After ending yesterday’s choppy trading day modestly higher, stocks may move back to the downside in early trading on Wednesday. The major index futures are currently pointing to a slightly lower open for the markets, with the S&P 500 futures down by 0.2 percent.
Traders may look to cash in on recent strength in the markets ahead of the release of quarterly results from AI darling Nvidia (NVDA).
Nvidia is scheduled to release its fiscal first quarter results after the close of today’s trading, with analysts expecting the company to report substantial earnings and revenue growth.
Nonetheless, traders may be reluctant to make significant moves ahead of the release of the minutes of the Federal Reserve’s latest monetary policy meeting this afternoon.
The minutes could have an impact on the outlook for interest rates following recent comments from some Fed officials suggesting rates may need to remain higher for longer than anticipated.
While the likelihood rates will be lower by September remains high, the chances have fallen to 67.0 percent from close to 90 percent last week, according to CME Group’s FedWatch Tool.
Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of April. Existing home sales are expected to rise to an annual rate of 4.21 million in April after tumbling to a rate of 4.19 million in March.
Among individual stocks, shares of Target (TGT) are moving sharply lower in pre-market trading after the retail giant reported first quarter earnings that missed analyst estimates.
Telehealth company Hims & Hers Health (HIMS) is also seeing significant pre-market weakness after Citi downgraded its rating on the company’s stock to Neutral from Buy.
On the other hand, shares of Analog Devices (ADI) are likely to see initial strength after the semiconductor company reported fiscal second quarter results that beat expectations.
E-commerce company Shopify (SHOP) may also move to the upside after Goldman Sachs upgraded its rating on the company’s stock to Buy from Neutral.
Following the mixed performance seen in Monday’s session, stocks showed a lack of direction throughout much of the trading day on Tuesday. Despite the choppy trading on the day, the S&P 500 and the Nasdaq reached new record closing highs.
The major averages spent the day bouncing back and forth across the unchanged but moved to the upside going into the close. The S&P 500 climbed 13.28 points or 0.3 percent to 5,321.41, the Nasdaq rose 37.75 points or 0.2 percent to 16,832.62 and the Dow edged up 66.22 points or 0.2 percent to 39,872.99.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan’s Nikkei 225 Index slid by 0.9 percent, while Hong Kong’s Hang Seng Index edged down by 0.1 percent.
The major European markets have also moved to the downside on the day. While the German DAX Index has dipped by 0.3 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both down by 0.7 percent.
In commodities trading, crude oil futures are slumping $0.74 to $77.92 a barrel after sliding $0.64 to $78.66 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,416.70, down $9.20 compared to the previous session’s close of $2,425.90. On Tuesday, gold fell $12.60.
On the currency front, the U.S. dollar is trading at 156.57 yen compared to the 156.17 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0831 compared to yesterday’s $1.0854.
Business News
U.S. Stocks May Give Back Ground In Early Trading
2024-05-22 12:47:57
