US markets are set for a mixed opening ahead of the Federal Reserve’s interest rate decision. S&P 500 futures slightly rose after closing Tuesday’s trading session lower. Nasdaq 100 futures were also positive after taking a steep dive in Tuesday’s trading session. Futures contracts tied to the Dow Jones Industrial Average remained unchanged signaling a mute opening for the index.
US Market Concerns
The S&P 500 index closed the markets in the red on Tuesday after a slight increase in CB Consumer Confidence. The Consumer Confidence for July advanced 129.1 up from 128.9 in June. Economists expect the third quarter to kick off even stronger.
US Treasury yields climbed on Wednesday ahead of the Fed’s interest rate decision. The yield on the benchmark 10-year Treasury note rose to 1.258%. The yield on the 30-year Treasury bond advanced to 1.911%.
The Federal Reserve will issue a statement later today after its two-day policy meeting. Investors are eyeing Jerome Powell’s speech to the media hoping to get clues on the timeline of the monetary policy tapering.
The Federal Open Market Committee (FOMC) will issue its monetary policy statement later in the day amid concerns about rising inflation. According to Powell’s latest statement on the Fed’s stimulus, the Fed is not yet ready to scale down its stimulus until the jump in inflation proves to be stable.
Oil prices jumped on Wednesday after data indicated a steep decline in US crude and product inventories last week. However, analysts expect the growth in demand to outperform supply growth amid surging coronavirus cases.
US West Texas Intermediate (WTI) crude advanced 1.02% to trade at $72.38 per barrel. Brent crude rose 0.81% to $75.08 rebounding Tuesday’s losses.
S&P 500 Pre-Market Movers
Alphabet Inc led the gains in the S&P 500 premarket trade. The multinational conglomerate gained 3.61% in its stock price. The company’s second-quarter earnings beat Wall Street estimates. Its profit was $27.26 per share, topping the estimate of $19.35.
ANSYS Inc is an American software company. Its stock price was up by 2.71% ahead of its earnings report. The company is expected to release its second-quarter earnings report on 4th August after the closure of the market.
Boston Properties is a real estate investment trust company. The company’s stock price advanced 2.54%. The company announced its second-quarter earnings which topped analysts’ forecasts. Its earnings were $0.71 per share on revenue of $713.8 million.
On the flipside, Juniper and Starbucks were among the laggards in the index.
Juniper is an American Multinational networking corporation. The company lost 6.04% in premarket trade despite posting positive quarterly earnings. Its net revenues for the second quarter were $1.17 million which was an 8% yearly increase.
Starbucks is famous for its coffee. The world’s largest coffeehouse chain slipped 2.48% in premarket trade. The company reported $7.5 billion in its sales for its fiscal third quarter ending in June. However, the company is facing supply shortages, as well as staffing problems.