Investors are losing hope that the Fed can avoid an economic downturn
Stock futures are sliding this morning, as renewed recession fears continue to weigh. A better-than-anticipated ISM services index and a banking sector decline sparked fears of a 2023 downturn, and casted doubts over the Federal Reserve's ability to architect a soft landing for the economy through rate hikes. At last glance, Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) futures are all in the red.
Continue reading for more on today's market, including:
- Acquisition news sink utility stock.
- This oil and gas stock is ready to rally.
- Plus, digesting Campbell Soup's earnings; Pinterest's newest board member; and Airbnb's bear note.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.2 million call contracts and 924,897 put contracts traded on Tuesday. The single-session equity put/call ratio rose to 0.73, while the 21-day moving average stayed at 0.72.
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Campbell Soup Company (NYSE:CPB) stepped into the earnings confessional this morning, where
the food producer reported earnings and revenue that beat analysts' estimates. The company chalked the win up to pricing and supply chain improvements. CPB is up 3.4% in premarket trading, and 28.3% higher in the last 12 months.
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Pinterest Inc (NYSE:PINS) added activist investor Elliott Management's senior portfolio manager Marc Steinberg to its board of directors. Steinberg will become the company's 11th board member, and the company agreed to re-nominate him for a new three-year term next year. Trading 2% higher ahead of the open, PINS is
still down 37.5% year-to-date.
- Morgan Stanley downgraded Airbnb Inc (NASDAQ:ABNB) to "underweight" from "equal-weight," after noting slowing listing growth and weakening demand. Airbnb stock is feeling the weight, too, last seen down 4.4% before the bell, as it looks to add to a 48.5% year-over-year loss.
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Today features productivity and unit labor costs revisions, as well as consumer credit change data.
European Stocks Move Lower Following GDP Reading
Asian markets slumped, as China’s decision to ease up even further on Covid-19 restrictions weighed on tech and casino stocks. Meanwhile, November trade data for China was lower than anticipated. In response, the Shanghai Composite shed 0.4%, the Hong Kong Hang Seng plummeted 3.2%, the South Korean Kospi dropped 0.4%, and the Nikkei in Japan lost 0.7%.
In Europe, global recession fears are sinking markets. Elsewhere, the euro zone gross domestic product (GDP) reading saw a 0.3% jump in the third quarter, and a 2.3% year-over-year rise. In response, the London FTSE 100 was last seen down 0.08%, while the German DAX and French CAC 40 have both shed 0.5%.