This is Highlight Wall Street days November 3 from 2022with everything you need to know about US publicly traded companies!
Main topics of the day
For a well-informed start to the day, read our Good morning ADVFN – Fed raises rates to highest level since 2008, Bank of England rate decision today and more
U.S. stock futures fell on Thursday after the Federal Reserve announced another interest rate hike and signaled there would be no reversal or rate cut anytime soon.
At 9:05 a.m., Dow futures were down 134 points, or -0.42%. S&P 500 and Nasdaq 100 futures fell 0.60% and 0.85%, respectively.
Rising yields put pressure on maturities. The benchmark 10-year bond yield rose 14 basis points to 4.199%. The two-year rate increased by 16 basis points to 4.73%.
Traders had expected a 0.75 percentage point increase in the central bank’s interest rate and initially saw the Fed’s statement as dovish, lifting stocks on Wednesday after the announcement of the decision. Those gains were reversed when Fed Chairman Jerome Powell said it was “too early” to talk about a pause in rate hikes and that the terminal rate was likely to be higher than previously indicated.
“We still have some way to go and the data received since our last meeting suggests that the final level of interest rates will be higher than previously expected,” he said.
The Dow Jones ended trading on Wednesday down 505 points or 1.6%. The S&P 500 fell 2.5%, and the Nasdaq Composite fell 3.4%.
Markets will likely continue to fluctuate until it becomes clear that inflation has cooled and the Fed has stopped raising rates. Any data showing that the US economy is not slowing down while the central bank tightens policy is likely to weigh on stocks.
“In our view, the risk-reward for markets over the next three to six months is unfavorable, and today’s Fed statement supports that view,” UBS chief investment officer Mark Haefele wrote in a note to clients on Wednesday.
Investors on Thursday also awaited October’s non-farm payrolls, due on Friday. Good job numbers and a low unemployment rate, while good for the economy, could signal that the Fed has more work to do.
“You’re getting a good number of jobs, in other words, a good unemployment rate that’s not going up, so the market is in big trouble,” Guy Adami, director of law at Private Advisor Group, said on CNBC’s Fast Money.
Meanwhile, corporate earnings season continued, with Qualcomm, Roku and Fortinetwere falling sharply in advance with disappointing quarterly results and future guidance. THEPeloton shares fell after reporting a bigger-than-expected loss, while Moderna sank on the prospect of reduced sales of its Covid vaccine.
The most important events from Wall Street for today
Under Armor (UAA, U1AI34) – Under Armor jumped 4.2% premarket after the apparel maker reported better-than-expected earnings for the latest quarter, along with revenue roughly in line with Wall Street forecasts. The increase comes despite Under Armor cutting its annual forecast due to the impact of a stronger US dollar and higher costs.
Reservations Holdings (BKNG, BKNG34) – Booking Holdings rose 5.1% before the market after the travel services company reported better-than-expected results in its latest quarter. He also posted an upbeat outlook as travel demand remains strong.
eBay (EBAY, EBAY34) – eBay rose 6.7% in pre-sales after the e-commerce company reported better-than-expected results for the latest quarter, boosted by sales of refurbished products and luxury offerings.
Etsy (ETSY, E2TS34) – Shares of Etsy rose 9.3% premarket after the online craft marketplace reported a better-than-expected quarter, saying its business remained strong in a volatile economic environment.
modern (MRNA, M1RN34) Shares of the drugmaker fell 11.9% before the market after Moderna reported quarterly earnings of $2.53 per share, well below the consensus estimate of $3.29. The company also lowered its annual sales forecast for the Covid-19 vaccine.
Qualcomm (QCOM, QCOM34) – Qualcomm fell 8.3% premarket after giving a worse-than-expected revenue outlook as smartphone shipments fell. The chip maker also reported quarterly revenue and earnings in line with Wall Street forecasts.
By the year (ROKU, R1KU34) – Shares of Roku fell 18.5% in after-hours trading after the streaming video device maker said it expects ad revenue and device sales to decline in the current quarter. The forecast is weighing on the stock, despite Roku reporting higher-than-expected revenue and a higher-than-expected number of active accounts.
Robinhood Markets (bonnet) – Robinhood rose 2.9% in premarket trading after the online stock exchange reported a smaller-than-expected quarterly loss and revenue that beat analysts’ forecasts. Robinhood also lowered its operating expense forecast for the full year.
Restaurant brands (QSR) – Tim Hortons and Popeyes, the parent of Burger King, saw their shares rise 4% in premarket trading after the company posted better-than-expected quarterly results. Same-store sales rose 14%, well above the 8.3% increase expected by analysts polled by FactSet.
Peloton (PTON) – Shares of the fitness equipment maker fell 18.1% in premarket trading after it reported a bigger-than-expected quarterly loss and revenue that fell short of analysts’ forecasts. Peloton also released a weaker-than-expected forecast for the holiday quarter.
Crown Holdings (CCK) – Investor Carl Icahn now owns more than 8% of the beverage can maker, according to the Wall Street Journal, and believes the company should buy back more stock and put non-core units up for sale. Crown Holdings rose 5.5% before the market.