U.S. Treasury yields climbed before today's Fed testimony
Stocks futures are looking to extend yesterday's rout, after Federal Reserve Chairman Jerome Powell foreshadowed more interest rate hikes during his testimony before the House Financial Services Committee. Powell said there is still "a long way to go" to get inflation under 2%, and noted the labor market remains tight. U.S. Treasury yields were on the rise before those remarks, while Dow Jones Industrial Average (DJIA), Nasdaq-100 Index (NDX), and S&P 500 Index (SPX) futures were all firmly lower at last check.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts and 954,439 million put contacts exchanged on Tuesday. The single-session equity put/call ratio rose to 0.50 and the 21-day moving average fell to 0.67.
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Barclays downgraded
electric vehicle (EV) giant Tesla Inc (NASDAQ:TSLA) to "equal weight" from "overweight," indicating the stock may take a breather after its recent rally. TSLA is still up 0.5% in premarket trading, and boasts a 122.8% lead in 2023.
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FedEx Corp (NYSE:FDX) reported a fiscal fourth-quarter
earnings beat yesterday, though revenue missed estimates. The delivery concern also announced CEO Mike Lenz will retire in late July and issued a lackluster revenue outlook. Last seen down 2.6% ahead of the bell, FDX is still up 33.7% this year.
- Largest corporate buyer of Bitcoin (BTC) MicroStrategy Inc (NASDAQ: MSTR) is up 3% before the bell, amid the cryptocurrency enjoys a rally. Year-to-date, the shares have added over 121%.
- Check out some of the economic indicators that are on tap this week.
European Markets Slip on Red-Hot U.K. Inflation Data
Asian markets finished mostly lower, with the exception of Japan’s Nikkei, which nabbed a 0.6% win. Hong Kong’s Hang Seng dropped 2% as tech stocks weighed, while China’s Shanghai Composite followed behind with a 1.3% loss, and the South Korean Kospi fell 0.9%. On the data front, South Korea’s producer price index (PPI) rose 0.6% on an annual basis in May, while Japan’s manufacturing index rose to +8.
European markets are dropping midday as well, after U.K inflation came in at a hotter-than-expected 8.7% in May. London’s FTSE 100 and the German DAX are both down 0.3%, while the French CAC 40 sheds 0.4%.