tl;dr
Stock index futures were lower Wednesday following disappointing earnings reports postmarket Tuesday and with the Fed decision in view. S&P 500 futures (SPX) -0.4%, Nasdaq 100 futures (US100:IND) -0.7% and Dow futures (INDU) -0.2%. AMD (AMD), Super Micro (SMCI) and Starbucks (SBUX) weighed on future...
Stock index futures were lower Wednesday following disappointing earnings reports postmarket Tuesday and with the Fed decision in view. S&P 500 futures (SPX) -0.4%, Nasdaq 100 futures (US100:IND) -0.7% and Dow futures (INDU) -0.2%. AMD (AMD), Super Micro (SMCI) and Starbucks (SBUX) weighed on futures following earnings reports, while Amazon (AMZN) lent some support. Super Micro Computer (SMCI) was down 9.5% as it missed its quarterly revenue estimates. AMD (AMD) also slipped by 6.5% in premarket trade, after the semiconductor firm reported first-quarter results and guidance that were largely in-line with expectations. The 10-year Treasury yield (US10Y) rose 2 basis points to 4.70%. The 2-year yield (US2Y) was unchanged at 5.04%. The Fed's two-day meeting will conclude today, and the FOMC is expected to announce its policy decision at 2:00 pm ET, with Powell's press conference scheduled for 2:30 pm ET. It is widely accepted that rates will be held steady, but investors will be eagerly waiting for the press conference to look for hints on the Fed's path in the year. "In terms of the Fed’s decision, it’s widely expected that they’ll leave rates unchanged today. But given the recent inflation data, our US economists think there’ll be a more hawkish-leaning message, echoing chair Powell’s view that it will take longer to gain confidence about disinflation," said Deutsche Bank's Jim Reid. "The key market-moving moment will likely be when Fed Chair Powell is probed on how the economy and inflation are evolving relative to the FOMC’s expectations of three cuts," said Steve Englander of Standard Chartered. Englander expects a formulation that says the FOMC still broadly sees policy rate cuts as the base case for its next move, but there is no hurry on such cuts. "The assumption is that chair Powell will pour cold water on hopes of near-term policy easing and concede that inflation is above target and sticky while growth is resilient," said Kit Juckes, FX strategist, Societe Generale. "Chair Powell is unlikely to slam the door definitively on a June rate cut at his press conference today, but he will leave markets in no doubt that the data over the next six weeks would have to be extraordinary in order to push the FOMC into action," said Pantheon Macroeconomics. The economic calendar is on the heavier side today, with the April ADP jobs report due before the bell. Economists expected a fall to 179K in private payrolls. The April PMI manufacturing index is expected a little after the market opens, and is forecasted to drop to 49.9. ISM manufacturing PMI is also due during market hours. Pantheon Macro also advised traders to ignore the ADP job report, and expect a soft ISM. The job openings and labor turnover survey, or JOLTS, will hit during market open, and openings are expected to fall to 8.680M. "The broader trend remains one of falling job openings, consistent with a loosening labor market," added Pantheon Macro.
More about Advanced Micro Devices Inc
Advanced Micro Devices Inc Summary Company: Advanced Micro Devices, Inc. (AMD)
Description: American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. AMD's main products include microprocessors, motherboard chipsets, embedded processors, and graphics processors for servers, workstations, personal computers, and embedded system applications.
Industry: Manufacturing, Semiconductors & Related Devices
Market Cap: $255,964,266,000
Stock Price: $304.58
Dividend Yield: None
P/E Ratio: 0.52
EPS: $14.11
Beta: 0.049
Revenue: $22,799,990,000
Net Income: $191.44
Operating Margin: 48.69%
Return on Equity: 2.2%
More about Super Micro Computer Inc
Company: Super Micro Computer Inc
Business Focus: Super Micro Computer, Inc. develops and manufactures high-performance server and storage solutions based on an open, modular architecture. The company is headquartered in San Jose, California.
Sector: Technology
Industry: Electronic Computers
Market Cap: 50,283,082,000
Stock Price: $67.15
Dividend Yield: None
P/E Ratio: 12.79
52-Week High: $218.52
52-Week Low: $0.0888
Volume: 11,819,523,000
Average Volume: 974.35
Beta (3Y Monthly): 3.288
EPS: 2
More about Starbucks Corporation
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
Sector: TRADE & SERVICES
Industry: RETAIL-EATING & DRINKING PLACES
Market Cap: 100.19B
PE Ratio: 23.66
EPS: 2.20
Dividend Yield: 3.74%
52-Week High: 32.07
52-Week Low: 0.117
Volume: 36,687,000
Revenue: 36.69B
Gross Margin: 102.95
Net Profit Margin: 0.216
Operating Margin: 0.082
More about Amazon.com Inc
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Amazon.com Inc.
Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as one of the most influential economic and cultural forces in the world, as well as the world's most valuable brand.
Industry: TRADE & SERVICES
Sector: RETAIL-CATALOG & MAIL-ORDER HOUSES
Market Cap: 1,820,525,068,000
PE Ratio: 60.34
Dividend Yield: None
Beta: 2.9
52-Week High: 3,234.00
52-Week Low: 1,626.03
RSI (14): 55.78
Volatility: 0.0529
Volume: 574,784,995,000
Current Price: 2,12.71
50-Day Moving Average: 2,03.66
200-Day Moving Average: 2,50.69
Price/Earnings to Growth Ratio: 0.139
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