Stock Futures Firmly Lower After Interest Rate Hike

Jobless claims are near pandemic lows, pointing to a tight job market

Digital Content Manager
Nov 3, 2022 at 9:19 AM
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A fourth-straight interest rate hike of 75 basis points and the Federal Reserve's insistence on its hawkish stance have stock futures deep in the red this morning. Traders are also unpacking jobless claims, which totaled 217,000 for last week -- compared to the 220,000 analysts expected. The reading is near pandemic lows, and suggests that the job market is still tight. At last glance, Dow Jones Industrial Average (DJI) futures are down 223 points, while futures on the S&P 500 and Nasdaq-100 Index (NDX) are also substantially lower.

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

Futures 1103

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 Wednesday. The single-session equity put/call ratio rose to 0.81, while the 21-day moving average stayed at 0.68.
  2. Peloton Interactive Inc (NASDAQ:PTON) is plummeting ahead of the open, last seen down 15.6%, after the fitness name announced worse-than-expected fiscal first-quarter earnings and revenue. Plus, the company's second-quarter revenue outlook missed analysts' estimates. Year-over-year, PTON is down 90.3%.
  3. Moderna Inc (NASDAQ:MRNA) is also struggling before the bell, after missing third-quarter top- and bottom-line expectations, and lowering its Covid-19 vaccine sales forecast amid supply constraints. So far in 2022, MRNA has shed 41.4%.
  4. The shares of eBay Inc (NASDAQ:EBAY) are up 6.2% in premarket trading, after the e-commerce concern beat top- and bottom-line estimates for its fourth quarter. The company attributed the strong results to sales of refurbished goods and luxury items. EBAY remains down 42.8% this year, however.
  5. Today also brings the foreign trade deficit, productivity data, and unit labor costs

OV Buzz Nov 3

Asian, European Markets Respond to U.S. Rate Hike

Markets in Asia slipped today in response to the hawkish comments from Fed Chair Powell. Hong Kong’s Hang Seng pulled back from its recent rally, leading the laggards with a 3.1% drop. Elsewhere, Japan’s Nikkei shed 0.06%, the South Korean Kospi dropped 0.2%, and China’s Shanghai Composite took a 0.3% haircut. China’s Caixin Services Purchasing Managers’ Index (PMI) came in at 48.5 for October, which is its second-straight monthly contraction and lowest reading since May.

European markets are down midday as well, as investors brace for the likelihood of a similar rate hike from the Bank of England (BoE) today. The German DAX is down 1.2% at last glance, while the French CAC 40 and London FTSE 100 are 0.9% and 0.8% lower, respectively.

 

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