Investors are poring over earnings and Fed comments
Stock futures are higher Wednesday morning, as investors parse through yet another batch of quarterly reports and digest Federal Reserve Chairman Jerome Powell's latest hawkish comments. The Dow Jones Industrial Average (DJI) yesterday snapped a six-session skid, and now it appears to be the S&P 500 Index's (SPX) turn to break free from its three-day losing streak. Meanwhile, Nasdaq-100 Index (NDX) futures are modestly above fair-market value.
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5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.1 million call contracts and 820,649 put contracts exchanged Tuesday. The single-session equity put/call ratio jumped to 0.73, while the 21-day moving average stayed at 0.71.
- Shares of United Airlines Holdings Inc (NASDAQ:UAL) sport a 6.5% premarket lead, after the company reported a first-quarter loss of 15 cents per share -- much better than the estimates of 57 cents -- on revenue of $12.5 billion. In addition, the airline name lifted its second-quarter earnings forecast. UAL sports a slim 0.6% gain for 2024.
- Up 30% over the last six months, Alcoa Corp (NYSE:AA) is on track to rise even more after it was last seen up 2.8% before the bell. Alcoa stock is rising alongside other metal producers, following U.S. President Joe Biden's calls for tariffs to triple on imported Chinese steel and aluminum.
- Jefferies downgraded Urban Outfitters, Inc. (NASDAQ:URBN) to "underperform" from "hold" and lowered its price target to $32 from $42. In its bear note, the analyst said the apparel retailer is facing a significant slowdown in foot traffic. In response, URBN is down 4.5% ahead of the open, pulling back to its year-to-date breakeven mark.
- The Fed's Beige Book and speeches from central bank presidents are coming this week.
European Investors Take In Inflation Data
Asian markets were mostly lower today, as investors keep a close eye on U.S. Fed inflation comments. Japan’s Nikkei shed 1.3% and breached 38,000, after business optimism fell for the month of April and exports in the region rose 7.3% year-over-year in March. South Korea’s Kospi gave back 1%, while Hong Kong’s Hang Seng finished flat. China’s Shanghai Composite added 2.1%, after the Securities Regulatory Commission offered clarity on delisting rules.
In Europe, stocks are inching higher as investors weigh inflation data with retail earnings. London’s FTSE 100 is up 0.7%, after inflation in the U.K. increased to 3.2% in March, less than expected and putting the onus on the Bank of England (BoE) going forward. The French CAC 40 is up 1.3% thanks to a post-earnings pop from luxury retailer LVMH, while Adidas’ beat-and-raise is driving the German DAX to a 0.5% lead, at last check.