Thornburg Investment president and CEO Jason Brady provides insight into how the Fed raising rates will impact the financial economy.
U.S. equity futures traded higher Wednesday morning ahead of an expected interest rate increase from the Federal Reserve.
The major futures indexes suggest a gain of 0.3% when trading begins on Wall Street,
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The Federal Reserve is expected to announce the second of several anticipated increases this year as the central bank seeks to combat soaring inflation, which is at a high not seen in four decades.
Fed Chairman Jerome Powell (Fox News Channel)
Fed Chairman Jerome Powell confirmed last month that central bank officials are likely to raise interest rates by a half-point in May and subsequent months.
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Before that announcement, traders will study the first of this week’s labor-related reportings leading to Friday’s release of the monthly jobs report.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York. (REUTERS/Brendan McDermid / Reuters Photos)
The payroll processing firm ADP releases its National Employment report for April Wednesday. Economists are looking for a gain of 395,000 private-sector jobs, trailing March’s tally of 455,000.
The Commerce Department is out with the U.S. trade balance for March. The monthly deficit in goods and services is expected to surge to a record $107.0 billion, up sharply from the previous record of $89.2 billion amid huge demand for imported goods and rising prices tied to inflation.
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The Institute for Supply Management releases its non-manufacturing PMI for April. This important gauge of services sector activity is expected to edge higher to 58.5, up from 58.3 in March. A reading above 50 indicates expansion.
Expect another busy day on the earnings front, with CVS Health, Johnson Control, Moderna, Dish Network and Marriott International among the names reporting ahead of the opening bell. In the afternoon, we’ll hear from MetLife, Allstate, Uber and Ebay.
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After Tuesday’s closing bell, Starbucks reported record quarterly sales of $7.6 billion, which matched Wall Street’s estimates. Adjusted earnings of 59 cents per share fell short of estimates. Shares rose 5% in after-hours trading.
Shares of Lyft Inc. plunged 26% after the ride-share company said it would have to spend more to attract drivers and forecast operating earnings less than Wall Street estimates. Uber Technologies fell 11% in after-hours trade following Lyft’s report.
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Oil prices rose Wednesday morning following a drawdown in U.S. crude and fuel stockpiles and concerns about slowing demand from China.
West Texas Intermediate crude futures rose $3.82, or 3.7%, to $106.25 a barrel.
Brent futures rose $3.74, or 3.5%, to $108.71 a barrel.
Bitcoin traded around $38,000.
In Asia, Hong Kong’s Hang Seng dropped 1.1%. Markets in Japan and China were still closed for holidays.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 33128.79 | +67.29 | +0.20% |
| SP500 | S&P 500 | 4175.48 | +20.10 | +0.48% |
| I:COMP | NASDAQ COMPOSITE INDEX | 12563.757419 | +27.74 | +0.22% |
On Wall Street Tuesday, the S&P 500 ended 0.5% higher at 4,175.48. The Dow Jones Industrial Average rose 0.5% to 33,128.79 and the Nasdaq inched up 0.2% to 12,563.76.
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The yield on the 10-year Treasury fell to 2.97% from 2.99% late Monday.
The Associated Press contributed to this report.
