US stock futures struggle to maintain earnings after GDP data

US stock futures rallied on Wednesday, leaving Wall Street likely on track for a third straight day of losses as investors worry that soaring inflation is hurting the world’s largest economy and hurting corporate profits.

How are futures traded on a stock exchange?
  • S&P 500 futures contracts ES00,
    + 0.07%
    changed little at 3,826.5

  • Dow Jones Industrial Average YM00 futures,
    + 0.26%
    rose 60 points, or 0.3%, to 30,993

  • Nasdaq-100 NQ00 futures contracts,
    -0.10%
    was almost constant at -11.673

On Tuesday, the Dow Jones Industrial Average DJIA,
+ 0.09%
fell 491.27 points, a percentage of 1.6%, closing at 30,946.90. The S&P 500 SPX,
-0.22%
fell 2% and closed at 3,821.55 points. The Nasdaq Composite COMP,
-0.47%
fell 3% to 11,181.50.

All three recorded their worst daily percentage drop since June 16, according to Dow Jones market data.

What drives the markets?

According to US financial data, the GDP of the first quarter was revised to show a decline of 1.6%, compared to the previous decline of 1.5%.

Investors also expect Federal Reserve Chairman Jerome Powell, European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Augustin Carstens, head of the Bank for International Settlements, to speak at an ECB conference on 9 a.m. ET.

The shares are limping towards the end of a miserable first half. The S&P 500 has fallen 19.6% so far in 2022, driven by concerns that decades-high inflation rates are seriously hurting the household climate and that the Federal Reserve’s response to rising prices could lead the economy into recession. .

Reading: What follows for the stock market after the worst first half since 1970? Here is the story.

On Tuesday, the Conference Board Consumer Confidence Index fell to a 16-month low of 98.7 in June, with the outlook for the economy being the most cautious in nearly 10 years. The news helped turn early earnings for Wall Steet into heavy losses, with the Nasdaq Composite falling 3%, leaving the tech index losing 28% for the year to date.

“Last week, US stock markets rallied on the occult logic that a downturn in the US would mean lower Fed terminal interest rates and were therefore bullish on stocks. “Michigan climate,” said Jeffrey Halley. , senior market analyst at OANDA, in a note to customers.

On Tuesday, “even weaker data on the consumer confidence of the US Congress Council provoked the opposite reaction, with US stocks falling sharply,” he added.

I see: Wall Street’s favorite stock market has a potential upward trend of 43% as we enter the second half of 2022

The Wall Street dive has left Asian and European stock markets faltering. Hang Seng HSI of Hong Kong,
-1.88%
fell 2% and the Nikkei 225 NIK,
-0.91%
in Japan it slipped 0.9%. Shanghai SHCOMP Complex of China,
-1.40%
fell 1.4% after President Xi Jinping reiterated that the regime ‘s strict policy on COVID-19 was “correct and effective”.

The comments fueled concerns that supply constraints in China could exacerbate global inflationary pressures. And similar concerns emerged in Spain on Wednesday, where data showed prices rose 10.2% in June, their fastest pace in 37 years. Europe’s Stoxx 600 SXXP,
-0.66%
fell 0.8%.

Oil prices rose higher, with crude WTI CL.1,
+ 1.28%,
strengthened 1.5% to $ 113.41 a barrel.

The yield on the US 10-year bond TMUBMUSD10Y,
3.159%
decreased by 1.3 basis points to 3.167%.

Companies in focus
  • His shares Pinterest Inc.
    PINS,
    -1.04%
    Preliminary transactions rose 4.6% on Tuesday after social media company said co-founder Ben Silbermann was stepping down as CEO and being replaced by an e-commerce executive from Google.

  • Bed Bath & Beyond Inc.
    BBBY,
    -22.36%
    Shares fell 13% in Wednesday’s preliminary trading following the announcement of disappointing first-quarter fiscal results and the dismissal of its chief executive, Mark Tritton.

  • General Mills Inc.
    GIS,
    + 3.05%
    Shares fell 1.1% despite exceeding quarterly expectations. The company posted a net profit of $ 822.8 million for the fourth quarter, or $ 1.35 per share, nearly double the $ 416.8 million, or 68 cents per share, last year. Custom EPS $ 1.12, before FactSet consent for $ 1.01 per share.

Other assets
  • The ICE DXY Dollar Index
    + 0.23%
    fell 0.01%.

  • Bitcoin BTCUSD,
    -1.11%
    fell 4.6% to trade near $ 20,120.

  • August GCQ22 Gold Fulfillment Contracts,
    + 0.57%
    gained $ 6.30 or 0.4% to $ 1,827.90 an ounce.

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