The Federal Reserve has so far not budged on it hawkish policy
Stock futures are pointed lower this morning, following last week's blowout gains. Dow Jones Industrial Average (DJI) futures are down 49 points, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also pointed lower. Though inflation data encouraged investors over the past few days, the U.S. Federal Reserve still appears to be committed to its hawkish policy. Wall Street is unpacking the 2022 midterm election results as well, with Democrats maintaining Senate control.
Continue reading for more on today's market, including:
- Sectors and stocks to watch as 2022 closes out.
- Checking in with Zoom stock ahead of earnings.
- Plus, Oatly's quarterly miss; Amazon.com stock sliding; and chip stock upgraded.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.4 million call contracts and 1.3 million put contracts traded on Friday. The single-session equity put/call ratio fell to 0.55, while the 21-day moving average stayed at 0.69.
- Oatly Group (NASDAQ: OTLY) reported a third-quarter earnings and revenue miss earlier, and slashed its 2022 outlook. The plant-based milk company noted Covid-19 restrictions in China, a strong U.S. dollar, and production issues contributed to the disappointing results. OTLY is down 12.7% ahead of the bell, and 78.3% year-over-year.
- Amazon.com, Inc. (NASDAQ: AMZN) has fallen out of Bank of America's graces -- the brokerage firm removed the e-commerce giant from its “US 1” list, but kept its "buy" rating. In turn, AMZN is down 1.2% in premarket trading, adding to a 30.5% year-to-date deficit.
- Baird and UBS both upgraded Advanced Micro Devices, Inc. (NASDAQ: AMD) to "buy" this morning, noting increased demand for its Genoa chip and upbeat cyclical trends for the industry. AMD is up 3.5% ahead of the open, but has shed 50.4% over the past 12 months.
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The New York Federal Reserve's one- and five-year inflation expectations are due out today.
Asian Markets Slide Ahead of U.S.-China Meeting
Markets in Asia finished mostly lower today, with the exception of Hong Kong’s Hang Seng, which added 1.7% after a boost from property stocks. Japan’s Nikkei shed 1.1%, China’s Shanghai Composite dropped 0.1%, and the South Korean Kospi closed 0.3% lower. Investors are contemplating the region’s reopening measures and eyeing today’s meeting between U.S. President Joe Biden and Chinese President Xi Jinping in Bali.
European markets are cautiously higher at midday. London’s FTSE 100 is up 0.5% at last check, while the German DAX and French AC 40 rise 0.4% and 0.6%, respectively. Elsewhere, euro zone industrial output for September topped expectations, coming in at 0.9% and ahead of the 0.3% estimates.