Here is the most important news, trends and analysis that investors need to start their trading day:
1. Stock futures flipped positive and negative, reversing big overnight losses
A trader works, while Federal Reserve Chair Jerome Powell is seen delivering comments on a screen, on the floor of the New York Stock Exchange (NYSE), Jan. 26, 2022.
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Dow futures fell both positive and negative on Thursday after falling more than 500 points overnight as recent market volatility continued. Nasdaq futures also ticked higher after rebounding from steep overnight declines. The Dow Jones Industrial Average on Wednesday closed nearly 130 points, or 0.4%, after Federal Reserve Chairman Jerome Powell left plenty of room to raise interest rates to fight rising inflation. The market expects four rate increases this year, starting in March when bond-buying taping is expected to end. The Dow rose more than 500 points to highs on Wednesday but rolled after the Fed’s post-January meeting update. The S&P 500 fell. The Nasdaq rose slightly but remained in deep correction.
2. The fast food and media revenue season continues before the bell
McDonald’s on Thursday reported fourth-quarter earnings and earnings that fell short of expectations as higher costs weighed on its revenues, which marked the fourth miss in the past eight quarters. . Shares of the company fell more than 2% in premarket trading. Excluding charges associated with the sale of McD Tech Labs to IBM and other items, McDonald’s earned $ 2.23 per share. Net sales rose 13% to $ 6.01 billion.
Comcast reported fourth-quarter earnings on Thursday that exceeded top and bottom line estimates but missed the high-speed internet additions to the customer net. Its shares rose more than 1.5% in the premarket. Comcast, which owns CNBC and NBC as well as cable and broadband operations and a theme park, also announced increases in its dividend and its plan to buy the stock.
3. Tesla sees more supply chain challenges, no new models this year
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Tesla late Wednesday delivered better-than-expected adjusted earnings and earnings in the fourth quarter. However, the electric vehicle manufacturer warns that supply chain disruptions could continue throughout 2022.
- CEO Elon Musk has issued an update on the “product road map”, saying Tesla will not release any new vehicle models this year, confirming that there will be no Cybertruck in 2022.
- Musk also said Tesla is not currently working on a $ 25,000 car. “At some point we will. We have enough on our plate right now,” he added. Tesla shares in the premarket fell 1%.
After Thursday’s closing bell, Dow stocks Apple and Visa led the companies reporting quarterly results.
4. Major economic reports come out as the Fed points to a rate hike coming in March
Bond yields were lower in early Thursday ahead of some important economic reports. The 10-year Treasury yield remained above 1.8% after climbing on Wednesday as traders took Powell’s comments after the meeting to mean more aggressive policy tightening could come first to fight inflation and protect inflation. labor market. At 8:30 am ET, the government is gone with weekly jobless claims, solid product orders in December and its first look at economic growth in the fourth quarter. Economists expect a 5.5% annual GDP growth rate, more than double the numbers last year and the previous quarter.
5. Biden is getting a chance to replace a longtime liberal in the Supreme Court
Supreme Court Justice Stephen Breyer testified before the hearing of the House Judiciary Commercial and Administrative Law Subcommittee at The Administrative Conference of the United States on Capitol Hill in Washington May 20, 2010.
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President Joe Biden and Supreme Court member Stephen Breyer are scheduled to appear together at the White House on Thursday, with the 83-year-old liberal justice set to announce his retirement, a source familiar with the matter confirmed on NBC News. Breyer’s departure to the nation’s highest court gives Biden a chance to fulfill his campaign promise to nominate a Black woman to the bench. Conservatives hold a 6-3 majority in the Supreme Court after the Senate confirmed former President Donald Trump’s three nominees.
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