Stock Futures Lower as Fed Meeting Begins

Wall Street anticipates another interest rate hike

Deputy Editor
May 2, 2023 at 9:14 AM
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Stock futures are lower Tuesday, before the start of the Federal Reserve's two-day May policy meeting, where investors anticipate another 25 basis-point interest rate hike. Futures on the Dow Jones Industrial Average (DJIA) are firmly lower, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures sit more modestly in the red.

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

  • Schaeffer's Senior V.P. of Research Todd Salamone says SPX bulls should strike now.
  • Meme stock seeing pre-earnings options barrage.
  • Plus, Chegg stock plunges; Uber's earnings results; and Lordstown Motors' shareholder woes.

futures Chart May 22023

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.2 million call contracts and 857,741 put contracts exchanged on Monday. The single-session equity put/call ratio fell to 0.70 and the 21-day moving average stayed at 0.77.
  2. Chegg Inc (NYSE:CHGG) is 10.3% lower ahead of the bell, earlier down as much as 42%, after a weaker-than-expected second-quarter revenue forecast, and comments from CEO Dan Rosenweig saying he suspects artificial intelligence (AI) is "having an impact on our new customer growth rate." Plus, Jefferies downgraded CHGG to "hold." The stock is already more than 30% lower in 2023.
  3. Uber Technologies Inc (NYSE:UBER) is 9.4% higher before the the bell, after the ride sharing name posted first-quarter revenue above analysts' estimates. In a prepared statement, Uber CEO Dara Khosrowshahi said the company is using AI to predict "highly accurate" arrival times for its vehicles. Year-to-date, UBER was already up 32.4%.
  4. Looking to extend its record lows, shares of Lordstown Motors Corp (NASDAQ:RIDE) are 7.5% lower premarket after Foxconn -- the company's major shareholder -- alleged Lordstown Motor breached their investment agreement. RIDE was down more than 81% over the last 12 months.
  5. Job openings and factory orders will be released today.

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Euro Zone Inflation Rises in April

Asian markets finished higher across the board on Tuesday. China’s Shanghai Composite remained closed for holiday, while the South Korean Kospi paced the region with a 0.9% gain, after the country’s manufacturing purchasing managers’ index (PMI) for April came in at 48.1, up from March’s 47.6 figure. Japan’s Nikkei added 0.1%, while Hong Kong’s Hang Seng tacked on 0.2%, after Hong Kong recorded 2.7% economic growth in the first quarter according to chief executive John Lee.

European markets, however, are lower midday, despite an uptick in bank stocks. The euro zone’s flash inflation data showed inflation rising 7% at an annual rate in April. The French CAC 40 is down 0.5% at last glance, while London’s FTSE 100 gives back 0.09%, and the German DAX sheds 0.3%.

 

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