The U.S. labor market still appears to be strong
Following a bitter end to April, stock futures are lower on Wednesday. Investors are keeping their eyes on the Federal Reserve's upcoming interest rate decision, due out this afternoon. In the meantime, they are digesting private payrolls data for April, which showed companies added 192,000 workers, beating economists' expectations of 183,000 additions. This signals underlying strength in the U.S. labor market.
Continue reading for more on today's market, including:
- This might not be the year to sell in May and go away.
- It's Big Tech's time to shine.
- Plus, CVS misses estimates; Amazon's revenue hits record high; and Starbucks' revised guidance.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts and 825,471 put contracts exchanged Tuesday. The single-session equity put/call ratio fell to 0.60, while the 21-day moving average slipped to 0.70.
- Shares of CVS Health Corp (NYSE:CVS) are 13.5% lower before the bell, adding to a 14.2% year-to-date deficit following a worse-than-expected quarterly report. The healthcare giant announced first-quarter earnings of $1.31 per share on revenue of $88.4 billion, and issued a lower-than-expected profit guidance for the year.
- Amazon.com Inc (NASDAQ:AMZN) also announced first-quarter results, with top- and bottom-line figures besting analysts' estimates. The Big Tech giant saw strong growth in its Amazon Workspaces (AWS) unit and advertising demand. As a result, AMZN is up 3.7% ahead of the open and 71.5% in the last 12 months.
- Starbucks Corp (NASDAQ:SBUX) stock is about to extend its 22.8% year-over-year deficit, sporting a 12.9% premarket loss, after a dismal fiscal second-quarter earnings report. The coffee chain's quarterly results and 2024 forecast fell below expectations as same-store sales declined.
- A host of megacap earnings reports, key jobs data, and the Federal Reserve's interest rate decision are due out this week.
Most Overseas Markets on Holiday
Most Asian bourses were closed for the Labor Day holiday. Japan’s Nikkei fell 0.3%, weighed down by a profit miss from Mitsui. Elsewhere of note, exports in South Korea rose 13.8% in April, past expectations of 13.7%.
It’s the same theme in Europe, with the May Day holiday closing most indexes. London’s FTSE 100 is flat at last check, amid data showing housing prices in the U.K. fell for the second-straight month in April. Investors are also unpacking a solid earnings report from clothing company Next, a leading indicator of retail sector health.