Comerica Bank CIO John Lynch shares his expertise on FAANG stock investing.
U.S. stock futures ticked higher Wednesday as investors sorted through earnings from several Big Tech companies ahead of the Federal Reserve’s latest policy decision.
Dow Jones Industrial Average futures rose 5 points, or 0.01%, while S&P 500 futures and Nasdaq 100 futures edged up 0.12% and 0.32%, respectively. The major averages on Tuesday fell from record highs while snapping their five-day winning streaks.
The Fed, at the conclusion of its two-day meeting on Wednesday, is expected to keep both its asset purchase program and interest rates unchanged. Instead, Fed watchers will focus on any clues the central bank gives about the upcoming changes to its policy.
FED MEETING AS SURGING INFLATION, RISING COVID-19 CASES RATTLE US ECONOMIC RECOVERY
In stocks, Apple Inc. beat on both the top and bottom lines as every product line posted annual sales growth of at least 12%. However, the tech giant warned the chip shortage would impact iPhone and iPad sales in the current quarter.
Microsoft Corp. posted record quarterly profit as revenue from its Azure cloud service soared 51%. Sales guidance for the current quarter exceeded expectations.
Alphabet Inc. revenue surged to a record as advertising sales rose almost 70%, benefitting from the online shopping boom caused by the pandemic. The company’s Google Cloud business, which trails rivals from Amazon and Microsoft, narrowed operating loss.
Boeing Co. booked its first quarterly profit in almost two years as 737 MAX deliveries picked up amid a reopening of the global economy. The plane maker said it expects to increase 737 MAX production from its current pace of 16 per month to 31 per month by early next year.
McDonald’s Corp. said U.S. same-store sales climbed 25.9% versus a year ago as demand for its new chicken sandwich and a promotion with K-pop group BTS provided a lift. Global same-store sales were up 40.5% from a year ago as the easing of more overseas restrictions bolstered those markets.
Starbucks Corp. slashed its sales growth forecast for China, projecting annual growth of 18% to 20%, down from 27% to 32%, due to travel restrictions. Earnings and revenue for the quarter both outpaced estimates as global same-store sales jumped 73%.
Facebook Inc. will release its quarterly results after Wednesday’s opening bell.
In commodities, West Texas Intermediate crude oil rose 34 cents to $71.99 a barrel and gold slipped 80 cents to $1,799 an ounce.
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Overseas markets were mixed.
European bourses rallied across the board with France’s CAC gaining 0.68%, Britain’s FTSE 100 up 0.22% and Germany’s DAX 30 higher by 0.21%.
In Asia, Hong Kong’s Hang Seng index advanced 1.54% while Japan’s Nikkei 225 and China’s Shanghai Composite slid 1.39% and 0.58%, respectively.
