US index futures are higher in pre-market trading on Wednesday,
the most anticipated day of the week, when the Federal Reserve will
release its monetary policy decision.
At 7:19 AM, Dow Jones futures (DOWI:DJI) rose by 79 points, or
0.23%. S&P 500 futures also increased by 0.23%, and Nasdaq-100
futures were up by 0.21%. The yield on 10-year Treasury bonds stood
at 4.347%.
In the commodities market, West Texas Intermediate crude oil for
October fell 0.66% to $90.60 per barrel. Brent oil for
November fell 0.63% to US$93.78 per barrel. Iron ore with a
concentration of 62% rose 0.46%, quoted at US$119.53 per ton, after
a sequence of declines, given doubts about demand in China.
At 07:00, the MBA mortgage index was released, indicating that
mortgage rates have risen in the last week. Refinancing
applications increased 13%, although 29% below the previous
year. The average interest rate for 30-year fixed mortgages
with balances up to $726,200 rose from 7.27% to 7.31%. Points
remained at 0.72, including the origination fee, for loans with a
20% down payment. The demand for refinancing may be linked to
concerns about future increases. Requests for purchasing a
home grew 2%. The average loan amount on a purchase order was
$416,800, the highest level in six weeks.
In the remainder of Wednesday’s U.S. economic agenda, investors
await the 10:30 AM release of the weekly oil inventory by the
Department of Energy, with a consensus expectation of a decline of
2.67 million.
Jerome Powell, president of the Fed, will comment on the
decision at 2:30 PM. Bank of America anticipates a balanced
message, similar to the statements in Jackson Hole, reflecting that
the outlook has remained consistent since August.
The global forecast is that the Federal Reserve will maintain
the interest rate between 5.25% and 5.50% at today’s
meeting. Although inflation is above the 2% target, the recent
weakening of the labor market may reduce inflationary concerns in
the medium term. In the last 12 meetings, Fed has raised rates
11 times. With this pause expected by the market, the Fed can
observe the impact of its previous decisions. Future interest
rate increases will be clarified in the statement.
Recently, ABN-Amro and Santander projected that Fed will
maintain the rate until March 2024. They predict that, with a
slowdown in employment and a drop in inflation, there could be a
reduction in interest rates in early 2024.
In Europe, investors analyze data on British inflation and
producer prices in Germany, which were below expectations, on the
eve of the Bank of England (BoE) interest rate decision.
In Asia, markets behaved differently, awaiting the Fed’s
resolution and reflecting the choice of the PBoC, China’s central
bank, to maintain the five-year prime rate at 4.20% per year and
the annual rate at 3.45%. The stability of interest rates in
China can have a double interpretation: supporting a fragile
economy and supporting the yuan, which has been losing value in
relation to the dollar.
In Japan, on the eve of the inflation announcement, a trade
deficit of 6.3 billion dollars was recorded in the previous
month. Exports fell 0.80% in August, and imports declined
17.80%, both numbers lower than expected. The Japanese trade
challenge highlights the crisis in global demand, most felt in
advanced countries, the main consumers of high-quality
products.
By Tuesday’s close, U.S. stocks were down, with nearly every
major segment of the S&P 500 declining. Dow Jones fell 106.57
points or 0.31% to 34,517.73 points. S&P 500 fell 9.58 points
or 0.22% to 4,443.95. Nasdaq fell 32.05 points or 0.23% to
13,678.19. Meanwhile, the price of oil continued to climb due
to production cuts by Russia and OPEC+, with Brent approaching
US$95 per barrel. This influenced a rise in inflation
forecasts, sending Treasury yields to their highest point in
several months. In Europe, the CPI index, which measures
consumer inflation, presented a value slightly below expectations
after the correction of the August data.
On Wednesday’s corporate earnings front, investors will be
watching reports from General Mills (NYSE:GIS), FedEx (NYSE:FDX)
and KB Home (NYSE:KBH).
Wall Street Corporate Highlights for Today
Apple (NASDAQ:AAPL) – Apple Store employee
unions in France called a strike during the launch of the iPhone
15, demanding a 7% salary increase to compensate for
inflation. Apple France proposed a 4.5%
increase. Protests are expected in Paris.
Amazon (NASDAQ:AMZN) – Amazon plans to
hire 250,000 seasonal workers in the U.S. for Christmas, a 67%
increase from previous years, due to the expansion of next-day
delivery. Other U.S. retailers expect to hire less compared to
previous years, anticipating lower consumer demand in 2023.
Additionally, Amazon’s hardware division, Lab126, faces low morale
following layoffs and financial crisis. Former employees
describe uncertain projects and concerns about the future of
devices with Alexa built-in. The company plans to launch new
devices and aims for greater adoption of Alexa, while facing
competition in AI.
Microsoft (NASDAQ:MSFT) – British minister
Kemi Badenoch disagreed with Microsoft president Brad Smith over
the Competition and Markets Authority’s blocking of the purchase of
Activision Blizzard (NASDAQ:ATVI). In response, Activision
will attempt to sell its streaming rights to gain approval.
Meta Platforms (NASDAQ:META) – Britain asked
Meta to only implement end-to-end encryption on Instagram and
Messenger with safeguards to protect children from
abuse. While Meta highlights the benefits of encryption, the
UK emphasizes child safety. In other news, the Chan Zuckerberg
Initiative, founded by Mark Zuckerberg and Priscilla Chan, will
develop an AI system for life sciences research. This system
will use open AI models to advance cell and disease
studies. Meta is also introducing a payment feature on
WhatsApp in India, allowing direct purchases via chat. After
launches in Brazil and Singapore, this expansion targets the Indian
market with 400 million WhatsApp users. Meta seeks to monetize
the popular app by charging companies for features and ads.
Pinterest (NYSE:PINS) – On Tuesday,
Pinterest shares rose 3% after executives predicted accelerated
revenue growth. To drive growth, new ad tools were launched,
integrating with Salesforce (NYSE:CRM)
and Adobe (NASDAQ:ADBE). Scott
Schenkel, formerly of eBay (NASDAQ:EBAY), was named to the
company’s board. Pinterest shares are up 0.3% in Wednesday
premarket trading.
Alphabet (NASDAQ:GOOGL) – Google has
appealed to the Court of Justice of the European Union seeking to
overturn a $2.6 billion EU antitrust fine. The company argues
that its practices were not anti-competitive and that different
treatment is not abusive. The decision is
pending. Furthermore,
after Apple (NASDAQ:AAPL) replaced
Google Maps with its own app, Google recovered 40% of its previous
mobile traffic, according to executive Michael Roszak in an
antitrust trial. The case argues that Google illegally
maintained a monopoly on online search by favoring its search
engine across devices and browsers, including paying Apple to be
the default on Safari.
Intel (NASDAQ:INTC) – Intel’s new “Meteor
Lake” chip will allow to run AI chatbots on laptops without relying
on data centers. Shown at a conference, it will enable the use
of technologies such as ChatGPT while keeping confidential data on
the device. The vision is to promote accessible and private
AI.
Oracle (NYSE:ORCL) – Oracle announced on
Tuesday that it will integrate chips from Ampere Computing into its
cloud service. Ampere, created by
former Intel leaders (NASDAQ:INTC),
focuses on efficient chips and is backed by Oracle. Recently,
Google Cloud also adopted Ampere chips. Additionally, Oracle
is prepared to support Canadian banks in open banking, according to
Sonny Singh, VP of Oracle Financial Services. Not yet
implemented in Canada, open banking facilitates secure transfers of
financial data. Oracle already serves Canadian banks with
cloud solutions.
Arm Holdings (NASDAQ:ARM) – Shares of Arm
Holdings fell 4.9% on Tuesday, marking its third drop in the first
four sessions following its IPO. The stock closed at $55.17,
down from a high of $69. The stocks are down -1.6% in Wednesday’s
pre-market trading.
Instacart (NASDAQ:CART) – In its Nasdaq
debut, Instacart shares rose 12% after being priced at the top of
the $28 to $30 range, raising $660 million. Apoorva Mehta,
co-founder of Instacart, accumulates $1.1 billion after the
company’s IPO. Mehta, after 11 years, handed over the role of
CEO of Instacart to Fidji Simo. The company, which had a peak
valuation of US$39 billion, debuted on the stock market valued at
US$9.9 billion. Mehta now leads Cloud Health Systems, which
focuses on chronic disease care. CART shares are down 4.0% in
Wednesday pre-market trading.
Klaviyo – Klaviyo, a digital marketing
platform, priced its IPO at $30 per share, exceeding
expectations. Founded in 2012 and based in Boston, Klaviyo
helps online businesses optimize customer engagement. The
company has more than 130,000 customers, partnerships with
e-commerce companies such
as Shopify (NYSE:SHOP), and will be
listed on the New York Stock Exchange as “KVYO”. Its IPO
follows solid financial performance, including a path to
profitability. Klaviyo faces competition from big players, but
its close relationship with Shopify stands out as a relevant factor
in its success.
Walt Disney (NYSE:DIS) – Walt Disney
announced it will double spending on its parks business to $60
billion over the next 10 years. Revealed at a meeting in
Orlando, the parks have been a stable source of profit, offsetting
losses from Disney+ streaming.
Warner Bros. Discovery (NASDAQ:WBD) –
Warner Bros. Discovery will launch “Bleacher Report Sports
Add-On” on its Max streaming service for an additional $9.99
monthly starting October 5th. The service includes US
baseball, hockey, basketball and football. Free until February
29th, the service aims to strengthen Max platform and compete in
the streaming market.
Starbucks (NASDAQ:SBUX) – Long waits drive
customers away from Starbucks, with more than a third waiting more
than five minutes. The vast variety of drink combinations
overwhelms workers. The company, led by Howard Schultz and now
Laxman Narasimhan, seeks innovations to improve efficiency and
speed. They emphasize keeping the experience cozy, although
modernization and a focus on quick sales challenge that view.
Target (NYSE:TGT) – Target plans to hire
100,000 employees for the holiday season and will offer discounts
starting in October. Forecasts point to lower sales growth due
to high prices.
Dollar General (NYSE:DG) – JPMorgan
downgraded Dollar General from “Neutral” to “Underweight,” lowering
its price target from $132 to $116. This decision came following
statements from CFO Kelly Dilts in a event in London promoted by
the bank. Now, JPMorgan anticipates steady growth in the
store’s sales, given that Dollar General’s core clientele, mostly
low-income, faces recession-like economic conditions. Dollar
GEneral shares are down -2.3% in Wednesday pre-market trading.
nCino (NASDAQ:NCNO) – nCino shares are
down -4.8% in Wednesday’s pre-market trading at $31.50 after Morgan
Stanley cut the technology company’s rating from “Equal Weight” to
“Underweight”. The target price remained at US$24.
Steelcase (NYSE:SCS) – Steelcase Inc. saw
its shares rise 3.1% in premarket trading Wednesday after
forecasting “significantly improved” profit for the third quarter
as more workers return to the office. In the second quarter,
Steelcase reported a profit of $27.5 million (23 cents per share),
compared to $19.6 million (17 cents per share) a year
earlier. Revenues decreased to $854.6 million from $863.3
million in the same period last year. Factoring in
adjustments, the company had a profit of 31 cents per
share. FactSet analysts had forecast adjusted earnings of 20
cents per share and sales of $829 million.
FedEx (NYSE:FDX) – FedEx has seen its
shares rise 75% since implementing a $6 billion cost reduction
plan. While UPS (NYSE:UPS) faced
labor challenges and agreed to a costly deal, FedEx is preparing to
report positive results despite lower sales expectations.
Ford Motor (NYSE:F) – Ford reached an
agreement with Unifor, avoiding a walkout in Canada, as the UAW
union in the US prepared to expand its strikes. The union now
negotiates with General Motors (NYSE:GM)
and Stellantis (NYSE:STLA). In the
USA, the strike affected the production of popular
models. Ford is preparing contingency plans for possible
strikes in the US and continues negotiations with the UAW, which is
demanding higher wages and benefits. Shares of Ford and
General Motors returned to the levels they had before the
strike. However, with the United Auto Workers deadline coming
up on Friday, these stocks could come under pressure again
soon.
Tesla (NASDAQ:TSLA) – Federal
investigators are expanding their probe into benefits provided by
Tesla to CEO Elon Musk since 2017. Elsewhere, Tesla’s global
expansion has led countries to court Elon Musk for
investment. The Turkish president has requested a factory,
while Saudi Arabia is negotiating with Tesla. Musk envisions a
new location by the end of 2023. India and Mexico are also
considered. Additionally, the Commonwealth Bank of Australia
has partnered with Tesla for electric vehicle
financing. Customers can apply for loans through the Tesla
website at 5.49% per year. CBA seeks to drive sustainable
purchasing with affordable financing.
Nio (NYSE:NIO) – Nio Inc raised $1 billion
through convertible bonds to pay down debt and strengthen its
balance sheet. With interest ranging between 3.875% and
4.625%, it plans to use part of the money to repurchase existing
debt.
Boeing (NYSE:BA) – Boeing raised its
forecast for plane deliveries to China to 8,560 by 2042, due to
economic growth and demand for domestic travel. The company
remains optimistic about the Chinese market despite challenges with
the 737 MAX.
TotalEnergies (NYSE:TTE) – TotalEnergies
SE and Adani Green Energy Ltd. have formed a $300 million joint
venture to expand clean energy projects. The deal comes after
allegations of fraud against the Adani Group. Total will own
50% of the company, strengthening its presence in the Indian
renewable energy market.
Goldman Sachs (NYSE:GS) – Goldman Sachs is
in talks to sell its GreenSky unit to investors
including Sixth
Street (NYSE:TSLX), Pacific Investment
Management and KKR (NYSE:KKR)
for about $500 million, a significant drop from the U.S. $1.7
billion paid 18 months ago. The move comes after less
profitable efforts in consumer banking. Goldman shares are
flat in premarket trading Wednesday.
HSBC (NYSE:HSBC) – HSBC has hired eight
former Credit Suisse professionals to expand its global equities
business in locations including London, New York and Hong
Kong. The hires include Simon Farquharson and Tiffany Chiu,
aiming to compete with Wall Street rivals.
Paypal (NASDAQ:PYPL), Block (NYSE:SQ)
– PayPal and Square (Owned by Block) are undergoing changes, with
new CEOs set to take over soon. Despite declining stock prices in
recent years, these changes are expected to drive the companies
forward. PayPal had plans to expand its services but shifted focus
towards profitability. PayPal’s CEO, Dan Schulman, will be replaced
by Alex Chris, while Jack Dorsey will take the helm at Square
following Alyssa Henry’s departure. Reactions to the changes have
been mixed, but analysts see long-term potential. Both companies
have stocks trading below historical averages, indicating potential
value or future risks.
Coinbase (NASDAQ:COIN) – Coinbase
intensified campaign for regulatory clarity. The
cryptocurrency exchange is releasing ads and encouraging users to
pressure Congress to pass crypto legislation. On September 27,
executives from 35 crypto companies will meet at the Capitol.
Ford Motor (NYSE:F)
Gráfico Histórico do Ativo
De Set 2024 até Out 2024
Ford Motor (NYSE:F)
Gráfico Histórico do Ativo
De Out 2023 até Out 2024