Waiting time on Wall Street before the Federal Reserve


DOW JONES futures fell 0.10% to 32,651 points, while S&P 500 futures fell 0.01% to 3,865 points. NASDAQ 100 futures rose 0.11% to 11,344 points.

All eyes are on today at the Federal Reserve. The institution is expected to announce a rate hike of 0.75 percentage points, its fourth consecutive increase of that amount, as part of its efforts to contain the inflationary spiral. But beyond this rate hike, investors will look above all, either in the statement itself or in Jerome Powell’s subsequent press conference, for a sign that the central bank is prepared to slow the pace of monetary tightening in December. .

“We are looking for some guidance… 75 are expected [puntos básicos], that is going to hit, but what is going to be the future orientation? It’s about what’s to come and the pace of the next hikes,” Victoria Greene, chief investment officer at G Squared Private Wealth, told CNBC.

The central bank’s decision will come after the publication of mixed economic data in recent days. The ISM manufacturing index showed that the share of companies reporting expansion in October was 0.9 percentage point lower than in September. For its part, the JOLTS report showed 1.9 job offers for every available worker.

“Not a good number for the Federal Reserve, as the job market remains very tight,” explains Greene. “So I think they are still between a rock and a hard place. They will have to go up. Nobody likes it. Everyone wants them to stop, but it’s like a car crash in slow motion. They can’t stop going up.”

Today investors will also know the weekly data on mortgage applications and the ADP report on the evolution of employment in the private sector in October, which will serve as a prelude to the employment data and the unemployment rate that will be known on Friday.

As for the protagonists of the day, Match Group, owner of Tinder, Hinge and OkCupid, stands out, which soars 16% after financial income exceeded analyst estimates and the company promised to control costs to prepare for less rosy economic prospects.

Sales for the quarter were $809.5 million, up 1% from a year ago. Match also outlined plans to control costs: “As we expect a challenging operating environment for the foreseeable future, we plan to accelerate our efforts to control costs, especially in personnel-related expenses and marketing spending, in other areas of the business. business”, he points out in the letter to the shareholders.

Also up for Mondelez, which has raised its sales and profit forecasts after posting third-quarter results that beat expectations. Sales were 7.76 billion dollars, 8.1% more than a year ago. CEO Dirk Van de Put said: “Our performance in the third quarter demonstrates the resilience of our snack categories, the strength of our brands, broad-based net revenue growth from both our emerging and developed markets, the execution of effective pricing and strong volume growth, allowing us to increase our full-year revenue and earnings outlook.”

Investors will also have to closely monitor the price of Advanced Micro Devices, after presenting better-than-expected results but once again generating doubts about the future. Revenue for the quarter was $5.6 billion, while adjusted earnings were 67 cents per share. Fourth quarter revenue guidance is between $5.2 billion and $5.8 billion, below Wall Street expectations.

In raw materials, oil prices turn around after the advances of the last few days and register slight decreases, with a barrel of West Texas falling 0.16% to 88.36 dollars, and the Brent Oil Futures of reference in Europe leaving 0.18% to 94.64 dollars per barrel.

Yesterday, black gold rose sharply on rumors that China could end its Covid Zero policy from March next year, and on the surprise drop in inventories in the US.

In currencies, the dollar fell 0.18% against the euro to establish a cross of 0.9893 dollars for each single currency.

In the fixed income market, the ten-year debt bond awaits the Federal Reserve with a yield of 4.046%, while the two-year bond pays 4.52%.

reference: www.estrategiasdeinversion.com


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