US stock futures fell mainly as investors waited for a day filled with earnings reports and a Federal Reserve meeting.
Futures linked to the broad S&P 500 index fell 0.8% and those of the Dow Jones Industrial Average fell 0.7%. Futures contracts linked to the high-tech Nasdaq-100 fell 0.1%.
Investors were gearing up for one of the busiest days of the quarterly earnings season, with Boeing ready to report ahead of the opening bell. Earnings from Apple tech giants,
Facebook and Tesla are launched shortly after the market closes. Investors are eager to see how these companies fared during a quarter marked by continued blockages and requests to stay home.
“The barrier for technology stocks to expire is quite high because we were still in a blockade and yet they seem to be doing well in relation to the highest expectations,” said Hani Redha, portfolio manager at PineBridge Investments.
Microsoft’s shares gained 3.5% before the opening bell, after the company announced record quarterly sales on Tuesday. Its stock closed higher again on Tuesday.
The Walgreens Boots Alliance rose 5.7% in the pre-market after the drugstore chain named Starbucks chief operating officer, Rosalind Brewer, as its next chief executive.
The gains have pleased the market so far and investors continue to bet on the Federal Reserve’s economic support and on a possible stimulus plan by the Biden government. On Tuesday, the S&P 500 reached a new intraday high before falling in the closing minutes of the negotiations.
“The Fed and the new Biden stimulus plans – everything is a very positive scenario for the stock market,” said Brian Walsh, Jr., portfolio manager at Walsh & Nicholson Financial Group. “They are saying that we are not going to let the markets fail now and, with bond yields as low as they are, there is nowhere else to be.”
The Fed is expected to leave monetary policy unchanged and President Jerome Powell is likely to underline the bank’s commitment to supporting the economy with low interest rates and bond purchases in the foreseeable future. Powell is likely to face questions about the health of the economy and how long the Fed’s stimulus measures will remain in place.
GameStop rose more than 90% in the pre-market, as day traders, driven by social media, seemed ready to enter the retailer for another day. The shares rose 113% on Tuesday amid a battle between individual investors and hedge funds that are selling the shares. After markets closed on Tuesday, Tesla Chief Executive Elon Musk tweeted “Gamestonk !!” in an apparent reference to frantic trade.
Durable goods order data will be released at 8:30 am (Eastern Time). The numbers are expected to show an eighth consecutive monthly increase in orders, highlighting manufacturing resilience during the pandemic.
In the commodity markets, Brent oil, an international benchmark for oil, rose 0.7% to $ 56.01 a barrel. Gold prices fell 0.4% to $ 1,844.30 a troy ounce.
Abroad, the pan-continental Stoxx Europe 600 fell 0.5%, while in Asia, stock indices were mixed. Japan’s Nikkei 225 rose 0.3%, Hong Kong’s Hang Seng fell 0.3%, while in mainland China, Shanghai Composite rose 0.1%.
On Tuesday, the S&P 500 reached a new intraday high before falling in the closing minutes of the negotiations.
Photograph:
Nicole Pereira / Associated Press
Write to Will Horner at [email protected]
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