The S&P 500 hopes for a recovery after digesting Fed announcements… and awaits Apple

DOW JONES futures rose 0.36% to 38,038 and S&P 500 futures rose 0.64% to 5,050. NASDAQ 100 futures rose 0.96% to 17,486.

Yesterday, Wednesday, was a mixed day on Wall Street. The three major stock indexes rose more than 1% to their intraday highs but were significantly lower at the end of the choppy session. The Dow Jones managed to close 0.2% higher, while the S&P 500 and Nasdaq closed about 0.3% lower.

And all this after the Federal Reserve decided to leave interest rates unchanged for the sixth meeting in a row. Rates ranging from 5.25% to 5.50% are at their highest levels in more than two decades, but at least they don’t appear likely to rise further despite inflation’s resistance to falling.

In fact, Fed President Jerome Powell “has been less aggressive than expected,” explains Link Gestión’s Juan J. Fernández-Figares, “going so far as to rule out that the Fed’s next rate change will be bullish and downplaying the threat of the U.S. economy entering into stagflation (high inflation and low growth rates). “However, he reiterated that the FOMC needs more evidence that inflation is approaching its 2% target to begin.” cutting official rates, which it could do if the labor market weakens.”

Powell’s emphasis that the central bank’s next move likely won’t be a rate hike “should reassure financial markets,” said Eric Winograd, director of developed markets economic research at AllianceBernstein. Despite this, it remains unclear when the Fed will actually start cutting rates. “Higher and longer is the Fed’s mantra,” the expert adds. “We’re past high and into long unless something changes dramatically.”

The fixed income sector is always very sensitive to changes in monetary policy. US 10-year yield rose to 4.5975%and the two-year bond offers a yield of 4.9393%.

Regarding the macroeconomic agenda this Thursday, investors learned weekly data on initial unemployment claims, which totaled 208,000 requests, which is lower than the market expected level of 212,000. Labor productivity and unit labor costs for the first quarter are also known: growth was 0.3% and 4.7%, respectively. All of these numbers serve as a prelude to tomorrow’s release of the April jobs report.

On the other hand, the Department of Commerce stated that The trade deficit in March was $69.4 billion.. Durable goods orders for March will be announced in the morning in New York.

Another important direction for the market remains the quarterly earnings season. At the end of today’s regular session, one of the most anticipated accounts will be announced – the Apple account.and Amgen, Coinbase or DraftKings will also be featured.

Early this morning, Moderna published its results, recording smaller-than-expected loss in the first quarterthanks to efforts to cut costs as sales of the Covid vaccine, the only commercially available product, beat estimates.

The pharmaceutical company recorded a loss per share of $3.07, compared with the market’s expected loss of $3.58. Revenue was $167 million versus expectations of $97.5 million.

Peloton shares soared 10% in premarket trading. The company behind the famous stationary bikes announced the resignation of its CEO Barry McCarthy and the layoff of 15% of its staff. because “he simply had no other way to match his expenses with his income.”

McCarthy, a former Spotify and Netflix executive, will serve as Peloton’s strategic adviser through the end of the year, while company President Karen Boone and director Chris Bruzzo will serve as interim CEO. Jay Hoag has been named the new Chairman of the Board of Directors. Peloton is looking for a permanent CEO.

Along with the reorganization of its management, the company also announced a broad restructuring plan that will reduce its global workforce by 15%, or about 400 employees..

Investors are also aware of Qualcomm’s performance, which rose more than 4% before the open. The chip maker reported adjusted earnings of $2.44 per share for the latest quarter, beating analysts’ estimates of $2.32 per share. The top end of Qualcomm’s revenue forecast for the current quarter also exceeds market expectations thanks to strong demand for smartphones that require more advanced chips.

The reception on eBay is much worse: the drop exceeds 4%. The online trading platform particularly disappointed with its revenue guidance for the current quarter. The company forecast revenue of $2.49 billion to $2.54 billion, compared with analysts’ forecast of $2.56 billion. That dwarfed better-than-expected results from the previous quarter.

One of the pre-opening stars is Carvana, which is seeing its price skyrocket by 30%. The company reported revenue of $3.06 billion, well above the consensus estimate of $2.67 billion.

Commodities markets are seeing a recovery in oil prices, rising from seven-week lows, with one eye on the Middle East and another on US inventories. US West Texas futures rose 0.62% to $79.49 a barrel, while European benchmark Brent was at $84.05, up 0.72%.

The euro fell 0.12% against the dollar, leaving the exchange rate at $1.07 per currency.

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