US Stocks Seen Lower Ahead of Fed Chair Powell Q&A, Earnings from Disney, Uber, and More
By U.S. stocks are seen opening slightly lower on Wednesday as investors wait to hear from Federal Reserve Chair Jerome Powell and anticipate more corporate earnings, including from Walt Disney (NYSE:DIS).[0] S&P 500 futures were trading 0.3% lower at 07:00 ET (12:00 GMT).[1]
The main U.S. averages closed with strong gains Tuesday after Fed Chair Jerome Powell failed to deliver a hawkish message in the wake of Friday’s strong jobs report, instead acknowledging that a “disinflation” process has begun.[0] Powell is participating in a question and answer session at the Economic Club of Washington, D.C., and his answers will be closely watched for clues about where the Fed believes interest rates should go next.[2]
Meanwhile, investors will be paying close attention to the United States Consumer Credit report on February 7, U.S. Initial Jobless Claims on February 9, and the University of Michigan Preliminary Consumer Sentiment Index on February 10.[3]
Notable companies reporting earnings this week include The Walt Disney Co. (DIS) and Uber (UBER).[4] On Thursday and Friday, other firms that will report earnings are PepsiCo (PEP), AbbVie (ABBV), and PayPal Holdings (NASDAQ:PYPL).[3]
Shares of PayPal (PYPL) dropped 3.6% after Raymond James downgraded the stock to market perform from outperform, and lowered its price target to 133 from 136.[5] After announcing an all-stock deal to purchase Newcrest Mining (NCMGY), shares of Gold miner Newmont (NEM) dropped 4.8 percent.[6]
In pre-market trading, Tyson Foods (TSN) sank 5% after reporting lower-than-expected fiscal Q1 2023 earnings and sales.[6] Meanwhile, Skyworks Solutions (SWKS) is up more than +8% to lead gainers in the S&P 500 after reporting Q1 adjusted operating income of $491.3 million, above the consensus of $487.9 million.[7]
Oil prices ticked up, with West Texas Intermediate (WTI) crude up 0.7% to $73.93 per barrel, while the 10-year U.S. treasury yield rose 10 basis points to 3.64%.[8] Pre-market trading saw a surge of over +25% in Catalent's (CTLT) stock following a Bloomberg report that Danaher is reportedly interested in acquiring the firm.[5]
0. “Dow futures down 90 pts; Disney heads earnings slate” Yahoo Finance, 8 Feb. 2023, https://finance.yahoo.com/news/dow-futures-down-90-pts-070111015.html
1. “U.S. stocks open lower as investors await Powell remarks” MarketWatch, 7 Feb. 2023, https://www.marketwatch.com/story/u-s-stocks-open-lower-as-investors-await-powell-remarks-01675780401
2. “Stock market news today: Yields jump ahead of speech from Fed's Powell” Markets Insider, 6 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-dow-sp500-bond-yields-jerome-powell-2023-2
3. “Stock Market News Today: Indices Begin Week on a Low Note” TipRanks, 6 Feb. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-down-on-solid-jobs-report-and-fed-speech-ahead
4. “Stock Market News Today: Futures Slide as Markets Reassess Powell's Words” msnNOW, 8 Feb. 2023, https://www.msn.com/en-us/money/markets/stock-market-news-today-futures-slide-as-markets-reassess-powells-words/ar-AA17f2U1
5. “Markets Today: Stocks Fall on a Hawkish Fed Outlook” Barchart, 6 Feb. 2023, https://www.barchart.com/story/news/13940556/markets-today-stocks-fall-on-a-hawkish-fed-outlook
6. “Stock Market On The Defensive Ahead Of Powell's Comments; C3.ai Up 150% | Investor's Business Daily” Investor's Business Daily, 6 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/stock-market-catches-it-breath-after-recent-gains-onsemi-shows-strength/
7. “Stocks Mixed as Markets Brace for Fed Chair Powell's Comments” Barchart, 7 Feb. 2023, https://www.barchart.com/story/news/13980929/stocks-mixed-as-markets-brace-for-fed-chair-powells-comments
8. “Stock market news live updates: Stocks start week lower as investors ponder Fed's rate path” Yahoo News, 6 Feb. 2023, https://news.yahoo.com/stock-market-news-live-updates-february-6-2023-111713832.html
