Futures Pointing To Initial Strength On Wall Street
07 Fevereiro 2024 - 11:12AM
IH Market News
The major U.S. index futures are currently pointing to a higher
open on Wednesday, with stocks likely to add to the modest gains
posted during yesterday’s choppy trading session.
The markets may benefit from recent upward momentum, which
helped lift the Dow and S&P 500 to record highs last week
despite waning optimism about the Federal Reserve cutting interest
rates in March.
While CME Group’s FedWatch Tool suggests the chances of March
rate cut are just 20.5 percent, the Fed is still expected to begin
lowering rates sometime in the coming months.
Recent upbeat economic data has seemingly reduced the likelihood
of a near-term rate cut but a strong economy is still seen as a net
positive for stocks.
A positive reaction to some of the latest earnings news may also
generate buying interest, with shares of Enphase Energy
(NASDAQ:ENPH) soaring in pre-market trading after the solar
inverter maker reported weaker than expected fourth quarter
revenues but said it expects demand to improve throughout 2024.
Auto giant Ford (NYSE:F) is also likely to see initial strength
after reporting better than expected fourth quarter results,
providing upbeat guidance for 2024 and announcing a supplemental
dividend of 18 cents per share.
On the other hand, shares of Snap (NYSE:SNAP) are plummeting in
pre-market trading after the Snapchat parent reported mixed fourth
quarter results and forecast first quarter sales below analyst
estimates.
Following the significant volatility seen over the past few
sessions, stocks showed a lack of direction throughout the trading
day on Tuesday. The major averages spent the day bouncing back and
forth across the unchanged line before eventually closing modestly
higher.
The Dow climbed 141.24 points or 0.4 percent to 38,521.36, the
S&P 500 rose 11.42 points or 0.2 percent to 4,954.23 and the
Nasdaq inched up 11.32 points or 0.1 percent to 15,609.00.
The choppy trading on Wall Street came as some traders seemed
reluctant to make significant moves amid uncertainty about the
near-term outlook for the markets the following recent
volatility.
Stocks fell sharply following the Federal Reserve’s monetary
policy announcement last Wednesday but rebounded to record highs
over the following two sessions only to pullback sharply once again
in early trading on Monday.
While the major averages climbed well off Monday’s early lows,
fading optimism the Fed will lower interest rates in March
continued to hang over the markets.
A lack of major U.S. economic data also kept some traders on the
sidelines following several key events last week.
Among individual stocks, shares of Palantir Technologies
(NYSE:PLTR) skyrocketed by 30.8 percent after the data analytics
provider reported better than expected fourth quarter revenues amid
strong demand for its artificial intelligence offerings.
Audio streaming service provider Spotify (NYSE:SPOT) also jumped
by 3.9 percent after reporting stronger than expected fourth
quarter subscriber growth and providing upbeat guidance.
On the other hand, shares of Rambus (NASDAQ:RMBS) plunged by
19.2 percent after the chipmaker reported a year-over-year decline
in fourth quarter revenue.
While most of the major sectors showed only modest moves on the
day, airline stocks showed a substantial move back to the
upside.
Reflecting the strength in the sector, the NYSE Arca Airline
Index soared by 5.3 percent after plunging by 2.9 percent on
Monday.
Considerable strength was also visible among oil service stocks,
as reflected by the 2.0 percent jump by the Philadelphia Oil
Service Index. The strength in the sector came amid an increase by
the price of crude oil.
Biotechnology, commercial real estate and healthcare stocks also
moved notably higher, while semiconductor stocks showed a
significant move to the downside.
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