Yesterday the stock market saw an uptick as traders anticipated new economic data. The Nasdaq Composite increased by 0.75%, reaching a new record close. The Dow Jones rose by 126.60 points or 0.32%, while the S&P 500 grew by 0.48%. This positive movement occurred despite mixed signals from April’s producer price index, which saw a revision in March’s figures to a decline of 0.1%. What to expect today?
Fed Chair Comments Influence Sentiments
Federal Reserve Chair Jerome Powell indicated that interest rate hikes are off the table for now, emphasizing the need for patience among Fed members. His comments come amidst concerns over sticky inflation, highlighted by an unexpected rise in producer prices in April.
The forthcoming U.S. consumer price index (CPI) report is a focal point for investors, set to influence the Fed's policy direction in the near term. Economists predict a 0.4% rise in the CPI for April. With inflation proving tough to control, Powell noted a decrease in confidence regarding inflation reduction.
Stock Futures Reflect Cautious Optimism
Ahead of the CPI release, U.S. stock futures showed minimal changes.
Dow Jones Futures edged up slightly by 0.1%, while Nasdaq 100 futures dipped by the same margin. Investors are balancing optimism with caution, waiting to see if the CPI data aligns with expectations.
Premarket movers:
| Company | Stock Exchange | Stock Code | Change | Reason |
|---|---|---|---|---|
| AMC Entertainment | NYSE | AMC | fell 11% | after the cinema chain disclosed a debt-for-equity swap, issuing over 23 million shares following this week’s hefty gains. |
| Boot Barn | NYSE | BOOT | fell 6.5% | after the footwear retailer forecasted sales trends for the fiscal year ahead that were below expectations amid continuing tepid demand from shoppers. |
| Boeing | NYSE | BA | fell 1.1% | after the U.S. Justice Department stated that the aircraft manufacturer had breached its obligations in a 2021 agreement shielding the planemaker from criminal prosecution over fatal 737 MAX crashes. |
| New York Community Bancorp | NYSE | NYCB | rose 3.9% | after the lender agreed to sell a portfolio of about $5 billion in mortgage warehouse loans to JPMorgan. |
| Walmart | NYSE | WMT | rose 0.1% | after the retail giant announced plans to cut hundreds of jobs at its corporate headquarters and relocate a majority of its U.S. and Canada-based remote workforce to three offices. |
| Tesla | NASDAQ | TSLA | fell 0.2% | after the EV manufacturer faced an 11% week-over-week decline in Chinese sales, with sales dropping to 9,800 units. |
Other key reports due on Wednesday include retail sales and the Empire State manufacturing survey. On the corporate front, disappointing full-year guidance from Boot Barn led to a premarket stock drop of over 5%. Conversely, Nextracker enjoyed a 12% increase following a revenue beat.
Tech and Corporate Highlights
Google's (NASDAQ: GOOGL) annual developer conference showcased significant advancements in AI, with the introduction of the Gemini 1.5 Flash model capable of summarizing and extracting data efficiently. This revelation comes just as OpenAI unveiled its GPT-4o, intensifying competition in the AI sector.
Walmart (NYSE: WMT) is reshuffling its workforce, moving hundreds of corporate roles back to Arkansas. This shift aims to consolidate operations at a new headquarters, enhancing collaboration post-pandemic. A key earnings report from Walmart is expected tomorrow, which could provide further insights into its corporate strategy.
