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postUS stock futures nudged slightly lower Wednesday morning as Wall Street waited for the Federal Reserve’s final policy decision of the year.
Dow Jones Industrial Average futures (YM=F) and contracts tied to the S&P 500 (ES=F) fell about 0.1%. Futures on the Nasdaq 100 (NQ=F) dropped 0.2%.
The relatively muted action follows several sessions of sideways trading as investors hold off on big bets ahead of the Fed’s announcement. Markets are pricing in a nearly 90% chance the central bank will deliver its third consecutive quarter-point rate cut, according to the CME FedWatch tool.
But the decision isn’t without tension. FOMC members remain split, with some officials arguing that easier policy is needed to support a cooling labor market, others warn further easing could risk reigniting inflation. Traders will be watching the post-meeting statement, set for release at 2 p.m. ET Wednesday, and Chair Jerome Powell’s press conference for clues on how the committee is thinking about the path forward.
Meanwhile, global bond yields rose to highs last seen in 2009 ahead of the decision, a sign investors are concerned that interest-rate cutting cycles from the US and elsewhere may be ending soon. Silver (SI=F) extended gains after breaking above $60 an ounce for the first time.
In corporates, GameStop (GME) stock fell 6% before the bell on Wednesday after missing quarterly revenue estimates on Tuesday. US manufacturer GE Vernova (GEV) shares rose 10% during premarket trading after doubling its dividend. And Cracker Barrel (CBRL) fell 8% after reporting lower-than-expected sales in its fiscal first quarter after backlash around its logo change.
The tech trade will get a key test Wednesday with an earnings report from Oracle (ORCL), as Wall Street increasingly looks to the cloud firm as proxy for the AI trade. Broadcom (AVGO), Costco (COST), and Lululemon (LULU) are set for earnings reports on Thursday.
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Cracker Barrel falls after lowering revenue forecast as traffic falls after logo blowup
Cracker Barrel (CBRL) stock fell 8% before the bell on Wednesday after posting lower-than-expected sales in its fiscal first quarter and trimming its revenue forecast for the year.
The Associated Press reports:
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There’s no guarantee the Fed’s rate cuts will lower the rates that matter
A few common trends exist now, post-pandemic, such as a resilient American consumer, but one of the most puzzling inconsistencies has to be the reaction of bond markets, rattled by uncertainty.
Yahoo Finance’s Senior Reporter Hamza Shaban looks at why the bond market and the Federal Reserve rate cuts might be out of alignment.
Read more here.
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GameStop stock falls after company reports revenue decline
GameStop (GME) stock pulled back 6% in premarket trading after the company posted third quarter revenue that fell short of estimates.
In the third quarter, revenue fell to $821 million for the period, compared to $860.3 million in Q3 last year. Wall Street analysts were expecting sales of $987 million, according to S&P Global Market Intelligence.
The company reported diluted profits of $0.24 per share, compared to estimates of $0.20.
GameStop, which became synonymous with the meme stock trade in 2021, has followed the playbook set by Michael Saylor’s Strategy to accumulate bitcoin for a corporate treasury.
GameStop’s bitcoin holdings were valued at $519.4 million at the close of the quarter, compared to $528.6 million at the end of the second quarter.
Reuters reports:
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GE Vernova jumps on double dividend, citing AI as key driver
GE Vernova Inc. (GEV) stocks rose 6% before the bell on Wednesday after doubling its dividend.
The US manufacturer showered shareholders with rewards in the latest sign that demand for new natural gas-fired power will remain robust for years into the future.
Bloomberg News reports:
Read more here.
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Silver blows past $60, setting new record
Bloomberg reports:
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