Stock Futures Mixed as Investors Unpack Strong Employment Data

A fourth consecutive 0.75 percentage point rate hike is expected today

Digital Content Manager
Nov 2, 2022 at 9:25 AM
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Stock futures are mixed this morning, as the U.S. Federal Reserve prepares to deliver its interest rate decision later today. Traders are bracing for what will likely be a fourth consecutive 0.75 percentage point rate hike, as they also look for signs of the central bank easing off its hawkish stance in December. As a result, futures on the Dow Jones Industrial Average (DJI) are eyeing a 59-point drop, while S&P 500 and Nasdaq-100 Index (NDX) futures are flipping between breakeven.

Wall Street has plenty of jobs data to unpack before Fed Chairman Jerome Powell takes the stage, though. The ADP Employment report for October showed the labor market is strong, with private payrolls rising a better-than expected 239,000, while wages were 7.7% higher.

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

  • Is the stock market out of the woods yet?
  • Unpacking Avis Budget stock's major reversal.
  • Plus, GOOS slashes forecast; Match stock pops on quarterly beat; and Cheesecake Factory's surprise loss.

Future 1102

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.2 million call contracts and 762,412 put contracts traded on Tuesday. The single-session equity put/call ratio rose to 0.63, while the 21-day moving average stayed at 0.68.
  2. Canada Goose Holdings Inc (NYSE:GOOS) is down 9.5% ahead of the open, after the company noted it expects Covid-19 restrictions in China to negatively impact sales. In response, the outerwear name slashed its full-year revenue forecast. Year-to-date, GOOS has shed 55.7%.
  3. Online dating giant Match Group Inc (NASDAQ:MTCH) is surging in premarket trading, last seen up 16% after reporting a third-quarter earnings and revenue beat. The company attributed the strong results to more paid Tinder subscriptions. MTCH is still down 66.8% in 2022, however.
  4. The shares of Cheesecake Factory Inc (NASDAQ:CAKE) are down 4.5% before the bell. The restaurant concern announced a surprise third-quarter loss, as well as a revenue miss. The company said higher utility and building maintenance costs were to blame. 
  5. The rental vacancy rate is due out today. The Federal Open Market Committee (FOMC) will make an announcement this afternoon, and Powell will hold a press conference immediately after. 

OV Buzz Chart Nov 2

European Markets Dip Ahead of U.S. Rate Decision

Hong Kong’s Hang Seng extended yesterday’s impressive rally, adding 2.4% before trading was halted early due to a typhoon warning, specifically Tropical Cyclone Warning Signal No. 8. China’s Shanghai Composite followed behind with a 1.2% win, while the South Korean Kospi rose 0.07%, after data showed South Korea’s consumer price index (CPI) rose 5.7% in October – 0.1% higher than analyst estimates. Meanwhile, today’s only laggard, Japan’s Nikkei, slipped 0.06%, though defense stocks got a boost in both South Korean and Japan after North Korea fired missiles off its eastern coast. 

European markets are slightly lower midday, as investors turn their attention to the conclusion of the Fed’s policy meeting stateside, as well as tomorrow’s interest rate decision from the Bank of England (BoE). London’s FTSE 100 is down 0.1% at last glance, while the French CAC 40 and German DAX dip 0.2% and 0.02%, respectively. 

 

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