It’s Fed day and stocks are teetering before the central bank says what could signal the beginning of the end of easy money. Here’s what we’re watching ahead of Wednesday’s opening bell.
- Futures linked to the S&P 500 rebounded between small gains and losses, indicating moderate moves at the open. The general market index ended Tuesday down 0.2%. Futures on the Nasdaq-100 rose 0.1% on Wednesday, suggesting gains in tech stocks.
- Copper prices have stabilized after slowing down China’s plans to free up domestic reserves of major industrial metals to curb soaring commodity prices.
What is coming
- The Federal Reserve will release its latest policy statement and economic forecast at 2 p.m. ET. It could include plans to possibly cut back on easy money policies amid signs of accelerating economic growth and inflation.
- Earnings are due by Lennar LEN.B 3.66%
and honest HNST -7.37%
Market movers to watch out for
Oracle ORCL 0.62%
slipped 5.1% before the bell. Last night’s profits were well above expectations, but investors seem uncertain about plans to spend more money to grow the tech company’s cloud business.
- Shares of electric vehicle manufacturer Greenland Technologies GTEC -4.79%
were supercharged, climbing 23% pre-market, after launching an online pre-booking service and saying it planned to start deliveries in August, ahead of schedule.
- Animal drives: Kindred Biosciences KIN -0.43%
jumped 45% before commercialization. Elanco Animal Health ELAN -0.72%
agreed to buy Kindred for around $ 440 million, combining two animal health companies. Elanco added 4%.
- Not just fun and games: Roblox RBLX 0.47%
shares fell 9% after the games platform company said daily active users were down 1% in May from April, although they were up 28% from the last year.
TRCH torchlight energy resources -9.85%
was up 12.4% pre-market. On Tuesday, the oil and gas exploration company lit a fire under its share price by declaring a special dividend on Series A preferred shares, which pushed it up more than 40%.
lazy actions? The furniture maker was down 4.2% pre-market after reporting higher sales, but said it expects higher raw material prices to affect future results.
- Have investors passed the Covid-19? Antibody treatment developed by Regeneron Pharmaceuticals REGN 2.37%
It has been shown to significantly reduce the risk of death in some hospitalized Covid-19 patients. And the FDA cleared an additional batch of Johnson & Johnson JNJ 0.48%
Doses of Covid-19 vaccine from a struggling production plant in Baltimore. The two stocks hardly moved before the commercialization. Novavax has also mainly fallen since its Covid-19 shot proved to be very effective in a test.
H&R Block HRB -1.57%
slipped 2.5%, even after the tax preparer reported higher income and earnings per share for the last quarter and raised its dividend. He also changed his exercise to better align with the overall tax season.
General Motors GM -2.72%
added 2.1% pre-commercialization after announcing it would increase its investments in electric vehicles by 75% until 2025 compared to its pre-pandemic commitment.
DraftKings DKNG 0.80%
recovered 1% before the bell, after closing more than 4% on Tuesday when short seller Hindenburg Research said the gaming technology subsidiary of sportsbook company SBTech operates in countries where gambling is prohibited
- The Stoxx Europe 600 hit its eighth consecutive record on Tuesday, up 0.1%. It was the second longest streak of records since its inception, the longest being a 12-day race that ended on July 17, 1987.
- A group of uranium mining companies saw their stock prices fall on Monday after news that a nuclear power plant in southeast China reported a performance problem. A basket of uranium-related companies followed by Global X Uranium fell 6.5%. They regained some of the ground lost on Tuesday afternoon.
- On that day in 1812, New York State created a new institution called the City Bank of New York, capitalized at $ 2 million, with $ 800,000 already raised. Today it is a global giant called Citigroup.
Card of the day
- Any signal that the Federal Reserve will tighten policy on Wednesday could spill over into emerging markets dependent on the US dollar. The first of these is Turkey.
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