Adviser Investments CIO Jim Lowell argues investors don’t want to purchase ETFs and suggests buying ‘inside basket’ in a ‘selective manner.’
U.S. equity futures were poised to add to gains Wednesday morning after Wall Street rebounded as investors waited for U.S. inflation data that might influence the pace of Federal Reserve interest rate hikes.
The major futures indexes suggest a gain of 0.4% when the opening bell rings on Wall Street.
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Investors are waiting for U.S. inflation data Thursday for signs of how quickly the Fed might pull back record-low interest rates and other stimulus to try to cool surging prices.
It will be another busy day on the earnings front. CVS Health, Fox News and Fox Business parent Fox Corporation, Yum Brands, and Israeli drug maker Teva Pharmaceuticals will report in the morning. After the close, Dow member Disney takes center stage. Also watch for results from ride-hailing pioneer Uber Technologies, casino operator MGM Resorts International, and toymaker Mattel.
In Europe, London’s FTSE added 0.4%, Germany’s DAX gained 0.9% and France’s CAC rose 1.1%.
In Asia, the Nikkei 225 in Tokyo gained 1.1%, the Hang Seng in Hong Kong was 2.1% higher and China’s Shanghai Composite Index advanced 0.8%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35462.78 | +371.65 | +1.06% |
| SP500 | S&P 500 | 4521.54 | +37.67 | +0.84% |
| I:COMP | NASDAQ COMPOSITE INDEX | 14194.454609 | +178.79 | +1.28% |
On Wall Street, the benchmark S&P 500 rose 0.8% to 4,521.54. The index is now about 5.7% below its Jan. 3 high.
The Dow Jones Industrial Average gained 1.1% to 35,462.78. The Nasdaq composite advanced 1.3% to 14,194.45.
PELOTON REMOVES CEO JOHN FOLEY, SLASHES SALES OUTLOOK, JOB CUTS PLANNED
Peloton sidelined CEO John Foley amid the company’s turmoil. The stock curbed losses ending with a gain of over 26%. He will move to the role of executive chair, replaced by Barry McCarthy. The company also slashed its revenue outlook to $3.8 billion from as much as $4.8 billion. Additionally, the cycling giant will cut 2,800 jobs.
Technology companies accounted for a big slice of the S&P 500′s rally. Apple rose 1.8%.
Chipmaker Nvidia rose 1.5% after announcing it terminated its plan to buy chip designer Arm from SoftBank.
TOYOTA MOTOR’S THIRD-QUARTER NET PROFIT FALLS 5.6% AS PARTS SHORTAGE HURTS SALES
Toyota’s profit slipped nearly 6% last quarter, the Japanese automaker said Wednesday, highlighting the headwinds automakers are facing in a computer chips crunch caused by the coronavirus pandemic.
Honda’s profit dropped 32% in the last quarter as rising material costs and a shortage of computer chips hurt the Japanese automaker, according to the Wall Street Journal.
Bitcoin traded around $43,000.
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In energy markets, benchmark U.S. crude gained 5 cents to $89.43 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.96 the previous session to $89.36. Brent crude, the price basis for international oils, rose 9 cents to $90.87 per barrel in London. It lost $1.91 on Tuesday to $90.78.
The Associated Press contributed to this report.
