Investors are optimistic that inflation has finally peaked
Hopes that inflation has finally reached a peak are sending stock futures above fair value this morning, as the major indexes look to extend yesterday's gains. Dow Jones Industrial Index (DJIA) futures are headed for a 140-point gain, while S&P 500 Index (SPX) and Nasdaq 100 Index (NDX) futures are also looking to open in the black. A boost from the retail sector, after Macy's (M) and Williams-Sonoma (WSM) issued strong earnings reports and guidance, is also injecting some optimism into the market.
Continue reading for more on today's market, including:
- 25 stocks investors should snag ahead of Memorial Day, per Schaeffer's Senior Quantitative Analyst Rocky White.
- What had Wendy's stock soaring yesterday.
- Plus, BABA rises on strong quarterly demand; Macy's issues beat-and-raise; and Nvidia's lowered current-quarter forecast.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.06 million call contracts traded on Wednesday, and 668,807 put contracts. The single-session equity put/call ratio fell to 0.63, and the 21-day moving average stayed at 0.61.
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The shares of Alibaba Group Holding Ltd (NYSE:BABA) are up 5.1% ahead of the bell, following the China-based tech name's earnings and revenue beat for its latest quarter. Alibaba said online demand got a boost amid Covid-related lockdowns in China. The tech stock has lost 31.6% this year, though.
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Macy's Inc (NYSE:M) reported better-than-expected first-quarter earnings and revenue, and lifted its full-year forecast. The retailer cited a higher demand for apparel as customers returned to the office. In response,
Macy's stock is up 13.5% ahead of the bell.
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Chipmaker
Nvidia Corporation (NASDAQ:NVDA) posted a top- and bottom-line beat for its first quarter, but lowered its current-quarter forecast. Down 3.9% ahead of the bell,
Nvidia stock still clings to a 8.1% year-over-year lead but has lost 43.6% in 2022.
- Pending home sales and gross domestic product (GDP) data are due out on Thursday, along with the regularly scheduled initial and continuing jobless claims.
Overseas Markets Keep Close Eye on Central Bank Decisions
Asian markets settled mostly lower on Thursday, after meeting minutes from the U.S. Federal Reserve showed the central bank could introduce multiple 50 basis points interest rate hikes. Meanwhile, the Bank of Korea raised its base rate for a second-straight time by 25 basis points to 1.75%. In turn, Hong Kong’s Hang Seng and Japan’s Nikkei each shed 0.3%, while South Korea’s Kospi was 0.2% lower. Meanwhile, China’s Shanghai Composite added 0.5%.
European markets are higher, on the other hand, brushing off the possibility of stateside economic policy moving into “restrictive” territory. Investors are eyeing today’s conclusion of the World Economic Forum, in which business and political figures were largely focused on the Russia-Ukraine conflict. At last check, the German DAX is 0.8% higher, France’s CAC 40 is up 0.7%, and London’s FTSE 100 slightly above breakeven with a 0.03% gain.