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Dow Futures Lift Ahead of Fed Rate Decision

Published 04/05/2022, 08:19 am
Updated 04/05/2022, 08:42 am
© Reuters.
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By Oliver Gray 

Investing.com - Dow futures were trading higher in overnight deals as investors monitored fresh corporate earnings reports ahead of the Federal Reserve’s interest rate decision, with market participants widely expecting officials to hike rates by half a percentage point.

By 6:50pm ET (10:50pm GMT) Dow Jones Futures added 0.1%, S&P 500 Futures gained 0.2% and Nasdaq 100 Futures lifted 0.3%

In extended deals, LYFT Inc (NASDAQ:LYFT) plummeted 26.2% after reporting losses of 57 cents per share versus losses of 10 cents expected on revenues of $875.6 million versus the consensus estimate of $846 million. The company also shared guidance for the second quarter that fell below analysts’ estimates.

Uber Technologies Inc (NYSE:UBER) also dipped 4.4% following Lyft 's results.

Livent Corp (NYSE:LTHM) gained 19.7% as the company reported Q1 EPS of 28 cents versus 13 cents expected, while revenue for the quarter came in at $143.5 million versus the consensus estimate of $139.65 million.

Infinera Corporation (NASDAQ:INFN) fell 18.6% after reporting losses per share of 7 cents, worse than the analyst estimates of 4 cents, while revenue for the quarter came in at $338.9 million versus the consensus estimate of $361.74 million.

Airbnb Inc (NASDAQ:ABNB) jumped 6.7% in extended trading after the company reported a beat on the top-and-bottom-lines, with losses per share coming in at 3 cents versus 25 cents expected on revenues of 1.51 billion versus 1.45 billion expected. The company also issued upbeat guidance for the current period.

Advanced Micro Devices Inc (NASDAQ:AMD) gained 6.8% following a beat on the top-and-bottom lines. Q1 EPS came in at $1.13 versus 91 cents expected, while revenue came in at $5.9 billion versus the consensus estimate of $5.52 billion. AMD saw 71% sales growth in the quarter and shared strong revenue guidance for the current quarter and the year.

Starbucks Corporation (NASDAQ:SBUX) lifted 5.1% after the company reported earnings per share of 59 cents, in line with expectations, while revenues came in at $7.64 billion versus $7.60 billion expected.

Match Group Inc (NASDAQ:MTCH) lost 6.1% despite reporting stronger than expected earnings per share and revenues. The company also noted that CEO Shar Dubey would step down on May 31 and Bernard Kim, president of Zynga, will take over.

Meantime, market participants are preparing for a hawkish Fed and the central bank is also expected to announce a plan to cut its roughly $9 trillion balance sheet by $95 billion a month, beginning in June. Investors are also looking ahead to further earnings reports from CVS Health Corp (NYSE:CVS), Uber Technologies Inc (NYSE:UBER) and Yum! Brands Inc (NYSE:YUM) on Wednesday.

During Tuesday’s regular deals, the S&P 500 rose 0.48% to 4,175.5, the Dow Jones Industrial Average lifted 67.29 points or 0.2% to close at 33,128.8 and the NASDAQ Composite added 0.22% to 12,563.8.

On the bond markets, United States 10-Year Treasury yields eased from fresh 3-year highs to 2.979%.

On the data front, factory orders for March rose 2.2%, better than expected while JOLTS job openings posted a fresh all-time high of 11.55 million.

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