweight," and noting that the pharmaceutical manufacturer's shares have a "more balanced" risk-reward profile. The equity was last seen 2.6% lower ahead of the bell, putting it dangerously close to breeching its year-to-date breakeven level.
  4. According to a bull note from Credit Suisse, the Inflation Reduction Act could help ChargePoint Holdings Inc (NYSE:CHPT) add nearly 50%. The firm initiated coverage on the stock with an "outperform" rating and a $22 price target. CHPT was last seen 3.4% higher premarket, and has already added 7.7% this quarter.
  5. Cleveland Fed President Loretta Mester will speak today. An international trade balance update and the Beige Book are also due out. 

OV Buzz Chart Sept 7

European Investors Await ECB Interest Rate Hike Decision 

Asian markets were mostly lower on Wednesday, after new data revealed China’s exports rose only 7.1% in August, well below estimates of a 12.8% rise and July’s 18% growth. Investors also watched surging stateside Treasury yields ahead of the U.S. Federal Reserve’s Beige Book. Pacing the laggards was South Korea’s Kospi, which fell 1.4%, followed by Hong Kong’s Hang Seng 0.8% loss. Elsewhere, Japan’s Nikkei settled 0.7% lower, while China’s Shanghai Composite closed slightly above breakeven with a 0.09% gain.

Recession fears continue to grip European markets, with stocks across the pond last seen swimming in red ink. The U.S. Fed’s economic assessment is in focus, as is a crucial European Central Bank (ECB) policy meeting that could result in multiple rate hikes to contain surging inflation. At last glance, London’s FTSE 100 is down 0.6%, while the German DAX and France’s CAC 40 are both 0.4% lower.

 

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