The Fed's two-day policy meeting will wrap up today
For what feels like the first time in forever, stock futures are on the rise this morning. Dow Jones Industrial Average (DJI) futures are indicating a triple-digit pop, thanks to upbeat quarterly reports from Microsoft (MSFT) and Boeing (BA). Nasdaq-100 Index (NDX) futures also sport a triple-digit lead, while futures on the S&P 500 Index (SPX) are pointed firmly higher too, as the tech sector signals a rebound.
Nevertheless, volatility could be an issue when the Federal Reserve wraps up its two-day policy meeting later today. Fed Chair Jerome Powell will speak after, with investors eager for clues about future monetary policy.
Continue reading for more on today's market, including:
- Schaeffer's Senior Quantitative Analyst Rocky White unpacks an SPX trendline just breached.
- We put Monday's historic stock market turnaround into perspective.
- Plus, AT&T stock wins big with HBO Max; a chip stock ready to rally; and more on Microsoft's big day.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw nearly 1.2 million call contracts traded on Tuesday, and 730,611 put contracts, the most on record. The single-session equity put/call ratio fell to 0.61, and the 21-day moving average remained at 0.51.
- AT&T Inc. (NYSE:T) stock is 2.2% higher in electronic trading, after the telecommunications giant reported a top-line beat. The company credited HBO Max for the encouraging results. AT&T stock is up 7.6% in 2022 already.
- Texas Instruments Incorporated (NASDAQ:TXN) stock is 4.8% higher before the bell, taking part in the tech and semiconductor sector rally today. Fueling TXN is the chipmaker's fourth-quarter top-line beat, as well as a guidance that exceeded expectations thanks to semiconductor demand. TXN has shed 7.7% in 2022.
- The shares of Microsoft Corporation (NASDAQ:MSFT) are 5.3% higher ahead of the open, with the blue-chips cloud revenue the beat-and-raise. Morgan Stanley upped its price target to $372 from $364 in response, while BMO trimmed theirs to $355 from $360. Microsoft stock has taken a 14% haircut in 2022 already.
- In addition to Powell's remarks, an advance report on trade in goods is slated for release.
European Markets Shrug Off Russia Tensions
Asian markets were mixed on Wednesday, with a key Fed decision regarding interest rates hanging in the balance. Investors were also digesting news that the International Monetary Fund (IMF) lowered its global growth forecast, citing supply chain disruptions, higher inflation, and surging Covid-19 infections. Leading the gainers was China’s Shanghai Composite with a 0.7% pop, followed by Hong Kong’s Hang Seng, with a 0.2% gain. Meanwhile, Japan’s Nikkei and South Korea’s Kospi each shed 0.4%.
European markets are higher, as investors monitor the economic policy decision stateside as well. A batch of corporate earnings helped stocks recover from yesterday’s selloff, though concerns remain over a potential conflict between Russia and Ukraine, after President Joe Biden said he would consider imposing personal sanctions on Russian President Vladimir Putin, should there be an attack. At last check, France’s CAC 40 is 2.5% higher, the German DAX is up 2.4%, and London’s FTSE 100 is eyeing a 1.8% pop.